APAC Realty reports 2Q19 net profit dropped 57 percent as cooling measures bite

A Singapore 10-dollar note Photo by Leslie Shaffer

APAC Realty reported Monday its second quarter net profit dropped 56.8 percent on-year to S$3.33 million as demand for residential properties remained subdued after the Singapore government imposed fresh cooling measures a year earlier.

Revenue for the quarter ended 30 June fell 29.8 percent on-year to S$85.66 million, the realty company, which operates the ERA brand, said in a filing to SGX.

For the first half, APAC Realty reported net profit fell 62.5 percent on-year to S$5.10 million on total revenue of S$163.06 million, down 28.2 percent on-year.

Private resale residential transactions in the first half fell by nearly half to 4,321 units sold, compared with 8,567 units in the year-ago period, Jack Chua, executive chairman and CEO of APAC Realty, said in the statement.

“We maintain our long-term positive view on the Singapore residential market and will continue to keep our focus on executing our regional growth strategy well and maintaining our industry market leadership,” Chua said.

APAC Realty declared an interim dividend of 0.75 Singapore cent a share, compared with 2.0 Singapore cents a share in the year-ago period.

In its outlook, APAC Realty pointed to a 31.8 percent on-year increase in unsold private residential units, including executive condomimiums, which are a hybrid public-private category, to 35,538 units, based on Urban Redevelopment Authority data.

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