The Sri Lankan property developer controlled by Singaporean S.P. Tao, Overseas Realty, which has a local portfolio comprising the World Trade Centre commercial and Havelock City residential properties, recently posted a performance update showing an increase in profits of Rs. 80.8 million, or 72%, to Rs. 192.7 million for its 1st Quarter 2010 over Rs. 112.0 million realised in 1st Quarter 2009. An improved profitability mainly attributed to the sale of a number of the 226 apartments making up the first phase of its 18-acre Havelock City prime residential development.
However, Overseas Realty's update also noted that, overall; the developer had experienced a decline in revenues of 13% as a result of actual apartment sales in 2010 versus 2009’s expectations.
The update also indicated static rental income, at Rs. 184.0 million, and profit, at Rs. 68 million, pertaining to its 600,000 square feet World Trade Centre commercial development for 1st Quarter 2009 and 1st Quarter 2010.
On the other hand, according to Group Managing Director Thilan Wijesinghe, both Havelock City and the World Trade Centre were on the upswing; the former benefiting from the completion of its first phase which allowed prospective apartment buyers to see the end result, a significant advantage in the selling process; while the latter had already witnessed a 8% growth in rental income and a 19% increase in net profits in 1st Quarter 2010 over 4th Quarter 2009 income and profit numbers, a trend expected to continue and result in "considerably higher" occupancy by year's end.