Stamford Land grows Q1 profit by 41% to $6.3 million

Stamford Land Corporation's first quarter net profit rose by 41.3 per cent to $6.3 million.

Revenue for the three months to June 30 was up 5.8 per cent at $64.4 million.

The hotel segment, which contributes the lion's share to group revenue, reported a 2.9 per cent drop in revenue to $51.9 million as a result of translation losses from lower exchange rates and lower revenue from its two Adelaide hotels.

This was partially offset by buoyant performance from our Sydney hotels.

Revenue from property development more than doubled to $8.1 million from $2.9 million following the sale of two apartments in The Stamford Residences Auckland, one commercial unit and an apartment at The Stamford Residences & Reynell Terraces.

In comparison, four apartments at The Stamford Residences Auckland were sold in the previous corresponding period.

The trading segment saw a decline in revenue as a result of lower contributions from the group's interior decoration business.

Earnings per share improved to 0.73 cent from 0.52 cent previously while net asset value per share slipped by four cents to 56 cents since March 31.

Going forward, Stamford Land expects the hotel segment to perform well as it sees strong demand in its Sydney hotels and signs of recovery in the two Adelaide hotels.

"There are continual reviews to upgrade and reconfigure our F&B outlets... Upon completion, our F&B revenues will be increased," it said in a statement.

The property investment segment has fixed lease income of over A$11 million per annum from Dynon Plaza Perth until 2020.

"We are on track to launch in October 2013 the off-plan sales of the Macquarie Park Village project in North Ryde Sydney. This is a A$400 million development comprising of 700 units."