+ Resales led growth. Private resales grew the fastest. 2Q21 revenue spiked 228% YoY to S$70mn, supported by a four-fold rise in industry resales to 5,333 units. Last year’s circuit breaker had severely affected volumes. Private residential resales in Singapore are on track to touch their highest in a decade. Attractive prices compared to new-home prices are the main reason.
+ Interim DPS raised almost 3x. Interim DPS has been bumped up from 1.5 cents to 5.5 cents, representing a 65% payout. The S$20.3mn payout is well supported by S$33mn of operating cash flows in 1H21. Net cash as at June 2021 was S$120.6mn, up from S$99.7mn in June 2020.
+ Attractive operating leverage. PropNex’s operating leverage was in full display in 2Q21. Revenue jumped 147% while operating costs only rose 38% YoY. The bulk of the increase was for variable referral fees and marketing expenses.