LISTED developer DoubleDragon Properties Corporation posted a 6.6 percent rise in its net income in the first nine months of the year as additional mall openings boosted rental revenues.
In a financial report to the Philippine Stock Exchange on Tuesday, the company said its net income jumped to P761 million from P713.6 million in the previous year.
Total revenues climbed 15.4 percent in the nine-month period to P2 billion from P1.7 billion a year ago.
DoubleDragon attributed the rise to increased rental revenues, which jumped more than fivefold to P152 million from P28.5 million in the previous year driven by additional mall openings during the period.
Rental revenues for the third quarter of 2016 more than tripled to P59.7 million from P16.2 million in the previous year.
“We expect rental revenues to continue to gain momentum as we shift into the 90 percent recurring revenue business model by 2020,” DoubleDragon said.
Also contributing to the revenue growth were real estate sales from its interim projects such as W.H. Taft Residences, The SkySuites Tower, DD HappyHomes and Dragon8 Mall – Divisoria.
Real estate sales of the company during the period grew 19 percent year-on-year to P956.09 million.
“These interim non-recurring projects continue to fuel the Company’s revenue and income until 2018 while at the same time, the provincial community mall and Metro Manila commercial and office projects of the Company are building up,” it said.
On a quarterly basis, real estate sales jumped 38.8 percent to P424.57 million from last year’s P305.8 million.
Earlier this year, DoubleDragon completed its acquisition of a majority 70 percent stake in Hotel of Asia Inc. (HOA).
“Additional revenues from operating hotels of HOA will start to contribute to DD starting the 4th quarter of 2016,” the developer said.
“The whole DD team remains focused and determined towards its 2020 goals, because we believe that the successful execution of DD’s first stage of growth, which is the rollout of its 2020 vision, will bring about valuable structural foundation towards DD’s long-term prospects far beyond 2020,” Doubledragon chairman Edgar Injap said.