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An Investor’s Fact-Sheet For ARA Asset Management Limited

Source: Fool Editorial

ARA Asset Management Limited (SGX: D1R) is a company that focuses on the management of private property investment funds, private real estate investment trusts, and public-listed REITs.

These funds and trusts are invested across a wide range of property sectors in the Asia Pacific region such as office, retail, logistics, industrial, hospitality, and residential.

The REITs managed by ARA Asset Management that are listed in Singapore include Fortune Real Estate Investment Trust (SGX: F25U), Suntec Real Estate Investment Trust (SGX: T82U), and Cache Logistics Trust (SGX: K2LU).

In here, I thought it’d be useful to showcase a fact-sheet for ARA Asset Management so that investors can better understand what the company is all about. Here goes!

1. The business of ARA Asset Management

The company has four main business segments:

  • REITs: Provision of fund management services to real estate investment trusts
  • Private real estate funds: Provision of fund management services to private real estate funds
  • Real estate management services: Provision of property management services and convention and exhibition services
  • Investment holdings: A portfolio consisting of holdings in listed REITs, un-listed REITs, and private real estate funds.

The first two can be grouped under fund management and so, ARA Asset Management’s business can essentially be broken into three areas.

The biggest revenue contributor of the three is fund management. As I’ve mentioned, ARA Asset Management manages a number of REITs listed in Singapore’s stock market. But that’s not all – altogether, the company has nine REITs and 10 private real estate funds under management.

ARA segment revenue table
Source: ARA Asset Management Annual Report

The table above shows the revenue contributions for the different segments.

2. Historical financial performance

Any fact-sheet of a company will feel incomplete if there are no key historical financial numbers. The following table shows some figures over the past five years:

ARA business performance table
Source: S&P Global Market Intelligence

3. Stock Market Returns

Over the five years ended 11 August 2016, ARA Asset Management has seen its stock price climb slightly by a total of 12.5%. When gains from reinvested dividends are factored in, the return number increases to 39.5%.

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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.