Higher Rental Fees Fail to Buoy DoubleDragon REIT’s Profits (The Philippine Star)
April 14, 2021 – DDMP REIT Inc., the real estate investment trust (REIT) firm of businessman Edgar “Injap” Sia, saw its earnings fall by nearly a quarter last year despite capturing more tenants.
In its first disclosure of financial performance since going public last month, the DoubleDragon-backed firm reported a net income of P5.9 billion in 2020, down 24% year-on-year. Stripping out fair value gains, core net income booked a 5.89-percent annual growth last year.
The company did not explain what accounted for the slump in profits, which came despite a 7.61% annual growth in rental income to P1.9 billion due on the back of more tenants in DoubleDragon Center West, one of the properties under the company’s portfolio.
Despite lackluster profits, robust rentals were enough for DDMP to reward investors with P365 million in dividends, equivalent to P0.20047718 per share to be paid on May 10. REIT firms are mandated to share 90% of their revenues from property ventures as dividends to investors.
DDMP REIT will pay up dividends based on its financial performance last year when the firm was not yet public. Sia sees bigger payouts this quarter, based on the firm’s first quarter performance when IPO proceeds are expected to have buttressed profits.
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