Overseas Realty 1H profits rise 79% to Rs. 287 m with robust 2Q

Tuesday, 16 August 2011 00:09 - - {{hitsCtrl.values.hits}}

The Overseas Realty (Ceylon) PLC group posted impressive results for the first half of the year with the second quarter showing significant growth over the first quarter and the previous year.

The quarter ending June achieved a revenue growth of 58% and net profit growth of 30% over the previous quarter laying the foundation for healthy profit growth during the year under review.

The group recorded revenue of Rs. 1,130 mn and net profit of Rs. 287 mn which is an increase of 25% and 79% respectively over the first six months of the previous year.

The profits also included unrealised exchange gains of Mireka Group its main subsidiary. The comparative growth in profit year on year adjusted for such exchange gains is 64%. The reported profit excludes fair value gains on substantial investment properties owned by the company.

Rental income from WTC for the six months grew by 12% over the previous year with occupancy increasing by almost 10% over June 2010 and over 5% from December 2010.

The net profit of the company which reflects the WTC operations was Rs. 177 mn for the six months which is an increase of 39% from the previous year.

The Havelock City project is entering a rapid development stage with construction of two more residential towers and the state of the art Clubhouse scheduled to commence in September this year. The commercial development which will house the country’s biggest shopping mall and two office towers is in its design finalisation stages with construction expected to start in the first quarter of 2012.

At the ground breaking ceremony for the Clubhouse held in August, group CEO Pravir Samarasinghe stated that the Havelock City Clubhouse will be unparalleled in terms of design and offerings and will include among other facilities squash courts, a modern gymnasium, sauna, a large swimming pool, Jacuzzi, dedicated children’s pool, badminton court, basketball hoops, day care centre, function rooms with banquet facilities and barbecue areas for the exclusive use of the residents.

Revenue from the sale of apartments during the first half of the year was Rs. 722 mn an increase of 34% over the previous year.

Revenue reflects the sales generated from Phase 1 which comprise the two completed towers of the residential development.

Phase 2 pre-sales have commenced, however this is not reflected in the revenue.

A company spokesman stated that the group is well positioned to reap the benefits of positive market and investor sentiments with anticipated improved income generation through its iconic property – the World Trade Centre and the fast tracked Havelock City development, where the commercial development will further enhance the group’s recurrent income portfolio.

As the leading property developer in the country we are confident of taking advantage of the many opportunities in the market place and achieving healthy sustainable earnings growth in the foreseeable future, he further added.