Shares in developer Port Bouvard fell after the company posted a first-half loss of $15.7 million, admitted it had limited cash reserves and held little hope of a bounce in the property market in the short term.
The company's result included a $19.2 million impairment on its Oceanique apartments south of Mandurah.
Its operating loss before the impairment and tax was $3.3 million.
The result was achieved on revenue of $11.8 million, down 81 per cent on the previous corresponding period.
"Persisting soft market conditions in the property sector have clearly impacted results for the half-year to December 31, as well as delaying the originally proposed commencement date for the company's major project, Point Grey," Port Bouvard said in a statement.
The company said it was working to cuts costs and considering options to raise more cash for working capital including debt or equity funding and discussions with its lender St George Bank.
"These discussions are not yet complete and the outcome is not certain," it said.
"It will be necessary for the company to achieve a positive outcome in respect of its discussions with St George Bank to remain a going concern."Port Bouvard shares were off 0.3 cents, or 7.69 per cent, to 3.6 cents at 10.40am.