DoubleDragon profit spikes 117% in Q1

MANILA, Philippines - Newly-listed DoubleDragon Properties Corp. of Mang Inasal founder Edgar “Injap” Sia II and Jollibee Foods owner Tony Tan Caktiong more than doubled its profits in the first quarter on the back of strong real estate sales.

The property firm is expecting almost P350 million in earnings this year with the start of the operations of various commercial centers, its top official said yesterday.

In a disclosure, DoubleDragon said net income surged 117 percent to P21.2 million in the first three months of the year from P9.8 million a year ago while consolidated revenues surged 142 percent to P172.5 million from P71.3 million year-on-year.

Specifically, revenue from real estate sales, which accounted for majority of the consolidated revenues, jumped 139 percent to P170.7 million from P71.3 million due to the strong performance of the property development business.

The property firm has two ongoing vertical residential projects with commercial components in Iloilo. Its first foray in Metro Manila is the 30-storey W.H. Taft Residences just beside De La Salle University.

“The company sees to exceed P340 million net profit target this year

2014, and on track with its target of P1 billion net profit by 2016 and P4.8 billion by 2020,” said DoubleDragon chairman and CEO Sia.

In 2013, DoubleDragon’s net income jumped 32 percent to P126.63 million from P92.48 million, almost entirely coming from residential sales.

“We expect continuous growth to be driven by current and near-term developments. DoubleDragon’s last offering, Dragon Shopping Center in Divisoria, is expected to contribute significantly to the net income target for the year,” he added.

Last week, DoubleDragon acquired a 5,972-square meter (sqm.) lot located in Divisoria, Manila. It will allow the company to launch Dragon Shopping Center, a new tiangge shopping center concept that will diversify revenue streams.

DoubleDragon said it is also pursuing developmental activities connected with its CityMall Community Mall projects around the country. CityMall

Commercial Centers Inc. is 66-percent owned by DoubleDragon and 34-percent owned by SM Investments Corp.

The company targets to complete five malls this year and will start laying groundwork for the next 20 CityMalls to be opened by 2015, in line with plans to open 100 CityMalls by 2020.

DoubleDragon aims to reach P1 billion net income level by 2016 and P4.8 billion by 2020. It also targets to hit one million sqm. of total leasable space portfolio by 2020, of which 700,000 sqm. is expected to come from the planned 100 CityMall community malls, mostly in the Visayas and Mindanao.