APAC Realty Limited: Special dividend boost 1H26 dividend per share

Special dividend lifts total 1H26 dividend per share  

APAC Realty declared an interim dividend of 1.90 cents which represents 77.7% in payout ratio. In addition, APAC Realty declared a special dividend of 3.60 cents – above the previous special dividend of 3.00 cents paid in FY2021 – for a total 1H2026 payout of 5.50 cents.

Based on the closing unit price of S$0.63 as at 11 August 2026, the trailing twelve month DPS at 7.30 cents translates to distribution yield of 11.6%.

Special dividends aside, APAC Realty maintains a dividend payout ratio in the 50% to 80% range. 

Since IPO in 2017, APAC Realty remains committed to strong shareholder returns while preserving financial flexibility. Average DPR of 76% is close to the upper end of the target range.

1H26 revenue fell by 3.6% year-on-year 

Total revenue for 1H2026 was S$329.3 million, down 3.6% year-on-year from S$341.5 million, mainly due to lower new home transactions across Singapore. 

New home brokerage revenue fell 11.0% year-on-year to S$116.8 million on a lighter launch pipeline.  Resale and rental brokerage revenue rose 0.8% to S$208.4 million; other revenue rose 13.9% to S$4.1 million.

The decline in revenue tracked a broader slowdown in transaction volumes across Singapore’s residential market in 1H2026. In 1H2026, transaction volumes of new private residential homes declined 9.4% year-on-year to 4,154 units.   

Notably, resale transactions of private and HDB homes fell by 5.1% and 7.4%, respectively. 

ERA Singapore was appointed as the marketing agency across 11 new home projects with a total of 5,720 units. These included fully sold or near-fully-sold launches such as Rivelle Tampines EC and Tengah Garden Residences (both 100%), Pinery Residences and River Modern (94% each).

Reflecting its dominant salesforce presence, ERA captured an estimated 26% share of the 3,674 units sold on launch weekends across these projects.

By geography, Singapore remained the key market, contributing S$9.7 million of net profit after tax (after non-controlling interests) in 1H2026. 

ERA Vietnam delivered improved revenue and financial performance in 1H26, turning in a small profit of S$0.1 million.  Indonesia posted a small S$0.2 million loss.

1H26 financial metrics weakened 

APAC Realty reported 1H2026 gross profit fell 5.3% year-on-year to S$33.9 million,  mainly driven by the lower new home transaction contribution. 

Gross profit margin narrowed to 10.3%, compared with 10.5% in 1H2025. Lower proportion of new home sales which command higher profit margin drove a marginal 0.2 percentage point decline in gross profit margin. 

Net profit after tax attributable to owners of the company (“PATNCI”) declined 16.8% year-on-year to S$9.4 million.   

Healthy balance sheet. APAC Realty reported cash balance of S$53.1 million as at 30 June 2026, compared with total debt of S$36.8 million. Thus, the company is in a net cash position of S$16.3 million. Management maintains financial flexibility and a reasonable level of cash-on-hand. 

APAC Realty maintained positive operating cash flows of S$12.3 million in 1H26, versus S$15.6 million in 1H2025. 

Second largest property agency in Singapore

As of 1 July 2026, APAC Realty’s agency force rose by 3.8% year-to-date, to 8,745.  This is broadly in line with the industry growth in total agent count, to 38,162, +3.6% year-to-date.   

Based on the home sales transactions in Singapore, APAC Realty’s market share was stable at 34%, relatively stable from 34.3% in FY2025. 

Outlook of Singapore property market

In 1H 2026, the industry’s transacted volume of new homes, excluding executive condominium, fell 9.4% year-on-year to 4,154 units.  On the other hand, prices in Singapore private residential market remains resilient, up 1.4% year-to-date. 

However, HDB price declined by 0.4% year-to-date (1Q26 -0.1%, 2Q26 -0.3%), following two consecutive months of decline. 

This could have prompted the government’s initiative to remove the 15-month wait-out period.  Effective 28 July 2026, private residential property owner will not need to serve this wait-out period when they sell their property  to buy HDB resale flats. 

This change could help to boost the liquidity in both private residential and HDB resale. 

In 2H 2026, there are 7 private launches in the pipeline with around 2,303 new units to be launched. APAC Realty estimates new home sales at 8,000 to 9,000 units.  To recap, in 2025, the industry recorded 10,815 new private residential home sales. 

Thus, the transaction volume of new private home sales is projected to fall by 1.7% to 2.6% in 2026. 

Key risks

Real estate is a cyclical industry, and APAC Realty has significant exposure to Singapore’s property market

Furthermore, Singapore’s property market is subject to frequent government’s intervention.  In July 2026, two notable regulatory changes are the removal of the 15-month wait-out period and the introduction of minimum deal requirements for agents.   

Valuation

Maintain Neutral with target price at S$0.70

The target price is based on a FY2026 PE ratio of 12x.  Currently, APAC Realty is trading at FY2026 PE ratio of 10.7x, slightly above the historical average of 10.0x.   

APAC Realty on Beansprout Income Pot framework

We apply Beansprout's five simple checks to screen dividend stocks for our Income Pot, covering fundamental strength, financial health and valuation. 

What do we watch out for? 

APAC Realty passes the 4 out of 5 checks of the Income Pot framework. 

However, the 3-year EPS growth for the period FY2022 to FY2025 was negative because FY2022 was abnormally high when borders reopened post Covid-19.  The property sector is cyclical and will likely see big swings in EPS over the period. 

We would watch for the stabilisation level of earnings, property sales and interest rates trends. 

Related links:

• APAC Realty share price history and share price target
• APAC Realty history and dividend forecasts

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