Petaling Jaya, 25 November – Tropicana Corporation Berhad and its group of companies (“Tropicana” or “the Group”) today announced its unaudited financial results for the third quarter (“3Q”) ended 30 September 2016. The Group recorded 3Q revenue of RM357.1 million, a surge of 46.0% compared to the same quarter last year. Cumulative nine months revenue was RM1.0 billion, an increase of 5.7% compared to RM947.8 million in the same period last year.
The higher revenue was mainly fuelled by higher revenue recognition across key projects within the Klang Valley and northern region. The property developer said a one-off gain on disposals of properties and a subsidiary of RM161.7 registered in the previous corresponding period caused the Group to record lower profit before tax (“PBT”) of RM53.4 million in 3Q and RM127.3 million in the cumulative nine months period in 2016.
Excluding the aforementioned one-off gain, the Group’s net profit for the quarter and cumulative nine months were higher by RM39.8 million respectively compared to the same quarter and nine months period a year ago. With an unbilled sales of RM2.6 billion, the Group remains well-positioned to achieve its full-year sales target of RM1.2 billion, anchored by encouraging demand for its developments within prime locations, coupled with its 17 on-going projects and strategic approaches to unlock the value of over 1,300 acres of prime land with potential gross development value in excess of RM50.0 billion.
While prospects for the property sector remains challenging in the short-term, the Group believes that there will still be demand for landed properties and integrated developments in prime locations with accessibility to good amenities and attractive pricing. Going forward, Tropicana’s strategy will remain to be market driven and adapted to market demand. The Group is confident that its relentless efforts in delivering exceptional values to its customers will set them apart from its competitors and position them for further growth in the year ahead.
Notwithstanding the challenges ahead, the Group will continue to explore opportunities to expand its footprint and develop more value-added properties which allow for a more comprehensive and holistic lifestyle. In the last quarter of financial year 2016 (“FY16”), Tropicana is offering tailored financial scheme, a 0% interest plan to ease buyers’ cash flow burden and help them overcome down payment issues, where buyers can opt to settle the differential sum, which is the difference between the purchaser’s loan and the balance purchase price via instalments over six months, 12 months or 24 months, depending on the property purchased across six premier developments in Klang Valley.
The properties are Parkfield Residences and Ridgefield Residences, the second and third phases of Tropicana Heights in Kajang; Bayan Residences and Cheria Residences, the second and third phases of Tropicana Aman in Kota Kemuning; Paloma Serviced Residences, the second residential phase of Tropicana Metropark in Subang Jaya; and Dianthus Serviced Residences, the fourth phase and final tower of Tropicana Gardens in Kota Damansara. They are mainly high-rise residences, link homes, park villas and semi-detached houses.
These developments essentially encapsulate Tropicana’s unique DNA, one that is built on the cornerstone of accessibility, connectivity, innovative concepts and designs, generous open spaces, amenities, facilities, multi-tiered security and quality. Tropicana Board of Directors have declared a first single-tier interim dividend of 2.5 cents for financial year ending 31 December 2016. The dividend consists of an electable portion of 2.5 cents which can be elected to be reinvested in new ordinary shares of Tropicana in accordance with the Dividend Reinvestment Scheme.
The Book Closure Date will be announced at a later date.