DoubleDragon profit surged 53.9% in H1

Despite a slower second quarter, fresh sales from new projects, both international and domestic, buoyed the first-semester earnings of DoubleDragon Corp. by 53.9 percent to P1.54 billion.

In a regulatory filing on Friday, the company led by tycoons Edgar Sia II and Tony Tan Caktiong said its revenues also surged by 58.3 percent to P6.9 billion. This was thanks to higher real estate sales, which nearly doubled to P1.1 billion.

Meanwhile, hotel revenues grew by 6.5 percent to P433 million.

Transition from expired leases caused a 4.8-percent decline in rental revenues to P1.86 billion.

DoubleDragon noted, however, that these “will be replaced by incoming tenants.”

At the same time, the developer’s interest income ballooned by 264.6 percent to P107.1 million on gains from time deposits.

This comes despite a dismal second-quarter for DoubleDragon. During the April to June period, its net income tumbled by 60.5 percent to P288.28 million as expenses related to real estate sales more than doubled.

General and administrative expenses likewise rose by 44.1 percent during the quarter to P676.67 million.

Earlier this week, DoubleDragon announced plans to raise P10.9 billion from the domestic bond market to “further increase its cash position and further strengthen its balance sheet.”

The company said the peso retail bonds would carry a 7.7-percent yield with tenors of 3.5 years and 5.5 years. This is part of a bond program the Securities and Exchange Commission approved in 2024.

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The offer will be on the heels of the Nasdaq Stock Exchange listing of Hotel101 Global, the overseas subsidiary of DoubleDragon’s homegrown condotel chain.

With an equity value of P131 billion, Hotel101 Global became the first Filipino-owned company to debut on the tech-heavy American bourse.

It aims to have one million rooms across 100 countries, with 25 countries already identified for expansion.

Apart from the Philippines, Hotel101 is present in Japan and Spain. In May, the company said it would soon make its P147.5-billion entry in Saudi Arabia. This followed its partnership with investment firm Horizon Group.