Stamford Land

Stamford Land: The Australian hotel owner and developer reported FY13 earnings of $31.7m, a decline of 40.6%, mainly due to lower profit recognition from completed sales of properties at The Stamford Residences and Reynell Terraces compared to FY12. Main contribution came from its hotel business, which saw a decline of 4.7% to $227.5m, mainly due to lower exchange rates used for translation, as well as weak performance from its two Adelaide hotels. Property development fell 90.4% to $22.0m due to the completed sales of 16 units, compared to 131 units the previous year. Consequently, revenues declined 45.1% to $266.7m. Going forward into FY14, the group has indicated that its hotel segment will continue to remain strong, with positive signs of recovery seen in its two Adelaide hotels. Increased revenues is expected with the upgrading and reconfiguring of its food and beverage outlets. The property investment segment will be stable, with fixed lease income of A$11m per annum from Dynons Plaza Perth for the next seven years. Group has proposed a final and special dividend of 2¢ and 1¢ respectively per share, implying a FY13 dividend yield of 5.3%. At its last closing price of $0.610, Stamford Land trades at 1.0x P/B.