Global-Estate Resorts profit slips in 3rd quarter

EARNINGS of Global-Estate Resorts, Inc. (GERI) dipped 2% in the third quarter as its real estate sales slowed during the period.

In a regulatory filing yesterday, the listed subsidiary of Megaworld Corp. said its attributable net income stood at P490.14 million in the July to September period, down from P502.49 million a year ago.

Total revenues during the three months increased 5% to P1.82 billion versus last year. The biggest bulk came from real estate sales, which ended at P1.32 billion or lower by 6%.

However, the 65% surge in rental income to P193.53 million, the exponential growth of hotel operations income to P181.35 million from P102,000, and 33% rise in service income to P44.83 million helped offset the decline in revenues.

Total expenses during the quarter increased 3% to P1.25 billion.

For the nine months to September, GERI’s attributable net income was 9% higher at P1.36 billion, as revenues during the period climbed 19% to P5.92 billion.

Net profit in the three-quarter period jumped 24% to P1.6 billion. Excluding non-recurring gains which amounted to P189 million, the company said in a statement its net income would still be 10% higher at P1.4 billion.

By business group, the real estate segment of GERI, which is its main source of revenues accounting for more than 70%, slipped 1% to P4.16 billion during the nine-month period. The rental segment generated the next biggest contribution at P570.71 million, soaring 94% from last year.

The hotel segment added P655.29 million or a 422% escalation from last year, which came mostly from the opening of new hotels in Twin Lakes and Boracay Newcoast.

The company said moving forward, it expects to continue seeing growth across its revenue streams with the incoming sales from newly finished projects and added contributions of more projects in the pipeline.

GERI currently has eight integrated tourism development projects on its plate, which will total more than 3,000 hectares of land across the country.

“Our continuing thrust to help boost tourism in the country is even gaining more momentum as we open more hotels across our tourism townships,” GERI President Monica T. Salomon said in a statement.

“The growth in our real estate revenues will be underpinned by project launches from our new and existing townships and integrated lifestyle communities. Moving forward, this should be sustainable as the company has a huge land bank for both vertical and horizontal developments,” she added.

Shares in GERI went up 0.03 points or 2.42% to close at P1.27 apiece on Monday. —