Tropicana sees stronger revenue in 3Q, pays 2.5 sen dividend

KUALA LUMPUR (Nov 25): Tropicana Corp Bhd saw a 46% rise in its top line for the third quarter ended Sept 30, 2016, mainly fuelled by higher revenue recognition across key projects in the Klang Valley and northern region.

Quarterly net profit came in at RM34.8 million, compared with RM151.7 8 million a year ago, as the previous year had recognised a one-off gain on disposals of properties and a subsidiary that amounted to RM161.7 million.

The group also declared a dividend of 2.5 sen per share, which could be reinvested in new ordinary shares in Tropicana. The book closure date will be announced at a later date.

For the cumulative nine months (9MFY16), Tropicana reported a net profit of RM83.28million, compared with RM194.23 million a year ago, again due to the absence of the one-off gain.

Revenue for the period was 5.7% higher at RM1 billion, compared with RM947.83million a year ago.

“With 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 ongoing projects and strategic approaches to unlock the value of over 1,300 acres (526ha) of prime land with [a] potential gross development value in excess of RM50 billion,” Tropicana said in a statement.

While it noted that prospects for the property sector remain challenging in the short term, it believes there will still be demand for landed properties and integrated developments in prime locations that have accessibility to good amenities and attractive pricing.

Going forward, Tropicana said its strategy will remain to be market-driven and adapted to market demand.

It is also offering a tailored financial scheme in the last quarter of the year — a 0% interest plan to ease buyers’ cash flow burden and help them overcome down payment issues.

Under the plan, 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. The tenure depends on the property purchased across six premier developments in the Klang Valley.

The scheme applies for its 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; and Paloma Serviced Residences, the second residential phase of Tropicana Metropark in Subang Jaya, among others.

This article first appeared in The Edge Financial Daily, on Nov 25, 2016. Subscribe to The Edge Financial Daily here.