Sri Lanka’s Equity Two PlC says the development taking place in the property sector and the improvement seen in the once tight security measures will help the firm attract sustainable tenants and demand better rentals for its properties.
Equity Two PLC, a firm engaged in property development, however points out that the lack of complete removal of security restrictions to many other properties in the neighborhood has deprived the firm from gaining maximum potential out of its properties.
Chairman of the company D.C. R. Gunawardena in his review to the 2011/2012 annual report says, with further improvement in the currently imposed access restrictions, developments seen in the Colombo city and its strategically located properties will help the firm to enhance profitability in times to come.
He believes, this will help the company to increase in rental yields, capital appreciation and also the ability to initiate new development projects.
According to the firm, the total value of the investment property of the Company has stood at Rs. 570 million at the end of the financial year, which ended on the 31st of March 2012.
Equity Two PlC says the property owned by the company has fallen vacant during the latter part of the said financial year.
During the financial year 2011 / 2012, the company has recorded a Rs. 43.2 million profit which includes a gain of Rs. 40.4 million on fair value adjustment on investment properties.
This is compared to Rs. 29.5 million, the firm earned during the previous year.