DoubleDragon Q3 profit jumps 5%

DOUBLEDRAGON Properties Corp. generated more revenues during the third quarter, but increasing costs and expenses capped its earnings growth to a single digit.

In its quarterly report, the listed property developer booked a 5% increase in net income to P616.8 million from the P589.4 million recorded for the comparable three months of 2015.

DoubleDragon generated P1.28 billion in revenues, with the sale of residential units and mall stalls accounting for P423.6 million and P321 million, respectively. The total settled 15% above the P1.11 billion reported a year earlier.

While its revenues grew, DoubleDragon incurred bigger cost and expenses totaling P383.8 million or 51% over last year’s P254.7 million.

The cost of real estate sales increased 49% to P191.6 million; selling and marketing expenses tripled to P38.5 million following a ramp- up in advertising; and general and administrative expenses almost doubled to P123.8 million as the organization expanded.

The quarterly results pushed the company’s year- to- date earnings 7% higher to P761 million from P713.6 million, as revenues grew 15% to P1.99 billion from P1.72 billion.

DoubleDragon continued to source its income mostly from the sale of units at W. H. Taft Residences, The Skysuites Tower, DD HappyHomes and Dragon8 Mall- Divisoria during the nine months to September.

“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,” DoubleDragon noted.

The company witnessed a fivefold growth in rental revenues to P152.2 million from P28.5 million with the opening of more malls. This outpaced the 19% increase in real estate sales to P956.1 million from P802.9 million. “We expect rental revenues to continue to gain momentum as we shift into the 90% recurring revenue business model by 2020,” DoubleDragon said.

The company targets to complete 100 community malls in the provinces and two office buildings within the National Capital Region, which will offer 700,000 and 300,000 square meters of leasable spaces, until 2020.

DoubleDragon (DD) is foraying in the hospitality space with the recent acquisition of 70% of Hotel of Asia, Inc. whose operating hotels started contributing revenues this quarter.

“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,” Chairman Edgar J. Sia II said in a statement.

Shares in the company closed five centavos or 0.10% lower at P51.80 apiece on the Philippine Stock Exchange on Wednesday.