Overseas Realty records 77 percent profit growth for nine months

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

The Group recorded revenue of Rs. 1,657m and net profit of Rs. 440m which is an increase of 42 percent and 77 percent over the corresponding period of the previous year. The unrealised 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 3rd 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 WTC for the period grew by 20 percent over the previous year with occupancy increasing by almost 18 percent over September 2010 and is almost 5 percent above the previous quarter.

The net profit of the Company which reflects the WTC operation was Rs. 294 m for the period which is an increase of 56 percent over the previous year.

A Company spokesman said that the signed up office space commitments as at date will result in the Company enjoying an occupancy of 90 percent by end 2011 and a committed occupancy of nearly 95 percent.