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PETALING JAYA (March 26): Tropicana Corp Bhd (Tropicana) has fully redeemed its RM89.43 million Tranche 1 Perpetual Sukuk Musharakah, as part of ongoing efforts to reduce borrowings and strengthen its balance sheet.
The group said the sukuk, originally issued in Sept 2019 to fund key projects across its strategic townships in Malaysia, has now been fully redeemed in line with its repayment plan.
The redemption follows a series of capital management initiatives undertaken by the group. In October 2025, Tropicana fulfilled a RM139 million payment obligation under Tranche 4 of its RM1.5 billion Islamic Medium-Term Notes (IMTN) Sukuk Wakalah Programme, bringing total cumulative repayments under the programme to RM1.12 billion.
This was followed by a RM300 million IMTN issuance in November 2025, upsized from an initial RM200 million on the back of strong investor demand. The issuance was oversubscribed, with a significant portion taken up by government-linked institutional investors.
These developments reflect the group’s ongoing financial optimisation efforts and commitment to meeting its obligations to investors.
Earnings visibility supported by unbilled sales
Tropicana’s unbilled sales stood at RM2.0 billion, providing earnings visibility in the near to medium term. This is supported by ongoing and upcoming developments across Malaysia, with a combined estimated gross development value (GDV) exceeding RM7.5 billion.
For the financial year ended Dec 31, 2025, the group reported revenue of RM1.5 billion, an increase of RM83.9 million or 6.0% year-on-year, driven mainly by higher progress billings across projects in the Klang Valley as well as the southern and northern regions.
Outlook and rating upgrade
Looking ahead, Tropicana said it will continue to focus on strengthening sales, monetising its landbank and investment properties, and optimising its capital structure.
Reflecting these efforts, MARC Ratings upgraded its outlook on the group to positive from stable, while affirming its A rating, citing improvements in the group’s balance sheet supported by deleveraging initiatives and asset disposals.
“The full redemption of the Tranche 1 perpetual sukuk reflects the steady progress we are making in strengthening Tropicana as an organisation and reinforces our commitment to meeting our obligations.
“We will continue transforming Tropicana into a future-ready group focused on sustainable growth. Our strategy prioritises strengthening our core property segment through an asset-light model, leveraging our development expertise, distinctive DNA and strong ESG (Environmental, social, and governance) commitments,” the group said.
Pipeline and landbank
Tropicana is currently rolling out 11 developments with a combined GDV of RM3.1 billion, including projects in Kota Kemuning, Cyberjaya, Genting Highlands, Langkawi and Johor.
Meanwhile, three developments are scheduled for vacant possession in FY2026, including projects in Tropicana Aman, Tropicana Gardens and Tropicana Cenang.
The group’s landbank stands at 1,336.1 acres, with a total potential GDV of RM168.4 billion, positioning it for long-term growth and value creation.
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