DoubleDragon Properties Corp. aims to generate P10.8 billion in recurring revenues by 2021, saying it remains on track to hit 1.2 million square meters of leasable space by next year.
DoubleDragon chairman Edgar Sia II said Friday in an interview following the annual stockholders’ meeting the company would generate P4 billion in recurring revenues this year and increase the sales to P5.4 billion in 2020 before doubling to P10.8 billion in 2021.
The recurring revenues will come from four core leasing businesses, namely commercial malls, office leasing, hotels and industrial warehouses.
With recurring revenues hitting P10.8 billion, Sia said the company would be able to start declaring dividends starting 2021.
Meanwhile, DoubleDragon is also unfazed by the uncertainty of Philippine POGOS in the country.
“While we would like that to continue because we get better yields from POGO (Philippine offshore gaming operators), under the worst case scenario, we are covered because have a diversified leasable space,” said Sia.
He noted that the company’s office space leased to POGO were fully covered, with lease contracts locked in for 12 months.
The location of office spaces leased by offshore gaming operators in the bay area in Pasay City is also a prime location that makes it easier for the company to lease out the office space to other locators in the event offshore gaming operations are no longer allowed in the Philippines.
“The location where we have POGO is very prime. One year will be more than enough to replace POGO,” said Sia.
POGOS account for 60 percent of the company’s 130,000 sq. m of total office leasable space. Of this, 80 percent are Chinese gaming operators while the rest are Korean and European gaming operators.
State-owned the Philippine Amusement and Gaming Corp. last week suspended the acceptance of applications for offshore gaming licenses pending a review of the operations of POGOs.
PAGCOR made the decision after some sectors expressed concerns over the proliferation of POGO operations in the country.
The Bangko Sentral ng Pilipinas directed the Anti-Money Laundering Council to review the impact of POGOs in the domestic economy, especially in the real estate sector.