Tropicana Corp Bhd has fully redeemed its RM89.43 million Tranche 1 perpetual sukuk, originally issued in September 2019 to fund key projects across the group’s strategic townships in Malaysia.
The redemption is part of Tropicana’s broader initiatives to reduce debt and strengthen its balance sheet, the property developer said in a statement on Wednesday.
Tropicana said it remains focused on sustaining its growth trajectory through stronger sales performance, strategic monetisation of landbanks and investment properties, and ongoing financial optimisation.
“The full redemption of the Tranche 1 perpetual sukuk demonstrates the steady progress we are making in fortifying Tropicana as a company and underscores our commitment to meeting our financial obligations,” the group said.
Tropicana added that it remains focused on sustainable growth, strengthening its core property business through an asset-light model while leveraging its development expertise, unique brand DNA, and ESG commitments.
This latest redemption follows the fulfilment of a RM139 million payment in October 2025 under its RM1.5 billion Islamic Medium-Term Notes (IMTN) Sukuk Wakalah programme, bringing total cumulative repayments to RM1.12 billion.
Over the past two years, Tropicana has actively reduced its debt and gearing largely through strategic asset sales, though this also led to lower recurring income. In 2024, the group sold Tropicana Gardens Mall to IOI Properties Group Bhd for RM680 million. Earlier, it divested W Kuala Lumpur and Courtyard by Marriott Penang for a combined RM435 million, generating total proceeds of just over RM1.1 billion from these three transactions.
As at Dec 31, 2025, Tropicana’s total borrowings stood at RM2.75 billion, slightly higher than RM2.31 billion a year earlier. The group had previously set a target to reduce borrowings to RM1.2 billion by end-2025.
Tropicana currently has RM2 billion in unbilled sales and a development pipeline with an estimated gross development value (GDV) of more than RM7.5 billion. Its total landbank spans 1,336.1 acres, with a potential GDV of RM168.4 billion.
Financially, the group recorded a net loss of RM118.83 million for the year ended Dec 31, 2025 (FY2025), a 43% improvement from RM208.52 million in FY2024. Cumulative revenue increased 6% to RM1.5 billion, supported by higher progress billings across major projects in the Klang Valley and the Southern and Northern regions.
Shares in Tropicana closed three sen, or 2.31%, lower at RM1.27 on Wednesday, giving the developer a market capitalisation of RM3.19 billion.
