DOUBLEDRAGON Properties Corp. reported a 44% growth in earnings for 2019 due to its robust topline supported by its rental business segment.
In a statement Thursday, the listed property developer of businessman Edgar “Injap” J. Sia II said its net income last year rose to P10.65 billion from the previous year’s P7.42 billion.
Consolidated revenues jumped 41% to P20.2 billion, where recurring revenues accounted for P3.95 billion, higher by 30% from the previous year.
The company said the growth in recurring revenues can be attributed to rental revenues, which expanded 31% to P3.27 billion due to the completion of 803,735 square meters of leasable space.
Retail community malls maintained a 93.4% occupancy rate as CityMall tenants helped hit a double-digit same store sales growth.
Three new office towers were added to DoubleDragon’s portfolio, and its DD Meridian Park in the Bay Area leased out 98.9% of its six completed office towers.
The company also secured seven new Hotel 101 projects which raised its total new project inventory to P20.22 billion. Of this value, some P3.22 billion has already been sold out. Hotel room occupancy for its major hotels improved to an average of 84.8% last year from 78.3% in 2018.
“It is trying times like these, when the most important aspect is having a relevant and resilient business model in the company’s portfolio, and we are glad that DoubleDragon’s portfolio had the opportunity to be tested,” Mr. Sia said in the statement.
“The size of the company’s real estate portfolio and the revenues it used to generate will not matter much if the changes of customer behavior…will make the real estate portfolio irrelevant going forward. Our team will continue to make sure that its portfolio will always be geared to capture the bright future of our economy,” he added.
Mr. Sia noted while parts of the country were on lockdown, DoubleDragon was able to keep some of its revenue streams active.
CityMalls were open because tenants were mostly essential businesses. Its hotels accommodated employees of business process outsourcing (BPO) firms. DD Meridian Park kept generating revenues from BPO tenants. Its CentralHub warehouse complex was also utilized by companies that needed storage due to mobility limitations.
“The DoubleDragon team will continue to further improve and strengthen all its four pillars of growth as it progresses forward in this new decade,” Mr. Sia said, referring to provincial retail leasing, office leasing, industrial leasing and hotels.
Shares in DoubleDragon at the stock exchange gained P2 or 11.11% to P20 each on Thursday.