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“Falling Knife” of the Week: ARA Asset Management

Ser Jing - ARA Asset Management First Quarter Results, Managing Some Losses (pic) ARA Asset Management Limited (SGX:D1R) is our “Falling Knife” of the Week due to a 10.3% drop in share price so far this week.

ARA is an Asian real estate fund management company that focuses on managing public-listed real estate investment trusts listed in Singapore, Hong Kong and Malaysia with a diversified portfolio spanning the retail, office, industrial/office and logistics sectors and private real estate funds investing in real estate. It also provides real estate management services.

Last month, it reported its first half of 2013 results. The profit was down by 9% to $32m even though the revenue rose 1% to $64.1. The company then went ex-dividend on 9th August 2013 where it dished out 2.3 Singapore cents per share.

The most recent development surrounding this company was on 29th August 2013 when Fortune REIT (SGX: F25U) made an announcement that it intends to purchase Kingswood Ginza in Hong Kong for HK$5.8 billion. Since ARA is the manager of Fortune REIT, it would stand to gain from acquisition fees and management fees as well.

The company currently trades at a PE of around 18 and spots a dividend yield of around 3%.

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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice.  Motley Fool Singapore contributor Sudhan P owns shares in ARA Asset Management Limited.