STAMFORD Land : H07 0% saw its net loss narrow to S$14.6 million for the six months ended Sep 30, 2023, from S$32.1 million a year earlier.

This was despite a 4.1 per cent rise in revenue to S$73.2 million over the same period, from S$70.3 million the year before.

In its results release on Friday (Nov 10), the company attributed its net loss to fair value loss on its investment property. Fair value loss on investment property rose to S$71.2 million for the half-year period, from S$52.3 million over the same period a year earlier.

“For the six months ended Sep 30, 2023, the group would have generated a profit before tax of S$31 million if the fair value loss on the investment property in London, Finsbury Circus of S$71.2 million was excluded,” it said.

It added that the fair value loss of the group’s investment property in London was a result of an increase in the capitalisation rate to 5.5 per cent in September 2023, from 4.5 per cent in March 2023.

“The commercial tenancy situation for the group’s property in London remains stable. However, the valuation of the property is dependent on the interest rate environment.”

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Loss per share stood at 0.98 cent per share for the half-year period, from a loss per share of 2.16 cents the year before.

No dividends were declared for the period, as was the case last year.

Stamford Land attributed the higher revenue seen by the company to the resumption of operations in November 2022 of Stamford Plaza Brisbane after it was closed due to a flood between March and October 2022. It added that the rise came despite the divestment of Stamford Plaza Auckland in December 2022.

However, the company also saw increased staff costs, consumables used, energy costs, commission and reservation expenses and other direct costs. It was also weighed down by the depreciation of the Australian dollar against the Singapore dollar.

It further noted that the higher operating profit of S$19.5 million for the six months, compared with S$19 million a year earlier, was mainly due to its executive chairman Ow Chio Kiat voluntarily waiving S$6.5 million of profit-sharing incentives contractually due to him.

This was partially offset by an increase in administrative costs and professional fees, the company said.

Shares of Stamford Land closed flat at S$0.385 on Friday, before the results were released.