PETALING JAYA: Property developer Tropicana Corp Bhd
, whose iconic projects include Tropicana Golf & Country Resort, expects an improvement in the company’s performance for the financial year ending Dec 31, 2025 (FY25) amid the more challenging business environment.
The company said in its FY24 annual report that the momentum from the strong performance in 2024 would support performance in the current year, with a pipeline of ongoing projects.
It noted that there would still be demand for property in prime locations offering amenities and competitive pricing despite the challenging market conditions.
“Last year was not without hurdles. Global market volatility, geopolitical risks and inflationary pressures posed significant challenges, but Tropicana’s robust development and marketing strategy, coupled with its diversified investments, as well as asset monetisation, ensured sustainable growth,” it said.
Data from the National Property Information Centre’s property market report for 2024 also showed transaction volumes rising by 5.4% to 420,545, with value climbing 18% to RM232.3bil, the highest levels in 10 years. The increase in transaction volumes and value were across the three main segments of residential, commercial and industrial properties.
“Analysts are optimistic about Malaysia’s property sector, forecasting strong capital inflows and renewed buying interest as global interest rates begin to decline, with the expectation that the property market should maintain its positive momentum after posting its best growth in value and volume over the past ten years in 2024,” it said.
Tropicana said for FY25, there were plans to introduce new projects and phases across locations where it currently has a presence. These launches include those at Lido Waterfront, Danga Bay and Gelang Patah in Johor, Pantai Cenang, Pulau Langkawi in Kedah and Genting Highlands.
The company said Bank Negara’s stance on the benchmark interest rate remains supportive of the economy and creates a favourable environment for both homebuyers and investors, while also making homeownership more accessible.
The central bank had maintained the overnight policy rate (OPR) at 3% on March 6, the next OPR meeting has been scheduled for May 8.
Tropicana recorded a 5.7% decline in revenue to RM1.4bil for FY24 mainly due to the completion of divestments of several investment properties.
There was a loss before tax (LBT) of RM117.1mil arising from one-off losses from the RM680mil disposal of an investment property. Excluding this disposal, it would have recorded profit before tax of RM137.4mil compared with the LBT of RM100mil in FY23.
The company said initiatives to monetise its landbank and investment properties together with cost-rationalisation exercises aimed at improving its financial position continues.
“Tropicana’s property sales hit almost RM1bil while its balance sheet continues to strengthen, with the gross gearing level reduced from 0.54 times as of Dec 31, 2023 to 0.43 times as of Dec 31, 2024,” it said, adding that the completion and delivery of vacant possession of five projects in the central and southern parts of Peninsular Malaysia also helped in improving the financial performance.
