SINGAPORE (May 26): Stamford Land announced that its FY20 earnings have dropped by 47.7% to $25.0 million from $47.7 million in FY19.

This came on the back of a 35.9% fall in revenue to $195.1 million from $304.2 million a year ago, mainly due to lower contribution from the group’s hotel owning and management, property development and trading business segments.

This was partially offset by a significant increase in the company’s property investment business segment, which saw revenue more than double to $29.5 million from $14.6 million a year ago. Other revenue also increased by 2.4% y-o-y to $0.6 million.

Overall expenses decreased, with properties sold dropping 92.2% y-o-y to $6.6 million, consumables used falling 7.2% $14.0 million, staff costs decreased by 13.0% to $61.0 million and other operating expenses dropped 14.3% to $56.1 million.

These were partially offset by a 316.7% increase in depreciation expenses to $11.6 million and a significant increase in finance costs to $12.2 million from $3.9 million.

As at end-March, the company’s cash and cash equivalents stood at $55.3 million.

Stamford Land has also declared a final dividend of 0.5 cents per share.

Regarding the hotel industry, the company said that it was badly affected by the worst ever bushfire in Australia during the third quarter of FY20. While recovering from this bushfire, Covid-19 swiftly set in, resulting in the closure of all our hotels in Adelaide, Auckland, Brisbane, Melbourne and Sydney except Stamford Plaza Sydney Airport in the beginning of April 2020.

“We are closely monitoring when it will be expedient to reopen our hotels,” says Stamford Land.

Meanwhile, a significant fair value impairment on Dynons Plaza of $19.3 million in FY20 was recorded due to the expiry of the long lease to Chevron in April 2020. The acquisition of the property in London will mitigate the loss of revenue due to the current vacancy of Dynons Plaza which will undergo refurbishment to receive multi-let tenancies. Also, 34 units at Macquarie Park Village remain unsold but are currently leased out for recurring income.

Shares in Stamford Land closed at 35 cents on Tuesday.