The Star - Tropicana records 80% higher pre-tax profit in second quarter

The increase was attributable to the gains arising from the sale of the two parcels of freehold development land.

This was in tandem with its 12.1% year-on-year (y-o-y) increase in revenue to RM335.7mil, where the two parcels of land in Johor Bahru were sold for a total of RM241.8mil cash.

On the first six months basis for financial year 2020 (FY20), the group's pre-tax profit rose 41% y-o-y to RM109.5mil, although revenue came in lower at RM478.4mil due to lower sales and progress billing across projects in the Klang Valley and the southern region.

During the period under review, Tropicana achieved unbilled sales of RM679.4mil, anchored by ongoing townships, commercial and resort themed projects and existing land bank of 2,344 acres with a total potential gross development value (GDV) of RM70bil.

It said in a statement that this placed the group in a strong position to deliver sustainable earnings performance for FY20.

Tropicana is also expected to roll out a series of new developments and phases with a GDV of RM1.8bil across its signature Tropicana townships in the second half.

"While growth prospects are expected to be subdued in the short term, we believe there will still be demand for properties in prime locations with attractive pricing, innovative ownership packages and offerings, especially for first-time homebuyers.

"The lowering of the overnight policy rate to 1.75% by Bank Negara and the introduction of the Home Ownership Scheme by the government recently will give Malaysians the opportunity to gain greater access to housing loans and stimulate the property market," it said.