Stamford Land reports fiscal 4Q net profit tumbled 80 percent amid Australia market weakness

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Stamford Land reported Wednesday its fiscal fourth-quarter net profit dropped 80.4 percent on-year to S$5.03 million, hurt by a weaker Australian dollar and a “severe downturn” in Australia’s property market.

Revenue for the quarter ended 31 March tumbled 74.8 percent on-year to S$47.89 million, it said in a filing to SGX after the market close.

Hotel owning and management revenue fell 6.4 percent on-year to S$42.95 million, while operating profit dropped 32.5 percent on-year to S$7.58 million on a weaker Australian dollar, the company said.

Property development revenue tumbled 98.7 percent on-year to S$1.86 million, while operating profit was down 92.9 percent at S$2.74 million, mainly on the settlement of units at Macquarie Park Village during the quarter, Stamford Land said.

As of the end of March, 670 units out of a total 712 at Macquarie Park Village, located in New South Wales, Australia, were settled, it said.

“The market is currently suffering a severe downturn. Consequently, 42 units of our remaining stock are not sold,” Stamford Land said.

Property investment revenue declined 24.2 percent to S$2.87 million in the quarter on a step down in base rental, while operating profit fell 28.5 percent on-year to S$2.15 million, the filing said.

For the full year, Stamford Land reported net profit declined 15.4 percent on-year to S$47.69 million on revenue of S$304.22 million, down 32.9 percent on-year.

Stamford Land declared a 1.0 Singapore cent dividend, unchanged from a year earlier.

“Barring any unforeseen circumstances, the group expects to be profitable in the financial year ending 31 March 2020, albeit the profitability will be a downward trend,” Stamford Land said.

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