Makati—(PHStocks)—Total revenues of DoubleDragon Properties Corp. (PSE: DD) rose 15.4% for the nine months ended September 30, 2016 to PhP2 billion vs. PhP1.7 billion during the same period last year. Major sources of revenues still coming from the company’s interim projects, W.H. Taft Residences, The SkySuites Tower, DD HappyHomes and Dragon8 Mall – Divisoria with real estate sales showing a healthy 15% growth year-on-year for the nine months ended September 30, 2016. 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.
Rental revenues further rose by over a fivefold for the first nine months of 2016 vs. the same period last year contributed by additional mall openings as the Company continues to transition into the recurring revenue business model. We expect rental revenues to continue to gain momentum as we shift into the 90% recurring revenue business model by 2020.
The company’s total assets rose substantially by 46.9% to PhP40.7 billion from the end of last year primarily due to the PhP8.5 billion increase in the company’s investment properties which now stand at PhP28.5 billion as the ongoing construction in the various projects in Metro Manila and across the Philippines continues to progress. The company’s debt-to-equity remains below 1x allowing it plenty of leeway for its planned retail bond issuance before the end of the year. The company is currently in the process of securing the necessary approvals for the registration of PhP15 billion worth of 10yr Fixed Rate Bonds to be issued in one or several tranches. Once fully issued, the proceeds are expected to fully complete the funding requirement for all its projects in relation to its planned portfolio of 1 million square meters of leasable space by 2020.
The company has also recently concluded its acquisition of seventy percent (70%) of Hotel of Asia Inc. (HOA) which will serve as the Company’s hospitality arm. Additional revenues from operating hotels of HOA will start to contribute to DD starting the 4th quarter of 2016.
“In just over two years since DoubleDragon unveiled its 2020 vision, we are glad to have witnessed how the company has evolved towards its vision. I am personally honored to be part of such a vibrant, young, hardworking and dynamic team. We see the future holding an incredible amount of opportunity for DoubleDragon as the vision enfolds,” said DD Chief Investment Officer Hannah Yulo.
“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 roll out of its 2020 vision will bring about valuable structural foundation towards DD’s long-term prospects far beyond 2020. I have always been a firm believer that whatever we do today needs to always be a strong building block for the long-term. It has always been our desire to build real homegrown brands that over time become household brands that also becomes a source of pride of every Filipino, and companies that creates real long lasting impact to thousands of its employees, consumers, and all its stakeholders,” said DD Chairman Edgar Injap Sia II.