Conciencia tributaria

September 30, 2020 versus September 30, 2019 Results of Operations

Revenues

Total Revenues of DoubleDragon Properties Corp. (“The Company”) rose 41.30% for the nine months months ended September 30, 2020 to P9.79 billion vs. P6.93 billion during the same period last year. The growth was primarily driven by Recurring Revenues. Rental Income grew by 24.58% to P2.96 billion from P2.38 Billion in the same period last year due to the additional leasable area of the Company in 2020.

Quarterly

2020 2019 2020 2019

REVENUES

Rental income ₱ 1,354,524,242₱ 841,177,822₱ 513,346,420 61.03% 80.35% 62.90% Real estate sales 26,894,441 146,156,087 (119,261,646) -81.60% 1.60% 10.93% Hotel revenues 97,724,242 194,672,262 (96,948,020) -49.80% 5.80% 14.56% Unrealized gain from change in fair values of investment property 22,345,539 - 22,345,539 100.00% 1.33% 0.00% Interest income 6,967,330 349,078 6,618,252 1895.92% 0.41% 0.03% Others 177,394,606 155,067,506 22,327,100 14.40% 10.52% 11.59%

1,685,850,400

₱ ₱ 1,337,422,755₱ 348,427,645 26.05% 100.00% 100.00% COST AND EXPENSES

Cost of real estate sales ₱ 14,282,825₱ 33,053,436₱ (18,770,611) -56.79% 0.85% 2.47% Cost of hotel operations 56,356,458 105,500,416 (49,143,958) -46.58% 3.34% 7.89% Selling and marketing expenses 27,066,514 124,903,977 (97,837,463) -78.33% 1.61% 9.34% General and administrative expenses 461,816,537 642,229,027 (180,412,490) -28.09% 27.39% 48.02% Interest expense 114,907,221 (236,353,801) 351,261,022 -148.62% 6.82% -17.67%

674,429,555

₱ ₱ 669,333,055₱ 5,096,500 0.76% 40.01% 50.05% INCOME BEFORE INCOME TAX 1,011,420,845 668,089,700 343,331,145 51.39% 59.99% 49.95% INCOME TAX EXPENSE 383,045,758 (255,453,824) 638,499,582 -249.95% 22.72% -19.10% NET INCOME/TOTAL COMPREHENSIVE INCOME ₱ 628,375,087₱ 923,543,524₱ (295,168,437) -31.96% 37.27% 69.05% Attributable to:

Equity holders of the Parent Company 495,582,900 932,795,389 (437,212,489) -46.87% 29.40% 69.75% Non-controlling interest 132,792,187 (9,251,865) 142,044,052 -1535.30% 7.88% -0.69%

628,375,087

₱ ₱ 923,543,524₱ (295,168,437) -31.96% 37.27% 69.05% DOUBLEDRAGON PROPERTIES CORP.

UNAUDITED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME For the quarters ended September 30, 2020 and September 30, 2019

Horizontal Analysis Vertical Analysis Increase (Decrease)

Rental Income of P2.96 Billion and Hotel Revenues of P367.45 Million contributed significantly to the nine months ending September 30, 2020 consolidated revenues of the Company. These recurring revenues have risen 16.26% to P3.33 Billion for the nine months ending September 30, 2020 vs. only P2.86 Billion during the same period last year. Recurring revenues now account for 33.98% of the Company’s Total Revenues.

Furthermore, a P101.67 Million increase (19.43%) in Other Income from P523.33 Million to P625.01 Million accounted for 6.38% of the consolidated revenues for the first nine months ending September 30, 2020 due to increase in income from forfeiture.

The Company’s Interest Income increased by 1711.26% to P34.06 Million for the nine months ending

September 30, 2020 from P1.88 Million in the same period last year while Interest Income increased by

1895.9% to P6.97 Million for the three months ending September 30, 2020 from P0.35 Million in the same

period last year due to the increase in the Company’s deposit placements with financial institutions. The

Company booked P367.45 Million in Hotel revenues for the nine months ended September 30, 2020 and P97.72 Million for the three months ended September 30, 2020.

The Company’s Consolidated Net Income figures for the nine months ended September 30, 2020 reached P5.03 Billion, a P1.91 Billion (61.12%) increase from P3.12 Billion posted in the same period last year.

The Company targets to complete a leasable portfolio of 1.2 Million square meters by 2022 spread across its four core business segments: provincial retail leasing, office leasing, industrial leasing and hotels. DoubleDragon’s four pillars of growth continue to strengthen and will provide the Company with a diversified source of recurring revenues backed by a string of appreciating hard assets.

Cost and Expenses

Cost of real estate sales amounting to P168.47 Million decreased by P127.22 Million (-43.02%) for the nine months ended September 30, 2020. Cost of hotel operations amounting to P223.56 Million decreased by P117.60 Million (-34.47%) for the nine months ended September 30, 2020. The decrease in cost of real estate and cost of hotel operations are in line with the decrease in real estate sales and hotel revenues.

Selling and marketing expenses of P92.81 Million for the nine months ended September 30, 2020 decreased by P141.37 Million from P234.18 Million from the same period last year due to lower commission and marketing expenses

General and administrative expenses of P1.28 Billion for the nine months ended September 30, 2020 decreased by P334.44 Million from P1.62 Billion posted in the same period last year due to the decrease in water & electricity comsumption.

Income before income tax

The Company’s consolidated income before income tax for the nine months ended September 30, 2020 is at P7.29 Billion, an increase of P3.22 Billion or 79.05%, from its consolidated income before income tax of P4.07 Billion recorded for the same period in 2019.

Income tax expense

The Company’s income tax expense for the nine months ended September 30, 2020 is at P2.25 Billion, an increase of P1.31 Billion primarily due to higher taxable income of the Company and its subsidiaries.

Net Income

DoubleDragon Properties Corp. (“DoubleDragon” or “The Company”) reports Consolidated Net Income figures

for the first nine months of 2020 has reached P5.03 Billion, an increase of 61.12% compared to only P3.12

Billion during the same period last year.

The Company continues to accelerate its growth trajectory for the first nine months of 2020 as income before tax rose by 79.05% to P7.29 Billion from P4.07 Billion posted in the same period last year.

September 30, 2020 versus December 31, 2019 Statements of Financial Position

As of September 30, 2020, Consolidated Total Assets increased by 6.13% to P120.51 Billion while Total

Equity grew 9.85% to P48.24 Billion as compared to P43.92 Billion as of December 31, 2019.

The Company’s Total Assets increased by P6.96 Billion from the end of last year primarily due to the increase in the Company’s Investment Properties which now stands at P95.74 Billion as the Company continues to expand its recurring revenue stream and the increase in fair value of investment properties.

The Company’s financial position remains healthy with debt-to-equity ratio of 0.98x, which is well below its loan covenant debt-to-equity cap of 2.33x. The company’s rates for all of its corporate notes, preferred shares and retail bonds issued are fixed and have been fixed since the date of issuance or drawdown in the case of