(Philippine Star | 10 April 2017)
DoubleDragon Properties Corp., the listed property and mall developer of Mang Inasal founder Edgar “Injap” Sia II and Jollibee Foods Corp. chairman Tony Tan Caktiong, is going back to the debt market this year with a plan to raise P9.7 billion from the sale of retail bonds.
DoubleDragon chief investment officer Hannah Yulo said the P9.7 billion would be the company’s last fund raising for its program of having one million square meters of leasable space by 2020 which in turn, would churn in P4.8 billion in net income for the company.
“We are looking forward for our planned retail bond offering this year which will be the last fundraiser we need to complete our one million square meters of leasable space by 2020,” Yulo said.
On Friday, the company reported a 136 percent growth in consolidated net income to P1.47 billion last year from P623 million in 2015.
Recurring revenue, meanwhile, rose to P347.6 million in 2016 compared to only P116.5 million a year ago and from only P6.04 million in 2014.
By 2020, DoubleDragon’s target is to derive 90 percent of its revenue from recurring sources driven by the rental revenues to be generated by its planned one million square meter leasable portfolio while only 10 percent will be reliant on non-recurring sources.
To date, the company’s landbank is now sufficient to provide more than two thirds of the company’s planned rollout of leasable space by 2020.
Since its public listing in 2014, DoubleDragon has increased its portfolio of prime commercial properties from only 1.9 hectares pre- IPO to over 75 hectares of prime commercial properties across various cities today.
Furthermore, the company also maintained a healthy net debt-to-equity at a low of 0.92 times at the end of last year which is a substantial improvement from the previous year’s net debt-to-equity which was at 1.67 times.