Property developer Tropicana Corporation Berhad (“Tropicana” or “Group”) today announced its unaudited financial results for the first quarter ended 31 March 2016. For the first quarter under review, the Group revenue was marginally higher than the corresponding quarter of FY2015. In 1Q FY2016, the Group recorded revenue of RM286.9 million, compared to RM284.1 million (excluding land sales of RM106.8 million) in the corresponding quarter last year.
The Group’s net profit attributable to shareholders is relatively higher at RM15.2 million in the quarter under review, compared to RM14.8 million (excluding the contribution from the disposed subsidiary Tenaga Kimia Sdn Bhd) achieved in the first quarter of FY2015. Reflecting the Group’s success in executing its asset divestment strategy to reduce borrowings, the Group’s finance cost has almost halved to RM7.8 million in the current quarter from RM14.7 million a year ago.
Performance in this first quarter of FY2016 was satisfactory, driven substantially by the Group’s property development division. Tropicana’s unbilled sales remained very healthy at RM3.0 billion as at 31 March 2016 and will continue to fuel earnings performance in the next two to three years as the construction progress for the on-going developments gather pace.
Property development remains our core focus. The Group aims to continue with its strategy to unlock the value of its 1,600 acres of prime land that has potential Gross Development Value in excess of RM50 billion.
Albeit that market conditions remain subdued, Tropicana is confident that it is able to introduce the right development projects that would appeal to home buyers, with both landed residential and integrated developments that are stamped with the Group’s trademark development DNA on accessibility, connectivity, innovative concepts, and designs, generous open spaces, amenities, facilities, multi-tiered security, and quality.
For FY2016, we plan to launch in excess of RM1.5 billion worth of new projects. The new launches include new phases of its highly successful townships, primarily at Tropicana Aman in Shah Alam and Tropicana Heights in Kajang, where previous launches have been very well received. Plans are also in place to launch the fourth residential tower in Tropicana Gardens, Kota Damansara. The first three towers in this integrated development that have a direct linkage to the Surian MRT station have been well taken up and almost fully sold.