COLOMBO – 01 September 2026 – Lee Hedges PLC (CSE: SHAW.N0000), a venerable name in Sri Lankan property development and investment since 1852, has announced a year of significant transformation and robust financial performance with the release of its Annual Report for the financial year ended 31st March 2026. The report, unveiled today, highlights a new chapter for the company, marked by a change in major shareholding, a strengthened leadership team, and a clear strategic vision for sustainable growth.
A Strategic Shift Under New Ownership
The financial year 2025/26 proved to be a pivotal period for Lee Hedges PLC. In a significant development, Lanka Realty Investments PLC and Eighth Wonder acquired a controlling interest in the company in January 2026. This transition ushered in a new Board of Directors, bringing together extensive expertise across property investment, real estate development, property management, asset management, and other related sectors.
Mr. Archie James Buckland Warman, assuming the role of Chairman, expressed gratitude for the confidence placed in the new leadership. He emphasised that the new controlling shareholders provide Lee Hedges PLC with a strong strategic platform to accelerate growth, unlock new opportunities, and create sustainable long-term value for all stakeholders.
Managing Director Mr. Mohamed Hisham Jamaldeen echoed this sentiment, highlighting that the strengthened Board provides a solid foundation to guide the company while maintaining the highest standards of corporate governance and transparency. He noted the successful completion of “Project 353” during the year, a key strategic investment that is now fully operational and leased, contributing positively to recurring revenue.
Enhancing Asset Value and Operational Excellence
Lee Hedges PLC has initiated a comprehensive program of refurbishment, modernisation, and property enhancement across its portfolio. This includes a key initiative to upgrade ground floor entrances and lobby areas, aiming to improve operational efficiency, elevate tenant experience, and strengthen occupancy levels. The company’s strategic vision is centred on strengthening its investment portfolio through the acquisition of high-quality, income-generating assets, complemented by carefully selected development opportunities and rationalising underperforming investments.
Strong Financials and Shareholder Returns
Despite a challenging economic environment, Lee Hedges PLC demonstrated significant resilience and financial stability. The company reported a commendable increase in total revenue by 27% to Rs. 259.53 million. A net profit of Rs. 697.84 million was recorded for the financial year, underscoring its disciplined financial management and operational excellence.
Key financial highlights include:
- A substantial net gain of Rs. 604.01 million arising from the revaluation of investment properties, reflecting the appreciation in the company’s property portfolio value.
- Net Asset Value (NAV) per share climbed to Rs. 265.70 as at 31st March 2026 (compared to Rs. 239.94 in 2025).
- The Board of Directors has recommended a first and final dividend of Rs. 2/- per share for the year ended 31st March 2026, subject to shareholder approval at the upcoming 107th Annual General Meeting.
Future Outlook and Strategic Acquisitions
Lee Hedges PLC remains optimistic about the long-term prospects of Sri Lanka’s commercial real estate sector, anticipating attractive opportunities as market conditions improve. The company is committed to integrating Environmental, Social, and Governance (ESG) principles into its strategic decision-making, ensuring sustainable design, energy-efficient solutions, and ethical business practices.
Looking beyond the reporting date, the company has already made significant strides:
- On 19th March 2026, the Board resolved to acquire 100% of shares in Lanka Developments (Pvt) Ltd (LRD) for a consideration of Rs. 3,157 million, subsequently approved by shareholders on 28th April 2026.
- The company also decided on 25th June 2026 to dispose of an investment property (land and building at No. 353, Galle Road, Colombo 03) for Rs. 2,700 million to Amãna Bank PLC.
- Further expanding its portfolio, on 21st July 2026, the Board resolved to purchase 50.886% shares in On’Ally Holdings PLC for a total consideration of Rs. 2,262 million.
These post-reporting date events underscore Lee Hedges PLC’s aggressive growth strategy and its determination to capitalise on emerging opportunities in the Sri Lankan real estate market.
Commitment to Corporate Governance
The Annual Report reaffirms Lee Hedges PLC’s strong commitment to corporate governance, complying with the Companies Act No. 07 of 2007 and the Corporate Governance Rules of the Colombo Stock Exchange. The company has established and maintained key Board committees, including the Audit Committee, Remuneration Committee, Related Party Transactions Review Committee, and Nominations and Governance Committee, to ensure transparent and effective oversight.
With a renewed vision, experienced leadership, and a strong balance sheet, Lee Hedges PLC is strategically positioned to build a stronger, more resilient, and more profitable company, delivering sustainable value for generations to come.
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