KUALA LUMPUR (May 20): Property developer Tropicana Corp Bhd's net profit nearly halved to RM2.34 million in the first quarter ended March 31, 2021 (1QFY21) compared with RM5.16 million a year ago on higher tax expense.

This resulted in a lower earnings per share of 0.16 sen for the quarter from 0.36 sen in 1QFY20.

Higher sales and progress billings across key projects in the Klang Valley and the southern region, however, managed to lift its quarterly revenue by 68.5% year-on-year to RM240.53 million from RM142.73 million.

In a bourse filing yesterday, Tropicana revealed that its total tax expense had surged 339.9% to RM10.97 million in 1QFY21 compared with RM2.49 million in 1QFY20.

No dividend was declared this quarter.

In a separate statement, Tropicana attributed the higher sales and revenue in 1QFY21 to its current developments across its townships such as Tropicana Miyu condominiums in Petaling Jaya and Shoppes & Residences (South), a mixed development comprising retail lots, and serviced apartments in Tropicana Metropark, Subang Jaya. The group also saw good uptake for its Edelweiss SOFO and Serviced Residences, the fifth and final tower of its signature Tropicana Gardens development.

Its unbilled sales stood at RM1.1 billion as at March 31, 2021. Its total landbank was 2,144 acres, with a total potential gross development value of RM78 billion.

On prospects, although the industry remains challenging in the short term, the developer believes that there will still be demand for properties in prime locations in its 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 while continuing to unlock the value of its land bank in strategic locations across the Klang Valley, Genting Highlands and the southern region," said Tropicana.

Its upcoming launches include Freesisa Residences in Tropicana Aman, Kota Kemuning; Twinpines Service Suites in its Tropicana Grandhill development in Genting Highlands; Summit Commercial Hub in Tropicana Uplands in Gelang Patah, Johor; and Tropicana Cenang in Langkawi, Kedah.

Shares in Tropicana closed 1.11% or one sen lower at 89 sen yesterday, bringing it a market capitalisation of RM1.31 billion.

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