Tan-led property firm posts profit of P19.4M

GLOBAL- ESTATE Resorts Inc. ( GERI) swung to profitability in its fiscal year 2011 on higher revenues and lower financing costs.

In a regulatory filing, the tourism vehicle of Andrew Tan-led Alliance Global Group Inc. (AGI) said that it posted a consolidated net income of P19.4 million in its fiscal year ending September last year, a turnaround from the previous year’s net loss of P153.3 million.

The company’s consolidated total revenues increased by 12 percent to P867.5 million from P776.3 million. Real estate sales from residential subdivision lots and condominium units amounted to P326.0 million, down 15 percent from P381.8 million. GERI recognized an income of P153.87 million from the assignment of development rights following agreements with related parties. Realized gross profit on prior year’s real estate sales surged 888 percent to P38.99 million.

Cost and expenses decreased by 16 percent from P957.1 million in 2010 to P802.5 million, mainly because of lower finance cost and operating expenses. In January 2011, AGI completed the acquisition of almost 60 percent interest in GERI, formerly FilEstate Land, Inc. The property company used the P5 billion in proceeds to wipe out its debt, whose interest expense became a major drag to the firm’s earnings in the past.

GERI, which has more than 1,000 hectares of properties located in key tourist spots outside Metro Manila, is developing the P15billion Boracay Newcoast and the P5- billion Twin Lakes near Tagaytay. The firm is set to roll out this year another tourism estate project located on a 200- hectare property in Nasugbu, Batangas.

KRISTA ANGELA M. MONTEALEGRE