DOUBLEDRAGON Properties Corp.’s Consolidated Net Income for the first half of 2018 has reached P1.26 billion, an increase of 234.2 percent compared to only P376.40 million during the same period last year.
Recurring revenues now account for 39 percent for the first half of 2018 against only 29 percent during the same period last year as the company becomes closer to its goal of becoming a 90 percent recurring revenue company by 2020.
More importantly, DoubleDragon’s recurring revenues has risen 216.5 percent to P883.29 million for the three months ending June 30, 2018 against only P279.12 million during the same period last year primarily from the growth of its rental revenues which grew 357.6 percent to P749.95 million during the three months ending June 30, 2018 compared to only P163.89 million during the same period last year.
For the three months ending June 30, 2018 the company’s Consolidated Net Income increased by 143.7 percent year-on-year to P513.5 million from P210.7 million during the same period last year.
Consolidated Total Assets of the company grew to P69.74 billion while Consolidated Total Equity grew to P23.22 billion as of June 30, 2018.
“This is the first time that the value of our Investment Properties has exceeded the P50 billion mark, now standing at P51.2 billion as of June 30, 2018 coupled with recurring revenues of P1.41 billion for the first half of 2018, almost triple that of the same period last year and rental income now at P1.16 billion for the first half of 2018, more than quadruple that of the same period last year,” said DoubleDragon chief investment officer Hannah Yulo.
According to Yulo, “Our financials are now clearly harvesting the hard work we have put into intricately building a valuable leasing portfolio. These are solid revenue contributions that are recurring in nature and will continue to grow organically as we increase our rental yields.”
Meanwhile, DoubleDragon chairman Edgar “Injap” Sia II said, “The reason why we are so fixated in hitting our 1.2-million square meter leasable target by 2020 is because the math is simple. With 1.2 million square meters of leasable space, yielding say an average of P750 per square meter per month by that time, this should give the company total annual recurring revenues of P10.8 billion.”
“This rental income practically translates to about 90 percent EBITDA margin because in addition to rent, developers collect CUSA/maintenance fees from tenants which covers operating expenses of each property,” said Sia.
According to Sia, cash flows generated from a recurring revenue business model is far more valuable than developmental income, since these generally need no further reinvestment for it to continue generating cashflows.
“We deem this as an ideal foundation for a dividend-yielding property company whose mission is to soon become one of the Top 5 listed property companies in the country,” added Sia.
DoubleDragon targets to complete a leasable portfolio of 1.2 million square meters by 2020 comprising of 700,000 square meters from 100 CityMalls, 300,000 square meters from its Metro Manila office projects DD Meridian Park and Jollibee Tower, 100,000 square meters from the planned 5,000 hotel rooms of Hotel101 and JinJiang Inn Philippines, and another 100,000 square meters of industrial space from various CentralHub sites across Luzon, Visayas and Mindanao.
DoubleDragon’s four pillars of growth continues to strengthen in provincial retail leasing, office leasing, industrial leasing and hospitality which will provide the Company with a diversified source of recurring revenues backed by a string of appreciating hard assets./PN
