DoubleDragon Corporation saw its consolidated net income dip 27.5 percent to P1.7 billion for the first six months of 2026, down from P2.4 billion in the same period last year, impacted by rising operational costs and the absence of non-recurring fair value adjustments.
According to its latest financial report, the earnings contraction stemmed primarily from missing the unrealized fair value gains on investment properties recorded during the first half of 2025.
Pre-tax consolidated income fell 28.6 percent year-on-year to P2.2 billion from P3.1 billion. This decline was largely driven by higher administrative overhead, including stock-based compensation awarded to employees through Nasdaq-listed Hotel101 Global (HBNB) shares.
However, the property and retail conglomerate demonstrated strong underlying operational performance. Consolidated core net income surged 161.89 percent to P2.4 billion from P922.1 million, propelled by robust expansion in real estate transactions and leasing operations. Overall consolidated revenues rose 23 percent to P8.55 billion, while core revenues posted a 70.2 percent increase.
The group noted that its revenue structure is rapidly realigning toward recurring operating cash flows as newly operational investment assets come online, reducing its historical reliance on fair value revisions.
“Full shift to core revenues is expected by 2028 onwards,” DoubleDragon said in a disclosure to the Philippine Stock Exchange (PSE).
Looking ahead to the remainder of 2026, the company plans to expand its footprint with the opening of three CityMall locations, two CentralHub industrial logistcs parks, five full-scale MerryMart supermarkets, and three Hotel101 properties situated in Davao, Cebu, and Niseko, Japan.
“DD has generated a significant increase in its core revenues and core income, and expects an even higher jump in core revenues by the second half of 2026. This will be driven by continued income from its leasing portfolio, new mall openings, new warehouses, new office tenants, new MerryMart supermarkets, and expected unit sales from Hotel101 projects in the Philippines and overseas,” the firm added.
Further solidifying its structural transition into an investment holding conglomerate, DoubleDragon completed the acquisition of a 98.61 percent controlling interest in MerryMart Consumer Corporation on June 24.