ARA ASSET MANAGEMENT LIMITED 
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- Total revenue rose 9% to S$133.5 million
- Proposed 1-for-10 bonus share issue
- Proposed final dividend of S$0.027 per share
FY2012 FY2011 % Change |
Revenue |
Management fees (S$'000) 102,615 90,860 13% |
Acquisition, divestment and performance fees (S$'000) 8,223 21,288 (61%) |
Other income (S$'000) 22,692 10,613 114% |
Total Revenue (S$'000) 133,530 122,761 9% |
Operating Profit (Pre-Tax) (S$'000) 81,641 73,538 11% |
Share of Profit of Associates (S$'000) 4,461 2,794 60% |
Net Profit (S$'000) 72,704 68,202 7% |
EPS1 (S cents) 9.46 8.88 7% |
AUM2 (S$ billion) 22.1 19.8 12% |
2012 ("FY2012"). Total revenue hit a record high of S$133.5 million, achieved on the back of improved recurrent management fees and other income.
Recurrent management fees grew 13% on higher REIT management fees arising from better asset performance due to asset enhancement initiatives undertaken by the respective REITs, improved valuation of the property portfolios of the REITs under management; as well as acquisitions made by the REITs such as Fortune REIT's acquisition of Belvedere Square and
1 Based on the issued share capital of 768,319,189 shares as at 31 December 2012
2 Based on exchange rates as at 31 December 2012
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Provident Square for HK$1.9 billion and Cache Logistics Trust's acquisition of Pan Asia
Logistics Centre and Pandan Logistics Hub totalling over S$100 million.
Higher portfolio management fees from the newly established private real estate funds further contributed to the increase in recurrent management fees. For FY2012, the Group raised close to US$1.0 billion for its private real estate funds. In August 2012, the ARA Asia Dragon Fund II ("ADF II") completed its final closing, with capital commitments of US$441.0 million, while the ARA China Investment Partners Fund ("CIP") received an initial committed capital of US$500.0 million.
The majority of the Group's acquisition, divestment and performance fees of S$21.3 million received in FY2011 was derived from one-off performance fees of S$18.5 million in relation to the ARA Harmony Fund. Excluding this gain, the Group's acquisition, divestment and performance fees of S$8.2 million in FY2012 would have been significantly higher than the S$2.8 million in FY2011.
Other income more than doubled to S$22.7 million in FY2012 from S$10.6 million in FY2011 on higher net gains on disposal of certain REIT units received by the Group as part payment for REIT management fees, as well as higher distribution of profits by the ARA Asia Dragon Fund arising from the divestment of properties under its portfolio.
For the 12 months to 31 December 2012, ARA's earnings per share ("EPS") of 9.46 Singapore cents rose 7% from FY2011 of 8.88 Singapore cents, while total assets under management ("AUM") jumped 12% to S$22.1 billion as at 31 December 2012 compared to S$19.8 billion a year ago.
Commenting on ARA's results, ARA Group CEO, John Lim said: "We are delighted to report another year of record earnings. Total revenue surged 9% year-on-year to a record S$133.5 million while net profit jumped 7% year-on-year to S$72.7 million. For FY2012, the Group had delivered yet another solid set of results amidst the gloomy global economic backdrop, giving credence to ARA's resilient business model. Moving forward, we will continue to strive to build on our existing REIT management and private funds platforms."
Mr Lim added: "As part of ARA's 10th anniversary celebrations and to further reward shareholders for their continued support, the Board is pleased to propose a 1-for-10 bonus issue in addition to a final cash dividend of S$0.027 per share for FY2012. Barring unforeseen
circumstances, we believe that the continued expansion of the Group will allow us to maintain
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the current cash dividend per share, notwithstanding the increased number of shares post the proposed bonus share issue."
The proposed 1-for-10 bonus issue is subject to approval from the SGX-ST, while the final cash dividend of S$0.027 per share is subject to shareholders' approval at ARA's Annual General Meeting to be held on 26 April 2013. For the avoidance of doubt, the bonus shares (if approved by the SGX-ST) will also be entitled to the final cash dividend, payable on or about 20 May
2013.
Inclusive of the interim cash dividend of S$0.023 per share paid out in September 2012, the total cash dividend for FY2012 amounts to S$0.050 per share, same as that in FY2011.
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About ARA Asset Management LimitedARA, an affiliate of the Cheung Kong group, is a real estate fund management company listed on the main board of the Singapore Exchange. ARA's business is focused on the following primary segments:
(a) REITs - The Group is one of the largest REIT managers in Asia ex-Japan and currently manages six REITs listed in three countries namely, Fortune REIT dual-listed in Singapore and Hong Kong, Suntec REIT and Cache Logistics Trust listed in Singapore, Hui Xian REIT and Prosperity REIT listed in Hong Kong and AmFIRST REIT listed in Malaysia;
(b) Private real estate funds - The Group manages several private funds investing in real estate in Asia;
(c) Real estate management services - The Group provides property management services and manages the award-winning Suntec Singapore International Convention & Exhibition Centre; and
(d) Corporate finance advisory services - The Group has an in-house advisory arm providing corporate finance advisory services to related corporations.
For more information, please contact:
Cheryl Seow
Senior Director, Group Finance cherylseow@ara.com.hk
Tel: (65) 6835 9232
Fax: (65) 6835 9672
Arthur Poon
Manager, Corporate Finance arthurpoon@ara.com.hk
This announcement may contain forward-looking statements that involve risks and uncertainties. Actual future performance, outcomes and results may differ materially from those expressed in forward-looking statements as a result of a number of uncertainties, risks and assumptions. Representative examples of these factors include but are not limited to general market and economic conditions, interest rate trends, competition from other real estate investors, changes in operating expenses including employee wages and benefits, changes in government policies, and the continued availability of financing in the amounts and terms necessary to support future business. You are cautioned not to place undue reliance on any of the forward-looking statements in this announcement, which are based on the current view of management on future events.
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