This printed article is located at http://stamfordland.listedcompany.com/chairman.html
Dear Shareholders,
I am pleased to present the Group’s Annual Report for the financial year ended 31 March 2025. Amid persistent global trade tensions, the Group remained resilient, maintaining operational stability across our core businesses while navigating a volatile environment with purpose.
In 2024, Australia’s hospitality sector experienced shifting travel patterns. While “revenge travel” continued to drive outbound travel among Australians, inbound tourism has yet to return to pre-pandemic levels, tempering overall market recovery.
Against this backdrop, our Australian hotel portfolio delivered a relatively stable performance, with revenue declining marginally by 0.3% year-on-year.
This was largely due to disruptions at Stamford Plaza Brisbane (“SPB”) caused by Cyclone Alfred, and the 1.4% depreciation of the Australian dollar against the Singapore dollar, which impacted our translated results.
On 5 March 2025, the Queensland Government mandated the closure of Brisbane International Airport and the Central Business District in response to Cyclone Alfred. These restrictions remained in place until 9 and 11 March respectively. The situation led to widespread cancellations of travel plans to Brisbane and physical damage to our Brisbane hotel. The team undertook asset protection measures and, following the cyclone, carried out clean-up and restoration efforts over three days. Revenue losses from cancellations, F&B refunds, and recovery costs were incurred during this period.
Notwithstanding these challenges, our F&B outlets, in Sydney, Brisbane and Adelaide — La Boca Bar and Grill and Kabuki Teppanyaki — performed well, achieving a 5% year-on-year revenue increase. This was driven by greater outlet ownership, improved food quality, targeted marketing, and effective upselling.
The hospitality sector continues to face labour shortages, high turnover, and wage pressures. In response, the Group is investing in operational technology — including upgraded procurement systems, in-room F&B ordering, and infotainment platforms — while also upskilling our workforce and making selective key appointments to enhance service quality and operational efficiency.
Revenue contribution from Macquarie Park Village was minimal this year, with only one sold. The final remaining unit was sold subsequent to the financial year end, marking the close of this development.
London’s office market showed signs of recovery in 2024. Vacancy rates in Central London declined to 7.5% in Q4, from 8.2% in Q31, indicating sustained demand for high-quality office space, particularly in the City and West End.
Our flagship asset, 8 Finsbury Circus, remains fully occupied and continues to perform strongly. This award-winning property, with its excellent BREEAM rating, provides stable rental income.
The fair value of our commercial property portfolio remained steady, with a slight valuation adjustment at 8 Finsbury Circus offset by Great Britain Pound (“GBP”) appreciation.
The Group remains debt-free and holds a robust cash balance of S$0.5 billion, providing ample financial capacity to pursue opportunistic acquisitions and asset enhancement initiatives.
We are in ongoing and extensive discussions with the Queensland Government on the potential redevelopment of SPB. Concurrently, we are progressing with planned upgrades at Stamford Grand Adelaide and Stamford Plaza Melbourne to enhance guest experience and asset value.
Given the heightened geopolitical and economic volatility, the Group remains cautious and disciplined. We will continue to evaluate opportunities carefully, prioritising capital preservation while remaining ready to act decisively when compelling investments arise.
The Board has recommended a final dividend of 0.5 Singapore cents per ordinary share, reflecting our continued commitment to shareholder returns while maintaining financial strength to support future growth.
I extend my appreciation to our management team, employees, and stakeholders for their continued dedication. While challenges remain, we are focused on operational productivity, innovation, and strategic growth to drive long-term sustainability.
Thank you for your continued trust and support.
1 17 January 2025, “Full-year central London office take-up rose in 2024 compared to 2023”, Savills