GERI’s residential projects sold faster in Q3
November 10, 2020
Company launches new project in Laguna, starts re-opening hotels in Boracay and Tagaytay
Global-Estate Resorts, Inc. (GERI), Megaworld’s subsidiary brand for integrated tourism and leisure estates, continues its residential sales streak after selling around P4.1-billion worth of reservation sales for its various residential projects during the third quarter of 2020, a 14% jump from P3.6-billion during the second quarter when the country was on strict lockdown due to the coronavirus.
During the second quarter, GERI also reported that its reservation sales almost doubled from the January-March period.
Most of the reservation sales were registered from the company’s horizontal developments, particularly the commercial and village lots in Boracay Newcoast, residential lots of Arden Botanical Estate in Cavite, and residential lots of Eastland Heights in Antipolo, Rizal.
“Our residential business has been doing so well quarter after quarter even if we are still reeling from the impact of COVID-19. We remain optimistic that the strong demand for properties outside of Metro Manila will continue, and our brand is perfectly positioned to help prospective buyers realize their aspirations for a place they can call their own in key locations that highlight the abundance and beauty of the natural environment,” says Monica T. Salomon, president, GERI.
Taking advantage of the momentum, GERI is launching commercial lots for boutique hotels in its 300-hectare Hamptons Caliraya in Cavinti, Laguna. Called Lakefront Esplanade, this boutique hotel district inspired by American colonial houses offers select 18 lots ranging from 450 square meters to 900 square meters and with a total projected sales value of almost half a billion pesos.
GERI has also resumed its hotel operations in Tagaytay and Boracay in a move to help boost revenues during this time.
“Our focus is how we can further boost revenues to at least mitigate the impact of the pandemic to our full-year revenues. And we are still optimistic that we are on-track with our revised targets,” explains Salomon.
During the first nine months of the year, GERI registered P897.6-million in net income excluding non-recurring gains, down 34% from P1.4-billion during the same period last year as most businesses were affected by the strict quarantine measures imposed by the government.
Consolidated revenues during the period also fell 35% at P3.8-billion from P5.9 billion during the same period last year as quarantine restrictions slowed down construction due to limited movements of workers, which eventually affected project completions.
Rental income registered a year-on-year decline of 22% from P570.7-million last year to P443.3-million for the period ending September 2020 due to the pandemic effect to its mall operations in Southwoods City.
Hotel operations were also down by 75% from P665.3-million last year to P166.9-million during the 9-month period this year due to the closures of tourism-related businesses during the lockdown.
However, the decline in the company’s core revenues was offset by the 32% reduction in costs and expenses, which registered at P3.0-billion for the period ending September 2020 from P4.4-billion during the same period last year.
“We have high hopes that the government’s efforts on the reopening of our economy will allow us to recover faster especially for our hotel and mall operations. We are ready to welcome back our customers and provide them with safer but more enjoyable experiences in our developments,” adds Salomon. 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).