Megaworld unit cites ‘overwhelming’ demand for horizontal development
GLOBAL-ESTATE Resorts, Inc. (GERI) reported a P303.65-million net income attributable to the parent firm for the second quarter, inching up by 2.3% from the P296.84 million earned in the same period last year.
According to a regulatory filing on Monday, the Megaworld Corp. unit said its topline for the three-month period declined by 11% to P1.23 billion from P1.39 billion.
The listed tourism estate developer said it generated P911.28 million in real estate sales, 19% lower than last year’s P1.13 billion. GERI also reported a 56.17% drop in rental income to P70.52 million from P160.88 million.
On the other hand, the easing of quarantine restrictions boosted GERI’s hotel operations by three percent quarter on quarter as its hotels in Boracay and Tagaytay partially reopened. Compared with the same period in the previous year, revenues from hotel operations went up by 83.27% to P22.71 million from P12.39 million.
For the first six months, GERI logged an 11% growth in attributable net income to P603.64 million from P544.8 million.
Consolidated revenues for the first semester dropped by 17% to P2.43 billion from last year’s P2.91 billion. Meanwhile, real estate sales dipped by 16% to P1.82 billion from P2.17 billion.
The listed tourism estate developer said it is still weathering the effects of the pandemic, especially in its hospitality business in Tagaytay and Boracay. Revenues from hotel operations dropped by 72% to P44.74 million from P161.54 million year on year.
Meanwhile, leasing revenues dropped by 45% to P190 million as the company continued to grant rental concessions to its partners.
Reservation sales, on the other hand, grew by 48% to P8.6 billion from P5.8 billion brought by interest in the company’s horizontal developments in Eastland Heights in Antipolo, Boracay Newcoast, and Alabang West in Las Piñas.
GERI’s newly launched village in Eastland Heights is said to be 97% sold. Meanwhile, strong sales were also recorded in prime properties in Southwoods City, Batangas-based Twin Lakes, and Arden Botanical Estate, which is located at the boundary of Trece Martires and Tanza in Cavite.
“The demand for horizontal developments is just overwhelming during this time, and we continue to come up with innovative projects to address this growing need of our clients,” said Monica T. Salomon, president of GERI.
The company said it is also turning over recently completed projects in Twin Lakes and in the Hamptons Caliraya in Lumban-Cavinti, Laguna.
“We are also on-track to turnover more completed projects next year,” Ms. Salomon said. “These are residential lots in Hamptons Caliraya and condominium units in Boracay Newcoast, and Twin Lakes.”
GERI has so far eight “integrated tourism developments” across the Philippines, spanning over 3,300 hectares.
These include Twin Lakes, Southwoods City in Laguna’s Biñan and Carmona in Cavite, Alabang West, Boracay Newcoast, Sta. Barbara Heights in Iloilo, Eastland Heights, The Hamptons Caliraya, and Arden Botanical Estate.
Shares of GERI at the stock exchange were last traded on Friday for P0.85 each. — Keren Concepcion G. Valmonte