Stamford Land’s fiscal 1Q net profit dropped 72 percent

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Stamford Land reported Wednesday its fiscal first quarter net profit dropped 71.6 percent on-year to S$4.84 million on a drop in property development earnings and a weaker Australian dollar.

Revenue for the quarter ended 30 June was S$43.60 million, down 65 percent on-year, the property developer said in a filing to SGX.

Property development revenue dropped 98.2 percent on-year to S$1.38 million for the quarter, with operating profit falling 96.9 percent on-year to S$557,000, Stamford Land said. That was due to only 2 units being settled in the Macquarie Park Village development in the quarter, down from more than 100 in the year-ago period, the company said.

As of end-June, 672 units out of a total 712 at the Macquarie Park Village development have been settled, Stamford Land said.

“The market is currently suffering a severe downturn. We continue to work on the sale or lease of the remaining units,” the company said.

Hotel ownership and management revenue fell 8.1 percent on-year to S$38.08 million in the quarter on a weaker Australian dollar, with operating profit coming in 25 percent lower at S$5.26 million, the filing said.

Property investment revenue fell 5.1 percent on-year to S$3.79 million, with operating profit declining 7.4 percent on-year to S$2.98 million, mainly on the weaker Australian dollar, Stamford Land said.

Trading revenue fell 44.6 percent on-year to S$183,000, with operating profit dropping 42.9 percent to S$56,000 for the quarter, the filing said.

In its outlook, Stamford Land said it expected to be profitable for the fiscal year, “albeit the profitability will be a downward trend.”

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