DDMPR declares slightly larger Q3 dividend

DDMP [DDMPR 1.19, down 1.6%; 58% avgVol] [link] declared a Q3 cash dividend of P0.025682/share, payable on February 14 to shareholders of record as of January 22. The dividend has an annualized yield of 8.63% based on the previous closing price, which is marginally larger than DDMPR's pre-dividend annualized yield of 8.53%. The total amount of the dividend is P458 million, which is 87% of the P526 million in distributable income that DDMPR reported for the quarter. Relative to DDMPR's IPO price, the dividend increased DDMPR's total stock and dividend return to -33.52%, up from its pre-dividend total return of -34.66%. DDMPR has distributed 88.97% of its 9M/23 distributable income (P1.36 billion distributed of P1.53 billion in total distributable income). DDMPR is the commercial office REIT owned by Injap Sia and Tony Caktiong through DoubleDragon [DD 7.52, down 5.5%; 128% avgVol].

MB bottom-line: Shareholders are going to be slightly relieved to see the dividend actually increase slightly over Q2 given all of the warning signs that the REIT has been throwing up recently, but it’s a tiny uptick in a sea of downticks that the management team has done nothing (yet) to address. I’m not even talking about actions here, like the injection of assets or a fundraising round or something; the company has been dead silent on its plans to grow going forward. Whether that growth is topline through asset injections or bottom line through increasing its occupancy rate, what’s the plan here?

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