TOWNSHIP developer Global-Estate Resorts, Inc. (GERI) reported a 48% decline in earnings for the first quarter due to the eruption of Taal Volcano and the coronavirus outbreak.
In a regulatory filing Wednesday, the listed subsidiary of Megaworld Corp. said its attributable net income in the three months to March fell to P247.96 million from P477.47 million last year.
Its consolidated revenues decreased 18% to P1.53 billion as real estate sales were slower during the period.
In a statement, it said sales from condominium units and residential and commercial lots stood at P1 billion, down 16% from last year’s record performance.
Revenues from hotel operations also dropped 13% to P149 million, attributed to the temporary closure of hotels in Batangas and Boracay.
The declines in these two segments failed to offset the 13% increase in leasing revenues, which stood at P186 million at the end of the period.
What helped temper the slowdown in GERI’s bottomline was the 12% easing of its expenses to P1.2 billion.
“Our operations particularly in Southern Luzon were significantly affected by the eruption of Taal Volcano during the start of the year, then came the coronavirus pandemic,” GERI President Monica T. Solomon said in the statement.
“But we strongly believe that we are in a good position to recover fast from this crisis given the geographic spread of our property portfolio across the country, and our strategic recovery plans that are already in place,” she added.
GERI currently has eight integrated developments in its portfolio accounting for 3,300 hectares of land. Its shares at the stock exchange slid four centavos or 4.60% to 83 centavos each on Wednesday. — Denise A. Valdez
