This article first appeared in The Edge Financial Daily, on May 20, 2016.

KUALA LUMPUR: Tropicana Corp Bhd saw its net profit for the first quarter ended March 31, 2016 (1QFY16) fall 21.3% to RM15.2 million from RM19.3 million a year ago, largely due to a gain from land sales that amounted to RM5.9 million last year, and higher contributions across key projects.

The group’s revenue for 1QFY16 dropped 26.6% to RM286.9 million from RM390.9 million a year ago, because it saw a land sale revenue of RM106.8 million in the previous year’s tally, its bourse filing showed.

In a statement, the group said excluding the land sale contribution, its latest quarterly revenue is marginally higher than the RM284.1 million recorded in 1QFY15.

Its net profit attributable to shareholders is also relatively higher compared with the RM14.8 million achieved in 1QFY15, when contributions from its disposed unit, Tenaga Kimia Sdn Bhd, are taken out.

It said its performance in 1QFY16 was satisfactory, driven by the group’s property development division. It has also reduced borrowings by strategic asset divestment, which saw its finance cost nearly halve to RM7.8 million from RM14.7 million in 1QFY15.

Unbilled sales remained “healthy” at RM3 billion as at March 31, 2016, and will continue to fuel its earnings performance in the next two to three years as the construction progress of ongoing developments gathers pace.

“Property development remains our core focus. The group aims to continue with its strategy to unlock the value of its 1,600 acres (647ha) of prime land that has potential gross development value in excess of RM50 billion,” it said.

Tropicana plans to launch in excess of RM1.5 billion worth of new projects in FY16, including new phases of its townships in Tropicana Aman in Shah Alam and Tropicana Heights in Kajang, and the fourth residential tower in Tropicana Gardens, Kota Damansara.