SET-listed developer Nirvana Daii (NVD) divested two plots of land to repair its balance sheet as the pandemic stunted presales, transfers and revenue in residential development.
Chief financial officer Jiradej Nusthit said the company sold a 4.5-rai plot on Rattanathibet Road in July near the Purple Line's Bang Rak Yai station that it acquired in early 2017 for condo development.
"Along the Purple Line, a lot of high-rise condo supply remains unsold with very limited demand to absorb it," he said. "Developing a new high-rise condo project in this location will take long time to see a return. It requires capital investment."
Revenue from the land sale will be transferred this quarter, with the sale price slightly under book value.
The company's inventory needs an adjustment to reflect net realisable value, with 56.7 million baht recognised as administration expenses, said Mr Jiradej.
In the second quarter, NVD booked 272 million baht from the sale of a 10-rai plot on New Krungthep Kritha Road or Srinakarin-Rom Klao Road to diversify its portfolio to other locations as it had more than 200 rai in this area.
As a result, revenue in the second quarter rose to 795 million baht from 335 million in the same period last year and 741 million in the first quarter.
Revenue from residential development in the quarter saw a decline, including 107 million baht from low-rise houses, down from 228 million in the first quarter, while condo revenue was 351 million baht, down from 467 million.
"The impact from the third wave of the pandemic was very severe. We need to prepare a second plan to cope with uncontrollable factors such as market sentiment," he said.
In the second quarter, the number of customers visiting project sites dropped to 782 from 929 in the first quarter and 837 in the second quarter last year.
Presales also declined to 539 million baht from 775 million and 656 million in the respective periods.
Despite a healthy sales backlog of 1 billion baht, homebuyers' ability to accept unit transfers was hobbled by stricter approval of mortgages.
"We need to focus on the challenges to our businesses to get through this year. We will continue to reform the balance sheet as much as possible," said Mr Jiradej.
By the end of the second quarter, NVD also refinanced a 39-rai plot on Srinakarin-Rom Klao Road with 1 billion baht in callable and secured debentures.