Overseas Realty net profit tops Rs. 6 b mark in FY22

• Group Revenue up 95% to Rs. 15,046 m
• Group PBT up 147% to Rs. 7,025 m
• Residential Sales drives profitability
• Havelock City Commercial Complex completes construction
• Mireka Tower at Havelock City opens for business
• The World Trade Centre Colombo celebrated 25 years in operation in Oct. 2022

Chairman Ajit Jayaratne

Group CEO/Director Pravir Samarasinghe

Overseas Realty (Ceylon) PLC said yesterday it has recorded a strong growth in Revenue and Profitability, primarily driven by the Havelock City Residential sales, to record a Group Revenue of Rs. 15,046 million and a Group Profit Before Tax of Rs. 7,025 million for year 2022. The depreciation of the rupee by 83% resulted in the group incurring significant exchange losses on the foreign currency loans.

The Company Revenue of Rs. 2,112 million at the World Trade Centre, Colombo was 6% higher than the corresponding period of last year, with higher rental rates. Revenue of Rs. 12,391 million was recorded in 2022 from Residential Sales of Havelock City, compared to Rs. 5,144 million last year.

“The strong growth in Revenue and Profitability was fronted by the robust performance of Havelock City Residential Sales during the first quarter of 2022.  Since then, the steep depreciation of the rupee and increase in interest rates have significantly slowed down demand for residential property,” stated Overseas Realty Ceylon Group CEO and Director Pravir Samarasinghe.

“Finally, after five years, since the groundbreaking, with many challenges due to the unfortunate pandemic and economic crisis, the construction of the Havelock City Commercial Complex was completed. The grand opening of the Office Tower at Havelock City was held in October 2022; while the World Trade Centre, Colombo celebrated 25 years in operations. The Group continues to dominate the office market bringing modern expertise, domain knowledge and experience to its developments and management to better serve our tenants and customers,” added Samarasinghe.

The Havelock City Commercial Complex comprising a 50-storey Office Tower- Mireka Tower offering 600,000 sq ft of Grade “A” premium office space and an international standard Shopping Mall of 200,000 sq ft providing a range of fashion, food and beverage and entertainment experiences is currently leasing space and generating strong interest.  However, the economic uncertainties and the resultant challenges faced by the tenants are a grave concern. The Shopping Mall is expected to be opened in July 2023.

The fourth and final phase of Havelock City Residential Apartments was completed in 2021 and a majority of units have been sold whilst a limited number of ready to move in luxury apartments in both Phases 3 and 4 are still available for purchase and immediate occupancy.

The Group Net Asset Value per Share as of 31 December 2022 stood at Rs. 41.67 and the Earnings per Share for the period was Rs. 4.89.

The Directors have recommended a First and Final Dividend of Rs. 1.25 per Ordinary Share for the financial year ended 31 December 2022.