COLOMBO, August 31, 2026 – East West Properties PLC (CSE: EAST) today announced its Annual Report for the financial year ended March 31, 2026, revealing a period of significant strategic recalibration alongside resilient financial performance. The report, themed “Foundation for What’s Next,” underscores the company’s transition towards active asset stewardship, disciplined capital allocation, and robust governance under its new leadership.
Financial Resilience Amidst Economic Stability
The Group recorded a commendable 3% increase in revenue, reaching Rs. 160.2 million for FY 2025/26, up from Rs. 155.5 million in the previous year. The Company alone saw its revenue climb to Rs. 122.4 million from Rs. 118.6 million. This growth was primarily fueled by selective revisions to rental rates and lease terms across its diverse property portfolio, maintaining strong occupancy levels.
Profitability was notably influenced by a substantial Fair Value Gain on Investment Property of Rs. 197 million for both the Group and the Company, following the adoption of the fair value model under LKAS 40. Group profit attributable to equity holders remained stable at approximately Rs. 243 million, translating to an Earnings Per Share (EPS) of Rs. 1.76. The Company reported a significant boost in profit to Rs. 292.7 million (FY 2024/25: Rs. 229.8 million), with its EPS improving to Rs. 2.12 (FY 2024/25: Rs. 1.66). Administrative expenses also saw a material decline, reflecting enhanced cost discipline.
Strategic Shift: Active Asset Stewardship and Debt-Free Strength
A key highlight of the year is East West Properties PLC’s evolving management philosophy, moving beyond passive ownership towards aggressively optimizing its asset base. The company continued to operate with a debt-free balance sheet, a strategic advantage that provides both resilience and flexibility for future investments. Liquidity strengthened significantly, with Group operating cash flow soaring to Rs. 184 million (FY 2024/25: Rs. 21.6 million) and Company operating cash flow turning positive at Rs. 166.9 million (FY 2024/25: outflow of Rs. 3.9 million).
The company’s investment property portfolio, valued at approximately Rs. 2.76 billion as at March 31, 2026, represents roughly 78% of total Company assets. This valuation follows the retrospective restatement to the fair value model, offering a more current economic representation. Demonstrating its commitment to active portfolio management, East West disposed of its Crescat Residencies apartment for Rs. 100 million, redeploying the capital into short-term financial investments to enhance productivity.
The strategic positioning of its properties in Peliyagoda (warehousing and logistics) and Colombo 03 (commercial office) remains central to its business model. The Colombo 03 portfolio impressively maintained 100% occupancy, reinforcing the demand for prime, well-managed commercial spaces in the capital.
New Leadership and Enhanced Governance Framework
FY 2025/26 was marked by significant organizational change, including shifts in ownership, Board leadership, and management. Mr. K.M. Tanuja Hashan was appointed Chairman, and Mr. Gaurav Mehta assumed the role of Managing Director effective July 30, 2025. The Board and its principal committees were reconstituted, reinforcing governance, financial discipline, and clear accountability across the organization.
The company’s robust governance framework is designed to ensure effective oversight, disciplined decision-making, and compliance with all statutory and regulatory requirements, including the upcoming SLFRS S1 and SLFRS S2 sustainability reporting standards.
Embracing Sustainability and Future Growth Trajectories
East West Properties PLC is increasingly integrating sustainability into its long-term value creation strategy, recognizing its link to asset resilience and competitiveness. Preparations are underway for the phased introduction of SLFRS S1 and SLFRS S2, which will strengthen sustainability-related disclosure requirements. The company’s environmental performance indicators for its Peliyagoda Warehouse Complex reflect its commitment to responsible resource utilization.
Looking ahead to FY 2026/27, East West’s priorities include:
- Strengthening recurring earnings through high occupancy and rental optimization.
- Enhancing asset productivity by evaluating utilization and redevelopment potential.
- Deploying its strong balance sheet intelligently for strategic opportunities.
- Further developing management systems, capabilities, and governance.
- Exploring new sources of value creation beyond traditional rental activities, while maintaining discipline.
The company aims to evolve from a business that has historically preserved significant value into one that actively creates it, leveraging its valuable assets, liquidity, established relationships, and decades of experience.
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