SINGAPORE (Aug 7): Real estate services provider APAC Realty, which owns ERA Realty Network, saw its earnings fall 9.3% to $7.7 million for the 2Q18 ended June, from $8.5 million a year ago.
This brings the group’s earnings for 1H18 to $13.6 million, some 8.7% higher than the first half of last year.
2Q18 revenue rose 24.2% to $122.0 million, from $98.2 million a year ago.
This was mainly due to an increase in brokerage income from resale and rental of properties, as well as new home sales on the back of a more active Singapore residential property market.
However, the higher revenue was outpaced by a 29.9% rise in cost of services to $108.1 million during the quarter, from $83.2 million a year ago.
This was largely attributable to higher payout of commission to its agents for new home sales.
Earnings per share (EPS) fell 20.5% to 2.17 cents in 2Q18, from 2.73 cents a year ago.
As at end June, cash and cash equivalents stood at $61.7 million.
APAC Realty has declared an interim dividend of 2.0 cents per share for 1H18.
Representing approximately 52% of 1H18 net profit, the interim dividend translates to an annualised dividend yield of 6.35%, based on its closing share price of 63 cents on Monday.
Looking ahead, the group says the introduction of new property cooling measures in July is likely to affect the underlying demand for residential properties in Singapore.
However, executive director and chief executive officer Jack Chua says APAC Realty’s strategy is to strengthen and grow its presence in the Asia Pacific region going forward.
“We are also looking to expand our range of services and enhance our technological capabilities to remain a leader in the real estate industry and a stalwart of the ERA brand here in Singapore and across the region,” Chua adds.
Shares in APAC Realty closed 1.5 cents higher, or up 2.4%, at 63 cents on Monday.
