INVESTOR RELATIONS In the third quarter, transaction value rose by 12.5% to RM64.39 billion despite a 3.5% decline in volume to 108,250 transactions, reflecting sustained demand in higher-value segments and a cautious but stable market environment. In July 2025, Bank Negara Malaysia reduced the Overnight Policy Rate (“OPR”) by 25 basis points to 2.75%, marking the first rate cut since May 2023. This pre-emptive measure supports economic growth by lowering borrowing costs, thereby enhancing affordability for homebuyers and investors. Heading into late 2025, the relatively firm ringgit is expected to moderate foreign buying interest while strengthening domestic demand, particularly in industrial and strategically located assets. Market fundamentals such as location, connectivity, and infrastructure continue to underpin long-term value. Under Budget 2026, several housing initiatives were introduced to support homeownership. These include a full stamp duty exemption for first-time homebuyers purchasing residential properties priced at RM500,000 or below, extended until 31 December 2027. This measure is expected to stimulate demand and improve accessibility to homeownership. Looking ahead, 2026 will be a pivotal year for infrastructure delivery, reinforcing urban development across Malaysia. Key projects include the LRT Shah Alam Line, the Johor Bahru– Singapore RTS Link, the East Coast Rail Link, and the LRT Mutiara Line. These developments are expected to enhance connectivity and drive property demand in surrounding areas. The Group is focused on enhancing profitability and capital efficiency through a dual strategy of faster inventory conversion and selective land monetisation. This includes accelerating the sales of existing inventory to improve cash flow generation, as well as undertaking strategic land disposals to unlock embedded value and recycle capital into higher-return opportunities. The Group remains optimistic about demand for properties in prime and well-established townships, supported by competitive pricing and targeted promotional initiatives. In particular, prospects in Johor are expected to strengthen, underpinned by ongoing cross-border economic integration and improved connectivity. For the Group’s developments in the Northern region, the first two projects achieved 100% take-up, were completed, and handed over, reflecting a strong underlying demand and providing a positive lead indicator for the sales performance of the third project that was subsequently launched. The Group will continue to focus on launching developments in strategic locations across the Klang Valley, Genting Highlands, as well as northern and southern regions of Peninsular Malaysia. At the same time, it remains committed to strengthening its financial position by enhancing profitability and actively reducing gearing to reinforce balance sheet resilience. With a total landbank of 1,349.7 acres, the Group is wellpositioned to unlock value through disciplined development and execution. Ongoing efforts to improve operational efficiency, including digital initiatives and cost management measures, will further support sustainable earnings growth. For the financial year ended 31 December 2025, the Group remained committed to transparency, timely disclosure, and effective stakeholder engagement. The Company continues to provide comprehensive updates through its corporate website and investor relations platform, ensuring accessibility to key financial and operational information. The Group also maintains active engagement with shareholders through initiatives such as its 46th Annual General Meeting on 25 June 2025 and ongoing investor relations activities. As a member of the Malaysian Investor Relations Association (“MIRA”), the Group stays aligned with industry best practices while strengthening relationships within the investment community. Malaysia’s property market recorded moderate growth in 2025, demonstrating resilience amid global economic uncertainties. According to Valuation and Property Services Department (“JPPH”), the market softened in the first half of 2025, with transaction volume declining 1.3% year-on-year to 196,232 transactions, while transaction value increased 1.9% to RM107.68 billion. CONTACT OUR IR TEAM Email : ir@tropicanacorp.com.my Tel : +603 7663 6888 Fax : +603 7663 6688 AR 2025 | MANAGEMENT DISCUSSION & ANALYSIS 84
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