DOUBLEDRAGON Properties Corp. said it is on track to have 100 malls under its portfolio by 2021, as it moves to secure all lots for the projects within the year.
“We’re still on target to have 100 malls by 2021…We have almost secured all lots, hopefully by end of this year, we’ll secure them,” DoubleDragon Chairman and Chief Executive Officer Edgar J. Sia II told reporters after the company’s annual shareholders’ meeting in Pasay on Friday.
Mr. Sia noted that only the construction of the malls will be completed by then, with operations to start soon after since they may experience delays with tenants.
The listed property developer is set to end the year with 51 malls, from its current network of 39.
“We’ll end this year with 51. So we’ll have to open 12 more. We build the same thing all the time, so it’s faster,” Mr. Sia said.
DoubleDragon’s mall business carries the CityMall brand, which is primarily located in second and third tier cities in the provinces. This aims to meet the demand for malls in provincial areas, while also avoiding competition from more mature players in key cities in the country.
CityMall is 66% owned by DoubleDragon. The remaining 34% is owned by Sy-led SM Investments Corp., which by itself is the country’s largest mall operator with 72 malls in the country and seven in China.
The company is counting on its commercial mall business to help boost recurring revenues by 2021, alongside its three other segments namely office leasing, industrial warehouses, and hotels.
It aims to have 1.2 million square meters (sq.m.)of leasable space across the four segments by 2020, around double its current 603,000 sq.m. This further supports its goal of hitting P10.8 billion in recurring revenues by 2021, after which the company will start declaring cash dividends worth about 30% of their net income to shareholders
This year alone, Mr. Sia said they expect to generate P4 billion in recurring revenues, and is seen to rise to P5.4 billion by 2020.
With more than one million sq.m. of leasable area under its portfolio by next year, the company is also eyeing to place its assets under a real estate investment trust (REIT) once regulators come out with the final rules.
“In the meantime, we’re just building more and maturing out leasable space. If the rules get delayed, the effect of that is we will just be able to raise higher amounts. But as soon as it’s ready, and it looks okay, we will go,” Mr. Sia said.
The company earlier said it wants to raise up to P15 billion from a REIT offering in early 2020, while its entire portfolio could potentially raise up to P59.4 billion
DoubleDragon’s net income attributable to the parent jumped 104% to P1.52 billion in the first half of 2019, after gross revenues surged 54% to P5.59 billion.
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