APAC Realty posted a 31.4 per cent drop in net profit to S$6.8 million for the six months ended Dec 31, 2023, from S$9.9 million in the corresponding period the year before.
This comes as its business in Vietnam faced a challenging year in FY2023 due to the economic slowdown, the real estate services provider said in a regulatory filing on Friday (Feb 23).
The group added that new home supply and absorption rates stayed low in the year as developers delayed their project launches. However, it expects the Vietnam property market to gradually recover in FY2024 with more project launches.
Earnings per share stood at 1.91 Singapore cents for the half year, down from 2.78 Singapore cents the previous year.
Revenue for the half year fell 17.9 per cent to S$297.6 million, from S$362.4 million a year earlier. This was partly due to lower real estate brokerage fees and related services as the number of property transactions completed fell during the period.
A final dividend of 1.4 Singapore cents per share was proposed for the half year, down from 2.75 Singapore cents the year before. Once approved by shareholders at the upcoming annual general meeting, the dividend will be paid on May 8, after books closure on Apr 26.
Together with the interim dividend of 1.1 Singapore cents per share paid out on Sep 8, 2023, the total dividend of 2.5 Singapore cents for FY2023 will amount to a dividend payout ratio of 78 per cent, said Apac Realty.
For the full year ended Dec 31, 2023, net profit was down 55.7 per cent to S$11.8 million, and revenue was down 21 per cent to S$557.3 million.
Revenue from new home sales had fallen 47.8 per cent to S$145.2 million in FY2023, and revenue from resale and property rentals had fallen 3.3 per cent to S$403.4 million in FY2023.
Despite macro challenges and headwinds in the Singapore property market, Apac Realty generated cash flows from operating activities of S$17.3 million and had cash and cash equivalents of S$44.1 million as at Dec 31, 2023, noted Marcus Chu, the group’s chief executive officer.
Looking forward, the group said it will continue to improve the efficiency of its Singapore operations, cut overhead costs and leverage investments in technology for its salespersons. It will also continue its regional growth in Indonesia and Vietnam.
Shares of Apac Realty closed flat at S$0.46 on Friday, before the results announcement.
