10 Questions for APAC Realty Limited

    1. What are some financial metrics which investors should focus on when evaluating APAC Realty?

• We think investors should focus on key financial metrics such as revenue, gross profit margin, net profit margin, cash position, price-earnings ratio, and dividend payout ratio. In FY2024, APAC Realty recorded $561.0 million in revenue with an 8.9% gross profit margin, and a net profit of $6.5 million, indicating resilience despite market volatility.
• Since our IPO, APAC Realty has maintained an average dividend payout of 75.5%, with yields reaching up to 10.2%. The company plans to continue paying out 50-80% of its profit annually. The Group also generated positive operating cash flow and held a solid S$40.0 million cash position as of 31 December 2024. The consistent profitability through different property cycles highlights strong fundamentals.

    2. How has APAC Realty's financial performance been?

• APAC Realty has consistently proven our resilience through multiple property market cycles, including the global financial crisis, multiple cooling measures, and COVID-19. In FY2024, despite high interest rates and transaction headwinds, ERA Singapore retained a strong 39.9% market share in sales transactions. 
• In FY2024, we recorded a profit after tax of S$6.5 million and declared a final dividend of 1.2 Singapore cents per share, representing a payout ratio of 78.7% (including interim dividend of 0.9 cents). This is in line with the Group’s dividend policy of distributing 50%-80% of profits as dividends on a semi-annual basis.
• We have a robust pipeline of 29 upcoming residential projects in Singapore, representing over 15,000 new homes launched and expected to be launched in 2025. The Group has also continued to generate positive operating cash flow and maintained a healthy cash position of S$40.0 million as of 31 December 2024.

   3. After a subdued start in 2024, project launches picked up significantly in Q4. Based on current market observations, do you anticipate this upward trend in launch activity to persist into 2025?

• We anticipate the positive momentum in project launches to continue this year. In fact, in the first 4 months of 2025, the number of new project units sold have exceeded more than 60% of the number of new project units sold in 2024. 
• To date, ERA Singapore has launched 11 key projects from our secured pipeline of 29 projects, representing around 15,000 new home units across Singapore's Core Central Region, Rest of Central Region, and Outside Central Region. Recent launches like The Orie, Bagnall Haus, Parktown Residence, Elta and Lentor Central Residences achieved take-up rates between 63% and 93%.
• Looking ahead, there will be 18 upcoming projects with close to 8,600 units to be launched in the coming months. New home sales are also projected to rise to 8,500 – 9,500 units in 2025. While macroeconomic uncertainties remain, the gradual supply recovery, developers' renewed confidence, and sustained buyer interest are expected to drive launch activity. This positions ERA to capture opportunities and strengthen its market leadership. 

   4. What are some challenges for APAC Realty in the real estate market?

• While we operate in a dynamic property market, we believe that we are well-positioned to navigate challenges such as property cycles, regulatory changes and competition for talent. Cooling measures and market fluctuations may impact transaction volumes, but our Group’s strong brand, diversified revenue streams, and regional expansion help mitigate these risks. 
• APAC Realty views its agents as its greatest asset, that is why we invest heavily in their growth through ERA Academy training, leadership programmes, and cutting-edge digital tools like the SALES+ platform. Rather than seeing industry consolidation as a threat, the Group sees it as an opportunity to attract, upskill, and empower a new generation of top-performing advisors, ensuring continued market leadership. 

    5. What are APAC Realty's key priorities and goals for the next five years?

• Over the next five years, we will focus on empowering people and transforming lives by enhancing project leadership and developing smarter platforms. We will invest in our advisors with top-notch training, leadership development, and advanced technology to ensure mutual success.
• We plan to expand our market share as a preferred partner for developers with a robust pipeline of quality launches. Technologically, we are enhancing SALES+ with upgrades like Trend Analysis 2.0 and Presenter+ to boost agent productivity and provide real-time market insights for data-driven client presentations. Regionally, we aim to build a capital-light network in Southeast Asia, fostering sustainable growth and strengthening our presence in key markets such as Indonesia and Vietnam.

