ARA’s net profit leaps 39% to $20.1m in Q4

Thanks to its private funds and REITs division.

ARA Asset Management (ARA)’s 4Q15 net profit jumped 39% to $20.1m, after accounting for one-off adjustments. For the full year, adjusted net profit climbed 16% YoY to $72.1m.

According to the company, the growth is thanks to the company’s private real estate funds and its REITs division.

Meanwhile, management fees climbed for both the quarter and the year. REIT management fees jumped 12% YoY to $86.8m for FY15, due mainly to new acquisitions made by the company’s various REITs. Additionally, improved asset performance from existing properties after successful asset enhancement initiatives led to increased property valuations. The acquisition of ARA Korea in April 2014 also boosted the higher REIT management fees.

“FY2015 was overall a good year for the Group notwithstanding the external challenges faced. We had successfully raised over S$1.4 billion of new capital commitments in ARA Private Funds and to date, the Group manages 10 private real estate funds under the respective fund platforms bearing various investment strategies,” stated company CEO John Lim.