APAC Realty’s net profit plummeted by 59% YoY for FY2023

SINGAPORE: APAC Realty’s net profit plummeted by 59% year-on-year to S$10.6 million in its financial performance for the fiscal year 2023, marking a consecutive downturn in earnings for two years.

The Edge Singapore reported that shareholders also witnessed a significant dip in net profit, down by 55.7% to S$11.78 million for the same period. This decline translated into a stark reduction in earnings per share, falling by 55.6% year-on-year to 3.32 cents from 7.48 cents previously.

In response to this financial challenge, APAC Realty’s board of directors has announced a final dividend of 1.4 cents per share for the latter half of the fiscal year 2023. This, coupled with the interim dividend of 1.1 cents per share distributed on Sept 8, 2023, brings the total dividend for the fiscal year to 2.5 cents per share.

The company emphasised that this dividend payout ratio of 78%, aligns with its dividend policy, which aims to distribute 50% to 80% of profits as dividends semi-annually.

The company’s revenue for fiscal year 2023 saw a notable decline of 21% year-on-year, amounting to S$557.3 million compared to S$705.0 million in the previous year. This decrease was primarily attributed to a decrease in property transactions completed during the period.

Specifically, revenue from new home sales experienced a sharp decline of 47.8%, amounting to S$133.0 million, while revenue from resale and rental of properties decreased by 3.3% to S$403.4 million.

Marcus Chu, CEO of APAC Realty, acknowledged the challenges, saying, “Despite the challenges faced in the macro environment and local property market, APAC Realty generated cash flows from operating activities of $17.3 million and had cash and cash equivalents of $44.1 million as at Dec 31, 2023.”

APAC Realty highlighted its resilience in the Singaporean market, retaining a significant share despite the difficult operating conditions.

Notably, new private home sales in Singapore declined in fiscal year 2023 due to government-imposed cooling measures amid a high-interest rate environment.

ERA Singapore, a subsidiary of APAC Realty, recorded 18,911 property sales transactions, capturing a substantial portion of the residential property market with a 40.7% share.

The company also outlined its ongoing regional expansion efforts, particularly in Indonesia and Vietnam. Despite encountering challenges in the Vietnamese market, APAC Realty remains committed to its growth trajectory in the region. /TISG

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