DDMP REIT, Inc. (DDMPR) is looking to diversify its tenant mix in the next three years as it banks on its properties’ prime location and new locators, which include government offices.
“As new industries come, it is an opportune time for DDMPR to further diversify its tenancy mix across various industries,” the listed real estate investment trust sponsored by DoubleDragon Properties Corp. said in its three-year investment strategy.
The target tenants include those coming from the banking, insurance, financial services, technology, media, and service sectors as well as government agencies.
Among the company’s investment objectives is to achieve sustainable growth in distribution and returns through contracted escalation rates, cost-efficient operation, and augmented growth through acquisitions.
DDMPR will stick to giving long-term fixed rent contracts with its major tenants, which can provide the company with a stable income. Typical office lease terms will be fixed for three to 10 years.
Meanwhile, it aims to achieve organic growth through rental escalations, which will be in the range of 3-5% from contracted leases. The company said it is focusing on merits in terms of cash flow returns, stability, and the potential for long-term capital appreciation.
In its three-year investment strategy, the company’s occupancy rate has been placed at 92.55%, with the occupancy rate of its DoubleDragon Center East at 100%. Its three properties have a total of 172,252 square meters of total gross leasable area (GLA). It also has retail components in DD Meridian Park.
In 2023, the company expects the lease of 35.89% of its total GLA to expire, while in 2024 and 2025, up to 17.6% and 9.42% of leased areas are expected to expire, respectively.
As of Sept. 30, 2022, the company paid a total of P3.2 billion in dividends since its listing. It will pay an additional P482.21 million on Jan. 9 from last year’s third-quarter earnings.
On the stock exchange on Tuesday, shares in DDMPR closed unchanged at P1.29 apiece. — Justine Irish D. Tabile
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