Apac Realty H2 earnings down 46.2% to S$9.9 million

REAL estate services provider Apac Realty : CLN 0% reported a 46 per cent drop in net profit for the six months ended Dec 31, 2022, the company said in a bourse filing on Thursday (Feb 23) evening.

Net profit stood at S$9.9 million, down from the S$18.3 million posted the same period a year ago.

Earnings per share fell to S$0.0278, from S$0.0516. Revenue in the period fell 5 per cent to S$360 million, from S$378.9 million, said the company, which holds the ERA regional master franchise rights.

The property cooling measures introduced last September weighed on transaction volumes in the second half of 2022, said chief executive officer Marcus Chu in a statement. This is even as home prices remained buoyant, driven by strong demand from local home buyers and interest from foreign investors amid limited supply.

Looking ahead, the group plans to focus on its regional presence in Asean, having acquired controlling stakes in ERA Indonesia and ERA Vietnam, where it expects to be more involved. In particular, it is “better positioned” to participate in the long-term growth of Vietnam’s residential property market, said Chu.

“We are working on realising synergies and opportunities with ERA Vietnam for the group, which will accrete value for our shareholders over the long-term,” he added.

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The company’s board has proposed a final dividend of 2.75 Singapore cents per share, which will be paid out on May 9, subject to shareholders’ approval.

Shares of Apac Realty closed S$0.005 or 0.8 per cent lower at S$0.61 on Thursday, before the results were announced.