PropNex Limited has reported quarterly record earnings of JCube Residence $17.8 million for 4QFY2022 ended Dec 31, 2022, 24.5% higher than the earnings of $14.3 million for the corresponding period the year before. This brings the group’s earnings for FY2022 to $62.4 million, 3.9% higher y-o-y.

FY2022’s revenue surpassed the $1 billion mark for the first time, increasing by 7.5% y-o-y to $1.03 billion boosted by the 23.3% y-o-y growth in 4QFY2022’s revenue of $293.4 million. The growth was attributed to improvements in the economy and Covid-19 situation with higher transactions completed for both agency services and project marketing.

Gross profit for FY2022 increased by 2.8% y-o-y to $104.7 million in tandem with revenue increase, while other income increased by 131.1% y-o-y to $16.1 million due to the derecognition of trade payables to agents of approximately $7.8 million and an increase in advertising and marketing income by approximately $1.9 million.

Earnings per share for the 4QFY2022 and FY2022 stood at 4.80 cents and 16.85 cents respectively. Cash and cash equivalents at the end of period stood at $138.8 million.

PropNex has proposed a first-time bonus issue where one bonus share will be credited as fully paid per every existing PropNex share held, up to 370 million new ordinary shares.

Additionally, the group has proposed a final dividend of 8 cents per share for a total dividend for the FY2022 of 13.5 cents per share, or 80% of the group’s FY2022 earnings.

The group’s number of salespersons grew 8% y-o-y to 11,667, still making it the largest real estate agency in Singapore. Looking ahead, PropNex expects overall private home prices to rise 5-6% in 2023, although demand for HDB resale flats is expected to remain stable.

Ismail Gafoor, co-founder, executive chairman and CEO of PropNex, comments “We have wrapped up the year with a record full-year revenue. Despite limited new project launches and a decline in home price growth in the fourth quarter of 2022, we managed to turn in a healthy set of results following improvements in both the Covid-19 situation and the overall economy.”

“Measures such as higher marginal Buyer’s Stamp Duty for higher-value residential and non-residential properties should not impact home sales significantly, as this should be manageable for buyers of homes priced over $1.5 million and $3 million. Overall, we expect demand for non-residential properties in Singapore to remain resilient, underpinned by the country’s sound fundamentals,” he adds.

PropNex reported a record $17.8 million in earnings for 4QFY2022, 24.5% higher than the year before and bringing the group’s FY2022 earnings to $62.4 million, 3.9% higher y-o-y. This was fuelled by increased commission income from agency services as a result of economic and Covid-19 improvements leading to higher numbers of transactions completed in both agency services and project marketing during the period.

The group’s proposed one-for-one bonus issue and dividend of 8 cents per share will bring the total dividend for the FY2022 to 13.5 cents per share, or 80% of the group’s FY2022 earnings. With the number of salespersons rising 8% y-o-y to 11,667, PropNex is still the largest real estate agency in Singapore.

Looking ahead, the outlook is positive with PropNex expecting overall private home prices to rise 5-6% in 2023 due to high land cost and rising construction cost facing developers. Demand for HDB resale flats is also expected to remain stable, likely spurred by the additional CPF housing grants for first-time buyers announced in Budget 2023.