Megaworld’s GERI Profit Up 8% in 1Q; rental income soared 108% to new quarterly record high
May 14, 2019
Global-Estate Resorts, Inc. (GERI), Megaworld’s subsidiary brand specializing in integrated tourism and leisure estates, grew its earnings by 65% to P544-million in the first quarter this year from P330-million during the same period last year.
Excluding non-recurring gains of P189-million in the first quarter of 2019, the company saw an 8% growth in net profit from the same figure during the comparable period the previous year.
On the other hand, net income attributable to parent company saw a 41% growth from P339-million in the first three months of 2018 to P477-million during the same period in 2019. GERI’s soaring rental income and hotel operations provided uplift in earnings while its residential development business buoyed the company’s results.
Consolidated revenues excluding non-recurring gains was up 20% year-on-year to P1.7-billion during the first quarter from P1.4-billion in 2018. Related to this, GERI’s core businesses collectively reached P1.6-billion from January to March of 2019, up 17% from P1.4-billion during the same period the previous year.
“We believe that we have made the right investments to secure our rental income early on as this is now providing stability in GERI’s earnings, which is evident in our results the past several years. We plan to further solidify this side of the business as we add more investment properties across our lineup of tourism townships and integrated lifestyle communities in the country,” says Monica Salomon, president, GERI.
GERI’s rental income for the first three months of the year more than doubled to P180-million from P87-million during the same period in 2018. The exceptional increase was mostly attributed to GERI’s Southwoods Office Towers and its full-scale mall in Biñan, Laguna — the Southwoods Mall — both of which already reached its full-year operations late last year.
The company’s hotel operations, on the other hand, also saw robust growth during the first quarter, soaring 78% to P171-million from P97-million in 2018. GERI has already opened two hotels: Savoy Hotel Boracay in Boracay Newcoast, and Twin Lakes Hotel in Twin Lakes, Laurel, Batangas near Tagaytay.
The company is set to open another hotel in Boracay Newcoast this year, the Belmont Hotel Boracay, offering around 450 rooms.
GERI’s residential sales was up about 5% to P1.24-billion during the first quarter from P1.18-billion during the same period last year. Last year, the company launched new residential projects in Twin Lakes and Southwoods City.
Today, GERI has seven (7) tourism townships and integrated lifestyle communities across the country covering more than 3,000 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).