KUALA LUMPUR (May 25): Iskandar Waterfront City Bhd (IWCity) slipped into the red in the first quarter ended March 31, 2016 (1QFY16), posting a net loss of RM4.8 million, on higher finance costs and lower revenue.

In comparison, the property developer registered a net profit of RM260,000 in 1QFY15.

Revenue slumped 64.15% to RM8 million from RM22.33 million a year ago, the group said in a filing to Bursa Malaysia today.

It said its construction sector's revenue fell to RM5.35 million from RM22.2 million a year ago, due to a revision in the revenue and budgeted cost for this sector.

Its revenue for the property sector increased by RM2.2 million to RM2.7 million, while profit improved to RM817,000 compared to a gross loss of RM24,000 previously, due to higher sales and percentage of completion recorded in the development project.

With the increasing concern on the oversupply in property market and the stringent lending policies by the end-financing banks, the group expects its operating environment to face more challenges.

It expects the Malaysian property market to be increasingly tough as there are still uncertainties over the country's economic growth and prospects.

"Given the factors mentioned above, the group is cautiously optimistic that we will continue to unlock the value of our land bank and expand our reach in the property market," it said.

Nevertheless, the group will continue with its initiatives to attract more foreign and local investors' confidence to its business development and will emphasise a good balance between growth and stability.

"With the strong portfolio of projects within our land bank, the group will maintain to grow both top and bottom line while continuing its long-term strategy to attract investors with the right products," it said.

IWCity shares shed 3.5 sen or 3.5% to close at 96.5 sen today.