Overseas Realty Group reports Rs 2.5 bln profit

Overseas Realty (Ceylon) PLC (ORCL,) the leading property development group in Sri Lanka, saw a rise in 2012 financials with a 47 per cent growth in group operating profits and a group net profit of Rs 2.5 billion.

Group revenue in 2012 was Rs 2 billion, down 21 per cent from the previous year due to the revenue recognition policy adopted, whereby the company did not recognise the sale of apartments in the Havelock CityPhase 2 Residential development.

However, profit excluding Fair Value Gains on Investment Property, increased by 47 per cent to Rs 909 million,despite an exchange loss of Rs. 85 million consequent to the depreciation of the Sri Lankan Rupee in 2012 compared with an exchange loss of Rs 40 million in 2011, according to a company state- ment. Post tax profit of the company, comprising the leasing of space at the World Trade Centre (WTC) without the fair value gains, was Rs 955 million, which was a strong growth of 108 per cent over the previous year. “The occupancy level at the WTC, the premier business address in Colombo, reached 97 per cent by December 2012 whilst the average occupancy was above 90 per cent throughout 2012; and correspondingly rental income grew by 57 per cent in 2012 compared to 2011,” the statement said.

Havelock City’s Phase 2 Residential development, comprising two more residential towers with 218 luxury apartments has now reached the 11th level in construction and is expected to be completed by May 2014. As at end February 2013 the main subsidiary Mireka Homes (Pvt) Ltd had pre-sold over 60 per cent of the Phase 2 condominiums. Revenue from the sale of apartments recognised in 2012 was Rs 554 million, which comprised only the sale of the remaining inventory in the Phase 1 development. Revenue and Profitability of the apartments sold in Phase 2, will be recognised in 2013, the company said.