DoubleDragon more than doubles 2nd quarter earnings

DOUBLEDRAGON Properties Corp. more than doubled profits in the second quarter, getting a boost from its retail business and the additional contribution of its hotel venture.

The real estate developer chalked up a 110% growth in consolidated net income to P210.7 million in the April to June period from P100.5 million a year ago, according to a disclosure to the stock exchange on Monday.

This pushed consolidated net income by 161% to P376.4 million in the first semester due to robust growth in top-line and improved gross margins.

DoubleDragon drew strength from the surge in recurring revenues to P473.3 million in the first half from P92.4 million in the same period last year.

Recurring revenues were sourced from rental revenues from its retail portfolio as well as hotel revenues from Hotel of Asia, Inc., the company’s hospitality arm which was acquired in October last year.

As a result, consolidated total revenues climbed 131% year on year to P1.6 billion in the sixmonth period.

DoubleDragon has increased its 2020 target for leasable portfolio from 1 million square meters (sq.m.) to 1.2 million sq.m. that factored in an additional 100,000 sq.m from the planned 5,000 hotel rooms of Hotel101 and JinJiang Inn Philippines, and another 100,000 sq.m. from CentralHub Industrial Centers, Inc., its latest venture into industrial leasing.

DoubleDragon likewise revised its 2020 net income goal to P5.5 billion from P4.8 billion. The company is gearing up for a follow-on equity offering that will boost trading liquidity and further strengthen its balance sheet.

“The DoubleDragon team will continue to develop and nurture its four pillars of growth, which comprise of retail leasing, office leasing, industrial leasing and the hospitality business. The company is focused in areas of the real estate industry where it can achieve a lasting dominant position,” DoubleDragon Chairman Edgar “Injap” Sia II was quoted in the statement as saying.

Shares in DoubleDragon climbed P1.15 or 2.58% to end at P45.80 apiece on Monday.