PETALING JAYA: Property developer Tropicana Corporation Bhd posted a net loss of RM26.3 million in the third quarter ended Sept 30 (3Q 2022) despite its revenue jumping 88.7% to RM321.64 million.
Though it remained in the red, it managed to pare its losses from a year ago when it recorded a net loss of RM37.5 million.
This improvement is attributed to a boost in property investment, resuming recreation and resort operations, and higher progress billings across their key projects in the Klang Valley and southern region.
At the operating level, the developer posted profits of RM61.98 million in Q3, 4.5 times higher than RM13.67 million in the previous corresponding quarter. The group also reported a profit before tax (PBT) of RM4.99 million in the quarter.
For the financial period ending Sept 30 (9M 2022), it recorded RM756.4 million in revenue.
Although revenue was 24.8% higher year-on-year, losses before tax of RM92 million was 65.7% higher compared to last year’s loss of RM55.5 million. This was mainly due to higher general and administrative expenses.
At present, the group’s unbilled sales stand at RM1.8 billion.
However, group finance managing director Justin Quek remains optimistic that there will be demand for properties in prime locations in its established developments.
The gradual recovery of its property investment, recreation, and resort segment will be backed by innovative sales and partnership campaigns.
“We will continue to innovate our projects, as we adapt to the market sentiment while staying true to our Tropicana development DNA and ESG commitments,” he added.
Tropicana is hoping to unlock over RM2 billion in gross development value (GDV) from its land banks, offering seven new projects.
Its total land bank spans 2,091 acres, with a total potential GDV of about RM203.7 billion, placing it in a good position to unlock the value of its strategic land bank in coming years.