GERI posts 125% profit jump on hotel, real estate revenues

LISTED Megaworld Corp. subsidiary Global-Estate Resorts, Inc.’s (GERI) attributable net income in the third quarter jumped to P168 million on the back of strong hotel revenues and real estate sales.

In a disclosure to the exchange on Thursday, GERI said its attributable net income soared by 125% from the P75 million seen in the same period last year. Its net income for the quarter rose by 22% to P207 million from P169 mil-lion.

GERI’s topline stood at P1.14 billion as construction activities increased in the July-to-September period. This is a 21% increase from the P943.39 million logged the previous year.

The company said it saw hotel revenues surge by 335% to P23.5 million during the quarter from last year’s P5.41 million. Real estate sales likewise went up by 16% to P888.67 million from P764.42 million.

For the first nine months, GERI’s attributable net income amounted to P771.98 million, up by 25% from last year’s P619.46 million. The company’s topline went down by 7% to P3.57 million from P3.86 billion.

Real estate sales went down by 8% to P2.71 billion from P2.94 billion last year. However, GERI said the demand for leisure properties and residential lots “bolstered reservation sales for the period,” which was up by 33% year on year to P13.2 billion.

“We continue to see strong demand for our property offerings outside of Metro Manila and this has been supported by the resumption of construction activities during the year,” said Monica T. Salomon, president of GERI.

Majority of the sales were attributed to GERI’s developments in Boracay Newcoast, Alabang West, and Eastland Heights townships totaling P8.9 billion.

Meanwhile, it also posted “strong sales” worth P3.5 billion for property offerings in Southwoods City, Twin Lakes, and Arden Botanical Estate.

However, leasing revenues dropped by 47% to P236.52 billion from P443.27 billion a year ago. Earnings from its hotel operations also dipped by 59% to P68.24 million from P166.94 million.

“The sustained reopening of the economy amidst the onset of the Christmas season will help in the recovery of our leasing and hospitality segments in the current quarter,” Ms. Salomon said.

GERI has eight integrated tourism developments across the country spanning over 3,300 hectares.

Shares of GERI closed unchanged at 90 centavos apiece on Thursday. — Keren Concepcion G. Valmonte