Overseas Realty ups 2018 profit by 54% to Rs. 4.9 b

Monday, 25 February 2019 01:04 - - {{hitsCtrl.values.hits}}

Overseas Realty (Ceylon) PLC has concluded a successful financial year recording a Group Revenue of Rs. 6,792 million, an increase of 57% over last year. The Group Profit After Tax grew by 54% to Rs. 4,883 million, compared to the previous year.

The Company Revenue of Rs. 2.3 billion, was 10% higher than last year due mainly to higher rental rates and healthy occupancy levels maintained during the year.

The Company has commenced a comprehensive refurbishing and upgrading program to the common facilities of the building with the intention of continuing to provide a superior service to owners, occupants and visitors. It is a strong testament to the Company’s dedication and commitment to excellence in providing quality office space.

Further Mireka Homes recorded a revenue of Rs. 4.1 billion compared to Rs. 1.9 billion in 2017 due mainly to increased revenue recognised from Havelock City Phase 3 apartment sales. Consequently the Group Revenue and Profit Before Tax grew by 57%and 32% respectively.

Phase 3 consisting of 304 units with 80% construction completed by end 2018, is 62% pre-sold and the construction is expected to be finished by September 2019. On the other hand, Phase 4 which was launched to market in August 2018 was 28% completed by end 2018 with 16% pre-sold and is expected to be finished in October 2020.

The Havelock City Commercial Development comprises a 50 storeyed Office Tower and a Shopping Mall built to International Standards which will be an iconic landmark in the vicinity.

The on-time completion of the piling works paved the way to commence the construction of the Super Structure on target with completion expected by April 2021. Pre-leasing of retail space has already begun.

Overseas Realty (Ceylon) PLC Chairman S.P. Tao commented, “Sri Lanka is evolving as one of the leading destinations in the region, with office, commercial, tourism and service sectors expected to grow over the next decade. Political stability, economic growth and business confidence are key ingredients for the property sector to prosper in any country. I believe your Company is well positioned to be a direct beneficiary of the long-term prospects for Sri Lanka. Whilst we have recorded steady growth up to 2018, the Company will endeavour to explore property related opportunities to enhance shareholder value.”

The Group Net Asset Value per Share as at 31 December 2018 stood at Rs. 32.26 and the Earnings per Share for the period was Rs. 3.93.

The Directors have recommended a first and final dividend of Rs. 1.25 per ordinary share for the financial year ended 31 December 2018.