Overseas Realty posts Rs 404 m profit for 9 months

Overseas Realty (Ceylon) PLC is consolidating its post war growth momentum as reflected in the nine months results released to the Colombo Stock Exchange.

The Group recorded revenue of Rs 1,657 mn and net profit of Rs 440 mn which is an increase of 42% and 77% respectively over the corresponding period of the previous year.

The unrealized exchange gains recorded for Mireka Group, its main subsidiary, in the first half of the year was partially eroded in the last two months of the third quarter due to the depreciation of the Rupee against the US Dollar.

The reported profit excludes fair value gains on the substantial investment property owned by the company, the World Trade Center (WTC).

Rental income from the WTC for the period grew by 20% over the previous year with occupancy increasing by almost 18% over September 2010 and is almost 5% above the previous quarter.

The net profit of the company which reflects the WTC operation was Rs 294 mn for the period which is an increase of 56% over the previous year. A company spokesman stated that the signed up office space commitments as at date will result in the Company enjoying a occupancy of 90% by end 2011 and a committed occupancy of nearly 95%.

As reported by the company, Havelock City which entered a rapid phase of development has commenced construction of its state-of-the-art Clubhouse whilst piling was completed for the next two residential towers.

The Commercial complex comprising the largest shopping mall in Sri Lanka and twin office towers is at an advanced stage of design and construction is expected to commence towards the end of the first quarter of 2012.

Revenue from the sale of apartments during the period under review was Rs 1,017 mn, an increase of 63% over the previous year.