Tuesday Apr 23, 2024
Tuesday Apr 23, 2024
Friday, 26 November 2021 03:21 - - {{hitsCtrl.values.hits}}
Controlling foreign shareholders of Lanka Realty Investments PLC (LRI) yesterday partly shed their stakes to boost liquidity as retailers stepped up buying.
ASCO saw 39 million of its shares change hands via 3,284 trades for Rs. 994.5 million. However, the share closed at Rs. 25.30, down by 18% or Rs. 5.60, though improved liquidity is likely to boost its attractiveness.
Foreign shareholder directors Northern Trust Company S/A Ian McVeigh sold 15.7 million shares at Rs. 25 each and Terry C. Smith shed an equal number. Post-sale, Northern Trust holds 23.83%, down from 31.3%, and Smith 3.12%, down from 10.6%. Smith is also a connected party to ‘Eighth Wonder’, the holding of which remains unchanged at 11.3%.
Company analysts said British-based controlling shareholders retaining a part of the stake affirms their confidence in the future prospects of the company. Engaged in multiple office and mixed developments, total assets of LRI amounted to Rs. 15.4 billion.
Joint Managing Director Hardy Jamaldeen holds a 15% stake.
As of 30 September, LRI's public holding was 10.631% held by 1,729 shareholders. In the September 2021 quarter, the highest price of LRI was Rs. 37.90 and lowest was Rs. 29.80, before closing at Rs. 30. The Net Asset Value per Share was Rs. 39.33 as of end September 2021 compared with Rs. 40.08 as of March 2021.
LRI’s overall consolidated revenue increased by 358% to Rs. 173.3 m for the quarter ended 30 September 2021 compared with Rs. 37.8 m in the corresponding quarter the previous year. This increase was primarily due to the increased contributions due to the increase in sales at the Mulberry residential apartments, increase in rental income from HQ Colombo due to signing up new tenants and the consolidation of income due to the acquisition of Unity Plaza in December 2020. As a result of the above, the corresponding direct expenses demonstrated an increase of 254% to record Rs. 118.4 m for the quarter ended 30 September 2021 compared with Rs. 18.8 m in the comparable period in the previous year.
The operational profit recorded for 2Q was Rs. 6.1 m compared with the operational loss of Rs. 47 m a year earlier. The increase in operational profit was as a result of the relative increase in overall revenue and the maintenance of overall margins. The Group incurred a loss of Rs. 59 m for the September 2021 quarter, lower from Rs. 85 million a year ago.
