KUALA LUMPUR (Aug 27): Tropicana Corp Bhd’s (KL:TROP) net profit for the second quarter was down 97.14% year-on-year (y-o-y) due to lower recurring income following the sale of several investment properties. The company has about RM6.5 billion worth of projects in the pipeline.

In a statement, it said the group’s finance costs declined during the quarter thanks to its strategy of lowering debt through asset sales.

Net profit for the three months ended June 30, 2025 (2QFY2025) contracted to RM1.25 million from RM43.57 million a year before. Earnings per share was 0.05 sen in 2QFY2025 versus 1.92 sen in 2QFY2024.

Quarterly revenue fell 14.17% y-o-y to RM330.18 million from RM384.7 million previously.

No dividend was declared during the quarter under review.

For the first half of FY2025 (1HFY2025), net profit was down 92.57% to RM2.56 million from RM34.49 million. Revenue also declined by 12.64% to RM590.54 million from RM675.97 million during the same period last year.

Tropicana’s unbilled sales stood at RM2.1 billion. It has a landbank of 1,336.1 acres with a potential gross development value (GDV) of RM168.4 billion, the group’s statement showed.

Among its ongoing and new developments planned worth a GDV of RM6.5 billion, three are in Johor, another three in the Klang valley region, three more in Genting Highlands and one in Langkawi.

Looking ahead, Tropicana noted that the Malaysian property market is expected to remain healthy and see moderate growth in 2025, with price increases projected between 2% and 5%, according to the association of valuers, property managers, estate agents and property consultants (PEPS) in the private sector.

The 25-basis-point reduction in the overnight policy rate by Bank Negara Malaysia (BNM) is also expected to create a favourable environment for both homebuyers and investors, lowering borrowing costs and making homeownership more accessible, it added.

Tropicana’s share price settled unchanged at RM1.14 a share on Wednesday, giving the group a market capitalisation of RM2.87 billion. Year to date, the stock is down 10.9%.