PropNex H2 profit up 28.3% at S$28.1 million; FY2025 earnings up 72% on record-high revenue
Its dividend for the full year stands at a record S$0.095 per share
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[SINGAPORE] After an “outstanding” year with record dividends, PropNex executive chairman Ismail Gafoor said the group expects growth momentum to continue, underpinned by a growing pool of potential homebuyers.
He cited new government projections of Singapore granting between 25,000 and 30,000 individuals citizenship, and another 40,000 individuals permanent resident status annually over the next five years to augment the country’s low birth rate.
This group will face lower additional buyer’s stamp duty rates than they did as PRs and foreigners; new citizens will gain the right to buy landed property, which would also nudge them into the property market, said Gafoor in an earnings briefing on Friday (Feb 27).
“This is good news for our business, because we are talking about 70,000 (people each year)... whose interest in owning a roof will be positive for us.”
He cited two other factors that could add to sales activity, supporting PropNex’s growth outlook: an increase in the housing supply aimed at moderating price growth, and more homes reaching the end of their minimum occupation period (MOP).
In the coming year, 13,500 homes are expected to reach their MOP, up from around 8,000 in 2024. This is expected to rise further to about 15,000 units in 2027 and 19,500 units in 2028.
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This bodes well for PropNex, as sales activity in MOP estates are typically more than double that of non-MOP estates, said Gafoor. “People have been waiting... Their income has grown, and they may be (ready) to upsize (their homes).”
The group’s optimism follows solid results for the second half ended Dec 31, with its net profit rising 28.3 per cent to S$28.1 million, from S$21.9 million in the year-ago period.
Revenue rose 18.3 per cent on the year to S$517.5 million from S$437.4 million, driven by higher commission income from having closed more deals in H2.
This translated to earnings per share of S$0.038 for the half-year, up 28.3 per cent from the previous year’s S$0.0296.
The company proposed a final cash dividend of S$0.045 a share for H2. This, together with the dividend per share of S$0.05 declared for H1, brings its total dividend for FY2025 to S$0.095 a share – a record high in its more than seven years as a listed company, said Gafoor.
It represents a dividend yield of 5.1 per cent and payout ratio of 99.9 per cent – well above PropNex’s formal dividend policy of between 75 to 80 per cent of earnings. Gafoor noted, however, that the group has tended to pay above that since FY2022.
The distribution will be paid on May 8, after book closure on Apr 28.
Record performance
On a full-year basis, profit surged 72 per cent to S$70.4 million in FY2025, from S$40.9 million in FY2024.
Revenue climbed 42.6 per cent to S$1.1 billion, from S$783 million previously, making for PropNex’s strongest full-year performance in its 25-year history.
By segment, the group’s project marketing revenue – that is, commission from selling newly launched private homes – more than doubled to S$434 million in FY2025, contributing nearly 40 per cent of its total revenue.
Revenue from resale private home transactions also rose nearly 30 per cent to S$234.2 million in FY2025. That of landed home transactions grew by around 50 per cent to S$61.7 million, and that of commercial and industrial transactions, up 20 per cent to S$33.8 million.
Revenue from rental deals gained 5 per cent to S$191.2 million.
Revenue from resale public housing transactions dipped by 1.7 per cent to S$153.5 million. This was mainly due to overall sales volumes falling around 10 per cent, said Gafoor. “But we still had strong (market) penetration.”
In the coming year, he predicts that the agency will see lower marketing revenue since fewer new units will be launched – at around 11,116 units, down from 2025’s 12,769 units.
But overall, he believes there will be sustained housing demand over the next five years to drive business.
PropNex’s growing sales force – currently over 14,000 strong and targeted to reach 16,000 next year – is expected to support revenue growth as well, he said.
Overall price growth is projected to be a tad higher in 2026, given the record high land bids made at government land sales tenders, said Gafoor. “But developers won’t be too aggressive... because buyers are still sensitive to prices.”
When asked about recent lawsuits involving PropNex salespeople for alleged misrepresentation and breach of duty, he acknowledged that such cases were bound to crop up, but that the group has systems in place to manage the risk.
“If one person misbehaves, making (an example out of them) to tell everybody that this is something the company will not tolerate... because I am not here to support one or 10 agents at the expense of 14,210 agents. As a listed company, (we) are very clear in these things,” he said.
PropNex also requires every salesperson to have personal indemnity insurance of S$300,000 each, separate from the firm’s own corporate insurance and legal team. This effectively ring-fences risks, so such incidents will not hit revenue or profits.
“Therefore, if any such thing happens, we get the best legal team to look into the matter and to fight the case... and if it is really a mistake, to compensate accordingly, because it is a fair business.”
Share of PropNex closed at S$2.04 on Friday, down 8.5 per cent or S$0.19.
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