The local unit of the Singapore-based real estate company – Overseas Realty (Ceylon) PLC (OSEA) – increased its December quarter (4Q15) net profits by 13 percent year-on-year (YoY) to Rs.874.5 million despite the revenues recognized from the apartment sales falling sharply, the interim results showed.  

The earnings per share rose to Rs.1.01 from 91 cents a year ago.  

The total revenues more than halved to Rs.729.3 million due to the revenues from the apartment sales coming down sharply. Such revenue fell 84 percent YoY to Rs.168.5 million during the 4Q15 due to the recognition of the majority of revenue from the sales of Havelock City Phase 2 residential project in earlier periods.   

For the year ended December 31, 2015 (FY15), revenue from the sale of apartments fell to Rs.974 million from Rs.4.3 billion in 2014. 

The Phase 2 of the project was completed in October 2015.

“Piling work of Havelock City Phase 3 was completed early 2016 and the pilling work of Phase 4 is expected to be completed during 2016. The sales launch of Phase 3 is planned for March 18, comprising two more residential towers with 304 luxury apartments,” the company said in a statement. 

The company expects to complete the Phase 3 of the project by end-2019 and Phase 4 by end-2020, which will add 600 new units to its total apartment mix. 

Meanwhile, for FY15, the company’s net profit edged up one percent to Rs.2.99 billion. The earnings per share was Rs.3.44, down from Rs.3.48. 

The rental incomes rose 11 percent to Rs.1.96 billion during the quarter due to high occupancy levels and higher rentals at the World Trade Centre (WTC).  

The revenue from other services sharply rose 98 percent to Rs.206.3 million. The company operates a clubhouse, the largest in the country, which is now fully operational, the company said. 

In June 2015, the company raised Rs.977 million in a rights issue. Proceeds are to be used to purchase floors L/36/WT and L/37/WT of the WTC building valued at Rs.762.4 million and the surplus funds will be used for working capital/investment purposes.  

Meanwhile, the company has retired a large share of its long and short-term debts during the year. The total outstanding long-term debt has come down by 52 percent to Rs.45.8 million while the short-term debt has come down to just Rs.50 million from Rs.985.8 million a year ago. Singapore-based Shing Kwan Investment Company Limited held a 53.80 percent stake in OSEA as at December 31, 2015. 

The Employees’ Provident Fund held a 3.31 percent stake being the sixth largest shareholder of the company.