Overseas Realty records best ever profits for 2006

COMPANY RESULT: Overseas Realty (Ceylon) Limited has recorded its best ever financial results during the period ending December 31, 2006 with a net profit before tax of Rs. 2,030.7 million and an after tax profit of Rs. 2,024.8 mn for the period under review.

The performance is for a period of 18 months, brought about by the change in accounting period. The earnings per share for the company for the period under review amounted to Rs. 3.67 as compared to negative earnings in the past.

The company has declared a first and final dividend of 3% for the period ending December 31, 2006, to be approved at the annual general meeting to be held on March 26, 2007.

The dividend would be tax free in the hands of the shareholders, as it has been paid out of tax exempt profits. The company has achieved a return on equity of 36% for the period under review. The computation of return on equity excludes the Preference Shares capital of the company.

The total rental revenue for the period amounted to Rs. 883.2 mn. Rental income, the core business activity of the company, has increased by 15% over the previous accounting period.

In terms of the revised SLAS 40, the fair value adjustment for the period had been brought into the income statement and amounted to Rs. 1,683.2 mn. Other income also contributed significantly and amounted to Rs. 68.6 mn.