Leisure estate developer Global-Estate Resorts Inc. (GERI) grew its first quarter net profit by 21 percent year-on-year to P300 million as the company kept a tight lid on expenses due to the prolonged pandemic.
Three-month consolidated revenues decreased by 21 percent year-on-year to P1.2 billion as quarantine restrictions gnawed on some of the company’s core businesses.
First quarter real estate revenues stood at P909 million, down from P1.04 billion in the same period last year, while leasing revenues decreased by 36 percent year-on-year to P120 million due to rental concessions granted to tenants.
Due to the limited hotel operations brought about by the quarantine measures, first quarter hospitality revenues went down by 85 percent year-on-year to P22 million.
However, expenditures dropped at a faster pace of 24 percent year-on-year to P878.8 million, allowing GERI to post higher attributable earnings.
Apart from the decline in operating costs, GERI incurred much lower finance charges and income tax expense.
As an indicator of future revenue growth, the developer of integrated tourism estates posted P4.4 billion in reservation sales during the first quarter, representing a 104-percent year-on-year surge, citing resilient demand for residential and commercial properties even amid the pandemic. —DORIS DUMLAO-ABADILLA