ARA Asset Management

[Contrarian]

> In the notes, it was mentioned that the higher admin expense is due to business expansion so let's see if there are able to attract new
> business in the coming year.

They set-up 2 country teams over 2 years. ARA Korea and ARA Australia. With the ground team, the identification of properties for REITs and especially fund raising hopefully could be enhanced.

The new ARA Australia manager was formerly APN Australia Chairman.

I wonder what it will take for their funds to get US$1bn or more for each new private fund, like Keppel Land Alpha.

[crosscalibre]

Yes, hope that it will begin to bear fruit soon as new business take time to create traction.

[Boon]

In the notes, it was mentioned that the higher admin expense is due to business expansion so let's see if there are able to attract new business in the coming year.

On closer scrutiny, AE as % of total revenue should be the more appropriate measures .........which do not look that bad after all......

Administrative Expenses (AE) / Total Revenue :
FY2011 = 33.789 / 122.761 = 27.5%
FY2012 = 39.172 / 133.530 = 29.3%
FY2013 = 41.468 / 140.369 = 29.5%
FY2014 = 51.903 / 173.058 = 29.9%


(vested)

[Nick]

In the notes, it was mentioned that the higher admin expense is due to business expansion so let's see if there are able to attract new business in the coming year.

On closer scrutiny, AE as % of total revenue should be the more appropriate measures .........which do not look that bad after all......

Administrative Expenses (AE) / Total Revenue :
FY2011 = 33.789 / 122.761 = 27.5%
FY2012 = 39.172 / 133.530 = 29.3%
FY2013 = 41.468 / 140.369 = 29.5%
FY2014 = 51.903 / 173.058 = 29.9%


(vested)

Let's modify this to take into account of fair value gains:

FY 2010 = 30.819 / 110.598 = 27.9%
FY 2011 = 33.789 / 122.761 = 27.5%
FY 2012 = 39.172 / 122.200 = 32.0%
FY 2013 = 41.468 / 140.369 = 29.5%
FY 2014 = 51.903 / 161.212 = 32.2%

(Not Vested)

[Boon]

In the notes, it was mentioned that the higher admin expense is due to business expansion so let's see if there are able to attract new business in the coming year.

On closer scrutiny, AE as % of total revenue should be the more appropriate measures .........which do not look that bad after all......

Administrative Expenses (AE) / Total Revenue :
FY2011 = 33.789 / 122.761 = 27.5%
FY2012 = 39.172 / 133.530 = 29.3%
FY2013 = 41.468 / 140.369 = 29.5%
FY2014 = 51.903 / 173.058 = 29.9%


(vested)

Let's modify this to take into account of fair value gains:

FY 2010 = 30.819 / 110.598 = 27.9%
FY 2011 = 33.789 / 122.761 = 27.5%
FY 2012 = 39.172 / 122.200 = 32.0%
FY 2013 = 41.468 / 140.369 = 29.5%
FY 2014 = 51.903 / 161.212 = 32.2%

(Not Vested)

Thanks Nick - but these are still not the full story, I reckon........ the fair value gains, including FX, have been been booked under "Finance Income"...............but, interestingly, "fair value loss" have been booked under "Finance Costs" instead, which should be taken into consideration as well.................

[Nick]

In the notes, it was mentioned that the higher admin expense is due to business expansion so let's see if there are able to attract new business in the coming year.

On closer scrutiny, AE as % of total revenue should be the more appropriate measures .........which do not look that bad after all......

Administrative Expenses (AE) / Total Revenue :
FY2011 = 33.789 / 122.761 = 27.5%
FY2012 = 39.172 / 133.530 = 29.3%
FY2013 = 41.468 / 140.369 = 29.5%
FY2014 = 51.903 / 173.058 = 29.9%


(vested)

Let's modify this to take into account of fair value gains:

FY 2010 = 30.819 / 110.598 = 27.9%
FY 2011 = 33.789 / 122.761 = 27.5%
FY 2012 = 39.172 / 122.200 = 32.0%
FY 2013 = 41.468 / 140.369 = 29.5%
FY 2014 = 51.903 / 161.212 = 32.2%

(Not Vested)

Thanks Nick - but these are still not the full story, I reckon........ the fair value gains, including FX, have been been booked under "Finance Income"...............but, interestingly, "fair value loss" have been booked under "Finance Costs" instead, which should be taken into consideration as well.................

They include the finance income under the total revenue. But strangely, not the finance costs. Hence, we need to adjust the gains to be fair.

[EnSabahNur]

The new country teams, hopefully, will give them ability to source funds and find deals. Only short of Japan presence.

Yes, of all the major Asia Pac REIT markets, that's the only market that they lack.
On a longer term note, the other emerging Asia Pac markets are slowly developing REIT structures as well.

http://www.globalcapital.com/article/q26...and-yields

http://www.reuters.com/article/2015/01/1...0B20150113

[Happymeowmeow]

good set of results, earnings up 6% for Q1

[Happymeowmeow]

ARA Asset Management’s 1Q net profit increases 6% to $19 million

By Yimie Yong / theedgemarkets.com | May 6, 2015 : 6:22 PM MYT
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SINGAPORE (May 6): ARA Asset Management, the REIT management company, saw net profit grew 6% to $18.97 million from $17.83 million a year ago for the 1Q ended March, 2015.

This translates to an earnings per share (EPS) of 2.24 cents compared to 2.11 cents a year earlier.

Revenue fell 1% to $37.7 million from $38.18 million a year earlier.

ARA said the recurrent management fees for 1Q increased to $30.1 million.

“REIT management fees grew 13% year-on-year, driven by the improved asset performance post the various asset enhancement initiatives undertaken which have underpinned the higher property valuations, as well as fee contributions from the new acquisitions made by the various real estate investment trusts (REITs)," said ARA in a filing to the SGX.

REIT management fees from the two privately-held Korean REITs subsequent to the acquisition of ARA Korea last April also contributed to the increase, it added.

In the quarter under review, the group’s share of profits of associates increased to $3.2 million from $0.8 million previously, mainly due to the acquisition fees recorded by Hui Xian Asset Management in relation to Hui Xian REIT’s acquisition of Metropolitan Oriental Plaza in Chongqing, China.

The group’s asset under management (AUM) increased to $27.2 billion as at Mar 31, 2015, driven by growth in the REIT’s portfolio.

ARA Asset Management closed 1.5 cents higher at $1.73 today,

[Nick]

The near term catalyst would be the performance fees if they meet the IRR hurdles once ADF1 is fully divested. Any ideas when the MAS ruling on REIT Managers incentives will be released ?

(Not Vested)