The Chairman of Sri Lanka's premier property developing firm, Overseas Realty (Ceylon) PLC (OSEA) says that the firm will have to carefully monitor and manage foreign exchange risk as it suffered by an exchange loss in 2011 as a result of the depreciation of the rupee.
“Due to further depreciation of the SLR in the 1st quarter of 2012, foreign exchange risk will have to be carefully monitored and managed,” OSEA Chairman told shareholders at the release of the firm’s 2011 annual report last week.
He noted that group profit was affected by an exchange loss of Rs. 39.8 Mn consequent on the depreciation of the Sri Lanka Rupee (SLR) in 2011 compared with an exchange gain of Rs. 83.7 Mn in 2010.
“With the continued growth and development of the national economy, 2011 saw increased demand for the leasing of quality office space at the World Trade Center (WTC) Colombo as well as apartment sales at Havelock City,” Tao said.
The Group has registered a healthy growth in both revenue and profit with revenue of Rs. 2,491 Mn showing an increase of 47% and Profit before Tax excluding fair value gains on investment property of Rs. 609 Mn showing an increase of 35%. The Group’s Profit after Tax after fair value gains for 2011 was Rs. 2,707 Mn registering a growth of 196%.
“Revenue generated through leasing of space at the World Trade Centre (WTC) Colombo of Rs. 847 Mn saw significant growth of 21% over the previous year. Occupancy which was at 72% at the start of the year closed at 89% with committed occupancy being 95%,” the firm’s annual report mentioned.(AR)
“Due to further depreciation of the SLR in the 1st quarter of 2012, foreign exchange risk will have to be carefully monitored and managed,” OSEA Chairman told shareholders at the release of the firm’s 2011 annual report last week.
He noted that group profit was affected by an exchange loss of Rs. 39.8 Mn consequent on the depreciation of the Sri Lanka Rupee (SLR) in 2011 compared with an exchange gain of Rs. 83.7 Mn in 2010.
“With the continued growth and development of the national economy, 2011 saw increased demand for the leasing of quality office space at the World Trade Center (WTC) Colombo as well as apartment sales at Havelock City,” Tao said.
The Group has registered a healthy growth in both revenue and profit with revenue of Rs. 2,491 Mn showing an increase of 47% and Profit before Tax excluding fair value gains on investment property of Rs. 609 Mn showing an increase of 35%. The Group’s Profit after Tax after fair value gains for 2011 was Rs. 2,707 Mn registering a growth of 196%.
“Revenue generated through leasing of space at the World Trade Centre (WTC) Colombo of Rs. 847 Mn saw significant growth of 21% over the previous year. Occupancy which was at 72% at the start of the year closed at 89% with committed occupancy being 95%,” the firm’s annual report mentioned.(AR)
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