The Star - 28 November 2014 - Strong sales boost Tropicana

28 November 2014

Property developer Tropicana Corp Bhd posted a 24.5% jump in net profit to RM29.5miI for its third quarter ended Sept 30, from RM23.7miI a year earlier. However, its revenue dropped 2.9% to RM353.1miI from RM363.4mil, which it attributed to a lower percentage of revenue recognised on ongoing property development projects. The group's nine-month net profit increased 19.8% to RM126.8mil. Tropicana Corp said in a statement that the improved net profit was due to higher revenue recognition across key projects within the Greater Kuala Lumpur area such as Tropicana Gardens in Kota Damansara and Tropicana Heights in Kajang. "Tropicana delivered commendable sales performance in the first nine months of its current financial year, chalking up new sales of RM1.2bil in an environment where the overall property market remains soft amid cooling measures and more stringent bank lending policies," it said. It said this had sustained the group's unbilled sales at a high of RM2.7bil as at end-September, adding that the group's ongoing projects continued to achieve good sales. Tropicana Corp has a land-bank of close to 728.4ha with future potential gross development value of over RM50MI. . "The near-term focus of the group will be to unlock the value of its land-bank in Greater Kuala Lumpur, where potential GDV is in excess of RM24.5bil, as well those in the northern region with potential GDV ofRM9.5bil," it said. The improved net profit was due to higher revenue recognition across key projects within the Greater Kuala Lumpur area such as Tropicana Heights in Kajang..