LISTED property developer DoubleDragon Properties Inc. said its consolidated net income in 2016 more than doubled from the year-earlier level on the back of strong growth in recurring income.
The consolidated net figure rose 136 percent to P1.47 billion from P623 million in 2015.
Recurring revenue almost tripled to P347.6 million in 2016 from P116.5 million in the previous year.
The company said it expects earnings to jump further by 2020 upon the completion of its targeted one-million-square-meter leasable portfolio.
“The Company expects that by 2020 about 90 percent of its revenues will be coming from recurring sources driven by the rental revenues to be generated by its planned 1 million square meter leasable portfolio while only 10 percent will be reliant on non-recurring sources,” DoubleDragon said in a disclosure to the Philippine Stock Exchange (PSE) on Friday.
It said total assets grew more than 78 percent year-on-year to P49.5 billion at the end of 2016.
The increase in investment properties is due to the accumulation of the company’s landbank, which is now sufficient to provide more than two-third of the company’s planned rollout of leasable space by 2020, it said.
Since its initial public offering (IPO), 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 of the Philippines today, it said.
DoubleDragon said its financial strength has also largely improved as it ended 2016 with a cash balance of P5.47 billion.
“Last year was our biggest year in terms of fund-raising having successfully placed our first convertible preferred share offering and first retail bond, this has been essential in boosting the completion of our projects. In fact, due to strong tenant take-up at DD Meridian Park in the Bay Area we are looking to have the first few towers of DoubleDragon Plaza operational within the last quarter of this year when we had originally expected this to be operational in 2018 yet,” said Hannah Yulo, chief investment officer of DoubleDragon.
“We are looking forward for our planned retail bond offering this year, which will be the last fundraise we need to complete our one million square meters of leasable space by 2020, to which the strong recurring revenues will enable DoubleDragon to generate P4.8 billion net income by 2020,” she added.
DoubleDragon currently has two towers under construction, namely DD Meridian Park and Jollibee Tower. It currently has 15 operational CityMalls across the Philippines, all averaging over 95 percent leased out.
Thirty more CityMalls are under construction in various provinces and it is expecting 10 additional malls to open in the third quarter of 2017.
DoubleDragon is a newly listed real estate company and is led by Chairman Edgar Sia 2nd, founder of food chain Mang Inasal.