GERI profit slips to P365 million in Q1

GLOBAL-Estate Resorts Inc. (GERI) reported on Wednesday that its net income fell by 33 percent to P365 million in the first quarter of 2020 from P544 million in the same period last year.

In a disclosure, the listed subsidiary of Megaworld Corp. said its consolidated revenues declined by 21 percent to P1.5 billion in January to March from P1.9 billion a year earlier.

These revenues were driven by P1 billion in real estate sales, mostly from the sale of its condominium units, and residential and commercial lots in Boracay Newcoast, Twin Lakes and Southwoods City.

Leasing operations increased by 3 percent to P186 million, primarily from its Southwoods Office Towers.

Revenues of GERI’s hotel business, meanwhile, hit P149 million despite the suspension of operations at Twin Lakes

Hotel in Batangas province and Savoy and Belmont hotels at Boracay Newcoast in Aklan province.

“We remain optimistic for the rest of the year as we expect promising residential lot sales in our sustainable townships and integrated lifestyle communities in the provinces, such as Arden Botanical Estate, Eastland Heights, Hamptons Caliraya and Boracay Newcoast,” GERI President Monica Salomon said in the disclosure.

“All these will propel our recovery plans throughout the year,” she added.

GERI currently has eight integrated tourism and leisure developments. These are in Las Piñas City; Cavite, Laguna, Batangas and Rizal provinces; Boracay Island in Aklan; and Iloilo province.

GERI shares shed 4 centavos or 4.6 percent to finish at 83 centavos each on Wednesday.