DoubleDragon Properties Corp. (PSE: DD) reports consolidated net income figures for the first quarter of 2019 has reached PhP1.07 billion, an increase of 43.3% compared to only PhP744.56 million during the same period last year. More importantly, DoubleDragon’s recurring revenues have risen 44.9% to PhP769.99 million for the first three months of 2019 vs. only PhP531.38 million during the same period last year, primarily from the growth of its rental revenues which grew 53.1% to PhP627.21 million during the first three months of the year compared to only PhP409.71 million during the same period last year. Recurring revenues now account for 31.5% of the company’s total revenues as it continues its shift towards its goal of becoming a 90% recurring revenue company by 2020.
The first five office towers of DD Meridian Park is now 100% leased out and will substantially contribute to consolidated rental revenues starting this year. The first phase of CentralHub is also 100% leased out. DD’s mall portfolio is averaging 93% leased out while its hotel segment enjoyed average occupancy of 83.4% for the first quarter of 2019 across all five operating hotels. The 518-room Hotel101-Manila was the company’s best performing hotel averaging 87.4% occupancy for the first quarter of 2019.
DoubleDragon now has a portfolio of 603,000 square meters of completed leasable space which have started to contribute but will be fully reflected by the second half of 2019. The company expects to further grow its portfolio to 800,000 square meters of completed leasable space across its various segments by the end of this year. As of the end of March 2019, consolidated total assets stood at PhP85.74 billion while total equity reached PhP33.75 billion. Debt-to-equity levels continue to improve now standing at 1.06x.
DoubleDragon has already secured leases amounting to PhP79.39 billion covering its existing properties. This is a milestone for the company as the amount of leases it has secured leases is more than 2x its total debt of PhP35.93 billion as of the end of March 2019.
“For the past five years, the whole DoubleDragon team have worked tirelessly towards this phase of the plan. From raising the funds needed and acquiring the right properties at the right price. The team has properly executed the construction of the buildings at the right price and within the earliest time-frame. These elements were vital to get to this important stage of leasing out the properties and securing the company’s return of investment. I am personally thankful for the whole DoubleDragon team who have accomplished all these stages in the last five years since DoubleDragon listed in April 2014 and have committed to our 2020 vision in completing the full circle of this phase of the company’s plan. Thereafter, we now again set our eyes into building an even bigger and stronger DD for 2020 and beyond,” said DoubleDragon Chairman Edgar “Injap” Sia II.
Historical Growth in First Quarter Recurring Revenue
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 pipeline 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 hotels which will provide the Company with a diversified source of recurring revenues backed by a string of appreciating hard assets.