Global-Estate Resorts, Inc. (GERI), Megaworld’s subsidiary brand for integrated tourism and leisure estates, reported a 54 percent drop in attributable net income to P619.46 million in the first nine months of 2020 from th P1.36 billion posted in the same peirold last year.
In a disclosure to the Philippine Stock Exchange, the firm said that, like most businesses, it was affected by the strict quarantine measures imposed by the government.
Consolidated revenues during the period fell 35 percent at P3.86 billion from P5.92 billion during the same period last year as quarantine restrictions slowed down construction due to limited movements of workers, which eventually affected project completions.
For the third quarter alone, net income plunged 85 percent to P74.67 million from P490.14 million while gross revenue dropped 48 percent to P943.39 million from P1.82 billion.
Rental income for the first nine months registered a year-on-year decline of 22 percent from P570.7 million last year to P443.3 million for the period ending September 2020 due to the pandemic effect to its mall operations in Southwoods City.
Hotel operations were also down by 75 percent from P665.3 million last year to P166.9 million during the 9-month period this year due to the closures of tourism-related businesses during the lockdown.
However, the decline in the company’s core revenues was offset by the 32 percent reduction in costs and expenses, which registered at P3.0 billion for the period ending September 2020 from P4.4 billion during the same period last year.
“We have high hopes that the government’s efforts on the reopening of our economy will allow us to recover faster especially for our hotel and mall operations. We are ready to welcome back our customers and provide them with safer but more enjoyable experiences in our developments,” said GERI President Monica T. Salomon.
GERI said it continued its residential sales streak after registering reservation sales worth P4.1 billion during the third quarter of 2020, a 14 percent jump from P3.6 billion during the second quarter when the country was on strict lockdown due to the coronavirus.
During the second quarter, GERI also reported that its reservation sales almost doubled from the January-March period.
Most of the reservation sales were registered from the company’s horizontal developments, particularly the commercial and village lots in Boracay Newcoast, residential lots of Arden Botanical Estate in Cavite, and residential lots of Eastland Heights in Antipolo, Rizal.
“Our residential business has been doing so well quarter after quarter even if we are still reeling from the impact of COVID-19. We remain optimistic that the strong demand for properties outside of Metro Manila will continue, and our brand is perfectly positioned to help prospective buyers realize their aspirations for a place they can call their own in key locations that highlight the abundance and beauty of the natural environment,” said Salomon.