KUALA LUMPUR (July 1): Tropicana Corp Bhd’s first-quarter net profit fell 89% to RM5.16 million, from RM46.06 million a year earlier, due to lower progress billings across some of the group’s key ongoing projects and lower sales during the movement control order (MCO) period.

Revenue for the quarter ended March 31, 2020 (1QFY20) dropped 32% to RM142.73 million, from RM209.77 million previously, the property developer said.

It said that as at March 31, the group had recorded unbilled sales of RM727.2 million, anchored by six ongoing townships, commercial and resort themed projects and its existing land bank of 2,344 acres (948.58ha) with a total potential gross development value (GDV) of RM70 billion.

“With more sales recorded past the MCO, the group’s unbilled sales are expected to strengthen further,” it added in a statement.

For the rest of the year, Tropicana said it will continue to introduce new developments and phases across its signature Tropicana townships with a GDV of RM1.6 billion.

“The upcoming launches include the first phase of Tropicana Grandhill, the TwinPines Serviced Suites with fully furnished serviced apartments in Genting Highlands, Shoppes & Residences (South), a mixed development comprising retail lots and serviced apartments at Tropicana Metropark, Subang Jaya, a new landed residential phase of Tropicana Aman, Kota Kemuning, Tropicana Miyu condominiums in Jalan Harapan, Petaling Jaya as well as shop offices in Gelang Patah, Johor,” it said.

Moving forward, the group said it believes that there will still be demand for properties in prime locations with attractive pricing.

“With the property market expected to see a modest recovery in 2020, the group will remain centred on being market-driven in its product offerings while unlocking value of its land bank in strategic locations in the Klang Valley, Genting Highlands and the southern region of Peninsular Malaysia,” it added.

Shares in Tropicana closed unchanged at 88 sen yesterday, with a market capitalisation of RM1.25 billion.

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