PETALING JAYA: In a filing to Bursa Malaysia today, property developer Tropicana Corporation Bhd (Tropicana) reported its unaudited financial results for the third quarter ended Sept 30, 2023. For the quarter under review, Tropicana recorded revenue of RM402.8 million which was RM81.1 million or 25.2% higher when compared to the corresponding quarter in the preceding year (Q3’22: RM321.6 million).
Tropicana recorded a profit before tax (PBT) of RM24 million, an almost five-fold increase as compared to RM5 million in the corresponding quarter in the preceding year. The significant increase was mainly attributed to the completion of the disposals of two parcels of freehold development land in Kajang and Genting Highlands for a total consideration of RM71 million as well as Tropicana’s continuous cost rationalisation exercise to reduce overall expenses. In addition, the recent divestment of equity interests held in two subsidiaries namely Tropicana Education Management Sdn Bhd and Tropicana SJII Education Management Sdn Bhd helped strengthen the group’s PBT.
The management cited that the group’s focus and continued commitment demonstrated positive results across its key business segments, “Building townships since 1979, Tropicana has broadened its position from a resort-style developer to a sustainable community planner anchored on its eight development DNAs and three ESG pillars. Our approach focuses on future-proofing our businesses through our constant engagement with our stakeholders, especially our loyal property purchasers as well as our marketing and sales amplification through various online and offline initiatives. We aim to provide the best value, make a difference to the community and contribute to a sustainable future.”
“Since early 2023, we have reported a string of positive news, from our successful sukuk redemption, multiple award triumphs to positive take-up of our properties across Malaysia. We are confident that Tropicana will continue to strengthen its market presence and contribute to its future earnings supported by our high unbilled sales of RM2.3 billion and strong RM1.3 billion property bookings recorded across Malaysia. This is complemented by our four newly launched or upcoming developments worth an estimated GDV of RM1.2 billion in 2023,” the management emphasised in a statement.
For the financial period ended Sept 30, 2023, Tropicana recorded a revenue of RM1.1 billion, which was RM367.6 million or 48.6% higher when compared to the preceding year. The significant increase in revenue was attributed to higher progress billings across key projects in the Klang Valley, Southern and Northern Regions coupled with the completion of the disposals of land in Kota Kemuning, Kajang and Genting Highlands for a total consideration of RM205.6 million.
The group’s PBT was recorded at RM26.6 million as compared to a loss before tax of RM92.0 million which was mainly due to the completion of the divestment of equity interests held in two subsidiaries. The group’s property investment, recreation and resort segment has also seen a significant improvement which is evidenced by the increase in the occupancy rates of the hotels owned by the group.
The group remains optimistic and is confident that there will still be demand for properties in prime locations in Tropicana’s established, matured, and developing townships. Tropicana’s ongoing or new developments recorded excellent take-up such as:
* 95% take-up | SouthPlace Residences, Tropicana Metropark @ Subang Jaya
* 80% take-up | Hana Residences, Tropicana Aman @ Kota Kemuning
* 100% take-up | Shop Offices, Tropicana Aman @ Kota Kemuning
* 87% take-up | Edelweiss SOFO & Serviced Residences, Tropicana Gardens @ Tropicana Indah
* 90% take-up | Tower A TwinPines Serviced Suites, Tropicana Grandhill, Genting Highlands @Pahang
* 90% take-up | Assana Serviced Suites, Tropicana Cenang @ Langkawi
Spurred by the positive track record, the group is positive that its new or upcoming developments in 2023 will continue to gain traction in the market:
* SouthPlace 2 Shoppes & Serviced Residences, Tropicana Metropark @ Subang Jaya
* Phase 1 Terrace Homes, Tropicana Alam @ Puncak Alam
* Tropicana Paradise Villa Lots & Landed Homes, Genting Highlands @ Pahang
* Retail Shoppes, Tropicana Avalon, Genting Highlands @ Pahang
Overall, Tropicana’s total landbank spans 1,842 acres, with a total potential GDV of approximately RM120 billion, placing the Group in a good position to unlock the value of its strategic landbank and deliver sustainable performance in the next few years.
