APAC Realty posts 19% rise in 3Q earnings to $6.5 mil on higher revenue
SINGAPORE (Nov 12): Real estate services provider APAC Realty saw its earnings grow 18.8% to $6.5 million for the 3Q18 ended September, from $5.5 million a year ago, o the back of higher revenue.
3Q18 revenue rose 8.8% to $114.8 million, from $105.5 million a year ago.
This was mainly attributable to higher revenue from real estate brokerage fees and related services.
Brokerage income from resale and rental of properties was 5.7% higher at $76.5 million during the quarter, while brokerage income from new home sales climbed 16.9% to $36.0 million.
As at end September, cash and cash equivalents stood at $51.5 million.
“APAC Realty continued to deliver another set of strong operating performance despite the prolonged headwinds in the Singapore real estate market. This demonstrates the strength of our business model,” said Jack Chua, executive director and chief executive officer of APAC Realty.
Looking ahead, APAC Realty remains cautiously optimistic given the challenging near-term operating environment.
Last month, nearly 150 CBRE Realty Associates (CBRE) agents focused on residential transactions have applied to Council for Estate Agencies (CEA) to move over to ERA under a strategic collaboration.
According to APAC Realty, nearly 300 HSR International Realtors (HSR) agents will also be crossing over to ERA this month, subject to approval from CEA.
“The moves will bring together our combined strengths in the residential market to benefit the overall brokerage business,” says Chua.
“Testament to Singapore developers’ confidence in ERA’s project marketing expertise and long track record of success, ERA was the only real estate brokerage appointed as the joint marketing agency for all four sales launches – Arena Residences, Belgravia Green, Whistler Grand and Kent Ridge Hill Residences – in the first two weekends of November 2018,” Chua adds, noting that “home buyer interest was relatively strong across the four project launches”.
Year-to-date, ERA has a robust pipeline of 27 new project launches, totalling 12,958 units across Singapore.
Shares in APAC Realty closed half a cent higher at 49.5 cents on Monday.
