DoubleDragon profits surge as malls rise

(Source: Manila Bulletin | March 5, 2018)

DoubleDragon Properties Corporation (DD), the joint venture between Philippine fastfood gurus Edgar “Injap” Sia II and Tony Tancaktiong, reported a 71.8 percent jump in consolidated net income to P2.53 billion last year from P1.47 billion in 2016.

In a disclosure to the Philippine Stock Exchange, the firm said its recurring revenue has risen 3.76 times to P1.31 billion in 2017 compared to only P347.6 million the prior year.

This is primarily due to the 238.4 percent surge in its rental revenues to P909.2 million in 2017 compared to only P268.7 million the prior year.

Recurring revenue now accounts for 19.8 percent of DoubleDragon’s total revenues as it continues to pursue its goal of becoming a 90 percent recurring revenue company by 2020.

“I am personally glad for the progress we have made in the past three years as it has been essential in putting together the solid building blocks that will serve as the bedrock of a company designed and built to stand the test of time,” said Sia, DoubleDragon Chairman.

DoubleDragon Chief Investment Officer Hannah Yulo noted that, “with over 33 hectares of leasable space already built to date, we will very soon start to see substantial contribution from recurring revenue flowing into our financials.”

She added that, by the end of this year, we aim to have at least 60 hectares or 50 percent of our intended 2020 portfolio completed, which should be contributing on a full year basis by 2019. This will replace our temporary non-recurring revenues as we shift into becoming a recurring revenue focused company.”

The first 25 CityMalls are 95.3 percent leased out on the average. DoubleDragon expects a total of 50 completed CityMalls by the end of 2018.

The group’s hotel revenues rose 404 percent year-on-year to P397.5 million from only P78.9 million in 2016 due to the full year contribution of its hospitality subsidiary, Hotel of Asia Inc. (HOA) which was only acquired in October 2016.

HOA currently has 866 operational rooms in its portfolio across its hotel properties with an average occupancy rate of 74.8 percent in 2017.

DoubleDragon envisions being one of the leading hotel players in the country and is looking to increase its hotel roombase to 5,000 hotel rooms by 2020 through the rollout of its homegrown brand Hotel101 and Jinjiang Inn.

The company’s most recent foray into the industrial warehousing business has also seen substantial traction now having secured two of the eight CentralHub sites it intends to initially develop by 2020.

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