DoubleDragon earnings soar on strong retail demand
DoubleDragon Properties Corp. saw its net earnings jump 83 percent in the nine months to September to P1.4 billion as revenue more than doubled with the opening of more community malls.
Revenue soared to P4.08 billion from only P1.9 billion a year ago. Rental income grew more than two-fold to P448 Million as the company opened its 25th CityMall last week in Koronadal City, South Cotabato.
Recurring revenue during the nine-month period amounted to P764 million, accounting for 18.7 percent of the total revenues.
“CityMall’s relevance in the provincial areas is becoming more and more evident as we move forward, driven by two ongoing transitions — the organic shift from traditional retail to modern retail in the tier3 provincial areas of the country, and the noticeable penetration of e-commerce in the tier1 urban areas of the country,” DoubleDragon said.
We are glad that CityMall has already started to gain significant traction in the countryside, which we aim to dominate as we grow organically. The natural but inevitable change in the provincial retail market of a country does not happen often, and DoubleDragon is glad to have had the rare opportunity to be in the forefront of the modernization of the provincial retail environment.” said Edgar “Injap” Sia II, chairman of DoubleDragon.
DoubleDragon aims to boost its CityMalls network to 100 by 2020.
“For the past three years, DoubleDragon has already planted the seeds and necessary groundwork that will enable the company to play a major role in this retail transformation as we continue to provide our valued modern retail tenants a growth platform for them to continue to expand in what will essentially be their most important market one day as e- commerce continues to disrupt the urban market. The business model of CityMall is positioned to remain relevant beyond the age of digitalization because we focus on delivering only basic necessities, and generally, the supermarket, cinema, services and food tenants combined occupy more than 70% of a typical CityMall,” Sia said.