CSX Growth board listed condominium developer JS Land (CSX:JSL) has posted a net loss of $426,853 in the first quarter of 2022 as total assets increased to $12.2 million after sales of the company’s flagship Garden Residence 2 development.
The company announced an after-tax profit of $24,816 down 39% from $49,844 in 2020. To read more about JS Lands 2021 annual results click here.
The share price is currently trading 146% up from IPO at KHR 4,680 a share today. The IPO listed 8,281,000 shares (32.21% of total shares) at KHR 1,900 a share raising $2.12 million and putting the company’s market capitalization at $12 million.
The stock has been trading with low volume in the market with an average daily transaction value of around $6,700.
Garden Residency 2 is 70% sold
In the company’s delayed quarterly report, Chief Executive Officer Dato Jack Yap said despite the challenges of the COVID-19 pandemic their second development that broke ground in 2019 is on track.
“Despite the challenges of the global pandemic that affected the world’s economy over the last two years, JS Land has still managed to achieve a good number of sales to date as a result of our location and affordable prices. Currently, we have sold more than 70% of The Garden Residency 2,” he stated.
“After eight years of effort, JS Land now has the first-mover advantage, being the pioneers in affordable homes development in Cambodia,” he added.
Speaking to Cambodia Investment Review he clarified the large quarterly loss explaining that the accounting method requires the company to recognize profit in time rather than over time.
“We can only recognize the profit from our condominium sales when we handover. The current sales are reflected in the increase in the net assets. All sales we have done for The Garden Residency 2 we can only treat it as an asset under development expenditure until we hand over,” he said.
Affordable housing in Cambodia
The report also stated that the current situation of apparent oversupply of condominiums may result in property overhang or unsold properties and downward pressure on the price of our current development project which may adversely affect our sales and profitability.
“We seek to lower the risk of holding unsold properties by launching presale events to attract early-bird buyers with attractive selling prices and payment options,” it stated.
“We believe our various options of payment scheme not only help attract the interest of buyers but also reduce the cancellation rate which contributes to lower the risk of property overhang,” it added.
The developers have completed the ‘topping’ of their flagship 369-unit Garden Residency 2 project in Phnom Penh’s Sen Sok district hosting a celebratory event with both company and industry stakeholders.
In building terms, topping is held when the last beam (or its equivalent) is placed atop a structure during its construction.
The project located in Phnom Penh’s Sen Sok district consists of 33 floors, an automated car park, gym facilities, two swimming pools, and a rooftop sky garden with our very first sky cinema.
To read more about the ‘topping’ of Garden Residency 2 click here.
Cambodia Investment Review has previously reported on the growing demand for affordable housing in Phnom Penh as well as the Cambodian government stated it will focus would be on affordable and mid-range properties to meet the demands of a population with an average age of 27, with 55 percent in the Gen-Z and Gen-Y age groups.