Japan Land’s net loss widens to S$4.6m in Q1

Mainboard-listed property investment firm Japan Land said on Tuesday that its first quarter net loss has widened.

For the three months ended August, the firm lost S$4.6 million compared to a net loss of S$3.7 million in the same period last year.

The loss came despite a 23.1 per cent increase in revenue over the period to S$1.3 million. The better revenue was due mainly to the provision of advisory and consultancy services to real-estate related clients in Japan.

The firm said it recognised a S$3.1 million loss from the remeasurement to fair value of its associate company, Japan Asia Holdings, which it intends to sell.

Japan Land has entered into payment extension agreements with its major lenders and will be embarking on a series of financial restructuring activities.

This includes the disposal of some of the group’s assets, pending approval of shareholders.

However, the company’s directors have said that if the proposed asset disposals and transactions are not approved, the group may not be able to continue as a going concern.

Source : Channel NewsAsia – 12 Oct 2010

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