Broker: UOB Kay Hian Private Limited
Date of Report: 10 June 2025

APAC Realty: Unlocking Growth Potential with Strong Yields, Turnaround Momentum, and Regional Expansion

Company Overview: APAC Realty’s Solid Foundations in Asia Pacific

APAC Realty Limited stands as a leading real estate brokerage firm in the Asia Pacific region, boasting a robust 43-year track record. The company provides comprehensive property brokerage services, including sales and rental of residential, commercial, and industrial properties. APAC Realty operates under the well-recognized ERA brand, holding exclusive regional master franchise rights across 17 countries. As of end-2024, the company’s expansive network includes 590 offices and 24,740 salespersons, with operations spanning Singapore, Australia, China, Indonesia, and Vietnam.
In Singapore, APAC Realty’s ERA brand commands a substantial 39.9% share of the private residential sales market, underscoring its industry leadership and market influence.

• Share Price: S\$0.455
• Market Cap: S\$162.3 million (US\$126.3 million)
• Shares Issued: 356.7 million
• Major Shareholder: NHPEA Ace Realty (64.1%)
• 2024 NAV/Share: US\$0.44
• Net Cash/Share: –US\$0.005
• Dividend Yield (2024): 4.6%

Financial Performance: Navigating a Challenging 2024

The company’s 2024 results reflected industry headwinds, particularly in the first three quarters, but signs of recovery emerged in the final quarter as lower interest rates and pent-up demand reignited project activity.

• Revenue for 2024: S\$561 million (+0.7% YoY)
• Core PATMI: S\$9.5 million (–19% YoY, excluding S\$2.3 million in Performance Share Plan expenses)
• Net Profit (Reported): S\$7.2 million
• EBITDA: S\$15.5 million
• Operating Profit: S\$11.0 million
• EPS (US cents): 2.0
• PE Ratio (2024): 22.5x
• P/B Ratio: 1.0x
• Dividend Payout Ratio: 78.7%

Inflection Point: 4Q24 Signals Recovery and Growth Momentum

While 2024 core profits declined due to a 26% YoY fall in higher-margin new home sales amid limited project launches and high interest rates in the first nine months, the fourth quarter marked a clear inflection point. Easing interest rates and considerable pent-up demand drove a surge in new project launches and transaction volumes.
Notably, flagship projects like Emerald of Katong and Chuan Park achieved stellar take-up rates of 99% and 76%, respectively, underscoring renewed buyer confidence. This turnaround positions APAC Realty to capitalize on market momentum heading into 2025.

2025 Outlook: Robust Project Pipeline and Market Leadership

The outlook for 2025 is notably positive. New home sales in the first four months have already surpassed 60% of the total volume sold in 2024. ERA has launched 11 projects from its pipeline of 29, covering approximately 15,000 new units. Recent launches (The Orie, Bagnall Haus, Parktown Residence) achieved take-up rates between 63% and 93%.
An additional 18 projects, comprising around 8,600 units, are scheduled for launch in the coming months. New home sales volume for 2025 is projected to rise to between 8,500 and 9,500 units, reinforcing APAC Realty’s position to further cement its market dominance.

Attractive Shareholder Returns: Yield, Buybacks, and Capital Efficiency

APAC Realty continues to deliver strong shareholder value:

• Total dividend payout for FY24 was 2.1 cents per share, translating to a 4.6% yield.
• The payout ratio of 78.7% aligns with the company’s 50–80% dividend policy, supported by its asset-light franchise model and solid cash flows.
• Management repurchased 2.5 million shares at S\$0.41–0.45 in 2Q25, signaling strong confidence in the company’s long-term prospects.

The company’s current valuation — trading at just 10x 2026F consensus P/E, compared to PropNex’s 14x — suggests investors may be underestimating the scalability and earnings potential of its capital-efficient franchise model.

Strategic Roadmap: Scaling Through “People, Projects, and Platforms”

APAC Realty’s five-year growth strategy focuses on scaling via talent development, PropTech investments, and regional expansion. Key initiatives include:

• ERA Academy and Enhanced Agent Training: Programs to boost agent productivity and service quality.
• SALES+ Platform: A digital tool supporting salesforce effectiveness and efficiency.
• Trend Analysis 2.0 and Presenter+: Upgraded analytics and presentation tools to empower agent decision-making.
• Regional Expansion: Targeting high-growth markets such as Vietnam, Indonesia, and the Philippines through franchise partnerships and acquisitions, leveraging a capital-light approach.

Financial Health: Balance Sheet, Cash Flow, and Key Metrics

Balance Sheet (2024)

• Total Assets: S\$323.5 million
• Shareholders’ Equity: S\$158.0 million
• Net Debt/Equity: 1.0%
• Cash & ST Investments: S\$40.0 million

Cash Flow (2024)

• Operating Cash Flow: S\$9.2 million
• Investing Cash Flow: –S\$1.6 million
• Financing Cash Flow: –S\$11.6 million
• Ending Cash & Equivalents: S\$40.0 million

Key Metrics (2024)

• EBITDA Margin: 2.8%
• Net Margin: 1.3%
• ROE: 4.6%
• Debt to Total Capital: 12.9%
• Interest Cover: 8.0x

Historical Performance & Valuation Bands

APAC Realty’s historical PE and P/B bands indicate the company is trading at the lower-end of its valuation range, offering potential upside as operational momentum and market confidence return.

Conclusion: APAC Realty Poised for Turnaround and Scalable Growth

With a proven franchise model, a robust project pipeline, strong regional presence, and management’s commitment to shareholder returns, APAC Realty is well-positioned for a turnaround in 2025. The company’s asset-light, capital-efficient approach, combined with ongoing investments in technology and talent, sets a solid foundation for scalable growth across Asia Pacific.
For yield-seeking investors and those looking for potential valuation rerating, APAC Realty represents a compelling laggard play with clear catalysts on the horizon.

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