Stamford Land Corporate Ltd

Email This Print This

Chairman’s Message

Dear Shareholders,

FINANCIAL PERFORMANCE

I am pleased to report a satisfactory profit of S$34.6 million for the financial year ended 31 March 2017. This is an improvement of 54% over the previous year.

The construction of Macquarie Park Village (“MPV”) made good progress with 174 units being settled in March 2017, thus booking a first tranche profit of S$14.1 million. This 712-unit project leads the buoyant North Sydney property market in design, price competitiveness, prime location and early delivery. Out of these 712 units, 60 were recently granted development application approval under the Urban Activation Precinct. Located on higher levels in the best tower, they will have enhanced fit-out to command higher market prices.

The Hotel Owning and Management Segment continues with its stable performance. With a newly beefed up professional management team, we are doubling efforts to increase operational efficiencies to enhance earnings. We hope to see better results in the coming year.

Our Property Investment Segment, anchored by Dynon’s Plaza in Perth, continues with its recurring income stream. However, owing to a shorter remaining lease, we have provided a further hefty capital impairment loss of S$10.9 million for the year under review. Given its premier location at St Georges Terrace, we are evaluating post-2020 options, which may include alternative commercial tenancies and the possibility of converting it into a hotel.

With the progressive completion and settlement of the remaining MPV units in the coming years, I can report the Group having a positive set of financial results for the coming year, which net of cash will be without gearing upon completion of the project.

In recent years, shareholders have consistently sought growth in our business. But some clamour for higher dividend payouts. These are polar opposite demands and clearly it is not possible to please both camps.

Considering our past years paying out attractive dividend yield on the stock, the Board of Directors (“Board”) is recommending a dividend of one cent per share. This will allow us to utilise our free cash to further expand our business.

APPRECIATION

On behalf of the Board, I welcome Independent Director, Lim Teck Chai, Danny, as we farewell Douglas Owen Chester who served four years. Finally, I wish to thank all our staff and stakeholders for their contributions as well as the Board for their wise counsel for the year just ended.

C. K. Ow

Executive Chairman