Petaling Jaya , 19 February 2016 – Property developer Tropicana Corporation Berhad (“Tropicana” or “Group”) today announced its unaudited financial results for the financial year ended 31 December 2015. For the fourth quarter under review, the Group recorded revenue of RM304.9 million, compared to RM904.0 million registered in the corresponding quarter last year. Included in the revenue from the corresponding quarter in 2014 was land sale of RM470.7 million.
Profit before tax (“PBT”) was lower at RM54.7 million for the current quarter under review, compared to RM234.5 million recorded in the previous corresponding quarter, which also included gain from land sale of RM167.9 million and RM17.1 million fair value adjustments from investment properties. Consequently, Group revenue in the full financial year ended 31 December 2015 stands at RM1.25 billion as compared to RM1.76 billion in fiscal year 2014.
For the year, Group PBT decreased to RM297.1 million from RM411.6 million from a year ago, whilst net profit attributable to shareholders in FY2015 was RM223.3 million compared with RM333.9 million previously. Excluding the financial impact from land sales and fair value adjustments, performance was in line with expectations with revenue contribution driven by steady construction progress from the Group’s ongoing developments.
Tropicana proposed interim single tier dividend of 2sen per share, which raised the total single tier dividend declared for the financial year ended 2015 to 7sen per share, translating to a dividend yield of 6.1% (based on Tropicana’s share price of RM1.55 per share). Notwithstanding the more challenging market conditions, the Group achieved total development sales of RM1.55 billion for fiscal year 2015, exceeding the previous year’s total sales of RM1.49 billion.
The stronger sales performance has resulted in the Group’s unbilled sales reaching a record high of RM3.13 billion, placing it in a comfortable position to deliver sustainable earnings performance in the current year. Tropicana’s de-gearing initiatives are also bearing fruit. The Group’s financial position has strengthened considerably, with net gearing at the end of December 2015 brought lower to 0.30x, a marked improvement from 0.68x registered as at the end of December 2014.
Proceeds from Tropicana’s strategic disposal of its non-core assets and investment properties has reduced net borrowings by half from RM2.0 billion as at end of 2014 to RM0.9 billion as at end of 2015. The Group will carry on 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.
Property development remains the core focus, with planned launches in 2016 worth an estimated RM1.7 billion primarily in the Central and Northern regions. Albeit that the market continues to face headwinds, the Group believes it has the right product mix to appeal to the broad market, where there is sustainable demand for landed properties and integrated developments in good locations, great accessibility and attractive pricing. Tropicana’s integrated township development in the Central region continues to draw healthy interest.
New launches such as Tropicana Aman in Shah Alam and Tropicana Heights in Kajang attracted good take-up rates from buyers. Tropicana is also steadfast in its focus to further improve its gearing position. Continuing with its asset sales momentum, the Group separately announced in January 2016 the proposed sale of its Sky Express Hotel and Dijaya Plaza in Kuala Lumpur that will collectively bring in gross proceeds of RM195 million.
With property development as its core focus, together with its high unbilled sales and a strengthened balance sheet, Tropicana is well poised to deliver improved performance going forward.
* Image Caption : Tropicana Aman continues to draw healthy interest.