Tropicana narrows FY2025 loss to RM15.5m as revenue rises 6% to RM1.5b; balance sheet strengthens

PETALING JAYA (March 4): Tropicana Corp Bhd (Tropicana) reported revenue of RM1.5 billion for the financial year ended Dec 31, 2025 (FY2025), up 6% from the preceding year, supported by higher progress billings across projects in the Klang Valley, southern and northern regions.

The group narrowed its loss before tax (LBT) to RM15.5 million from RM117.1 million in FY2024.

The previous year’s loss had been affected by a one-off RM254.5 million disposal loss arising from the divestment of Tropicana Gardens Mall, partially offset by a RM161.8 million gain from the disposal of an associate company.

Tropicana said the improved FY2025 performance was driven primarily by operational factors, alongside lower finance costs as it continued its deleveraging programme through asset monetisation initiatives.

Finance costs declined 19.7% to RM140 million from RM174.34 million a year earlier.

Fourth-quarter performance

For the fourth quarter ended Dec 31, 2025 (4QFY2025), revenue stood at RM478.5 million, down 9.7% from RM529.7 million in the corresponding quarter of the previous year. The decline was attributed mainly to lower progress billings across key developments.

The property investment, recreation and resort segment contributed less following the disposal of Tropicana Gardens Mall in December 2024.

The group recorded an LBT of RM16.3 million for the quarter, compared with a profit before tax of RM318.7 million in 4QFY2024.

The corresponding quarter in the previous year had benefited from savings on low-cost housing obligations arising from land disposals, which did not recur in the current quarter.

Unbilled sales and launch pipeline

As at Dec 31, 2025, Tropicana’s unbilled sales stood at RM2 billion, providing near-term earnings visibility.

The pipeline is supported by ongoing and upcoming developments across Malaysia with a combined estimated gross development value (GDV) exceeding RM7.5 billion.

The group has 11 new developments in the pipeline with an estimated GDV of RM3.1 billion, spanning Kota Kemuning, Cyberjaya, Genting Highlands, Langkawi and Johor.

Key projects include:

*Idaman Tower at Tropicana Aman

*Serviced apartments and retail shops at Tropicana Cyberjaya

*Breeze Hill Shoppes at Tropicana Avalon in Genting Highlands

*Odesea serviced apartments at Tropicana Shores in Langkawi

*Maia series at Tropicana Lagoon

*Assana and Merissa serviced suites at Tropicana Cenang

*Bora serviced apartments at Tropicana Danga Bay in Johor

Vacant possession is scheduled in FY2026 for several projects, including Umara Shop Offices at Tropicana Aman, Edelweiss Serviced Residences and SOFO & Shoppes at Tropicana Gardens in Petaling Jaya, as well as Assana and Merissa Serviced Suites at Tropicana Cenang.

Debt management and sukuk programme

Tropicana continued to make progress on its debt management initiatives.

In October 2025, the group fulfilled a RM139 million payment obligation under its RM1.5 billion Islamic Medium-Term Notes (IMTN) Sukuk Wakalah Programme, bringing cumulative payments to RM1.12 billion since the programme’s introduction in 2020.

In November 2025, Tropicana completed the issuance of RM300 million IMTN, upsized from an initial RM200 million. The issuance saw participation from government-linked institutional investors, according to the group.

Balance sheet position

According to Tropicana’s FY2025 Bursa filing, total assets stood at RM10.85 billion as at Dec 31, 2025. Cash and bank balances amounted to RM652.1 million.

Total borrowings were RM2.75 billion, compared with a peak of RM4.4 billion in 2022.

The group’s net gearing ratio stood at 0.46 times as at June 2025. In its February 2026 update, MARC Ratings Bhd revised its outlook on Tropicana to positive from stable while affirming its “A” rating.

MARC cited improvements in the group’s balance sheet and deleveraging efforts, noting that net gearing had moderated from 0.74 times in 2022 to 0.46 times in 1H2025.

Net assets per share attributable to ordinary equity holders stood at RM1.63 as at end-2025, compared with RM1.67 a year earlier.

The group held 101.5 million shares in treasury as at Dec 31, 2025, following the repurchase of 21.7 million shares during the year at an average price of RM1.09 per share.

Landbank and long-term potential

Tropicana’s landbank stands at 1,336.1 acres, with a total potential GDV of RM168.4 billion.

Among its key landholdings is the 163-acre Lido Waterfront Boulevard site in Johor fronting the Straits of Johor.

In July 2025, the group launched Skypark Kepler at Lido in partnership with Banyan Group, marking the first residential phase within the broader mixed-use masterplan.

The Lido development is envisaged as an integrated scheme comprising residential, commercial, hospitality, wellness, educational and lifestyle components.

ESG performance

Tropicana reported that its ESG rating improved from two stars to four stars during the year.

The group also received two additional green building certifications for Tropicana Miyu in Petaling Jaya and Tropicana Cenang in Langkawi.

Management said its sustainability framework emphasises corporate governance and the integration of environmental, economic, social and governance principles into development planning.

Outlook

In a statement accompanying the results, Tropicana said it is positioned to pursue growth in 2026, supported by its RM2 billion unbilled sales and pipeline launches.

The narrowing of losses in FY2025 reflects operational stabilisation and lower finance costs, while recent rating actions indicate improving credit metrics.

Market observers will be monitoring whether continued cost discipline, project delivery and sales conversion can return the group to sustained profitability in FY2026.

Editor’s note: Tropicana’s FY2025 results mark a structural turning point. A 90% loss reduction suggests the 2024 "cleanup" is over, shifting focus to asset-light growth.

Deleveraging: Debt fell from RM4.4b to RM2.75b; MARC Ratings is now "Positive”.

JS-SEZ Play: Prime Johor landbanks (Lido Waterfront) align with the Singapore-Johor growth theme.

Catalyst: At a steep discount to RM1.63 NAV, 2026 profitability is the key re-rating trigger.

No advice: Analyst views are for informational purposes only; they do not constitute financial advice.

Due diligence: Readers are advised to perform independent research before making investment decisions.

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