SINGAPORE (July 28): Stamford Land Corporation has announced earnings of $11.1 million for 1Q18 ended June, up 33% from $8.3 million in 1Q17 on a surge in 1Q revenue.
Revenue for the quarter grew 53.1% to $69.9 million from $45.7 million a year ago on a 4.9%.
This came on the back of an increase in contributions from hotel owning & management, which grew to $42.3 million from $40.3 million in the previous year due to a stronger Australian dollar.
Operating profit for this particular segment also grew by 10.5% to $6.7 million compared to $6.1 million a year ago on lower operating costs.
Meanwhile, revenue contribution from property development surged to $23 million compared to $0.2 million from the sale of apartments in Macquarie Park Village upon settlement of 38 apartments over the quarter.
The higher group revenue was partially offset by 8.2% and 27.6% lower revenue from property development and property investment and trading of $4.3 million and $0.3 million, respectively.
While property investment saw lower revenue due to rent adjustments in FY18, revenue from property development was affected due to the disbursements of construction costs for Macquarie Park Village.
In its outlook, the group saw 212 settlements out of 712 apartments for Macquarie Park Village as at end June and that the remaining apartments would be completed in FY18 and beyond.
Stamford Land also expects the hotel segment to remain stable after performing slightly ahead of the previous year, and says the property investment segment continues to deliver stable results underpinned by fixed lease income.
Thr group says it expects to remain profitable for the current financial year.
Shares in Stamford Land closed flat at 52 cents on Friday.
