KUALA LUMPUR: Tropicana Corporation Bhd said that its degearing exercise has successfully reduced the company's overall debt from RM3.8 billion in fiscal year 2023 (FY2023) to RM3.5 billion.
As part of its ongoing efforts to control debt and streamline financial operations, Tropicana has redeemed the third tranche of its Sukuk Wakalah Programme, valued at RM110 million, which was due on June 7, 2024.
Earlier, the company redeemed the first tranche worth RM465.5 million on June 30, 2023, and the second tranche worth RM179 million on October 6, 2023, under the same programme.
The redemption of sukuk demonstrates Tropicana's prudent financial management and commitment to fulfilling its obligations to investors, the company said in a stock exchange filing.
Tropicana reported that its balance sheet continues to strengthen, with the gross gearing level reduced to 0.68 times as of March 31, 2024, from 0.74 times in FY2023.
The company aims to deliver sustainable earnings, supported by RM2.4 billion in unbilled sales and improved performance in its property development, property investment, recreation, and resort operations.
To drive growth, Tropicana plans to launch residential and commercial developments across Malaysia, with an estimated gross development value of RM4 billion.
"We expect our financial position to strengthen with the upcoming handover of six vacant possessions this year from Tropicana Aman, Tropicana Miyu, Tropicana Metropark, and Tropicana Uplands," it added.