What Investors Need To Know About Stamford Land Corporation’s Latest Full-Year Results

Stamford Land Corporation (SGX: H07) is a mid-sized property developer and hotel owner with a market capitalisation of around S$530 million. It derives more than half of its revenue from its hotel business that is located in Australia and New Zealand. The company announced its full year earnings on Friday.

Full Year Results

The company recorded revenue of S$278.7 million, up 4.5% from year-ago levels. However, its net profit fell by 14.4% to S$27.1 million mainly due to two reasons: 1) A lack of fair value gains from its investment property portfolio in comparison to the previous year and; 2) much higher costs associated with the properties that were sold.

Based on the company’s segmental report, its best performing segment is its property development business, which achieved a 117.8% increase in revenue to S$47.9 million. Its hotel business meanwhile, saw a 6.1% drop in revenue, ending the year with only S$213.6 million in sales. The top-line decline for the hotel business was mainly due to the weakening of the Australian dollar in relation the Singapore dollar. In local currency terms, its hotel business actually improved by 3% year-on-year.

Moving on to the company’s operating profits by business segments, there’s been a reverse in terms of the growth areas. The property development business suffered a 15.4% drop in operating profit to S$575,000 due to large advertising and marketing fees that had to be spent on its Macquarie Park Village project in Australia. The hotel business had grown its operating profit by 5.6% to S$40.7 million.

Stamford Land ended the year with a balance sheet that’s relatively highly geared; its net debt to equity ratio stands at 54% as compared to 50.8% a year ago.

Foolish Summary

Stamford Land Corp declared final dividends of S$0.02 per share together with a special dividend of S$0.01 per share. This brings its total dividend for the year to S$0.03 per share, which is the same as the last financial year.

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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. Motley Fool Singapore contributor Stanley Lim doesn’t own shares in any companies mentioned.