APAC Realty full-year net profit up 63%; proposes final dividend of 2 S cents

PROPERTY broker APAC Realty has reported a 63 per cent rise in full-year net profit to S$25.9 million, up from S$15.9 million the year before, in a Singapore Exchange filing on Friday evening.

This was the real estate services provider's first full-year results announcement since its Mainboard debut in September 2017.

The rise in net profit came on the back of a 39 per cent rise in revenue to S$400.6 million, up from S$287.7 million the previous year.

Brokerage income from resale and rental rose 25 per cent from the year before to S$267.6 million in 2017, while brokerage income from new home sales was up 89 per cent to S$123.6 million.

APAC Realty, which operates under the ERA brand, said it benefited from a recovery in the Singapore residential market, with transaction volumes rising in both the private primary and secondary market. The private residential price index also rose by 1.1 per cent for the whole of 2017, after three years of decline.

Earnings per share were 8.03 Singapore cents, up 57 per cent. Net asset value per share similarly rose 47.6 per cent to 37.5 Singapore cents.

ERA has already secured more than 20 projects to be launched in 2018, with close to 11,000 residential units for sale - more than double the 4,800 units in eight projects launched in 2017. Executive director and chief executive officer Jack Chua said the broker intends to grow its presence in Singapore and the Asia-Pacific region as well as expand its range of services.

APAC Realty has proposed a final dividend of 2 Singapore cents, with details on book closure and payment dates to be announced.

The proposed dividend translates to an annualised dividend yield of 12 per cent, based on the IPO price of 66 Singapore cents.

The dividend payable of about S$7.1 million represents approximately 90 per cent of fourth-quarter net profit, above the 50 per cent committed by the board as disclosed in the IPO prospectus.

APAC Realty shares closed at S$1.10 on Friday, up two Singapore cents.