Property developer, Tropicana Corporation Berhad is bullish to roll-out a series of new developments and phases with a GDV of RM1.8 billion across its signature Tropicana townships in the second half of FY2020.
The new launches include Tropicana Miyu condominiums at Jalan Harapan, Petaling Jaya which will be launched in Q3 FY2020; a new landed residential phase at Tropicana Aman, Kota Kemuning; and shop offices at Gelang Patah, Johor. The Group also targets to launch its first integrated master-planned development, Tropicana Grandhill in Genting Highlands. The first phase of this 112-acre township, the TwinPines Serviced Suites consisting of two towers of fully-furnished serviced apartments will be launched in Q4 FY2020.
While growth prospects are expected to be subdued in the short-term, Tropicana believes that there
will still be demand for properties in prime locations with attractive pricing, innovative ownership
packages and offerings, especially for first-time homebuyers.
In addition, the Group believes that the lowering of the overnight policy rate (“OPR”) to 1.75% by Bank Negara Malaysia and the introduction of the Home Ownership Scheme by the Government recently will give Malaysians the opportunity to gain greater access to housing loans and stimulate the property market.
Meanwhile, with the Malaysian property market expected to see a modest recovery in 2020, the Group will continue to be focused on being market-driven in its product offerings while unlocking value of its landbank in strategic locations in the Klang Valley, Genting Highlands and the Southern Regions of Peninsular Malaysia.
Tropicana also announced its unaudited financial results for the second quarter ended 30 June
2020 (“Q2 FY2020”).
For the second quarter under review, Tropicana recorded a 12.1% increase in revenue to RM335.7
million compared with RM299.4 million registered in the corresponding quarter last year, due to
completion of the disposals of two parcels of freehold development lands in Johor Bahru, for a total
cash consideration of RM241.8 million.
In tandem with rising revenue in Q2 FY2020, Tropicana’s PBT surged 79.5% to RM101.6 million compared with RM56.6 million registered in the corresponding quarter last year. The increase in PBT
was attributable to the gains arising from the sale of the two parcels of freehold development lands amounting to RM108.7 million.
In the first six months of FY2020, the Group recorded lower revenue of RM478.4 million given the
lower sales and progress billing across projects in the Klang Valley as well as the Southern Regions.
Nevertheless, the Group’s PBT rose 41.0% to RM109.5 million compared to the RM77.6 million
registered in the corresponding period last year, resulting from the gains arising from the sale of two
parcels of development lands.
During the period under review, Tropicana achieved unbilled sales of RM679.4 million, anchored by
ongoing townships, commercial and resort-themed projects as well as existing landbank of 2,344 acres with a total potential GDV of RM70.0 billion, placing the Group in a strong position to deliver
sustainable earnings performance for FY2020.