Real estate fund management firm ARA Asset Management Limited has posted an 11 percent increase in net profit in the nine months ended 30 September 2010 to S$38.1 million.
The company’s total year-to-date revenue also jumped 19 percent to S$70.8 million, driven by a 28 percent increase in recurrent management fees to S$62.4 million in the third quarter from S$48.8 million a year ago. The increase was largely attributed to ARA’s real estate management services business division, as well as from the ARA Harmony Fund and Cache Logistics Trust.
ARA received acquisition and performance fees worth S$1.1 million from the ARA Harmony Fund, as well as S$2.4 million in relation to the establishment of the fund.
However, other income declined 11 percent to S$7.3 million during the period, attributed to lower net gains on disposal and fair valuation of REIT units received by the company as part payment for REIT management fees.
As of September 30, Suntec Singapore International Convention & Exhibition Centre, which is owned by the ARA Harmony Fund, was revalued with a valuation gain of 20 percent, while property portfolios of Cache and Suntec REIT were revalued upwards by 1.5 percent and 4 percent, respectively.
“FY2010 is shaping up to be another tremendous year for ARA. The new business divisions established over the past year namely real estate management services, the ARA Harmony Fund and Cache are now well integrated into the Group and contributing nicely to the Group’s income,” said John Lim, chief executive of ARA Group.
“ARA has also been included by Forbes Asia Magazine in its ‘Asia’s 200 Best Under a Billion’ list in September this year. Chosen from approximately 13,000 publicly-listed companies in the Asia Pacific, this accolade is a sterling recognition of the remarkable progress and growth achieved by the Group since our establishment in 2002. We are very honoured by this award and will continue to strive towards becoming the premier real estate fund manager in Asia,” said Mr. Lim.