SINGAPORE - Isetan (Singapore) recorded a net loss of $2.3 million for the first quarter, reversing from net profit of $265,000 a year earlier.

This was the result of a slight drop in sales but higher expenses.

Sales for the three months to March 31 was $82.1 million, a 0.6 per cent drop. The fall was largely due to lower sales at Isetan Katong, which has been affected by the ongoing replacement of a set of internal escalators by the landlord, the company said.

Total expenses were up 1.7 per cent at $86.1 million.

This included a 11.5 per cent increase in rental expenses to $11.7 million, mainly from an upward adjustment in the rents paid at Isetan Scotts.

The company noted as well that the Isetan Jurong East store "is only in its second year of operations and not contributing to profits yet."

Loss per share for the quarter was 5.49 cents. Earnings per share was 0.64 cent a year back.

Net asset value was $4.82 at March 31, down from $4.87 at Dec 31.

The company added that Isetan Orchard is undergoing a period of transition from the beginning of the second quarter of the current financial year, where the premises will be converted into rental area.

"In this regard, there will be no sales and rental income at the store until the potential tenants commence their leases, with the first tenancy likely to start in the fourth quarter of this year and the rest expected over the next financial year."