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2 Charts That Investors Should See About ARA Asset Management Limited

ARA Asset Management Limited (SGX: D1R) is an asset management company that manages mainly real-estate related investment vehicles.

Under its banner are private real estate funds as well as both private and public-listed real estate investment trusts (REITs). These funds and trusts are invested in properties in the Asia Pacific region that are in a wide range of sectors such as office, retail, logistics, industrial, hospitality, and even residential.

Here are two things about the company that may be of interest to investors:

1. Steady growth in revenue and profit over the past decade

ARA reveneu and profit chart
Source: ARA Asset Management annual report

The chart above is taken from ARA Asset Management’s latest 2015 annual report; the grey-bars represent the company’s net profit in each year while the multi-coloured bars collectively represent annual revenue.

We can see that both revenue and net profit have grown substantially since 2006. The former has jumped five-fold from S$31.3 million to S$156 million while the latter has soared nearly six-fold from S$13.5 million to S$78.1 million.

It’s worth noting too that the company manged to grow its top- and bottom-line even during the 2007-09 financial crisis. 

2. Consistent growth in assets under management (AUM)

ARA AUM chart
Source: ARA Asset Management annual report

The chart just above is again from the company’s latest 2015 annual report. This plots the growth in ARA Asset Management’s AUM. The multi-coloured bars represent the actual AUM at the end of each year while the black line adjusts for the effects of divestments.

ARA Asset Management reported S$6.5 billion in AUM in 2006, a figure which has grown steadily over the years to S$29.8 billion in 2015 (unadjusted for effects of divestments). This may explain the performance of the firm’s revenue and net profit growth in the same period.

Past performance should never be seen as a guarantee for the future. But it can still be a useful starting point to aid investors in performing further research. In the case of ARA Asset Management, it is a company with a history of solid business growth.

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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 Lawrence Nga doesn’t own shares in any companies mentioned.