PROPERTY developer DoubleDragon Properties Corp. is eyeing to end this year with 50 new malls in line with its vision to be 90 percent recurring income-driven by 2020.
In a statement on Friday, DoubleDragon said it was eyeing to expand its CityMalls business by 25 across the country. Of the existing 25, the company said 95.3 percent is already leased out to tenants.
In just three years, the property developer was able to construct 332,500 square meters (sqm) of leasable space. It said it expects that over 50 percent of the target leasable portfolio will already come online and shall start contributing to the firm’s profit by 2019.
“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,” DoubleDragon Chief Investment Officer Hannah Yulo said.
“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,” she added.
Last year, DoubleDragon’s recurring revenues boosted its net income to P2.53 billion, higher by 71.8 percent than the P1.47 billion reported in 2016.
Recurring revenues—which now account to 19.8 percent of DoubleDragon’s total revenues—rose by 3.76 times to P1.31 billion in 2017 compared with the P347.6 million a year earlier backed by strong growth coming from rental revenues which also grew 238.4 percent to P909.2 million last year versus the P268.7 million in the prior year.
Total assets, meanwhile, increased by 28.5 percent year-on-year to P64.3 billion following the completion of more projects which had driven a 42.7 percent spike in its P46.4 billion worth of investment properties as of end-2017.
Total equity was also up by 10.4 percent to P22.3 billion from the P20.2 billion recorded in 2016. DoubleDragon said this allowed the company to maintain a relatively low gross debt-to-equity ratio of 1.48 times versus its debt covenant cap of 2.33 times.
For its hotel business, DoubleDragon was able to incur P397.5 million in revenues year-on-year, a jump of 404 percent from the P78.9 million in 2016 backed by the full year contribution of its subsidiary Hotel of Asia, Inc. (HoA).
HoA currently has 866 operational rooms in its portfolio across its hotel properties that averaged 74.8 percent occupancy 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.
On the industrial warehousing business, DoubleDragon said it was able to secure two out of the eight CentralHub sites it intends to develop by 2020.
The company said it will develop at least 100,000 square meters (sqm) of leasable warehouse space contributing to its portfolio in the next two years. To date, DoubleDragon is underway construction of CentralHubs in Tarlac and Iloilo with a combined leasable area of 54,000 sqm.