PropNex reports 4Q18 net profit dropped 64 percent after property cooling measures

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Singapore realty company PropNex reported on Monday its fourth quarter net profit dropped 63.5 percent on-year to S$1.87 million after the government implemented property cooling measures.

Revenue for the quarter ended 31 December fell 16.4 percent on-year to S$83.0 million, it said in a filing to SGX after the market close on Monday.

“The main cause of this decrease is the drop in the number of units transacted in the third quarter of 2018 following the introduction of additional cooling measures in July 2018,” PropNex said in the statement.

It added that revenue recognition generally happens two to three months after booking a sale due to the time to process documents, causing the drop in sales volume in the third quarter to be reflected in lower revenue in the fourth quarter.

For the full year, PropNex reported net profit rose 16.2 percent on-year to a record S$21.94 million, or revenue of S$431.54 million, up 30.0 percent on-year.

“The increase in revenue was mainly attributed to increase in commission income from agency services and project marketing services,” PropNex said, adding that was due to its salesforce rising to 7,513 this week from 6,684 at the beginning of 2018.

It proposed a final dividend of 1.5 Singapore cents and a special dividend of 2.0 Singapore cents, compared with no dividend in the previous year.

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