By Madelaine B. Miraflor
After seeing a surge in income and revenues in 2018, Double Dragon Properties, Corp. now expects to sustain its earnings growth towards the end of this year on the back of projected increase in rental income and higher hotel inventory.
(Photo courtesy of doubledragon.com.ph/)
In a disclosure to the Philippine Stock Exchange, Double Dragon reported that its net income in 2018 reached P7.42 Billion, an increase of 193.57 percent compared to net income of P2.53 billion in 2017.
Its recurring revenue, on the other hand, more than doubled to P3.03 billion in 2018 compared to only P1.31 billion the prior year primarily from the growth of its rental revenues.
Without citing any target, the company said 2019 will be a “significant year” primarily because of the firm’s portfolio of 603,000 square meters of leasable space. With that, Double Dragon expects its recurring income alone will be more than double the cost to service all its interest costs.
With this current completed leasable space alone, the company expects this to deliver an average of P5.4 billion in an annual rental income.
Also, for the first time this year, DoubleDragon has P14.53 billion of Hotel 101 inventories for pre-selling. This should also boost the firm’s financial performance for the year, the company told the local bourse.
Another driver for the company this year is the fully constructed The SkySuites Tower.
“DoubleDragon currently has a total of P6.9 billion in inventory and turnover balance receivable from its unitowners, due upon turnover that just started last month, which is a direct cash inflow to the company since The SkySuites Tower is already fully constructed and no further capex is required,” the company said.
During the period, DoubleDragon’s rental revenues grew 174.89 percent to P2.50 billion in 2018 compared to only P909.15 million in the prior year, while its hotel revenues rose by 34.24 percent to P533.62 million in 2018, compared to only P397.49 million in the prior year, on the back of higher occupancy and room rates.
DoubleDragon now has a total of 77 under development and completed buildings in its portfolio, 10 office buildings, 51 Malls, eight Hotels, and eight warehouse buildings.
Moving forward, the company is targeting to complete a leasable portfolio of 1.2 million square meters by 2020.
This should comprise 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 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.