DDMP REIT, Inc. Reported P771.0 Million in Net Income in H1-2024, a Decrease of 22.9%

​DDMP REIT, Inc., the listed real estate investment trust of the DoubleDragon Group, reported a net income for the six months ended June 30, 2024, of P771.0 million, a decrease of -22.9% from its net income of P1,000.5 million recorded for the same period in 2023.

Source: PSE Edge

Revenues

Total revenues amounted to P994.7 million for the six months ended June 30, 2024.

Rent income amounted to P879.1 million for the six months ended June 30, 2024, a decrease of P87.6 million, or -9.1% from the same period in 2023 mainly due to expired leases which will be replaced by incoming tenants.

The Company’s interest income for the six months ended June 30, 2024 increased by P0.7 million or, 2.5%, to P27.2 million, compared to P26.6 million for the six months ended June 30, 2023.

Other income decreased by P135.1 million, to P88.3 million for the six months ended June 30, 2024 compared to P223.4 million for the same period in 2023 due to decrease in income from forfeitures and lower interests to tenants.

Costs and Expenses

The Company’s costs and expenses increased by P7.5 million, or 3.5%, to P223.7 million for the six months ended June 30, 2024 compared to P216.2 million for the same period in 2023 mainly due to the increase in general and administrative expenses.

The Company’s general and administrative expenses increased by P14.6 million, or 7.3%, to P214.6 million for the six months ended June 30, 2024 compared to P200.1 million for the same period in 2023. The increase was due to the increase in taxes and licenses and outsourced manpower services.

The Company’s marketing expenses decreased by P6.2 million, or -52.1%, to P5.7 million for the six months ended June 30, 2024 compared to P11.9 million for the same period in 2023. The decrease was mainly to lower commissions to leasing brokers.

Interest Expense decreased by P0.9 million or -21.2% decrease, to P3.4 million for the six months ended June 30, 2024 and compared to P4.3 million for the same period in 2023 due to the decrease in interest expenses from discounting of deposits.

Income Before Income Tax

The Company’s income before income tax for the six months ended June 30, 2024 was P771.0 million, a decrease of P229.5 million or, -22.9% decrease from its income before income tax of P1,000.5 million recorded for the same period in 2023 mainly due to the decrease in revenue.

Income Tax Expense

The Company’s income tax expense for the six months ended June 30, 2024 was nil due to the 0% effective income tax rate of the Company as a REIT company.

Debt

The Company has no bank and intercompany debts.

DDMP REIT, INC. (formerly DD-Meridian Park Development Corp.) is a real estate company established in the Philippines (DDMP REIT) and incorporated on October 27, 2014. Upon compliance with the requirements of the REIT Law, the Company shall operate as a REIT.

DDMPR's principal investment strategy is to invest in income-generating real estate. To meet the investment criteria, a potential new property should be located in a prime location in either Metro Manila or other key provinces in the Philippines; be primarily focused on Grade A commercial properties (including industrial properties); and have stable occupancy, tenancy, and income operations. The Company’s sponsor is DoubleDragon Properties Corp.

DDMPR's property portfolio currently consists of three commercial properties in DD Meridian Park. These are DoubleDragon Plaza, DoubleDragon Center East, and DoubleDragon Center West. The land on which these buildings are built forms part of the Company’s asset portfolio and is owned by the Company.