Rental revenues drive GERI income 8% higher in Q3
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. —