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PropNex reported FY2021 revenue of $957.5 mil, an 86.5% y-o-y growth

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Ismail Gafoor (centre) and the PropNex top management (Photo: Samuel Isaac Chua/EdgeProp Singapore)

SINGAPORE (EDGEPROP) - Singapore-listed property agency PropNex reported earnings of $14.3 million for the 4Q2021 ended December, 90.5% higher than earnings of $7.5 million in the same period the year before.

The quarter’s earnings have brought the SGX-listed property agency’s FY2021 earnings to $60.0 million, more than double the earnings of $29.1 million in the FY2020.

Revenue for the 4QFY2021 grew by 56.1% y-o-y to $242.0 million mainly due to higher commission income from agency services, as well as from its project marketing services on the back of higher transactions completed during the quarter.

4QFY2021 gross profit was up by 68.9% y-o-y at $26.0 million in tandem with the revenue increase. As a result, profit before tax in the 4QFY2021 increased 102.9% y-o-y to $18.5 million.

As at end-December, cash and cash equivalents stood at $145.6 million. PropNex has proposed a final dividend of 7.0 cents, which is its highest-ever dividend payout.

During the FY2021, PropNex reported an 86.5% y-o-y growth in FY2021 revenue to $957.5 million. On Feb 21, the possibility that the agency was about to report revenue crossing the $1 billion mark for the full-year was raised after the company responded to queries from the Singapore Exchange (SGX) on Feb 17.

Read more: Is PropNex about to report $1 bil in revenue for FY2021?

“Our steadfast performance throughout the year has culminated in another solid quarter, and we are extremely pleased to close FY2021 on such a strong note despite the challenging landscape,” says Ismail Gafoor, co-founder, executive chairman and CEO of PropNex. “The latest market data reflects the ongoing healthy demand for new homes, amidst a declining supply of unsold inventory.”

In its outlook statement, PropNex says it anticipates private home sales and price movement to taper slightly in 2022 on the back of the cooling measures introduced in December 2021, as well as the rising interest rate environment.

The group is forecasting the pace of price growth to ease to 3% to 5%. Transaction volume for private new home sales is estimated to dip to between 9,000 to 10,000; resale properties may dip between 15,000-16,000.

In the meantime, the HDB resale market is expected to continue to perform “relatively well” in 2022. “This is driven by demand from Singaporean households and first-time home buyers, particularly those who do not wish to wait for up to five years for their new BTO flat to be completed,” says PropNex in its Feb 24 statement. (Find HDB flats for rent or sale with our Singapore HDB directory)

PropNex projects that HDB resale prices could see a more moderate 6% to 8% increase this year, with resale volumes potentially coming in at around 30,000 flats.

“At PropNex, we are gearing up for the next growth trajectory as we continue to boost our expertise by expanding our sales force past the 11,125-strong mark (as at Feb 17), cementing our position as the preferred real estate agency for career development among new and experienced salespersons,” says Gafoor. “Also, our strategic foray into the good class bungalow (GCB) segment with the latest senior appointment of Henry Lim to lead our prestige landed division will allow us to capitalise on new opportunities in this area,” he adds.

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