Overseas Realty performance hit by lower apartment sales

Overseas Realty (Ceylon) PLC posted a loss during the third quarter of 2023 (3Q23), primarily due to a significant drop in apartment sales owing to rising construction costs and the imposition of new taxes that led to increased sales prices.  For the quarter under consideration, the group reported an after-tax loss of Rs.580.1 million compared to earnings of Rs.1.1 billion a year ago.

For the nine-month period ended September 30, 2023, the group reported an after-tax profit of Rs.2.78 billion, down from 4.93 billion a year ago.

The rental income stemming from the World Trade Centre rose to Rs.721.7 million during 3Q23, up from Rs.499.1 million a year ago, mainly as a result of higher rental rates.
The revenue from apartment sales at Havelock City, in 3Q22, declined from Rs. 165 billion to Rs. 296.2 million.

“Apartment sales slowed down due to higher construction costs and new taxes which increased sales prices. A limited number of move-in ready apartments are available for immediate purchase in the fourth and final phase of Havelock City Residential which was completed,” Overseas Realty said in a press release.
“Mireka Tower at Havelock City, which commenced operations in January 2023 recorded a revenue of Rs 439 million,” it added.
Total revenue for the quarter under review was Rs.1.22 billion, down from 2.25 billion a year ago.

Meanwhile, for the 3Q23, the group incurred an exchange loss of Rs.723.4 million, while for the nine-month period it recorded an exchange gain of Rs.2.42 billion.
The group net asset value per share as of 30th September2023 stood at Rs42.66 and the earnings per share for the nine-month period was Rs2.24 compared to Rs.3.97 a year ago.

S.P. Tao’s grandson Brian Tao appointed to director board 

Overseas Realty (Ceylon) PLC yesterday announced the appointment of legendary investor S.P. Tao’s grandson, Brian Tao, to its board of directors.
Brian Tao has been appointed as a Non-Executive/Non-Independent Director of the company with effect from October 18, 2023.

Brian Tao graduated from Harvard University in 2022 with a BA (Hons) in Economics. He has experience in private equity real estate investment, and now works on primary market equity investment at Loyal Valley Capital, a Shanghai based asset management firm. 

He has been a director at Shing Kwan Investment (Singapore) Pte Ltd since 2018, and at Peeli Ltd since 2023.