Strong hotel, leasing businesses boost Geri’s profit
Tourism estate developer Global-Estate Resorts Inc. (Geri) grew its attributable net profit in the first six months by 16 percent year-on-year to P865 million on higher earnings from its hotel and leasing portfolio.
Including earnings attributable to minority interest, Geri’s six-month net profit jumped by 37 percent year-on-year to P989 million.
Excluding nonrecurring gains of P189 million in the first semester, earnings were up 11 percent year-on-year, Geri disclosed to the Philippine Stock Exchange.
For the second quarter, attributable net profit fell by 4.6 percent year-on-year to P387.65 million as real estate sales were flat at about P1.6 billion.
For the six-month period, real estate sales were up 1 percent year-on-year P2.8 billion, accounting for 70 percent of total revenue.
“Our growth story hinges on our rental and hotel businesses, which have been growing rapidly this year. On the rental side, the office segment in saw a huge swing in revenue due to the fact that both office towers in Southwoods City have already begun realizing full-year rentals. On the hotel side, the opening of Twin Lakes Hotel late last year has boosted revenue significantly as the development continues to gain popularity among people visiting Tagaytay,” Geri president Monica Salomon said.
Geri saw a 113-percent increase in six-month rental income as occupancy rate and additional leasable area expanded with the completion of Southwoods Office Towers.
There was likewise a 286-percent rise in hotel revenue due to increase in occupancy rate while the opening of Twin Lakes Hotel added about 130 rooms to the portfolio. Other hotels under the group are Savoy Hotel Boracay and Fairways & Bluewater, both in Boracay Newcoast.
Consolidated revenue, excluding nonrecurring gains, went up by 22 percent year-on-year to P3.9 billion in the six-month period. Core businesses posted P3.8 billion in first semester earnings, growing by nearly 20 percent year-on-year.
Geri has seven tourism townships and integrated lifestyle communities covering more than 3,000 hectares (ha) of land namely: Twin Lakes in Laurel, Batangas (1,200 ha); Southwoods City in Biñan, Laguna and Carmona, Cavite (561 ha); Alabang West in Las Piñas City (62 ha); Boracay Newcoast in Boracay Island, Aklan (150 ha); Sta. Barbara Heights in Sta. Barbara, Iloilo (173 ha); Eastland Heights in Antipolo, Rizal (640 ha) and The Hampton Caliraya in Lumban-Cavinti, Laguna (300 ha).—DORIS DUMLAO-ABADILLA
