ARA reports 130% climb in Q2 earnings

August 5, 2008
ARA reports 130% climb in Q2 earnings
Revenue for the period is up 75% to $15.3m, says the Reit manager
By UMA SHANKARI

ARA Asset Management yesterday said that its second-quarter net
profit rose 130 per cent to $8.9 million - from $3.9 million a year
ago - as it benefited from an increase in the property values and net
property income of the real estate management trusts (Reits) it
manages.

The company derives its income mainly from managing Reits and private
real estate funds.

Revenue for the three months ended June 30, 2008, rose 75 per cent to
$15.3 million, from $8.7 million for the corresponding three months
in 2007. Turnover was also boosted by portfolio management fees from
the ARA Asia Dragon Fund which completed its first closing in
September 2007.

For the first half of 2008, ARA said that net profit rose 134 per
cent to $18.1 million, up from from $7.7 million in H1 2007. Revenue
for the six months rose 92 per cent to $32.3 million from $16.8
million a year ago.

The company declared an interim dividend of 2.17 cents per share for
the first six months of this year. Earnings per share for H1 2008
rose to 3.10 cents, from 1.52 cents a year ago.

As at June 30, 2008, the group's total assets under management stood
at $10.5 billion, it said. Among the Reits ARA manages are Singapore-
listed Fortune Reit and Suntec Reit.

The company is currently carrying out various asset enhancement
programmes across the Reits it manages to increase property income,
it said in a filing to the Singapore Exchange. ARA is also looking to
increase the Reits under its management by setting up new Reits in
new asset classes.

'With assets under management of over $10 billion, ARA is now one of
the larger real estate fund managers in the region and we will be
working on new Reit and private fund offerings, particularly in new
asset classes and geographies, to continue to grow our assets under
management,' said chief executive John Lim.

ARA's shares closed unchanged at 66 cents yesterday. The stock has
lost 33.3 per cent since the start of this year.