Tropicana Hits Higher Revenue of RM1.51 Billion in FY2023
Petaling Jaya – In a filing to Bursa Malaysia, property developer Tropicana Corporation Berhad (“Tropicana” or “The Group”) reported its unaudited financial results for the fourth quarter ended 31 December 2023 (“FY2023”). The Group achieved record revenue of RM1.51 billion in FY2023, the highest in the past three financial years.
The FY2023 revenue surged by 60.7% from the preceding year’s RM942.6 million, mainly due to higher progress billings across key projects in the Klang Valley, Southern and Northern Regions coupled with the disposal of lands. The Group’s property investment, recreation and resort segment has also seen a significant improvement which is evidenced by the increase in the occupancy rates of the hotels owned by the Group. In FY2023, the Group recorded a loss before tax (“LBT”) of RM98.1 million, a reduced loss of 79.2% from the previous year.
The losses include the provision of foreseeable losses and share of losses from its 30%-owned associate company. In addition, Tropicana’s ongoing initiatives to monetise its landbank and investment property, as well as its cost rationalisation exercise are aimed at improving the Group’s financial position. Tropicana’s balance sheet continues to strengthen, with gross gearing level from 0.87 times in FY2022 to 0.74 times in FY2023.
The management cited that the Group’s focus and continued commitment demonstrated positive results across its key business segments, “Building townships since 1979, Tropicana has broadened its position from a resort-style developer to a sustainable community planner anchored on its 8 development DNAs and 3 ESG pillars.
Our approach focuses on futureproofing our businesses through our constant engagement with our stakeholders, especially our loyal property purchasers as well as our marketing and sales amplification through various online and offline initiatives.”
“We are confident that Tropicana will continue to strengthen its market presence and contribute to its future earnings supported by our high unbilled sales of RM2.5 billion and strong RM1.4 billion property sales recorded across Malaysia. This is complemented by our 7 upcoming developments worth an estimated GDV of RM4 billion in 2024 as well as our upcoming vacant possession which will add more income for the Group,” the management emphasised.
On a quarterly basis, the Group’s Q4 2023 revenue stands at RM390.5 million, which was RM204.3 million or 109.7% higher compared to the corresponding quarter in the preceding year (Q4 2022: RM186.2 million). For the quarter under review, the Group recorded a lower LBT of RM124.7 million, an improvement of 67.2% as compared to the corresponding quarter in the preceding year.
With the successful launch of Southplace Residences recording a high 95% take-up,
Tropicana rolled out Southplace 2 Shoppes & Residences fronting the sprawling 9.2-acre
urban park at Tropicana Metropark
Entering 2024, Tropicana will continue to gain traction in the market and will be unveiling these signature developments worth an estimated GDV of RM4 billion:
1. Shoppes, Tropicana Aman @ Kota Kemuning
2. Terrace Homes, Tropicana Alam @ Puncak Alam
3. Serviced Residences & Retail Shops, Lido Waterfront @ Johor
4. Terrace Homes, Tropicana Uplands @ Johor
5. Landed Homes, Tropicana Paradise @ Tropicana WindCity, Genting Highlands
6. Serviced Residences & Retail Shops, Tropicana Avalon @ Tropicana WindCity, Genting Highlands
7. Serviced Residences, Tropicana Cenang @ Langkawi
Looking forward, Tropicana is planning for the Vacant Possession of 5 projects in FY2024:
1. SouthPlace Residences, Tropicana Metropark @ Subang Jaya
2. Tropicana Miyu Condominiums @ Petaling Jaya
3. Freesia Residences, Tropicana Aman @ Kota Kemuning
4. Gemala Residences, Tropicana Aman @ Kota Kemuning
5. Hana Residences, Tropicana Aman @ Kota Kemuning
Tropicana’s robust landbank spans 1,842 acres, with a total potential GDV of approximately RM120 billion, placing the Group in a good position to deliver sustainable performance in the next few years.
