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APAC Realty's earnings drop 59.9% y-o-y for the FY2023, a continuous decline for two consecutive years

Nicole Lim
Nicole Lim • 3 min read
APAC Realty's earnings drop 59.9% y-o-y for the FY2023, a continuous decline for two consecutive years
The group's decrease in revenue can be attributed to a decrease in property transactions completed during the 2HFY2023. Photo: Albert Chua/The Edge Singapore
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APAC Realty has reported a 59.9% y-o-y decline in its net profit for the FY2023 ended Dec 31, 2023, at $10.6 million, a continuous drop in its earnings for two consecutive years. 

The group’s net profit attributable to shareholders saw a 55.7% y-o-y decline for the period to $11.78 million.

The earnings per share for the FY2023 has therefore declined 55.6% y-o-y to 3.32 cents, from 7.48 cents in the same period a year before. 

APAC Realty’s board of directors has declared a final dividend of 1.4 cent per share for 2HFY2023. Together with the interim dividend of 1.1 cent per share paid out on Sept 8, 2023, the total dividend in FY2023 stands at 2.5 cents. 

The group says that this dividend payout ratio stands at 78%, in line with their dividend policy of distributing 50%-80% of profits as dividends on a semi-annual basis. 

The group’s revenue for the FY2023 came in at $557.3 million, a 21% y-o-y decrease compared to $705.0 million for the same period a year ago, following a decrease in property transactions completed during the period.
  
The real estate services provider says that revenue from new home sales declined 47.8% or $133.0 million from $278.2 million in FY2022 to $145.2 million in FY2023. 

See also: ISEC Healthcare 1QFY2024 earnings dip by 6% y-o-y on higher admin costs

Revenue from resale and rental of properties declined 3.3% or $13.6 million from $417.0 million in FY2022 to $403.4 million in FY2023. 

“Despite the challenges faced in the macro environment and local property market, APAC Realty CLN -

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,” said Marcus Chu, CEO of APAC Realty. 

APAC Realty says that despite the difficult market environment in 2023, it has managed to retain a sizable share of the Singaporean market, and secure its future locally. 

See also: CICT reports 6.3% y-o-y gain in net property income for 1QFY2024

APAC Realty says that Singapore’s new private home, including executive condominium sales fell in FY2023 to 7,158 units, from 8,578 units in FY2022, and this was largely due to the series of cooling measures implemented by the government in Sept 2022 and Apr 2023, amid a high interest rate environment.

Overall, ERA Singapore, a wholly owned entity under APAC Realty, recorded 18,911 property sales transactions in FY2023, compared to 20,832 in FY2022.

“Based on market data, ERA closed FY2023 with a 40.7% share of the residential property market, close to the 40.6% share achieved in FY2022,” they note. 

The group says that one in four property sales persons in Singapore are from ERA. 

Meanwhile, the group says its continuing to push forward in its regional expansion, particularly in Indonesia and Vietnam. They highlight that its performance for the FY2023 was hindered by ERA Vietnam, which experienced a challenging year due to the economic slowdown. 

Shares in APAC Realty closed flat at 46 cents.

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