GERI profit lower despite strong residential sales

Published April 27, 2021, 5:00 AM

by James A. Loyola

Global-Estate Resorts, Inc. (GERI), the Philippines’ leading developer of master-planned integrated tourism estates, generated P12 billion from the sale of residential projects but 2020 net income was still lower due to the pandemic.

In a statement, the firm aid it sold P4.22 billion worth of projects last year in Boracay Newcoast alone, particularly the Newcoast Village lots as well as commercial lots inside the 150-hectare estate.

Around P2.17 billion worth of residential lots were also sold in Eastland Heights, the company’s 640-hectare integrated lifestyle community in Antipolo that is surrounded with forests and a golf course.

Around 1.5 billion worth of residential houses and lots have also been sold in Arden Botanical Estate, another rising 250-hectare integrated lifestyle community at the boundary of Tanza and Trece Martires in Cavite.

It also generated P1.4 billion from the sale of residential condominium units and village lots inside the 561-hectare Southwoods City in Biñan, Laguna, and another P1.17 billion worth of residential lots and condominium units in the 1,200-hectare Twin Lakes in Laurel, Batangas. 

“So many people realized that living outside the busy metropolis is a wise decision to make during this time,” said GERI President Monica T. Salomon.

She noted that, “Even our Alabang West property, which is still within Metro Manila, but already towards Cavite, sold more than a billion worth of lots in the middle of the lockdown.”

Salomon said “Demand for our residential properties in the provincial areas certainly boosted our revenues, offsetting the downtrend of our leasing businesses, which, just like our peers in the industry, have been affected by this pandemic.”

Excluding non-recurring gains of P188.5 million in 2019, GERI’s net income in 2020 reached P1.3 billion, down 25 percent compared to the year before.

Consolidated revenues ended at P5.2 billion, a decline of 37 percent from the previous year. Revenues from the company’s leasing operations declined by 17 percent year-on-year to P619 million in 2020 from the previous year’s P747 million. 

While the office leasing business remained stable, the company’s commercial business softened as a result of pandemic-related restrictions. 

Hotel revenues also declined by 75 percent to P201 million in 2020 from P814 million in the previous year as a result of prevailing travel restrictions. “Since most of our developments are in the countryside, and the demand is evidently there, we are optimistic that we will recover faster once the economy fully reopens soon,” said Salomon.