GLOBAL-ESTATE Resorts, Inc. (GERI) ended the year with a net attributable profit of P1.09 billion, down by 27% from P1.49 billion in the previous year, due to the decline in real estate sales, rental income, and revenues from hotel operations.
According to a regulatory filing on Monday, the revenues of GERI, the listed tourism estate subsidiary of Megaworld Corp., also slumped by 37% to P5.2 billion from P8.3 billion.
Real estate sales declined by 39% to P3.61 billion from P5.91 billion due to limited selling and construction activities caused by quarantine restrictions. Some project launches for 2020 were also deferred.
Meanwhile, rental income amounted to P619.36 million, dipping by 17% from P746.69 million, due to the closure of mall and commercial spaces, lower foot traffic upon reopening, and rental concessions.
GERI reported that some 70% of its total leased out gross leasable area were not able to operate when the country imposed its strictest lockdown restrictions.
Revenues from hotel operations fell by over 75% to P201.21 million from P813.93 million as travel restrictions resulted in limited operations to comply with lockdown guidelines.
“Occupancy rates dropped significantly due to travel restrictions and cancelation of bookings and meetings, incentives, conventions, and exhibitions activities,” the company said.
The company launched E-Concierge, a mobile application to help guests and hotel staff with contactless interactions from check-in to check-out.
GERI said it had since focused on selling residential and commercial lots beyond Metro Manila and maximized digital platforms to sell real estate projects.
The company sold nearly P12 billion of its various provincial projects in 2020, with projects in Boracay, Antipolo, Cavite, Laguna, and Batangas taking the lead.
For its Boracay Newcoast project, GERI generated around P4.22-billion worth of sales, while sales from its Antipolo Eastland Heights project totaled to nearly P2.17 billion.
Some P1.5-billion residential houses and lots were sold at the company’s Arden Botanical Estate in Cavite, sales of condominium units and village lots at GERI’s Southwoods City project in Laguna amounted to P1.4 billion, and another P1.17-billion worth of residential lots and condominium units were sold at its Batangas Twin Lakes development.
“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,” GERI President Monica T. Salomon said in a statement.
The company has eight integrated tourism developments in the country with a total 3,300 hectares of land, namely: Twin Lakes in Laurel, Batangas; Southwoods City in Biñan, Laguna and Carmona, Cavite; Alabang West in Las Piñas City; Boracay Newcoast in Boracay Island, Aklan; Sta. Barbara Heights in Sta. Barbara, Iloilo; Eastland Heights in Antipolo, Rizal; The Hamptons Caliraya in Lumban-Cavinti, Laguna; and Arden Botanical Estate in Cavite.
GERI shares at the stock exchange went down by 2.38% or P0.02 to finish at P0.82 each on Monday. — Keren Concepcion G. Valmonte