New Straits Times, 29 August 2014 - Tropicana profit jumps by a hefty 133pc

New Straits Times, 29 August 2014

The group is preparing to launch new phases of terraced homes in Tropicana Heights, in Kajang, Selangor.

Tropicana profit jumps by hefty 133pc transformation strategy: Earnings largely driven by new launches and successful land sales

PETALING JAYA: PROPERTY developer Tropicana Corp Bhd posted a hefty 133.4 per cent jump in net profit in the second quarter ended June 30 to RM89.5 million from RM38.3 million a year ago, on the back of new launches and land sale.

In the quarter under review, the group recorded a revenue of RM355.9 million compared with RM362 million previously. For the first half of financial year ending December 31 2014, the group registered revenue of RM655 million compared with RM667.4 million a year ago. Tropicana said in a statement yesterday the performance for the period under review was largely driven by buoyant development activities and successful land sales. "Ongoing development projects, such as Tropicana Gardens and Tropicana Metropark in Klang Valley as well as Tropicana Danga Bay in Iskandar Malaysia contributed to development profit in the six-month period," it added.

Tropicana chalked up new sales of RM935 million in the first half of thjis year, underpinned by positive response to its new launches and a successful sales campaign. The developer said it will continue to introduce innovative development products that continue to appeal to buyers.

The group is preparing to launch new phases of terraced homes in Tropicana Heights, Kajang, and the third serviced apartment block in Tropicana Gardens, a mixed residential development located in Kota Damansara and located near the Dataran Sunway MRT station.

The maiden launch of terraced houses in Tropicana Heights is almost all sold, while the first two blocks of serviced apartments in Tropicana Gardens, namely Arnica and Bayberry, have received overwhelming response with Arnica fully sold and only a few units of Bayberry remaining. Group performance in the second half of this year will be buoyed by its new launches and high unbilled sales of RM2.7 billion as at end-June, where Tropicana will diligently continue to focus on project execution and delivery to translate this to revenue.

New projects such as Tropicana Heights will also contribute meaningfully to Trop-icana's bottomline in the second half of the year, said the company. Tropicana remains steadfast in pursuing its transformation strategy to unlock value of its landbank through development and land sale activities, and to proactively de-gear to improve its balance sheet..