Global-Estate Resorts Inc. nets P477M in Q1 2019
MANILA, Philippines — The Megaworld group’s leisure estate arm Global-Estate Resorts Inc. (GERI) grew its net profit in the first quarter by 41 percent year-on-year to P477 million on higher earnings from residential development, hotel operations and rental of commercial properties alongside some non-recurring gains.
GERI’s first quarter results also included P188.51 million in non-recurring gain arising from the sale of investment in an associate. Excluding one-off items, core profit in the first quarter rose by 8 percent year-on-year.
The company booked P1.24 billion in revenues from real estate sales during the quarter, up by 5 percent from the same level last year.
Rental income for the quarter more than doubled to P180 million from P87 million in the same period last year. This was mostly contributed by Southwoods Office Towers and Southwoods Mall in Biñan, Laguna, both of which had their first full year of operations last year.
Earnings from hotel operations also grew by 78 percent year-on-year to P171 million in the first quarter. GERI has opened two homes: Savoy Hotel Boracay and Twin Lakes Hotel near Tagaytay.
Consolidated revenues excluding non-recurring gains rose by 20 percent year-on-year to P1.7 billion.
“We believe that we have made the right investments to secure our rental income early on as this is now providing stability in GERI’s earnings, which is evident in our results in the past several years. We plan to further solidify this side of the business as we add more investment properties across our line-up of tourism townships and integrated lifestyle communities in the country,” GERI president Monica Salomon said in a disclosure to the Philippine Stock Exchange on Tuesday.
Including earnings attributable to minority interest, GERI’s net profit went up by 65 percent year-on-year to P544 million in the first quarter.
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