Image source: tropicanacorp.com.my
In the third quarter (Q3FY2019), Tropicana recorded a revenue of RM246.1 million, a decrease of RM19.9 million as compared to the previous financial year of the same period.
In the meantime, the Group recorded a revenue of RM755.3 million for the first 9 months of FY19, a 27.5% decrease from the previous year. The decline is due to a decrease in sales and progress billings across projects in the Klang Valley and Southern regions.
A lower PBT of RM32.8 million was posted by the group in Q3, and RM110.4 million in the cumulative nine months period in 2019. This is fuelled by fixed general and administrative expenses, including a one-off professional fee incurred for a corporate exercise.
Tropicana remains in a good position to achieve sustainable earnings performance for the rest of the year, anchored by 14 ongoing projects. They also plan to unlock the potential of their strategically located landbanks in the Klang Valley and southern regions of Peninsular Malaysia.
This is in combination with the completion of their recent corporate exercise and proposed collaborations by end-November 2019 which is expected to increase their land bank holdings to a total of 3,504.24 acres and a combined GDV in the pipeline of RM79.94 billion.
Tropicana is well-positioned to achieve their targeted GDV of RM2.5 billion for all new launches in FY19. This includes the launches of the second phase of shop offices, Triana, and the latest residential phase for Elemen Residences at Tropicana Aman in Kota Kemuning. Elemen Residences is the first phase of lakeside super-link homes in Tropicana Aman.
The Group has also introduced Phase 2 of Ayera Residences at Tropicana Danga Cove in Iskandar, the fourth landed residential phase of Lakefield Residences at Tropicana Heights in Kajang, and Edelweiss SOFOs and Serviced Residences at Tropicana Gardens which comes with different types of units and price points to cater to all walks of lives.
There is also the launch of the commercial phase at Tropicana Metropark, Subang Jaya, Shoppes & Residences (South) comprising of catered to retail and serviced apartments catered to the younger generation.
Despite conscious consumer sentiment and the market’s muted growth, Tropicana will continue to focus on delivering long term value to its stakeholders. Their targeted new launches amount to a total of RM3 billion in GDV for the year 2020.
These projects include the condominium Tropicana Miyu in 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. These new launches are expected to make positive contributions to the Group’s earnings in 2020.
The Group will also be opening their second hotel following the success of their first hotel – the first 199-room Courtyard by Marriott in Penang in FY2020. This will further boost their property investment portfolio and recurring income stream.
On the whole, Tropicana believes that there is still demand for landed properties, and integrated developments within prime locations. They also stand firm in their believes that accessibility, good amenities, and attractive pricing vital in their new projects.
They are confident that their efforts in delivering long term value to their customers will increase their competitive edge and position them for further growth in the coming years.
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(16 December 2019)