Global-Estate Resorts Inc. (GERI) said its net income in the first semester fell 12 percent to P643.28 million year-over-year as its hotel and other commercial operations grappled with the economic impact of the pandemic.
Consolidated revenues reached P2.43 billion, some 17 percent lower compared with last year’s P2.91 billion, as the pandemic affected the company’s businesses, particularly its hospitality businesses in Boracay and Tagaytay.
Real estate sales in the first semester reached only P1.8 billion, down by 16 percent from the previous year, while reservation sales reached P8.6 billion, a record increase of 48 percent compared to last year’s P5.8 billion.
The bulk of these reservation sales during the period came from the horizontal residential developments in Eastland Heights (Antipolo), Boracay Newcoast (Boracay Island) and Alabang West (Las Piñas).
The company also registered strong sales for its prime properties in Southwoods City, Twin Lakes, and Arden Botanical Estate.
The company launched a new village inside Eastland Heights during the first quarter of the year, which is now 97 percent sold.
“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. As we sell new residential products, we also turn over those that are already completed this year, particularly our projects in Twin Lakes and Hamptons Caliraya.
We are also on track to turn over more completed projects next year. These are residential lots in Hamptons Caliraya and condominium units in Boracay Newcoast, and Twin Lakes,” Monica T. Salomon, the company’s president, said.
For the second quarter alone, its income fell more than 11 percent to P320.65 million from last year’s P363.4 million, while revenues dropped by 11 percent to P1.22 billion from the previous year’s P1.38 billion.
Leasing revenues for January to June declined by 45 percent to P190 million as concessions granted to rental partners remained in place. Revenue from hotel operations slid by 72 percent from last year due to prevailing travel restrictions.
Quarter-on-quarter, real estate sales were flat at P911 million, while rental income dropped by 41 percent.
Meanwhile, hotel operations posted minimal growth, as eased restrictions allowed the partial opening of the company’s hotels in Boracay and Tagaytay.