Overseas Realty profits jump on apartment sales and rental incomes

Luxury real estate developer, Overseas Realty (Ceylon) PLC reported some stellar top and bottom-line performance for the quarter ended in September 2025 in a sign that the real estate activities are ramping up in a booming economy.

The company reported revenues of Rs. 3.73 billion for the July – September quarter, its third fiscal quarter, up 97.0 percent from the same period last year.

This was possible from the synchronised growth in all three business verticals such as property rentals, apartment sales and other property services.

The group’s property renting business generated a rental income of Rs.2.12 billion, rising 68.0 percent from the same period last year.

Overseas Realty is the landlord of the iconic World Trade Centre, the most sought after business address in Colombo, the Havelock City Mall and the office space at Mireka Tower.

The surge in the rental income suggests that the occupancy levels of these facilities may have reached higher levels with the improvement in the economic activities.

Meanwhile, the revenues from property trading or sale of apartments have increased by 217.4 percent to Rs. 1.18 billion for the quarter, reflecting that nearly the entire revenues for the nine months had been generated in the September quarter.

This substantial income appears to have come from the sale of luxury apartments and villas at its project in Dodanduwa, along the southern belt of the country, which goes under the title Mireka Seascape.

Until recently the company has been generating bulk of its revenues from its apartment sales at its Havelock City residential project which now appears to have sold nearly entirely.

The consolidated revenue has further been propped up by the other property services incomes which rose by 64.6 percent to Rs.425.36 million in the quarter.

There were zero fair value gains on investment properties in the most recent quarter in a sign that these properties which largely comprised the apartments appear to have been sold by the September quarter. The company recognized exchange losses worth of Rs.39.25 million, compared to a gain of Rs.387.25 million, which appears to have resulted from the modest depreciation of the Rupee.

The company was also seen spending Rs.148.09 million for marketing and promotion, a 96.4 percent increase from the same period last year.

The finance cost fell 37.5 percent to Rs.196.15 million, made possible from the reduction in the related party borrowings to Rs.11.53 billion from Rs.15.04 billion.

Under this backdrop, the company reported earnings of Rs.1.60 a share or Rs.1.99 billion for the quarter ended in September 2025 from 80 Cents a share or Rs.996.18 million in the same period a year ago.

For the nine months ended in September, the company reported earnings of Rs.5.20 a share or Rs.6.47 billion compared to earnings of Rs.3.52 a share or Rs. 4.37 billion in the comparable period last year.

The company’s share ended the day Rs.2.90 or 7.44 percent higher at Rs.41.90 a piece.