Tropicana's unbilled sales total RM1.5bil despite a slow start to the year

 By Sharen Kaur - Published in NST Property on May 26, 2022

sharen@nst.com.my

Tropicana Corp Bhd says that its unbilled sales are currently at RM1.5 billion, despite a slower performance in the first quarter of this year (Q1 2022).

"We performed well in 2021 but noticed a slower pace in Q1 2022. Nonetheless, we continue to strive forward and rolled out various campaigns," said the company's group managing director, Dion Tan Yong Chien.

The developer launched the "Multi-Million Mania Campaign," which includes prizes and vouchers worth millions of ringgit for home seekers and shoppers at its mall, as well as a grand prize of an Edelweiss SOFO unit at Tropicana Gardens.

To add more push factor, it launched the "Tropicana Power Up Campaign," which runs until June 30, 2022, and includes down payment assistance, free stamp duties on loan agreements and memorandums of transfer, double referral rewards, and bonuses on sale and purchase agreement signings.

Tropicana reported revenue of RM223.3 million in Q1 2022 (Q1 2021: RM240.5 million), an RM17.2 million or 7.2 per cent decrease from the previous year's corresponding quarter.

It recorded a pre-tax profit of RM35.5 million, which was RM54.8 million less than the previous year's corresponding quarter.

Tropicana said in a stock exchange filing yesterday that despite making good progress in its property sales and development segment, the company's poor performance was attributed to its hotel business, which had yet to fully recover.

The company intends to launch up to RM2.9 billion in properties in 2022 to accelerate its growth, according to Tan.

"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 said in a statement.

Tan said that the aggressive sales and partnership campaign, as well as the gradual economic recovery, will aid the company's growth.

Although the industry remains challenging in the short term, he believes there will be demand for properties in prime locations in Tropicana's established, matured, and developing townships, with attractive pricing and innovative ownership packages and offerings.

Tropicana will continue to be market-driven in its product offerings while unlocking the value of its land bank in strategic locations such as Klang Valley, Genting Highlands, and the northern and southern regions, he said.

The company's land bank covers 2,452 acres and has a total potential gross development value of RM152.2 billion. This places it in a good position to unlock the value of its strategic land bank and deliver sustainable performance in the coming years.