Property developer Stamford Land has increased its Q1 net earnings more than 10 times, from $3.2 million in 2009 to $38 million this year, in spite of flat topline revenue of nearly $52 million.
The huge increase in the Q1 result was largely due to the $47.7-million gains on fair value of investment properties, which was partly offset by a surge in deferred tax expense amounting to $11.5 million.
The company’s hotel business in Australia has enjoyed a 25-percent increase in operating income to approximately $6.9 million in the first quarter. This was attributed to a stronger Australian dollar, as well as higher occupancy rates.
“Rental income from Dynons Plaza will accrue from July 2010 after the end of the rent-free incentive period. However, interest of approximately $1.0 million due to this property was expensed off during the first quarter,” the company said of its Perth commercial development.
Some insiders said that its value will likely rise if the company decides to sell it.
Additionally, Stamford Land’s cash and cash equivalents in Q1 increased to $89.7 million from $19 million over the same period last year. It said that the construction of its Stamford Residences & Reynell Terraces in Sydney is doing well, and will “contribute significantly” to the company’s profit when completed in 2012.