APAC Realty 4Q earnings up 60% to $7.9 mil on higher revenue

By Michelle Zhu / The Edge SIngapore | February 23, 2018 5:40 PM SGT
SINGAPORE (Feb 23): Real estate services provider APAC Realty announced earnings of $7.9 million for the 4Q ended Dec 2017, up 59.7% from $4.9 million on higher revenue driven by increased real estate brokerage fees and related services.
The latest quarter’s result brings APAC Realty’s earnings for FY17 to $25.9 million, which is 63.1% higher than the $15.9 million posted a year ago.
Group revenue for the quarter grew 62.5% to $129.7 million from $79.8 million in 4Q16.
This was mainly due to an increase in brokerage income from resale and rental of properties due to higher resale and rental market transactions as well as higher brokerage income from new home sales of private and executive condominiums (ECs).
Other revenue fell 7.9% in 4Q to $1 million from $1.1 million in 4Q16.
In line with the increase in total revenue, cost of services grew 66.1% to $16 million from $11.4 million a year ago.
Personnel cost came in at $4.6 million, up 42.8% from $3.2 million in 4Q16 as the group registered an increase in payroll and staff-related expenses on the back of increased headcount, which grew to 143 in 4Q17 from 133 in 4Q16.
In all, APAC Realty is proposing a final dividend for 2 cents for FY17, which translates to an annualised dividend yield of 12% on the IPO price of 66 cents.
The group says it has secured 20 projects to be launched in 2018 with close to 11,000 residential units available for sale, which represents double the 4,800 units from the eight projects launched under its ERA brand in 2017.
This in turn signifies greater growth opportunities for its real estate brokerage ERA, and more sales opportunities for ERA salespersons in 2018, adds the group.
“Going forward, we intend to strengthen and grow our presence in Singapore and the Asia-Pacific region, expand our range of services, and enhance our technological capabilities to remain a leader in our industry and a stalwart of the ERA brand here in Singapore and across the region,” states Jack Chua, executive director and CEO of APAC Realty.
Shares in APAC Realty closed 2 cents higher at $1.10 on Friday.
This story, written by Michelle Zhu for The Edge Singapore, first appeared on Feb 23.