ARA profits up 32% on acquisition and performance fees

Group completed ARA Harmony Fund and its real estate management services business division for future development.

ARA Asset Management Limited (ARA) reported a record net profit of S$48.3 million for the full year ended 31 December 2009 (FY2009), a 32% increase from the previous record of S$36.7 million achieved in FY2008.

Despite challenging economic conditions in FY2009, recurrent management fees registered a 4% increase to S$67.1 million. Acquisition and performance fees climbed 553% to S$7.5 million on the back of fees received in relation to the establishment of the ARA Harmony Fund on 30 September 2009 and Fortune REIT’s acquisition of 3 retail properties in Hong Kong which was completed on 15 October 2009. Other income soared 165% to S$11.7 million, primarily from higher distribution income from the Group’s financial assets and gains from the disposal of REIT units received as part payment of REIT management fees. All in all, total revenue for the year rose by a commendable 23% to S$86.3 million. As at 31 December 2009, the group’s assets under management stood at S$13.5 billion.

Despite the very challenging external environment, the Group achieved yet another year of record profits.

More significantly, we have laid the foundation for continued growth in 2010 and beyond with the establishment of the ARA Harmony Fund and the acquisition of APM and SSICES. ARA has grown from strength to strength through the financial crisis and the Group is now firmly established as one of the leading real estate fund managers in Asia. With the impending listing of Cache Logistics Trust, the Group will also be venturing into the industrial logistics sector in the Asia Pacific region."

To thank shareholders for their continued support of the Company, the Board has proposed a final cash dividend of S$0.025 per share for FY2009 and a bonus issue of up to 116,412,000 new ordinary shares of S$0.002 each in the capital of the Company on the basis of one (1) bonus share credited as fully paid for every five (5) existing shares held in the capital of the Company.

The proposed final cash dividend and bonus issue are subject to shareholders' approval at the Company’s Annual General Meeting / Special General Meeting to be held on 26 April 2010. Inclusive of the interim cash dividend of S$0.023 per share, the total cash dividend for FY2009 amounts to S$0.048 per share.