25 MARCH, PETALING JAYA – In a filing to Bursa Malaysia, property developer Tropicana Corporation Berhad (“Tropicana” or “The Group”) today announced its unaudited financial results for the fourth quarter ended 31 December 2020 (“Q4 FY2020”).
For the Q4 FY2020 under review, the Group recorded a revenue of RM356.7 million, which was RM23.8 million or 6.3% lower, compared with RM380.5 million registered in the corresponding quarter last year. For the financial year ended 31 December 2020, the Group revenue stood at RM1.06 billion, recording a slight dip of 6.8% or RM76.8 million lower when compared with RM1.14 billion posted in the corresponding period in the preceding year. The decrease in revenue in the current quarter reflected lower progress billings across some of the Group’s key existing on-going projects and lower sales as a result of the COVID-19 pandemic. Development activities were halted temporarily upon the enforcement of various movement restriction rulings set by the Malaysian Government.
The Group’s profit before tax (“PBT”) for the Q4 FY2020 was lower by RM133.5 million or 51.9% as compared to the corresponding quarter in the preceding year. The Group’s PBT for the year ended 31 December 2020 was recorded at RM238.7 million, which was RM128.8 million or 35.0% lower when compared to the corresponding period in the preceding year. This was mainly due to the recognition of the negative goodwill which arose when the Company acquired development lands held by 12 acquiree companies from a related party at a favourable price of an average discount of 13.4% to the market value of these lands and where the corporate exercise to acquire was completed in November 2019.
The Group’s profit after tax and minority interests (“PATMI”) capped at RM48.1 million in Q4 FY2020. Despite the market conditions, the Group has recently rewarded its shareholders with dividends paid by way of distribution of 4.5 treasury shares for every 100 existing shares held in the Group.
Dion Tan, Tropicana’s Group Managing Director shared that he is cautiously optimistic about the growth of the Group. Despite the unprecedented times, the Group delivered encouraging results and recorded higher property sales compared to 2019 as well as continued to progress with its integrated developments and digital transformation initiatives to improve overall cost and operational efficiencies.
“We are mindful of the challenges presented to our Group as the result of the pandemic outbreak. We are closely monitoring our key performances and are cautiously optimistic of all our projects’ potential; especially those located in strategic regions. Our Tropicana 100 campaign is drawing a steady flow of interests, signalling a gradual recovery in the property market. We will continue to progress by maintaining stringent cost-efficiency measures, digital realignments, and careful rationalisation of our launches – in our aim to build a more resilient and agile corporation,” he said.
For the FY2020, the Group rolled out a series of new developments with a total GDV of approximately RM700 million across its signature Tropicana townships. The new launches include Tropicana Miyu condominiums at Petaling Jaya and Shoppes & Residences (South), a mixed development comprising retail lots, and serviced apartments at Tropicana Metropark, Subang Jaya. The Group also continues to record an excellent uptake for Edelweiss SOFO and Serviced Residences, the fifth and final tower of its signature Tropicana Gardens development.
In the pipeline, the Group plans to launch:
- Freesia Residences, the contemporary villa series comprising of Lake Villas and Park Villas in Tropicana Aman, Kota Kemuning.
- TwinPines Serviced Suites, an exclusive residential phase in its first integrated master-planned development aptly known as Tropicana Grandhill in Genting Highlands, Pahang.
- Summit Commercial Hub, the vibrant business centre at Tropicana Uplands in Gelang Patah, Johor
For the period under review, Tropicana’s unbilled sales were RM1.09 billion, backed by its unique residential, commercial and resort-themed developments. Overall, Tropicana’s total landbank stood at 2,144.0 acres, with a total potential GDV of approximately RM78 billion, placing the Group in a good position to unlock the value of its strategic landbank and deliver sustainable earnings in the next few years.