R I L Property records Rs.1.1bn Profit After Tax for the Financial Year 2016/17
(PRESS RELEASE) - R I L Property Limited (RIL), which recently concluded its successful IPO, has recorded a Group Profit After Tax of Rs. 1.1 Bn for the financial year ended March 31, 2017 as per its unaudited financial statements. RIL’s result was supported by its strong performance in the commercial office space business and fair value gains in its significant real estate portfolio.
RIL has achieved a Net Profit After Tax excluding fair value gains of Rs. 315.4 Mn at company level driven by increased rental rates and occupancies in its flagship PARKLAND property, a 22 storied Grade ‘A’ office complex, amidst notable demand for high quality office spaces in Colombo. The Company also recorded fair value gains amounting to Rs. 854 Mn driven by the appreciation of value in its prime real estate portfolio. The Fair Value of the properties have been ascertained based on an independent valuation carried out on March 31, 2017 by Mr. J. M. Senanayake Bandara, MRICS (UK), B.Sc. Hons (Estate Management & Valuation), Postgraduate Diploma (Land Settlement & Development), FIV (SL), IRRV (Hons, UK), Chartered Valuation Surveyor, in accordance with Sri Lanka Accounting Standards and International Valuation Standards. It should be noted the results of the RIL Group have exceeded the forecasts made by analysts covering the IPO for the financial period 2016/17 based on the unaudited interim financial statements for the period ended March 31, 2017.
RIL’s fully owned subsidiary, Foodbuzz (Private) Limited, a franchisee of the BreadTalk Group based in Singapore also continued its growth trajectory recording a revenue of Rs. 395 Mn for the financial year 2016/17. This amounts to a year-on-year growth of 37% reflecting strong consumer demand and its outlet expansion strategy. The franchise network in Sri Lanka currently operates 7 outlets in the Greater Colombo region and intends to expand its network to 16 outlets by financial year 2020/21.
RIL issued 120,000,000 ordinary shares at Rs. 8 per share to the public via a Rs. 960 Million IPO. The IPO was opened on April 4, 2017 and was oversubscribed within minutes of opening with healthy participation from investors with appetite for the commercial office space segment. The proceeds of the IPO will be primarily utilised to refurbish an existing building thereby increasing the Grade ‘A’ net rentable space of the Company to 253,577 sq. ft.
Commercial Bank of Ceylon PLC and NDB Investment Bank Limited acted as the Lead Managers and Joint Managers to the IPO respectively. RIL’s shares will be listed on the Main Board of the Colombo Stock Exchange and will commence secondary market trading on May 4, 2017.