Petaling Jaya – In a filing to Bursa Malaysia, Tropicana Corporation Berhad (“Tropicana” or “Group”) announced its unaudited financial results for the third quarter ended 30 September 2024 (“Q3 2024”). Tropicana reported a revenue of RM877.8 million, which was RM246.2 million or 21.9% lower when compared to the preceding year. This was mainly due to the completion of the divestment of investment properties coupled with lower land sale proceeds in the current financial period. The divestment and land sale exercise were consistent with the Group’s strategy to reduce overall debt level via assets monetisation. Excluding the one-off losses from the disposal of investment property and development land, the Group would have recorded a higher profit before tax (“PBT”) of RM38.9 million, a jump of 46.7% against the preceding year of RM26.6 million. The provision of foreseeable losses arose from the land disposal will eventually be mitigated by the cost savings from low-cost housing obligation, which will be recognized progressively over the next five years, and this will contribute to future earnings of the Group.
The Group recorded revenue of RM201.9 million in Q3 2024, a 49.9% decrease compared to the corresponding quarter in the preceding year (Q3 2023: RM402.8 million). The lower revenue for Q3 2024 is primarily attributed to lower progress billings across key projects in the Klang Valley, Southern and Northern Regions as well as the absence of revenue from St. Joseph’s Institution International School and W Kuala Lumpur which were disposed in September 2023 and January 2024, respectively.
Grand opening of Tropicana Alam phase 1 show unit
The management cited that the Group’s continued focus and performance-driven initiatives have demonstrated results across its key business segments, “As a sustainable community planner, we focus on future-proofing our businesses through a robust growth strategy, effective marketing and sales campaigns, engagement with our stakeholders and the delivery of quality properties. In FY2024, we have an interesting mix of residential or commercial developments worth an estimated GDV of RM5.5 billion.”
“Our financial position will also strengthen with the handover of vacant possession of 6 projects this year comprising Tropicana Aman, Tropicana Miyu, Tropicana Metropark, and Tropicana Uplands. We are also enhancing our digital and customer loyalty segment, offering more benefits and rewards to our purchasers and business partners,” the management added.
Tropicana will continue to gain traction in the market with these signature developments worth an estimated GDV of RM5.5 billion:
1. Varia Shop Offices, Tropicana Aman @ Kota Kemuning
2. Avisa Terrace Homes, Tropicana Alam @ Puncak Alam
3. Breez Hill Shoppes & Serviced Apartments, Tropicana Avalon @ Tropicana WindCity, Genting Highlands
4. Co-Homes, Tropicana Paradise @ Tropicana WindCity, Genting Highlands
5. Skypark Kepler Branded Residences, Lido Waterfront Boulevard @ Johor
6. Fraser Heights Terrace Homes, Tropicana Uplands @ Johor
7. Clarissa Serviced Suites & Beachwalk Shoppes, Tropicana Cenang @ Langkawi
Skypark Kepler strategic location near the RTS link
Delivering on its promise, Tropicana has completed and delivered the Vacant Possession for the following projects in FY2024:
1. Freesia Residences, Tropicana Aman @ Kota Kemuning
2. Gemala Residences, Tropicana Aman @ Kota Kemuning
3. Aster Heights Terrace Homes, Tropicana Uplands @ Johor
4. Tropicana Miyu Condominiums @ Petaling Jaya
In the pipeline, Tropicana will be completing these 2 projects and ready for the delivery of Vacant Possession:
1. SouthPlace Residences, Tropicana Metropark @ Subang Jaya
2. Hana Residences, Tropicana Aman @ Kota Kemuning
Over the past few months, the property developer has announced many positive news, from its successful Johor land sale of RM383 million to NTT Data Group and RM240 million land deal with Z Data Group to its recent topping off and 100% take-up announcement on Edelweiss Serviced Residences, SOFO and Shoppes at Klang Valley. Tropicana Alam, the Group’s latest township at Puncak Alam also celebrated a 70% take up for its first phase Avisa Residences by unveiling its highly anticipated new show units to keen purchasers and registrants. With Tropicana’s high unbilled sales of RM2.3 billion and a sizeable landbank of 1,612 acres with an estimated GDV of RM109 billion, the Group is in a good position to deliver sustainable performance in the next few years
