By Jerry Choong
SHAH ALAM, Feb 24 — Last year has been a mixed bag for noted property developer Tropicana Corporation Berhad, as it recorded higher property sales amid lower revenue returns.
It announced its unaudited financial results for the fourth quarter that ended on December 31, 2021, which saw RM1.3 billion in property sales for the year, an increase by 62.4 per cent compared to the RM802.4 million it netted in 2020.
However 2021 also saw Tropicana record RM869.7 million, approximately RM192.9 million lower than its earnings the year before.
"Higher revenue in the preceding year reflected the completion of the disposals of four parcels of freehold development lands in Johor Bahru, for a total cash consideration of RM399.2 million whereby there were no land disposals in the current year.
"Excluding these said land disposals, the revenue in the current year would have been higher by RM206.3 million which was contributed by higher property sales and progress billings across ongoing key projects in the Klang Valley and Southern Region," it said in a statement.
For the financial year which ended on December 31, 2021, the group recorded a loss before tax of RM35.2 million, which was RM273.6 million lower when compared to the preceding year.
Despite the loss for the year, Tropicana's property development and property management division still performed strongly with profits of RM77.0 million for the period which was backed by strong sales and cost savings from projects.
Group managing director Dion Tan said the surge in property sales last year is attributed to pent-up demand caused by the post-lockdown, as well as gradual economic recovery.
"The market is slowly bouncing back, and we saw a higher pick-up in property sales transactions before the end of the Home Ownership Campaign. Our property investment, recreation, and resort operations have slowly regained their pace as well.
"Our property sales continue to soar, all thanks to our team's amazing commitment and support. We will continue the good momentum, accelerate our launches, and roll out more innovative marketing and sales campaigns to drive more sales," he said.
Tan added that digitalisation and online engagement have since become a big part of Tropicana's marketing strategies and that the group hopes the government will introduce more innovative homeownership packages to spur the market.
Despite the view that the property industry remains challenging in the short term, the group is firm in its belief 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.
As such, Tropicana 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, and Southern Regions.
