This is largely due to the absence of a S$71.2 million fair value loss on investment property recorded a year ago
PROPERTY company Stamford Land on Friday (Nov 8) posted a net profit of S$15.2 million for the six months ended Sep 30, reversing into the black from a loss of S$14.6 million in the corresponding period in the previous year.
This translates to an earnings per share of S$0.0101, compared with a loss per share of S$0.0098.
The return to profit was largely due to the absence of a S$71.2 million fair value loss on investment property recorded a year ago.
Despite the increase in net profit, revenue in the first half of FY2025 fell 4.3 per cent to S$70.1 million, from S$73.2 million year on year.
This is as the group’s largest revenue generator, the hotel owning and management segment, reported lower revenue and operating profit due to lower room rates, driven by market-competitive pricing.
The operation cost was also affected by increased property taxes, staff cost, energy costs and other direct cost, as well as the appreciation of the Australian dollar against Singapore dollar, said Stamford Land.
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The group did not declare a dividend for the period under review.
It added that its hotels continue to face competition, coupled with rising operating and manpower costs, and a tight labour market.
As at Sep 30, the group has utilised S$145.5 million from a rights issue in February 2022, which raised S$238.9 million in net proceeds.
It has also earmarked a further S$2.7 million for the restoration of Stamford Plaza Brisbane in Australia.
Stamford Land shares ended flat at S$0.37, before the announcement.
