Rental rev­enues drive GERI in­come 8% higher in Q3

Business World - - Corporate News - Arra B. Fran­cia

GLOBAL-ES­TATE Re­sorts, Inc. (GERI) grew its at­trib­ut­able profit by eight per­cent in the third quar­ter of 2018, as rental in­come more than tripled dur­ing the pe­riod.

In a reg­u­la­tory fil­ing, the leisure and tourism es­tate arm of Me­ga­world Corp. re­ported a net in­come at­trib­ut­able to eq­uity hold­ers of the par­ent of P479.95 mil­lion, higher than the P442.74 mil­lion it posted in the same pe­riod a year ago.

This fol­lowed a 12% uptick in rev­enues to P1.93 bil­lion, as the 322% surge in rental in­come to P117.42 mil­lion off­set the flat per­for­mance of its real es­tate sales at P1.25 bil­lion.

On a nine-month ba­sis, GERI’s at­trib­ut­able profit im­proved by 14% to P1.29 bil­lion, on the back of a seven per­cent in­crease in rev­enues to P5.25 bil­lion.

The res­i­den­tial unit ac­counted for bulk of GERI’s rev­enues at P4.43 bil­lion, seven per­cent higher year-on-year. The com­pany ben­e­fited from the re­newed in­ter­est in Bo­ra­cay Is­land fol­low­ing its six-month re­ha­bil­i­ta­tion, as well as its de­vel­op­ment near Ta­gay­tay.

“We have seen re­ally good take-up in Bo­ra­cay New­coast in the last few months, es­pe­cially af­ter the an­nounce­ment of the is­land’s re­ha­bil­i­ta­tion and re­open­ing. We have also seen very keen in­ter­est in our Twin Lakes de­vel­op­ment,” GERI Pres­i­dent Mon­ica T. Salomon said in a state­ment.

The com­pany owns the 150-hectare Bo­ra­cay New­coast in the fa­mous tourist des­ti­na­tion. It re­cently opened Savoy Ho­tel in the area, with Bel­mont Ho­tel Bo­ra­cay and Chan­cel­lor Ho­tel Bo­ra­cay slated to open in the next two years.

Twin Lakes is GERI’s largest tourism es­tate, cov­er­ing around 1,200 hectares of land near Ta­gay­tay.

Mean­while, the com­pany’s rental in­come surged by 253% to P294 mil­lion, com­pared to the P83.43 mil­lion recorded in the same pe­riod a year ago.

“This is an­other ban­ner year for our leas­ing op­er­a­tions... We look for­ward to new com­mer­cial spa­ces in Hol­land Park and in South­woods Of­fice Tow­ers 1 & 2, as these will fur­ther sus­tain our mo­men­tum in our rental in­come next year,” Mr. Salomon said. —

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