Property developers post higher profits as rental revenues rise

PROPERTY companies reported higher profits for the first three months of 2019, driven by sustained sales of residential condominiums and higher rental income.

DoubleDragon Properties, Corp. booked 46% higher net income attributable to equity holders of the parent to P767.3 million for the first quarter, thanks to the increase in rental and hotel revenues.

In a regulatory filing, the listed property developer said reported revenues grew by 33.5% to P2.44 billion year on year.

Recurring revenues soared 45% to P769.99 million, which now account for 31.5% of the total revenues. Rental revenues rose 53.1% to P627.21 million, as the first five office towers of DD Meridian Park and the first phase of CentralHub are now fully leased out. The CityMalls chain is 93% leased out.

Hotel revenues increased by 117% to P142.8 million, as Hotel101 and Jinjiang Inn Philippines reported an average occupancy of 83.4% during the three-month period.

ROCKWELL LAND
Rockwell Land Corp. reported a 36% increase in its net income attributable to equity holders to P715 million for the first quarter

In a regulatory filing, the Lopez-led developer said revenues went up 5% to P3.45 billion. Residential developments, which includes sale of condominium units, generated P2.86 billion in revenues. This segment accounted for 82% of the total revenues.

“EBITDA (Earnings before tax, depreciation, and amortization) from this segment amounted to P702 million, 26% higher than the same period last year at P557 million attributable to higher bookings of Proscenium and 32 Sanson projects slightly offset by The Vantage’s lower construction accomplishment for the period,” Rockwell said.

Commercial revenues, which contributed 16% to total revenues, grew by 30% to P562 million on higher occupancy of Power Plant Mall, RBC Sheridan and Santolan Town Plaza.

Retail operations, which include retail leasing and other mall revenues, posted P381 million in revenues. Cinema and office operations posted P53 million and P181 million in revenues, respectively.

Hotel operations accounted for 2% of the total revenues, generated P64 million in revenues.

ANCHOR LAND
Anchor Land Holdings, Inc. reported 23% higher net income attributable to equity holders of the parent at P128.1 million, as real estate sales and rental income increased.

In a disclosure to the stock exchange, Anchor Land said revenues jumped 30% to P1.62 billion year on year.

Real estate sales, which account for 79% of its total revenues, grew by 25% with sustained sales of units at Admiral Baysuites, Admiral Grandsuites and Anchor Grandsuites.

Anchor Land said new projects Copeton Baysuites, 202 Peaklane and 8 Alonzo Parksuites also fueled the increase in revenue.

Rental operations grew by 30%, with the continuous rise of occupancy in Solemare Parksuites, Monarch Parksuites, Oxford Parksuites, BayLife Venue and Kanlaon Tower.

“Moreover, the Group continues to generate recurring income from its warehousing facilities, namely One Soler and One Logistics Center, and from its warehouse and commercial centers pertaining to One Shopping Center and Two Shopping Center,” it said. — Vincent Mariel P. Galang