DoubleDragon income flat despite surge in revenues

MANILA, Philippines — Earnings of DoubleDragon Corp., the property developer chaired by tycoons Edgar “Injap” Sia II and Tony Tan Caktiong, stood flat in the first nine months as higher cost and expenses offset a surge in revenues.

DoubleDragon reported a net income of P2.55 billion from January to September, slightly higher by 0.7 percent from last year’s P2.53 billion.

Consolidated revenues for the period soared by 63 percent year-on-year to P10.46 billion.

Higher occupancy and rental from new tenants lifted rental revenues by 4.1 percent to P3.11 billion, while additional sales from Hotel101 and residential projects boosted real estate sales by 161.2 percent to P2.19 billion.

Hotel revenues grew by 6.2 percent to P646.3 million on the back of improved occupancy of hotel properties.

The company’s total cost and expenses for the nine-month period, meanwhile, almost doubled to P7.21 billion from last year’s P3.69 billion on higher real estate and hotel operations costs as well as increased administrative, interest and marketing expenses.

DoubleDragon has reached 1.5 million gross floor area of completed recurring revenue asset portfolio from its string of hard assets spread out in prime locations in Luzon, Visayas and Mindanao.

The company also holds assets overseas through its subsidiary Hotel101 Global.

Hotel101 Global made history as the first Filipino-owned company to list on the US NASDAQ Stock Exchange last July. It has a market capitalization of $1.58 billion as of Nov. 11.

Hotel101 Global is set to complete its first ever Hotel101 project overseas located in Madrid, Spain.

Hotel101 has set its long-term vision to build out one million typical Hotel101 rooms in over 100 countries worldwide.

DoubleDragon is also building out CentralHub’s industrial warehouse portfolio towards its goal to establish a P24.8 billion warehouse leasing portfolio and list the first industrial REIT in the Philippines.

CentralHub is a joint-venture company of DoubleDragon and Asian food conglomerate Jollibee Foods Corp.