Being focused on income and dividends, I usually don’t mind share prices that much. However, DDMPR’s -35% price decline got my attention. It really stood out among REITs.

Reading its 2021 full year financial highlights, we find that:

1. It has no debt.

2. Its net income increased by 41%.

3. The 7th tower of the Meridian Park complex will be turned over this year.

4. It continues to pay quarterly dividends.

Nothing above really points to why the market is punishing DDMPR. It seems to be fine as it is. But in the world of REITs, it doesn’t exist in isolation. Its performance is compared against its peers and DDMPR investors are selling its shares and buying others’.

What DDMPR sorely lacks is a well communicated growth strategy. Its income generating property, Meridian Park is in a single location and they haven’t released any plans to acquire more properties. It really gets poor marks in terms of growth considering all other REITs’ aggressive ongoing and planned acquisitions. Other REITs are planning and / or actually adding leasable space of around 100,000 sqm. per year. Considering DDMPR had its IPO in March 2021, we should have seen some acquisitions already.

There is some talk about DoubleDragon transforming its industrial assets into a REIT, with Jollibee as its anchor tenant. However there is no indication so far that CentralHub will be acquired by DDMPR and the rumour is that it will actually be a separate industrial REIT. There is no mention whether DDMPR will be acquiring the CityMall Commercial Centers from its sponsor either.

We’ll have to see what happens with DDMPR, perhaps it is taking a very careful and deliberate approach to expansion. Will its shareholders be that patient though?