APAC Realty (SGX:CLN) reported 2H25 PATMI of S$ 9.3mil (+196% y-o-y), bringing the full-year PATMI to S$ 20.6mil (+185% y-o-y), which came in ~5% above DBS and consensus estimates.
FY25 PATMI above DBS and consensus estimates
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With a shift in product mix to higher new private residential sales, gross proο¬t and net proο¬t margins expanded to 10.4% (+1.5ppt y-o-y) and 3.0% (+1.7ppt y-o-y) respectively in FY25.
A ο¬nal dividend of 1.8 cents/share was declared (2H24: 1.2 cents) on an enlarged share base post bonus issue, with full-year APAC Realty's dividends at 4.05 cents/share (adjusted 1H25: 2.25 cents), which represents a payout ratio of 78.2%.
Our view:
Mild disappointment on the absence of special dividend
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In addition, a potential value unlock from the divestment of its office building, possibly via a sale and leaseback structure, could pave the way for a bumper dividend.
Looking ahead, the Singapore residential market is expected to see several exciting launches in 2026 that are likely to garner strong interest. These include the sites at River Valley, Bayshore, Thomson View (en bloc), Tampines, Tengah, Lakeside, Dunearn Road and Chuan Grove. With the new launches predominantly located in the OCR (i.e. relatively lower price points compared to RCR and CCR), alongside several EC projects, take-up rates should remain healthy.
1H25 was a high base
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Above is an excerpt from a report by DBS Group Research. Clients of DBS may access the full PDF report @ https://www.dbs.com/insightsdirect/.
