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[av_heading heading=’DoubleDragon keeps growing stronger; to benefit from digitalization, prov’l retail transitions ‘ tag=’h3′ style=’blockquote modern-quote’ size=’30’ subheading_active=’subheading_below’ subheading_size=’15’ padding=’10’ color=” custom_font=” av-medium-font-size-title=” av-small-font-size-title=” av-mini-font-size-title=” av-medium-font-size=” av-small-font-size=” av-mini-font-size=” admin_preview_bg=”][/av_heading]
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Monday, November 20, 2017
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THE TOTAL revenues of DoubleDragon Properties Corp. rose to P4.08 billion in the first nine months of 2017 from P1.99 billion in the same period in 2016.
Net income in the first nine months of 2017 was up 83.7 percent year-on-year to P1.40 billion compared to P761 million in the same period last year.
Total revenues in the third quarter of 2017 reached P2.45 billion, 91 percent higher year-on-year compared to the P1.28 billion it booked in the same period last year.
Consolidated net income likewise rose 66 percent in the third quarter of 2017 to reach P1.02 billion compared to P616.8 million during the same quarter last year.
CityMall’s relevance in provincial areas is becoming more evident as it moves forward, driven by two ongoing transitions:
* organic shift from traditional retail to modern retail in the Tier 3 provincial areas of the country, and
* noticeable penetration of e-commerce in the Tier 1 urban areas of the country.
In parallel, these two transitions are expected to make expansion into CityMalls more critical to modern retail tenants seeking to hedge exposure against the disruptive digitalization of the retail environment in Metro Manila.
“We expect the inflection point of these transitions to be felt within the next three years, just in time for the completion of our goal of having a strong network of 100 CityMalls in provincial areas. We are glad that CityMall has already started to gain significant traction in the countryside, which we aim to dominate as we grow organically,” said DoubleDragon chairman, Edgar “Injap” Sia II.
The natural but inevitable change in the provincial retail market of a country does not happen often, said Sia, and “DoubleDragon is glad to have had the rare opportunity to be in the forefront of the modernization of the provincial retail environment.”
For the past three years, DoubleDragon had been planting the seeds and necessary groundwork that will enable it to play a major role in this retail transformation as it continue to provide modern retail tenants a growth platform to expand in what will essentially be their most important market as e- commerce continues to disrupt the urban market.
“The business model of CityMall is positioned to remain relevant beyond the age of digitalization because we focus on delivering only basic necessities, and generally, the supermarket, cinema, services and food tenants combined occupy more than 70 percent of a typical CityMall. CityMalls are also conveniently located in provincial city centers within close reach of its market,” said Sia.
DoubleDragon’s rental income in the first nine months of 2017 rose 194 percent year-on-year to P448 million compared to only P152.2 million in the same period last year.
Just this Nov. 8, DoubleDragon opened its 25th CityMall in Koronadal City, South Cotabato. This marked an important milestone for the company having a quarter of its targeted CityMalls already on stream and starting to contribute.
DoubleDragon’s newly formed subsidiary, CentralHub, also continue to progress forward with its first site CentralHub Tarlac.
“We foresee CentralHubs playing a major role as the consumer market of our country grows significantly and spreads out into the countryside,” said DoubleDragon CIO Hannah Yulo.
CentralHub offers modern industrial warehouses that are designed for lease as a warehouse, commissary, cold storage, light manufacturing facility or a logistics distribution center.
DoubleDragon has also positioned itself in the promising tourism prospects of the Philippines with the roll out of Jinjiang Inn and Hotel101 in various strategic major urban areas and tourist destinations in the country.
Hotel101 Fort is now on full swing construction and slated for completion by 2020.
DoubleDragon’s two Metro Manila office projects, Jollibee Tower and DD Meridian Park, are also well underway.
DoubleDragon Plaza, the first phase of DD Meridian Park, is expected to be completed by December this year ahead of schedule, while Jollibee Tower is expected to be completed as scheduled by December 2018.
Recurring revenue of DoubleDragon in the first nine months of 2017 reached P764 million, now forming 18.7 percent of total revenues versus only 7.7 percent of the total revenues in the same period last year as the company transitions in becoming more reliant in recurring revenue from its core projects.
“We are excited for 2018 which will mark a transformational year for DoubleDragon as it shifts from deriving its revenues and income from non-recurring sources to recurring sources as more of its core projects under construction start to turnover and start contributing. Year 2018 is also when the company expects to fully exit from its interim bridge projects like W.H. Taft Residences and The SkySuites Tower which it took over from previous developers as a tactical strategy to derive temporary revenues and income while it ramps up its recurring revenue from its core projects which are now starting to complete,” said Yulo.
“Coming from zero leasable space in 2013, DoubleDragon expects over 300,000 square meters of leasable space to be onstream by end of this year, all geared towards its 2020 goal of 1.2 million square meters of prime and appreciating leasable space portfolio,” said Sia./PN
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