DDMP Q2 profit: P397M (down 26% y/y)

DDMP [DDMPR 1.03, up 1.0%; 24% avgVol] [link] reported a Q2 net income of P397 million, down 26% y/y from its Q2/23 net income of P539 million, and up 6% q/q from its Q1/24 net income of P374 million. In reviewing its H1 performance, DDMPR said that its rent income was down 9.1% due to “expired leases”, and that its other income was down 60% due to a “decrease in income from forfeitures and lower interests to tenants.” DDMPR said that it has a debt-to-equity ratio of “zero”, and reminded investors that a share of DDMPR represents ownership of both the land and the income from the land.

MB bottom-line: The press release [link] that DDMPR put out with its earnings report is somewhat baffling, as it seems to be pitching the REIT’s properties to investors as hip and cool places to hang out at–as customers. The document hypes the “Mondays to Fridays” experience at DoubleDragon Plaza, referring to it as a “hidden gem” and a “vibrant complex during weekdays”, and implores readers to “come and have a memorable experience” at one of the REIT’s properties. Ok, but what about the falling/inconsistent dividend, the falling income, and the 50% drop in price since the stock’s IPO? What about the lack of injections or acquisitions? I don’t mean to be rude, but these are the things that go through my mind when I read a press release like this alongside a Quarterly Report like the one DDMPR just put out that needs to reference minor q/q incremental gains to avoid talking about the massive y/y drops. If DDMPR were actually serious about this weird “making customers out of investors” angle, why not go all-in and do a promotion where shareholders in DD or DDMPR can come by to the DoubleDragon Plaza and get a free drink or a free meal? I don’t know how they’d accomplish the verification in a way that wouldn’t feel like a colonoscopy, but THAT would be interesting, and for a lot of investors, it would be one of the better experiences to come from being a DDMPR shareholder.

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