The owners of Majestic City, one of Colombo’s leading shopping malls, has deferred the rental revision due on January 1, 2009, in view of requests for postponement by tenants and the macro-economic situation and have agreed to implement it in stages commencing July 1.

Mr. R. Selvaskandan, Chairman of CT Land Development PLC, owners of the Majestic City, the country’s premier shopping mall-cum-entertainment complex, has told shareholders that the postponement of the rent revision was in the context of requests by tenants as well as macro economic conditions.

Rents charged at Majestic City were last revised on January 1, 2007, he told shareholders in the company’s just released annual report.

The mall owners have invested Rs.176 million in refurbishments during the year ended March 31, 2009 when the company reported "very satisfactory" results although the after-tax profit was down to Rs.85.1 million from Rs.122.3 million a year earlier.

Selvaskandan said that the profit dip was partly due to the non-revision of rental charges from January 1 which had cost them Rs.14.6 million. However there was an increase in service charges to tenants in the context of increased electricity, water supply, security and janitorial service charges.

Operating expenses had increased by Rs.15.7 million during the year while the staff cost too had gone up due to adverse movements of the cost of living index.

The extensive refurbishing undertaken during the year included the complete refurbishment of the basement food court with additional seating and space allocated to another food outlet generating additional rental income.

"The Galle Road entrance and atrium areas have been modified and refurbished including water features to give a fresh new look," Selvaskandan said. "Further, services such as toilets, garbage disposal and certain other areas have also been refurbished in order to provide better facilities."

The company had revalued its land and buildings during the year with the value of investment property increased by Rs.23 million largely on account of the refurbishment of the building. This gain on revaluation had been credited to its income statement in accordance with Sri Lanka Accounting Standards.

Selvaskandan explained that due to the strain on the company' resources as a result of the refurbishment and uncertain economic conditions, the company had not declared an interim dividend during the year although Rs.0.60 per share on this account absorbing Rs.29.3 million had been paid the previous year. However the directors were proposing a final dividend of 50 cents per share which will absorb Rs.24.4 million as a final dividend for 2008/09 payable on August 16.

CT Land has a stated capital of Rs.487.5 million and retained earnings of Rs.1.56 billion in its books with total assets running at Rs.2.74 billion and liabilities at Rs.686.4 million.

Ceylon Theatres PLC with 51.89% of the company’s equity followed by Dr. T. Senthilverl (9.24%), National Savings Bank (6.82%) and the Ceybank Unit Trust (4.93%) are the major shareholders of the company.

Net assets per share had grown to Rs.42.02 from Rs.40.78 the previous year while the company’s share traded at a high of Rs.16 and a low of Rs.11 during the year under review.