GERI profit declined by 23% in Q2

Megaworld group’s leisure estate arm Global-Estate Resorts Inc. (GERI) saw a 23-percent year-on-year decline in second quarter attributable net profit to P296.83 million as the coronavirus (COVID-19) pandemic-induced lockdown protocols curbed residential development, hotel and commercial property leasing businesses.

For the first semester, GERI’s attributable net profit declined by 37 percent year-on-year to P544.8 million, the company said in a regulatory filing on Monday.

Including earnings attributable to noncontrolling interest, GERI’s comprehensive net profit for the first semester amounted to P728 million, down by 9 percent year-on-year.

Consolidated revenues for the six-month period amounted to P2.91, down by nearly 29 percent year-on-year as the COVID-19 pandemic curbed revenues across all segments.

Revenues recognized from real estate sales declined by 23 percent year-on-year to P2.17 billion as quarantine measures constrained construction activities.

The company, however, continued to sell yet-to-be-built residential projects and nearly doubled its reservation sales quarter-on-quarter even as the country was placed on strict lockdown. Second quarter reservation sales jumped to P3.6 billion from P2.2 billion in the first quarter.

Residential projects in Boracay Newcoast in Aklan, Arden Botanical Estate in Cavite, Eastland Heights in Antipolo, Rizal, and Hamptons Caliraya in Laguna comprised the bulk of sales during the first half of the year, which reached P5.8 billion. —Doris Dumlao-Abadilla INQ