DDMPR’s occupancy falls to 69% (not nice)

DDMP [DDMPR 1.05 unch; 44% avgVol] [link] revealed that its blended occupancy rate had fallen to 68.52% as of March 31, 2025, and that its blended WALE (weighted average lease expiration) had fallen to 1.7 years. In terms of receivables, DDMPR reports having P1.662 billion in gross rent receivables. Out of that P1.662 billion, P645 million (39%) is considered “impaired” (uncollectable). Out of the P1.069 billion remaining, called net rent receivable, only P47 million (4%) is not past due. Nearly 60% of the remainder is between 1 and 90 days past due. More than 15% is between 91 and 180 days past due. Almost 12% is between 181 and 365 days past due. Almost 9% is more than one year past due.

  MB BOTTOM-LINE:  There’s something wild about a REIT’s gross accounts receivable being 110% of its annualized net income. DDMPR isn’t the only REIT with receivables, but it has the biggest write-off that I’m aware of and the biggest pile of past-due receivables relative to annualized income that I’m aware of. Some of that could be from the POGO ban. Ferdinand Marcos Jr. announced the POGO ban in November of 2024, and it became effective in January of 2025. Any unpaid rents that came due during that period would be in the 91-180 day bucket of receivables. Will they be able to collect anything in that bucket? What is the plan here? The metrics are melting.

Merkado Barkada is a free daily newsletter on the PSE, investing and business in the Philippines. You can subscribe to the newsletter or follow on Twitter to receive the full daily updates.