Megaworld’s GERI Posts 37% Revenue Growth in 1H19

Rental income more than doubled, hotel revenues almost quadrupled during first six months

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Global‐Estate  Resorts,  Inc.  (GERI), Megaworld’s subsidiary brand for integrated tourism and leisure estates, grew its net income by 37% to P989 million in the first half of the year from P724 million during the same period last year. On the other hand, the company’s net income attributable to parent company saw a 16% growth to P865‐million in the first six months of 2019 from P745 million during the same period in 2018.

Excluding non‐recurring gains of P189 million in the starting half of 2019, the company saw  a  double‐digit  growth  of  11%  in  its  earnings  from  the  same figure  during  the comparable  period  the  previous year. GERI’s  strong  output  particularly in its  rental business  and  hotel  operations  provided  the  impetus  for  earnings  growth  while revenues from its residential sales anchored profits.

The company’s consolidated revenues excluding non‐recurring gains was up 22% year‐on‐year to P3.9 billion in the period ending June this year from P3.2 billion in 2018. GERI’s strong topline was backed by its core businesses, which collectively ended at P3.8 billion after the first half of 2019, growing close to 20% from P3.2 billion during the same period last year.

“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 particular saw a huge swing in revenues 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 around  late  last  year  have  boosted  revenues  significantly  as  the  development continues to gain popularity amongst people visiting Tagaytay,” says Monica Salomon, president, GERI.

GERI’s rental income in the first half of the year saw a 113% increase, ending at P377 million  after  June  from  P177 million  during  the  comparable  period  in  2018.  Most notably  because  of  the  Southwoods  Office  Towers,  the  company’s  office  rental revenues  expanded  exponentially  during  the  first  six  months  of the  year  reaching P110 million from very minimal office leases a year before.

On the other hand, GERI’s hotel revenues also grew considerably during the first half of  2019,  soaring  286%  to  P484 million  from  P125 million  in  2018.  The company attributes the strong growth from its Twin Lakes Hotel, which added about 130 rooms to its  portfolio  upon  opening.  Other  than  this,  GERI  currently  operates  two  more hotels in its lineup: Savoy Hotel Boracay and Fairways & Bluewater, both in Boracay Newcoast.

GERI’s  residential  sales was  stable at  the P2.8 billion level, marginally up about 1% year‐on‐year during the first half of 2019. The real estate business of GERI comprises close to 70% of its total revenues.

Today,  GERI  has  seven  (7)  tourism  townships  and  integrated  lifestyle  communities across the country covering more than 3,000 hectares of land namely: Twin Lakes in Laurel, Batangas  (1,200 hectares); Southwoods City in Biñan, Laguna and Carmona, Cavite (561 hectares); Alabang West in Las Piñas City (62 hectares); Boracay Newcoast in Boracay Island, Aklan (150 hectares); Sta. Barbara Heights in Sta. Barbara, Iloilo (173 hectares);  Eastland  Heights  in  Antipolo,  Rizal  (640  hectares);  and  The  Hampton Caliraya in Lumban‐Cavinti, Laguna (300 hectares).

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