DoubleDragon more than doubles income in 2016
MANILA, Philippines – DoubleDragon Properties Corporation, a venture between a firm of Edgar "Injap" Sia II and Tony Tan Caktiong's company, saw its net income more than doubling to P1.47 billion in 2016, after its recurring revenue almost tripled.
This marks a major milestone for DoubleDragon as it just breached its P1-billion net income target for 2016, which it committed when it went public 3 years ago.
By 2020, DoubleDragon aims to reach P4.8 billion in net income upon the completion of its goal of a one-million-square-meter leasable portfolio.
"We look ahead to an even stronger DoubleDragon as we continue to break barriers and be relentless in the pursuit of achieving our clear vision through sheer determination, resourcefulness, and passionate execution," said Sia, chairman of DoubleDragon, in a disclosure to the Philippine Stock Exchange (PSE).
DoubleDragon's recurring revenue nearly tripled to P347.6 million in 2016 compared to only P116.5 million in 2015.
The property firm said it expects that about 90% of its revenues will be coming from recurring sources by 2020, driven by rental revenues.
Since its initial public offering (IPO), DoubleDragon has increased its portfolio of prime commercial properties to over 75 hectares, from only 1.9 hectares pre-IPO.
Final fund-raising for landbank
For the past 3 years, DoubleDragon said total funds raised from diversified sources already covered 75% of its required capital to execute its targeted one million square meters of prime leasable space.
"The company kept a good headroom for its final fundraise of P9.7 billion, which will complete its funding requirements through its 2020 plan," DoubleDragon said.
For Hannah Yulo, chief investment officer of DoubleDragon, 2016 was the company's biggest year in terms of fund-raising, having successfully placed its first convertible preferred share offering and first retail bond.
"This has been essential in boosting the completion of our projects. In fact, due to strong tenant take-up at DD Meridian Park in the Bay Area, we are looking to have the first few towers of DoubleDragon Plaza operational within the last quarter of this year when we had originally expected this to be operational in 2018 yet," Yulo said.
She added that the company expects to implement its planned retail bond offering this year, the last fund-raising needed to complete its one million square meters of leasable space by 2020.
"Even after this final fundraise of P9.7 billion, which we have already prepared for via a shelf registration of 10-year retail bonds previously approved by the Securities and Exchange Commission, the company's gross debt-to-equity is expected to remain below 1.7x," Yulo said.
DoubleDragon has 15 operational CityMalls nationwide, with over 30 more under construction. DoubleDragon targets to open 10 more CityMalls in the 3rd quarter and at least 30 CityMalls by the end of 2017.
It was in October 2016 when DoubleDragon completed its takeover of Hotel of Asia Incorporated (HOA), marking its expansion into the hospitality business. – Rappler.com