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Latest Financials

Third Quarter Results Financial Statement And Related Announcement

Financials Archive

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Unaudited Third Quarter Financial Statement and Dividend Announcement

Profit & Loss

Consolidated Statement of Comprehensive Income

Balance Sheets

Review Of Performance

Revenue

Owing to higher room rates, the hotel segment reported an increase in revenue which was further augmented by higher exchange rates. For the nine months' results, the Australian dollar and New Zealand dollar were translated at an average rate of S$1.3080 (Dec 2010: S$1.2447) and S$1.0095 (Dec 2010: S$0.9756) respectively.

The property and development segment reported higher revenue due to completed sales of 115 units at The Stamford Residences and The Reynell Terraces project and 11 apartments from The Stamford Residences Auckland project compared to completed sales of 10 apartments at The Stamford Residences Auckland project in the previous corresponding period.

Higher revenue from the property investment segment is attributed to the commencement of rental income from Dynons Plaza in July 2010.

Increased contribution from the Group's interior decoration companies has attributed to higher revenue by the trading segment.

The hotel owning and management segment recorded an increase in profit reflecting the higher room rates from hotel operations and translation of profit at higher exchange rates.

Sales of apartments at The Stamford Residences and The Reynell Terraces project had contributed to the significant increase in operating profit in the property development segment during the third quarter.

The property investment segment reported higher profit due to commencement of rental income from Dynons Plaza from July 2010 onwards.

The trading segment reported a lower profit due to lower profit margin from the Group's interior decoration companies and a donation of $100,000 made by the Group's travel company.

Commentary

Given the uncertain economic outlook, we expect our Hotel segment to perform satisfactorily, for the next twelve months:

1. over 70% of our hospitality revenues are derived from Australia-based customers. Outlook on the Australian economy remains buoyant. Hence, we expect strengthening of demand, primarily from the corporate segment.
   
   
2. USA, Europe and Japan market will provide less contribution due to the weak economic environment and strong Australian dollar. This will be partially off-set by the increasing demand from the China market.

We expect our Property Investment segment to continue to perform well, underpinned by the lease income in excess of A$9 million per annum from Dynons Plaza, Perth.

In addition, the Group expects to continue to recognise development profits from the completed sales of The Stamford Residences and Reynell Terraces in the next quarter.

The Group previously announced the signing of a non-binding Memorandum of Understanding ("MOU") for the AUD 316 million sale and lease-back for the Stamford Plaza Melbourne, Stamford Grand Adelaide and Stamford Plaza Sydney Airport hotels on 3 October 2011.

The MOU, along with the dealing exclusivity period with the prospective purchaser has since lapsed. The Group allowed the MOU to lapse, in the interests of maintaining optimal flexibility in its pursuit of suitable opportunities for the Group's hotel portfolio. The Group continues to actively seek out suitable opportunities to grow the business and enhance returns for our shareholders, and will stay nimble and consider all options, taking into account optimal pricing and market conditions. The Group intends to capitalise on suitable opportunities, as and when they present themselves.