PROPNEX reported a 27.1 per cent fall in net profit for the half year ended December 2023 to S$25.8 million, from S$35.3 million in H2 FY2022.

This came as revenue dropped 14.9 per cent to S$473.8 million amid wary buying sentiments, based on the real estate agency’s financials released on Wednesday (Feb 28).

Earnings per share stood at S$0.0348 for the half year, down from S$0.0478 the previous year.

The company proposed a final dividend of S$0.035 per share, bringing total dividend to S$0.06 a share in FY2023. This represents a payout ratio of 92.9 per cent of net attributable profit and a dividend yield of 6.5 per cent, based on the share price as at Dec 31, 2023.

The dividend will be paid on May 10, after books closure on May 2.

For the full year, net profit was down 23.3 per cent on the year to S$47.8 million, while revenue declined 18.6 per cent to S$838.1 million. This was led by a fewer number of transactions completed for both agency and project marketing services.

A NEWSLETTER FOR YOU

Tuesday, 12 pm

Property Insights

Get an exclusive analysis of real estate and property news in Singapore and beyond.

Sign Up

Commission income from agency services dropped 7.7 per cent to S$591.1 million, while commission income from project marketing services fell 36.9 per cent to S$242.3 million in FY2023.

Ismail Gafoor, executive chairman and chief executive officer of PropNex, noted that despite the company’s H2 revenue and net profit registering growth compared with H1, it was not enough to compensate for the caution by prospective homebuyers amid recent cooling measures, high interest rates and macroeconomic uncertainties.

He added: “I believe our FY2023 performance was resilient in this context as we retained our strong foothold in the residential market, capturing an overall 62.5 per cent share of the private new launches, private resale and HDB resale segments.”

The company also highlighted its debt-free position with cash and bank balances of S$148.1 million as at the end of December.

Ismail expects a return in buying sentiment in 2024, supported by projected economic growth, the potential easing of interest rates, as well as a pipeline of new launches. To better position itself for the market revival, PropNex plans to expand its sales force to 15,000 by 2026.

Shares of PropNex : OYY 0% closed on Tuesday up 2.3 per cent or S$0.02 at S$0.895.