GERI POSTS 33% INCOME DROP

Global-Estate Resorts, Inc. (GERI), s developer of master-planned tourism townships, recorded a net profit of P365 million in the first quarter of 2020, a 33% decline from P544-million during the same period last year.

However, excluding non-recurring gains in 2018 amounting to P189 million, net profit grew 3% year-on-year.

Consolidated revenues contracted by 18% to P1.5 billion in the first quarter of 2020 from P1.9 billion during the same period last year. The sharp decline was mostly due to a decline in real estate sales, which achieved record figures in 2019.

Real estate sales decreased by 16% year on year to P1.0 billion, with sales mostly coming from the sale of condominium units, as well as residential and commercial lots in Boracay Newcoast and Twin Lakes.

Revenues from the company’s leasing operations, meanwhile, registered a 3% increase to P186 million in the first three months of the year from the previous year’s P180 million. Hotel revenues dipped 13% to P149 million in the first quarter of 2020 from P171 million in the previous year, following the temporary suspension of hotel operations of Twin Lakes Hotel in Batangas, as well as Savoy Hotel and Belmont Hotel in Boracay Newcoast, Aklan.

On the other hand, the lower revenues was offset by a 12% year on year decrease in expenses, amounting to P1.2 billion as compared to P1.3 billion last year. “Our operations particularly in Southern Luzon were significantly affected by the eruption of Taal Volcano during the start of the year, then came the coronavirus pandemic. But we strongly believe that we are in a good position to recover fast from this crisis given the geographic spread of our property portfolio across the country, and our strategic recovery plans that are already in place,” according to Monica T. Salomon, GERI president, .

Currently, GERI, a subsidiary of property giant Megaworld, 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).