Tropicana earnings 71.5% higher in quarter one

PETALING JAYA: Property firm Tropicana Corp Bhd’s net profit increased 71.49% to RM46.4mil for its first quarter ended March 31, mainly due to cost savings and advanced progress of projects.

Earnings per share increased to 3.17 sen from 1.89 sen previously.

Revenue also jumped 21.23% to RM453mil due to higher progress billings from advanced stages of construction work for many of the group’s ongoing projects.

The company has also declared a first interim dividend of 1.6 sen for the period.

As of the period, the company had total borrowings of RM1.9bil, which consists of RM1.23bil in longterm debt and RM668.16mil in short-term borrowings.

Looking forward, Tropicana said that while the industry is expected to remain challenging, the group believes there will still be demand for property in prime locations with attractive pricing.

As of March 31, Tropicana had delivered total unbilled sales of RM1.2bil, anchored by 15 ongoing projects and an existing land bank of 888.9 acres with a total gross development value of RM42.1bil.

“The group will continue to focus on being market-driven and unlock the value of its land bank at strategic locations across the Klang Valley, northern and southern regions,” it said in a filing with Bursa Malaysia.

With this in mind, Tropicana will continue to focus on the introduction of new phases across its signature developments, namely, Tropicana Heights, Tropicana Aman, Tropicana Metropark and Tropicana Danga Cove, which are expected to continue to contribute positively to group earnings.

“Tropicana is also confident of registering a steady recurring income stream from its property investment portfolio that includes international schools, namely St. Joseph’s Institution International School Malaysia, GEMS International School and the latest addition, Tenby International School, which is expected to have its first intake of students in September 2018,” said Tropicana.