Focus Malaysia - Tropicana Outperformed Its Property Sales Target, Up by 62.4% to RM1.3 bil
Despite posting higher property sales of RM1.3 bil, an impressive jump of 62.4% for the financial year ended Dec 31, 2021 (RM802.4 mil previously), Tropicana Corporation Bhd recorded revenue of RM869.7 mil, which was RM192.9 mil lower when compared to the preceding year.
This was reflected by the completion of the disposals of four parcels of freehold development lands in Johor Bahru, for a total cash consideration of RM399.2 mil whereby there were no land disposals in the current year.
Excluding these said land disposals, the revenue in the current year would have been higher by RM206.3 mil which was contributed by higher property sales and progress billings across ongoing key projects in the Klang Valley and Southern Region.
The Group’s overall 4Q FY2021 revenue slipped 26.8% to RM263.8 mil (4Q FY2020: RM360.2 mil) which was RM96.4 mil lower when compared to the corresponding quarter in the preceding year.
The Group’s profit before tax (PBT) was lower by RM102.9 mil or 83.5% as compared to the corresponding quarter in the preceding year. This was mainly attributed to the completion of the disposals of two parcels of freehold development lands in Johor Bahru, for a total consideration of RM157.4 mil whereby comparatively in Q4 FY2021 there were no land disposals in the current quarter.
Tropicana group managing director Dion Tan cited that the surge of property sales in 2021 is marked by pent-up demand post-lock down and gradual economic recovery.
“The market is slowly bouncing back, and we saw a higher pick-up in property sales transactions before the end of home ownership campaign (HOC). Our property investment, recreation, and resort operations have slowly regained their pace as well,” he mentioned.
“Digitalisation and online engagement became a big part of our marketing strategies, as these efforts have borne fruit,” Dion added.
For the financial year ended Dec 31, 2021, the Group recorded a loss before tax (LBT) of RM35.2 mil (RM273.6 mil lower), which had gains arising from the sale of the four parcels of development lands amounting to RM236 mil.
Despite the loss for the year, the Group’s property development and property management division still performed strongly with profits of RM77 mil for the period which was backed by strong sales and cost savings from projects.
Tropicana will also continue to focus on the introduction of new phases across its signature and established developments, namely Tropicana Heights, Tropicana Aman, Tropicana Metropark, as well as Tropicana Uplands, Tropicana Alma, and the first Tropicana Industrial Park in Johor.
New developments in Genting Highlands and Langkawi are expected to anchor and provide a major impetus to the Group’s future growth, marked by the recent launch of Tropicana Journey Collection that showcases Tropicana Grandhill homes-by-the-hill and Tropicana Cenang homes-by-the-sea development.
For the period under review, Tropicana’s unbilled sales were up by 36% to RM1.5 bil (4Q FY2020: RM1.1 bil), backed by its unique residential, commercial and resort-themed developments.
Overall, Tropicana’s total landbank stood at 2,452 acres, with a total potential gross development value (GDV) of approximately RM152.2 bil, placing the Group in a good position to unlock the value of its strategic landbank and deliver sustainable earnings in the next few years.
