Real estate sales, hotel revenues boost GERI’s Q3 profits
November 11, 2021
Megaworld subsidiary Global-Estate Resorts, Inc. (GERI), the Philippines’ leading developer of master-planned integrated tourism estates, reported a 22% increase in its net income for the third quarter from P169-million last year to P207-million this year as real estate sales and hotel revenues bounced back with eased pandemic restrictions during the period. Net income attributable to parent company’s shareholders surged 125% to P168-million during the quarter compared to last year’s P75-million.
Consolidated revenues from core businesses reached P1.14-billion during the third quarter with hotel revenues soaring 335% to P23.5-million and real estate sales increasing by 16% to P889-million, primarily due to the increase in construction activities during the period.
GERI’s full nine months performance, however, remained almost flat as total income achieved during the period reached P850-million. Net income attributable to parent company’s shareholders during the period, on the other hand, was up 25% to P772-million this year from last year’s P619-million.
The company registered real estate sales of P2.7-billion for the first nine months of 2021, 8% lower than the P2.9-billion achieved last year.
Continued demand for leisure properties and residential lots bolstered reservation sales for the period ending September 2021, which increased by 33% year-on-year to P13.2-billion. The bulk of sales came from GERI’s offerings in its Boracay Newcoast, Alabang West, and Eastland Heights townships, which amounted to P8.9-billion. The company also registered strong sales for its property offerings in Southwoods City, Twin Lakes, and Arden Botanical Estate, which amounted to P3.5-billion.
For the first nine months of 2021, leasing revenues declined by 47% year-on-year to P236.5-million as consumer sentiment remained subdued. Meanwhile, revenue from hotel operations also declined by 59% as compared to the same period last year due to prevailing travel restrictions.
“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. Meanwhile, 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,” says Monica T. Salomon, president, GERI.
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).