GLOBAL-ESTATE Resorts, Inc. (GERI) posted an 18% attributable profit growth during the first six months of 2018, driven by a surge in rental revenues after it opened its first full-scale mall in Laguna.
In a statement issued Tuesday, the leisure and tourism estate developer of tycoon Andrew L. Tan saw net income attributable to equity holders of the parent climb to P794 million for the first semester, compared to the P670 million it realized in the same period a year ago.
Consolidated revenues likewise rose five percent to P3.3 billion for the period.
GERI attributed the positive results to the performance of Southwoods Mall, its first full-scale mall inside its tourism estate Southwoods City in Laguna. Rental revenues jumped by 218% during the January to June period, reaching P177 million compared to the P56 million recorded in the same period a year ago.
“After launching Southwoods Malls, we are gearing up to launch more lifestyle malls and retail concepts in the coming years,” GERI President Monica T. Salomon was quoted as saying in a statement.
By 2020, the company expects to expand its rental income to reach P650 million as it opens more lifestyle malls.
GERI also reported an eight percent growth in residential sales to P2.8 billion in the first half.
GERI currently has residential projects inside its integrated lifestyle communities and townships, namely Alabang West in Las Piñas City spanning 62 hectares, Hamptons Caliraya surrounding Lake Caliraya in Laguna covering 300 hectares, the 1,200-hectare Twin Lakes in Tagaytay, the 150-hectare Boracay Newcoast in Boracay Island, the 173-hectare Barbara Heights in Iloilo, and the 640-hectare Eastland Heights in Rizal.
“The ‘integrated lifestyle community’ concept resonates well to our market in pushing our residential offerings. We expect to see more of this pioneering concept in our other properties soon,” Ms. Salomon said.
GERI is part of Mr. Tan’s Alliance Global Group, Inc., which also has core investments in liquor through Emperador, Inc., gaming through the operations of Resorts World Manila, and quick service restaurants through Golden Arches Development Corp. — the local franchisee of the McDonald’s brand.
Shares in GERI gained two centavos or 1.65% to close at P1.23 each at the stock exchange on Tuesday. — Arra B. Francia
