If you’re interested in Philippine real estate investment trusts (REITs), DDMP REIT (PSE: DDMPR) is one of the names worth understanding. Backed by DoubleDragon Properties Corporation, this REIT owns a landmark portfolio in Metro Manila and is positioning itself for growth. Let’s break down what it is, how it’s performing, and what investors should watch.
What is DDMP REIT?
DDMP REIT Inc. was incorporated on October 27, 2014 and listed on the Philippine Stock Exchange as a REIT in March 2021.
The company’s primary business is owning and leasing income-generating commercial real estate assets in the Philippines—particularly offices and retail spaces—held for the long term.
Its flagship development is the 4.75-hectare DD Meridian Park in Pasay City, a mixed-use complex located along Macapagal Avenue, EDSA Extension, and Roxas Boulevard. This area, often referred to as the Bay Area, has become one of Metro Manila’s fast-growing commercial zones.
Asset Portfolio and Key Metrics
DDMP REIT’s portfolio includes several major towers within DD Meridian Park, namely:
- DoubleDragon Plaza
- DoubleDragon Center East
- DoubleDragon Center West
DoubleDragon Plaza alone has around 139,000 square meters of gross leasable area (GLA), with office, retail, and parking components.
In 2023, DDMP REIT reported a 15,100 square meter new office lease valued at nearly ₱799 million, with ₱55 million in rental deposits—bringing occupancy closer to its 95% target.
As of the latest data:
- DoubleDragon Plaza occupancy: ~70%
- DoubleDragon Center West: ~95%
- DoubleDragon Center East: fully occupied
Financial Performance and Dividend Yield
In Q1 2022, DDMP REIT recorded a net income of ₱558.9 million, up 39.8% year-on-year, on revenues of ₱639.4 million.
As of the most recent full-year data:
- Market capitalization: around ₱18.9 billion
- Revenue (TTM): approximately ₱2 billion
- Dividend yield: around 8.8% based on its last annual payout
The company’s goal is to continuously acquire income-generating properties and maintain stable cash flows while growing shareholder value through consistent dividends.
Strengths of DDMP REIT
- Strategic location: The Bay Area in Pasay City is a prime business and entertainment district near MOA, with strong transport and commercial access.
- Land ownership: Unlike many REITs that only lease their land, DDMP REIT actually owns the land where its buildings stand—an advantage for long-term valuation.
- Experienced sponsor: DoubleDragon Properties (developer of CityMall and Hotel101) backs DDMP REIT, giving it development and acquisition pipeline access.
- Growth potential: The REIT has announced plans to invest in “high-growth” provincial areas to diversify beyond Metro Manila.
Risks and Considerations
- Concentration risk: Most assets are in a single area (Pasay Bay Area) and mainly office spaces, which can be affected by changes in work-from-home trends or office oversupply.
- Occupancy pressure: Some towers still have lower occupancy rates compared to competitors, which affects rental income and dividend stability.
- Market risk: The office sector faces global challenges, and higher interest rates can dampen REIT valuations.
- Execution risk: Future acquisitions need to be well-timed and properly priced to ensure continued yield growth.
Outlook: Should You Invest in DDMP REIT?
For investors seeking steady dividend income and exposure to commercial real estate, DDMP REIT remains an option worth considering. With a yield around 8–9% and a strong land-based asset portfolio, it offers attractive income potential.
However, investors should also watch:
- Future occupancy improvements
- Progress on new property acquisitions
- Sustainability of dividends amid office sector challenges
If you’re investing for passive income, DDMP REIT can be a complementary holding in your REIT portfolio—best combined with more diversified names like AREIT or MREIT to spread risk.
Blogger’s Corner
DDMP REIT may not be the flashiest name in the REIT market, but it offers a solid mix of yield and long-term land ownership. Its location in the Bay Area gives it a strong foundation, and if it successfully diversifies its portfolio in the coming years, dividend stability could improve even more.
As always, diversification is key. Don’t rely on one REIT alone—spread your investments across different sectors (office, retail, industrial) for a more resilient income portfolio.