Overseas Realty (Ceylon) PLC (ORCL,) the principal real estate and property development group in Sri Lanka, has registered a strong financial year for 2011 recording a significant growth in both its revenue and profit whilst establishing a strong foundation for future growth.
Driven by both higher occupancy levels at the company’s iconic World Trade Centre (WTC) and the sales of luxury apartments at Havelock City, the Group recorded Rs. 2.5 billion in revenue showing an increase of 47% over the previous year.
Profit after tax increased by nearly 200% to Rs 2.7 billion and profit excluding fair value gains increased by 32% to Rs. 584 million, this included an exchange loss of Rs. 40 million consequent on the depreciation of the SLR in 2011 compared with an exchange gain of Rs. 84 million in 2010.
The Earnings per share (EPS) increased by 155% to 3.14 while the Net Asset Value per share stood at Rs. 23.26 as at end 2011.
As reported by the company the occupancy level at WTC; the premier business address in Colombo, reached 90% by December 2011 with committed occupancy at almost 95%.
The rental income grew by 21% in comparison over the year 2010, with the year-end occupancy increasing by 24%. The net profit of the company, reflecting the leasing of space at WTC was Rs 2.5 billion which is almost a 250% growth over the previous year. The net profit without the fair value gains was Rs. 425 million which is a growth of 65% over the previous year.
With its fast-tracked development, Havelock City is currently constructing Phase two with two more residential towers comprising 218 luxury apartments along with its state of the art clubhouse. With 225 units from the first two residential towers sold out, the company successfully launched Phase two and already more than 25% of the apartments have been pre-sold. According to the company, the revenue from the sale of apartments for 2011 was Rs. 1.6 billion recording a growth of 67% over the previous year. Revenue recorded reflects only the sales of Phase one.
A company spokesperson stated that the high occupancy and increasing rents along with the new stock of apartments up for sale augurs well for a strong and sustainable profit growth and cash generation in the foreseeable future.