In a filing to Bursa Malaysia, property developer Tropicana Corporation Berhad announced its unaudited financial results for the third quarter ended 30 September 2020 (“Q3 FY2020”).
For the Q3 FY2020 under review, the Group recorded a revenue of RM224.0 million, which was 9.0% lower, compared with RM246.1 million registered in the corresponding quarter last year.
For the financial period ended 30 September 2020, the Group revenue stood at RM702.4 million, recording a slight dip of 7.0%, compared to RM755.3 million in the preceding year.
The decrease in revenue was mainly due to slower sales activities and lower progress billings for projects across Malaysia, which were affected by the various movement restriction rulings set by the Malaysian Government.
The financial results for the quarter decreased by RM27.1 million or 82.7% from a profit before tax (“PBT”) of RM32.8 million to RM5.7 million as compared to the corresponding quarter in the preceding year. However, the Group recorded a higher PBT at RM115.1 million, which was RM4.7 million or 4.3% higher when compared to the corresponding period in the preceding year.
This was mainly due to the gains arising from the sales of two parcels of development lands. The Group’s profit after tax and minority interests (“PATMI”) capped at RM14.5 million. Despite the market condition, the Group has recently rewarded its shareholders with the dividend paid by way of the distribution of 4.5 treasury shares for every 100 existing shares held in the Group.
Dion Tan, Tropicana’s Group Managing Director struck an optimistic tone by emphasizing that despite the unprecedented times, the Group delivered encouraging results, and continued to progress with its integrated developments and digital transformation initiatives to improve overall cost and operational efficiencies.
“We have ridden through this pandemic, and we are continually progressing – embarking on our cost efficiency measures, digital realignments, and careful rationalisation of our launches – in our aim to build a more resilient and agile corporation.
We are overcoming adversity, and we are well-positioned to weather through these challenges,” he said. For the FY2020, the Group rolled out a series of new developments with a total GDV of RM695 million across its signature Tropicana townships.
The new launches include Tropicana Miyu condominiums at Petaling Jaya and Shoppes & Residences (South), a mixed development comprising retail lots, and serviced apartments at Tropicana Metropark, Subang Jaya.
The Group also continues to record an excellent uptake for Edelweiss SOFO and serviced residences, the fifth and final tower of its signature Tropicana Gardens development. In the pipeline, the Group plans to launch its first integrated master-planned development in Genting Highlands, Pahang, aptly known as Tropicana Grandhill, and Summit Commercial Hub, Tropicana Uplands in Gelang Patah, Johor.
For the period under review, Tropicana’s unbilled sales were RM846.6 million, backed by its unique residential, commercial and resort-themed developments.
Overall, Tropicana’s total landbank stood at 2,344.0 acres, with a total potential GDV of RM80.0 billion, placing the Group in a good position to unlock the value of its strategic landbank and deliver sustainable earnings in the next few years.
Read our helpful Guides to learn all about the various property buying, selling and renting tips!