Property developer, Tropicana Corporation Berhad and its group of companies (“Tropicana” or “the Group”) announced its unaudited financial results for the first nine months for the financial year ended 31 December 2019 (“FY19”).
For the third quarter under review (“Q3 FY19”), Tropicana recorded a revenue of RM246.1 million, decreasing 19.9% from the corresponding quarter in FY2018 due to lower sales and progress billings across some of the Group’s existing on-going projects.
Meanwhile, for the cumulative nine months of FY19, Tropicana recorded revenue of RM755.3
million, 27.5% lower than the preceding year of the same period caused by a decrease in sales and progress billings across projects in the Klang Valley and Southern regions.
The Group posted a lower PBT of RM32.8 million in Q3 and RM110.4 million in the cumulative nine months period in 2019, fuelled by fixed general and administrative expenses, including a one-off professional fee incurred for a corporate exercise.
The Group remains well-positioned to deliver sustainable earnings performance for the rest of the year, anchored on 14 on-going projects and strategic approaches to unlock the value of its prime landbank, located in the Klang Valley and Southern regions of Peninsular Malaysia.
Coupled with the completion of its recent corporate exercise and proposed collaborations by end of November 2019, which is expected to increase Tropicana’s landbank to a total of 3,504.24 acres
with a combined GDV in the pipeline of RM79.94 billion.
Tropicana is poised to achieve its targeted GDV of RM2.5 billion for all new launches in FY19.
These new launches include the second phase of shop offices, Triana, and the latest residential phase for Elemen Residences at Tropicana Aman, Kota Kemuning. The latter is the first phase of lakeside super-link homes, designed for families, complete with amenities and facilities within the township.
The Group also introduced Phase 2 of Ayera Residences at Tropicana Danga Cove in Iskandar
Malaysia; the fourth landed residential phase, Lakefield Residences at Tropicana Heights, Kajang;
Edelweiss SOFOs and Serviced Residences at Tropicana Gardens which comes complete with
different product offerings and price points to suit consumers’ varying income levels; and the first
commercial phase at Tropicana Metropark, Subang Jaya, Shoppes & Residences (South) consisting
of retail and serviced apartments for the millennials and young executives who prefer vibrant,
integrated community living.
Despite the muted growth experienced by the property market and conscious consumer sentiment, the Group will continue to focus on delivering long-term value to its stakeholders,
targeting new launches amounting to a GDV of RM3.0 billion in 2020. These new launches, which
are expected to contribute positively to the Group’s earnings in the coming year, include the
strategically-located low-density condominiums at Tropicana Miyu, Petaling Jaya; the first phase
of Tropicana Grandhill, the Group’s inaugural development in Genting; and new phases at
Tropicana Heights, Tropicana Danga Cove and Tropicana Aman.
Following the success of its first hotel, W Kuala Lumpur, Tropicana will be opening its second hotel and the first 199-room Courtyard by Marriott in Penang in FY2020 to further strengthen its investment property portfolio and boost its recurring income stream.
On the whole, the Group believes there will still be demand for landed properties and integrated developments in prime locations with accessibility to good amenities and attractive pricing. The
Group is confident that its relentless efforts in delivering long-term value to its customers will increase its competitive advantage and position them for further growth in the year ahead.
Tropicana has paid a first interim single-tier dividend of 2.78 sen per share on 20 February 2019
and also paid a second interim single-tier dividend on 4 October 2019 via distribution of treasury shares on the basis of 3 treasury shares for every 100 existing ordinary shares held in Tropicana.