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“Tropicana Corp fully redeems RM89.4 million perpetual sukuk as part of its capital management strategy. The group reports RM2 billion unbilled sales.”
Kuala Lumpur, 26th March 2026, 05.40pm – Tropicana Corporation Berhad has fully redeemed its RM89.43 million Tranche 1 Perpetual Sukuk Musharakah as part of its ongoing efforts to reduce borrowings and strengthen its financial position.
The property developer said the sukuk, which was issued in September 2019 to finance developments within its key township projects across Malaysia, has now been fully settled in accordance with its capital repayment strategy.
Part of broader capital management efforts
The redemption forms part of a series of financial management initiatives undertaken by the group to optimise its capital structure.
In October 2025, Tropicana completed a RM139 million repayment under Tranche 4 of its RM1.5 billion Islamic Medium-Term Notes (IMTN) Sukuk Wakalah programme. This brought the group’s total cumulative repayments under the programme to approximately RM1.12 billion.
The group subsequently issued RM300 million in IMTN in November 2025, exceeding its initial RM200 million target following strong demand from investors. The issuance was oversubscribed, with significant participation from government-linked institutional funds.
These initiatives reflect Tropicana’s continued focus on prudent financial management and fulfilling its obligations to capital market investors.
RM2 billion unbilled sales provide earnings visibility
Tropicana reported unbilled sales of about RM2 billion, which are expected to support earnings visibility over the near to medium term.
This performance is backed by a pipeline of ongoing and upcoming developments nationwide with a combined estimated gross development value (GDV) of more than RM7.5 billion.
For the financial year ended Dec 31, 2025 (FY2025), the group recorded revenue of RM1.5 billion, representing a year-on-year increase of RM83.9 million or 6%. The growth was mainly driven by higher construction progress billings from projects in the Klang Valley as well as developments in the southern and northern regions of Malaysia.
Positive outlook following rating upgrade
Looking ahead, Tropicana said it will continue prioritising sales growth, landbank monetisation and investment property optimisation as part of its long-term strategy to enhance shareholder value.
Reflecting these improvements, MARC Ratings Berhad recently revised the group’s outlook to positive from stable while affirming its A credit rating. The rating agency cited improvements in the company’s balance sheet supported by ongoing deleveraging efforts and asset rationalisation exercises.
Tropicana said the sukuk redemption demonstrates the group’s steady progress in strengthening its financial fundamentals while reinforcing its commitment to meeting financial obligations.
The group added that it will continue advancing its transformation strategy aimed at building a more resilient and future-ready organisation, with a focus on sustainable growth, an asset-light development approach and stronger environmental, social and governance (ESG) practices.
Development pipeline and landbank strength
Tropicana currently has 11 active developments with a combined GDV of RM3.1 billion. These include projects located in Kota Kemuning, Cyberjaya, Genting Highlands, Langkawi and Johor.
The developer also expects three projects to achieve vacant possession in FY2026, including developments at Tropicana Aman, Tropicana Gardens and Tropicana Cenang.
Tropicana’s total landbank currently stands at 1,336.1 acres, with an estimated potential GDV of RM168.4 billion, providing a strong foundation for long-term development growth.
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