Stamford Land Corporate Ltd

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Chairman’s Message

Dear Shareholders,


I am pleased to report that the Group has had a very satisfactory set of results for the financial year ended 31 March 2018.

The full year results turned in operating profits of S$102.4 million, a 54.4% improvement compared to the results a year ago. The Hotel Owning & Management Segment saw an improvement of 11.6% due to operating efficiencies. On the Property Investment Segment, we provided a S$12.0 million impairment write-down in Dynons Plaza owing to a reduced tenure in the remaining lease. The bulk of the profits is attributed to the Property Development Segment which booked in a total of 361 units out of a total of 712 units in Macquarie Park Village (“MPV”) in Sydney in this financial year. The remaining 177 units will be settled in the next financial years.

As reported in the last annual report, we have obtained development application approval under the Urban Activation Precinct for the construction of additional 60 units in the best tower in MPV, the Melbourne Tower. We are pleased to report that the construction of the Melbourne Tower was completed in April 2018 and we have launched the sales of these additional units.


With the completion and settlement of MPV, I am pleased that the Group’s total borrowings, net of cash, will be without gearing. This is no mean feat given the “asset heavy” nature of our property business.

Despite this enviable position, I must caution that going forward, we will face challenges as property development projects take years to materialise and produce earnings. Our next development project is sometime away from obtaining a development application approval. In addition to the lumpy earnings from the Property Development Segment, we have to work hard to replace our single tenanted lease at Dynons Plaza when the lease expires in 2020.

In the light of the foregoing situation, the management has the daunting task to ensure that we find good investment opportunities to mitigate the lumpiness and inevitable decline of our earnings in the coming years. We have to find good investment projects to invest our cash hoard that can help the Group produce the same good consistent outcome that we have enjoyed thus far.


Consistent with last year, I am pleased that our Board of Directors have recommended a dividend of one cent per ordinary share which equates to a yield of 2.1%.


I wish to thank all our customers, dedicated staff, stakeholders and our Board of Directors (“Board”) for their collective support and contributions to the Group in the various segments of its business. Lastly, I would also like to thank Stanley Lai Tze Chang for his invaluable contributions to the Board and its committees.

C. K. Ow

Executive Chairman