ARA Asset Management

[specuvestor]

I am just wondering how long can the REITs industry last. If property bubble market burst, rentals income fall, REITs income fall, management income of ARA drops, less demand of REITs IPO, bigger pressure for ARA to exit investments in private funds, no carried interest to grow fund and the vicious cycle continues. Same as when Asia boom is overrated and Chinese do not start consumption to generate GDP fast enough.

ARA have to secure properties with good locations in order to sustain and recover from a tough period like that.

I agree but REITS are here to stay simply because it serves a disintermediation purpose. It is win-win for the investors and the business owners.