IWCity’s 1Q net loss widens over 11 times on one-off expense

KUALA LUMPUR (June 1): Iskandar Waterfront City Bhd (IWCity) saw its first-quarter net loss widen more than 11 times to RM56.46 million from RM4.8 million a year ago, mainly due to a one-off expense arising from granting the employees’ share option scheme in March this year totalling RM54.73 million.

Loss per share grew to 6.98 sen in the three months ended March 31, 2017 (1QFY17) from 0.72 sen in 1QFY16.

Quarterly revenue, however, rose 70.5% to RM13.65 million from RM8 million.

On prospects, IWCity said with the recent acceptance of the proposed merger exercise with parent Iskandar Waterfront Holdings Sdn Bhd, it expects that the land bank of the merged entity will boast approximately 6,700 acres (2,711ha) comprising mainly prime waterfront land in Johor and is meant for long-term projects spanning 25 to 30 years.

“With one of the most attractive tracts of waterfront properties in the country, IWCity’s prospects remain bright and will generate significant capital appreciation and value creation.

“The group will continue its effort in growing the existing businesses, especially in the development segment, by attracting more foreign and local investors’ confidence in our business development even though the property market and economic outlook for 2017 will remain tough and weak,” it added.

IWCity noted that it had recently completed the purchase of a freehold property measuring 67.5 acres near Taman Sutera, Johor, and it is targeting to launch the first phase comprising gated and guarded landed properties.

IWCity shares closed unchanged at RM1.67 yesterday, valuing the group at RM1.4 billion. Year to date, its share price has more than doubled.

This article first appeared in The Edge Financial Daily, on June 1, 2017.

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