Tropicana Redeems RM110 Million Islamic Bond – kopiandproperty.com

Press Release: Tropicana Redeems RM110 Million Islamic Bond

– Move is part of the company’s efforts to reduce gearing & optimise its financial management –

● To facilitate the Group’s development plan, Tropicana issued RM1.5 billion Senior Islamic Medium Term Notes Programme (“Sukuk Wakalah Programme”) in 2020.

● Tropicana stays on track for its repayment plan by effectively paying back the first tranche, RM465.5 million on 30 June 2023; the second tranche, RM179 million on 6 October 2023; and the third tranche RM110 million on 7 June 2024 under the Sukuk Wakalah Programme.

● The Group’s unbilled sales stood at RM2.4 billion and its balance sheet continues to strengthen, with gross gearing level reduced from 0.74 times in FY2023 to 0.68 times as of 31 March 2024.

Tropicana Corporation Berhad (“Tropicana” or “The Group”) reported that it has redeemed the third tranche of the Sukuk Wakalah Programme worth RM110 million, which was due on 7 June 2024. The Company has also successfully redeemed its first tranche of RM465.5 million on 30 June 2023 and its second tranche of RM179 million on 6 October 2023 under the Sukuk Wakalah Programme. The redemption of sukuk reflects Tropicana’s prudent financial management and commitment to fulfilling its obligations to investors. The Group continues to deliver sustainable earnings backed by its RM2.4 billion unbilled sales, as well as improved performance from the Group’s property development, property investment, recreation and resort operations.

Tropicana’s balance sheet continues to strengthen, with gross gearing level reduced from 0.74 times in FY2023 to 0.68 times as of 31 March 2024. This degearing exercise has also decreased the Group overall debt level from RM3.8 billion in FY2023 to RM3.5 billion. Tropicana will continue its growth trajectory with its ongoing initiatives to enhance sales performance, monetise its landbank and investment properties as well as optimise financial management.

The management cited that the Group’s focus and continued commitment have demonstrated positive results across its key business segments, “In line with our mission to transform Tropicana into a future-ready group with a strong purpose of sustainable growth, we have prioritised our core property segment, centred around our development DNA and ESG commitments. We have strategic divestment plans in place and we will continue to roll out effective sales campaigns to drive growth. We also want to take this opportunity to extend our sincere appreciation to our business partners who have been supportive to Tropicana Group.”

“For the financial period ended 31 March 2024, we reported a revenue of RM291.3 million which was RM34.5 million or 13.5% higher when compared to the corresponding quarter in the preceding year. The Group’s profit before tax (“PBT”) has also increased to RM22.3 million in Q1 2024, compared to a PBT of RM0.8 million in Q1 2023. To spur growth, we plan to roll out exciting residential or commercial developments across Malaysia, with an estimated GDV of RM4 billion. We expect our financial position to strengthen with the upcoming handover of 6 vacant possessions this year from Tropicana Aman, Tropicana Miyu, Tropicana Metropark, and Tropicana Uplands.” the management emphasised.

Tropicana will continue to gain traction in the market with these signature developments worth an estimated GDV of RM4 billion:

1. Varia Shop Offices, Tropicana Aman @ Kota Kemuning

2. Avisa Terrace Homes, Tropicana Alam @ Puncak Alam

3. Serviced Residences & Retail Shoppes, Lido Waterfront Boulevard @ Johor

4. Fraser Heights Terrace Homes, Tropicana Uplands @ Johor

5. Breez Hill Serviced Residences, Tropicana Avalon @ Tropicana WindCity, Genting Highlands

Looking forward, Tropicana is planning for the Vacant Possession of 6 projects in FY2024:

1. SouthPlace Residences, Tropicana Metropark @ Subang Jaya

2. Tropicana Miyu Condominiums @ Petaling Jaya

3. Freesia Residences, Tropicana Aman @ Kota Kemuning

4. Gemala Residences, Tropicana Aman @ Kota Kemuning

5. Hana Residences, Tropicana Aman @ Kota Kemuning

6. Aster Heights Terrace Homes, Tropicana Uplands @ Johor

Tropicana recorded high unbilled sales of RM2.4 billion and possesses a sizeable landbank of 1,842 acres with an estimated GDV of RM120 billion, placing the Group in a good position to deliver sustainable performance in the next few years.

Tropicana has a sizeable landbank in the booming Johor market. One of its star developments is the vibrant Lido Waterfront Boulevard fronting the beautiful straits of Johor

Avalon is poised to be the next commercial hub in Genting Highlands, offering stylish residences and retail shops in Gohtong Jaya

With the successful launch of SouthPlace Residences recording a high 95% take-up, Tropicana rolled out SouthPlace 2 Shoppes & Residences fronting the sprawling 9.2-acre urban park at Tropicana Metropark