In a filing to Bursa Malaysia, property developer Tropicana announced its unaudited financial results for the first quarter ended 31 March 2022 (“Q1 FY2022”). The Group posted revenue of RM223.3 million (Q1 2021: RM240.5 million) which was RM17.2 million or 7.2% lower compared to the corresponding quarter in the preceding year. The higher revenue in 2021 was buoyed by pent-up demand and the beneficial Home Ownership Campaign (“HOC”) that ran until 31 December 2021.

Dion Tan, Group Managing Director of Tropicana emphasised that the Group’s aggressive sales and partnership campaign as well as gradual economic recovery will help spur the growth of the Group.

“We performed well in 2021 but noticed a slower pace in Q1 2022. Nonetheless, we continue to strive forward and rolled out various campaigns such as the “Multi-Million Mania Campaign” which offers millions of ringgit worth of prizes and vouchers for home seekers and shoppers at our mall, as well as a grand prize of an Edelweiss SOFO unit at Tropicana Gardens. To add more push factor, we also unveiled “Tropicana Power Up Campaign” from 01 March 2022 to 30 June 2022 which offers down payment assistance, free stamp duties for loan agreements and memorandums of transfers, double referral rewards, and bonuses on sale and purchase agreement signings.”

“To accelerate our growth, we also plan to launch up to RM2.9 billion worth of properties in 2022. We believe these campaigns will be timely and appeal to the property seekers following the opening of international borders. We will continue to innovate our projects, as we adapt to the market sentiment while staying true to our Tropicana development DNA.” he summarised.

The Group recorded loss before tax (“LBT”) of RM35.5 million which was lower by RM54.8 million when compared to the corresponding quarter in the preceding year. Despite posting good progress for its property sales and development segment, the Group’s weak performance was attributed to its hotel business which has not fully recovered.

Although the industry remains challenging in the short term, the Group believes that there will still be demand for properties in prime locations in Tropicana’s established, matured, and developing townships, with attractive pricing and innovative ownership packages and offerings. Therefore, the Group will continue to focus on being market-driven in its product offerings whilst continuing to unlock the value of its land bank, at strategic locations across the Klang Valley, Genting Highlands, Northern and Southern Regions such as:

1. Gemala Residences, Tropicana Aman @ Kota Kemuning
2. Edela Residences & Square, Tropicana Heights @ Kajang
3. SouthPlace 2 Residences & Shoppes, Tropicana Metropark @ Subang
4. Tropicana WindCity, Genting Highlands @ Pahang
5. Merissa Villas, Tropicana Cenang @ Langkawi
6. Aster Heights, Tropicana Uplands @ Johor
7. Tropicana Industrial Park, Iskandar Malaysia @ Johor

Tropicana’s unbilled sales stood at RM1.5 billion backed by its unique residential, commercial and resort-themed developments. Overall, Tropicana’s total landbank spans 2,452 acres, with a total potential GDV of approximately RM152.2 billion, placing the Group in a good position to unlock the value of its strategic landbank and deliver sustainable performance in the next few years.