GERI’s H1 Net Income Up 11% to P603-M

Megaworld subsidiary Global-Estate Resorts, Inc. (GERI), the Philippines’ leading developer of master-planned integrated tourism estates, saw its net income attributable to the parent company’s shareholders grew by 11% to P603-million during the first half of the year. Total income, however, declined by 12% to P643.3-million.

Consolidated revenues reached P2.4-billion, a decrease of 17% compared to last year’s P2.9-billion as the pandemic impact continues to affect the company’s businesses, particularly its hospitality businesses in Boracay and Tagaytay.

While real estate sales reached only P1.8-billion during the first half of the year, down by 16%, reservation sales have reached P8.6-billion, a record increase of 48% compared to last year’s P5.8-billion. The bulk of these reservation sales during the period came from the horizontal residential developments in Eastland Heights (Antipolo), Boracay Newcoast (Boracay Island), and Alabang West (Las Piñas). The company also registered strong sales for its prime properties in Southwoods City, Twin Lakes, and Arden Botanical Estate.

The company launched a new village inside Eastland Heights during the first quarter of the year, which is now 97% sold.

“The demand for horizontal developments is just overwhelming during this time, and we continue to come up with innovative projects to address this growing need of our clients. As we sell new residential products, we also turn over those that are already completed this year, particularly our projects in Twin Lakes and Hamptons Caliraya. We are also on track to turn over more completed projects next year. These are residential lots in Hamptons Caliraya and condominium units in Boracay Newcoast, and Twin Lakes,” says Monica T. Salomon, president, GERI.

Leasing revenues decreased by 45% year-on-year to P190-million as concessions granted to rental partners remain in place. Meanwhile, revenue from hotel operations declined by 72% as compared to the same period last year due to prevailing travel restrictions.

Quarter-on-quarter, the company’s net income is almost flat at P320-million during the second quarter, while net income attributable to parent company’s shareholders also remains almost unchanged at P303-million.

Real estate sales also remained flat at P911-million quarter-on-quarter while rental income dropped by 41% percent.

Meanwhile, hotel operations during this period grew by 3% only, as eased restrictions allowed the partial opening of the company’s hotels in Boracay and Tagaytay.

Today, GERI has eight (8) integrated tourism developments across the country covering more than 3,300 hectares of land namely: Twin Lakes in Laurel, Batangas (1,200 hectares); Southwoods City in Biñan, Laguna and Carmona, Cavite (561 hectares); Alabang West in Las Piñas City (62 hectares); Boracay Newcoast in Boracay Island, Aklan (150 hectares); Sta. Barbara Heights in Sta. Barbara, Iloilo (173 hectares); Eastland Heights in Antipolo, Rizal (640 hectares); and The Hamptons Caliraya in Lumban-Cavinti, Laguna (300 hectares); and Arden Botanical Estate at the boundary of Trece Martires and Tanza in Cavite (251 hectares).