The Samoa Land Corporation recorded a decrease of its net profit for financial year 2020 in the amount of $3.4 million. A drop of 14 percent compared to $4 million previously.
This is outlined in the Corporation’s annual report.
The total revenue recorded for the current period decreased by 2.5 percent, this is due to the financial assistance offered to the Corporation clients during the COVID-19 lockdown as well as the inability of tenants to pay due to the pandemic.
Income from Lands leases is the major contributor earning around 74 percent whilst the remaining more than 20 percent comes from markets (Savalalo, Vaitele & Salelologa), the Faleata Golf Course, Malifa Lodge and other sources.
Total expenditure recorded an increase from $7.7million to $8.4million for the current period.
This increase in total expenses is due mainly to the construction of new access roads to Land Lease, relocation costs of Sogi residents to Falelauniu and the additional provision to cover for the risk and uncertainties to some of the land debtors and Market tenants at year end due to COVID-19 impacts.
Administration & Operating costs are the major expense for the Corporation representing 50 percent of total expenditure for the reported period.
The implementation of the Government stimulus package as per FK (20)directing the Corporation to cease all market lease charges for 5 months from March to July 2020 has also affected the corporation’s profitability status in terms of revenue and cash flow.
Apart from Market tenants, the Board also approved concessions for Land lease charges at 15 percent, Property leases and Interest on Land Sales at 50 percent respectively.
