APAC Realty logs 119.7% profit jump on the back of buoyant residential property market

DRIVEN by a buoyant residential property market, mainboard-listed real estate services provider APAC Realty logged a 119.7 per cent increase in net profit to S$17 million for the six months ended June 2021.

The group declared an interim dividend of 3.5 Singapore cents, representing a payout ratio of 73 per cent, and a one-off special dividend of three cents per share.

Fuelled by strong demand from local buyers, group revenue went up 107.4 per cent to S$358.4 million. Earnings per share stood at 4.8 Singapore cents, while net asset value per share stood at 46.6 cents, as at June 30, 2021.

In a bourse filing on Thursday, APAC Realty's executive chairman Jack Chua said the group has established a policy of distributing 50-80 per cent of profits as dividends on a semi-annual basis, with the payouts contingent on its level of cash and cash reserves, results of operations and near-term capital requirements, among other factors.

The group said its half-yearly revenue was boosted by higher contributions from all market segments. Revenue from new home sales rose 146 per cent to S$133.7 million, from S$79.4 million in the year-ago period. Revenue from resale and rental of properties went up 95 per cent to S$220.1 million, from S$112.9 million in the year-ago period.

The group said its market share in the new homes market has grown to 32.1 per cent, from 27.9 per cent in the year-ago period. This in turn expanded its residential sales market share to 41.1 per cent for H1 FY2021.

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Singapore's housing market has been heating up in the past year, with developers selling 7,601 private residential units (including executive condominium units) in H1 FY2021, up 68.1 per cent from 4,532 units sold in H1 FY2020, figures from the Urban Redevelopment Authority showed. Some analysts have suggested that sales volume in the primary market could climb as high as 12,000 units this year.

APAC Realty shares ended Thursday down 1.21 per cent or one Singapore cent, at 81.5 cents.

Its real estate brokerage services are operated by ERA Realty Network under the ERA franchise.

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