    6. How does APAC Realty plan to stay ahead of competitors in the real estate industry?

• We invest in our people, technology, and sustainable growth through ERA Academy and the SALES+ platform. These initiatives provide agents with modern tools and skill development. Our three-year roadmap focuses on People, Projects, and Platforms. In 2024 alone, we conducted 421 training sessions, half of which focused on tech tools and the rest on specialized market skills.
• We continue to secure developer mandates and support them with real-time buyer insights from our “My Dream Home” survey. Our SALES+ platform now includes AI tools, 11 property calculators, Agent X CRM, and new features like Trend Analysis 2.0 and Presenter+, enabling agents to present market intelligence effectively for better home buying and selling decisions.

    7. How is APAC Realty committed towards sustainability?

• At ERA Singapore, we integrate sustainability into our core values and corporate culture. In 2021, ERA Singapore became the pioneering real estate agency to introduce an ESG initiative, and our Management Sustainability Committee has spearheaded various efforts, including green campaigns with developers and initiatives to enhance awareness of environmental responsibility. Additionally, nearly S$1 million has been raised for community causes, reflecting our commitment to social impact. We are dedicated to promoting eco-friendly practices and fostering environmental consciousness among our agents.
• ERA Singapore has maintained a longstanding partnership with the Singapore Association for the Deaf, organizing events such as the Deafinitely Durian Extravaganza and "Silent Night" dinners to promote inclusivity. Our sponsorship efforts extend to supporting events like the upcoming Walkathon on May 25 at Marina Barrage for the deaf and hard-of-hearing community in Singapore. Our sustainability approach goes beyond compliance — it is about building a more inclusive, resilient, and socially responsible real estate community for the future. 

    8. What is APAC Realty’s value proposition to its shareholders and potential investors? What do you think investors have overlooked?

• APAC Realty offers investors a resilient and cash-generative business anchored by strong leadership in Singapore and a growing Southeast Asia footprint. We believe that we are positioned to benefit from a rebound in transaction volumes, a strong new project pipeline in 2025, and lower mortgage rates that support buyer demand. 
• Our diversified model across different property segments, non-brokerage services such as training and valuation provides stability through property cycles. Analysts project potential for earnings to double over FY24–26, yet we trade at valuations of 15x historical P/E with high dividend yields. Investors may also often overlook the scalability of our capital-light ERA franchise network and our first-mover lead in PropTech innovation with SALES+, which position us well for sustainable long-term growth.

    9. With ERA’s master franchise rights spanning 17 countries, what is the Group’s strategic roadmap for growth in underpenetrated or high-potential markets within this footprint?

• Our growth roadmap focuses on strengthening ERA’s presence in high-potential Asian markets. With 590 offices and 24,740 salespersons across the Asia Pacific as at end-2024, we are building on a strong foundation. We aim to replicate our success in Singapore by empowering regional partners with ERA’s brand, proprietary technology like SALES+, and structured agent training.
• We will also continue to strengthen our regional presence by expanding into high-growth markets. Our entry into the Philippines, alongside our growing presence in key markets such as Vietnam and Indonesia, underscores our commitment to creating scalable opportunities for agents and investors. Through these strategic partnerships, franchise arrangements and acquisitions, we are deepening our foothold in the region while maintaining our focus on delivering value-driven brokerage services. Tailored local strategies and investments in leadership talent will drive deeper market penetration and build a strong regional ecosystem for sustainable growth.

   10. With growing competition from digital real estate platforms and alternative brokerage models, how does the Group maintain its leadership position, and what differentiates ERA’s value proposition for clients and agents?

• ERA maintains its leadership by combining technology with the human touch. Our SALES+ platform equips agents with real-time data, AI-driven insights, and tools that enhance client service while improving productivity. 
• Unlike purely digital platforms, we offer clients trusted advisory, relationship-based service, and market expertise through a network of highly trained professionals. For our agents, ERA delivers continuous upskilling through ERA Academy, leadership development, and a strong support ecosystem. This integration of technology and talent ensures we remain the preferred choice for both clients and top agents, even in a fast-changing digital landscape.
   

10 in 10 – 10 Questions in 10 Minutes with SGX-listed companies

Designed to be a short read, 10 in 10 provides insights into SGX-listed companies through a series of 10 Q&As with management. Through these Q&As, management will discuss current business objectives, key revenue drivers as well as the industry landscape. Expect to find wide-ranging topics that go beyond usual company financials.

This report contains factual commentary from the company’s management and is based on publicly announced information from the company.

For more, visit sgx.com/research.

For more company information, visit http://www.apacrealty.com.sg/.

Click here for APAC Realty’s FY24 results release.