Tropicana Posts RM877.8 Million Revenue In Q3 FY2024

Tropicana Posts RM877.8 Million Revenue In Q3 FY2024

● For the financial period ended 30 September 2024, the Group recorded a revenue of RM877.8  million. 

● Tropicana’s financial position continues to improve, with gross gearing level reduced from 0.74 times as of 31 December 2023 to 0.70 times as of 30 September 2024.

● The Group’s unbilled sales stood at RM2.3 billion placing the Company in a comfortable  position to deliver sustainable earnings. 

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. 

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 

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.

Tropicana has a sizeable landbank in the booming Johor market. One of its star  developments is the vibrant Lido Waterfront Boulevard fronting the beautiful straits of  Johor and is strategically located near the RTS link. Lido recently unveiled its first phase branded residence with Banyan Group, the Skypark Kepler, one of the most luxurious  developments in Johor

With the successful 100% take-up of SouthPlace Residences, Tropicana rolled out SouthPlace  2 Shoppes & Residences fronting the sprawling 9.2-acre urban park at Tropicana Metropark 

Award-winning Tropicana Gardens, an integrated and Transit-Oriented Development  (“TOD”) at Tropicana Indah, celebrated 100% take-up and Topping Off milestone for its 7^th phase development, the Edelweiss Serviced Residences, SOFO and Shoppes 

Tropicana Alam celebrated another milestone with the grand opening of Avisa Residences’ show units. This first phase of modern terrace homes at Tropicana Alam has already recorded a good 70% take-up

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