Higher management fees boost ARA's Q1
ARA Asset Management on Tuesday posted a 2 per cent increase in its net profit to S$19.4 million, on the back of a 10 per cent rise in total revenue to S$41.4 million for its first quarter ended March 31, 2016.
This was mostly driven by the 14 per cent increase in the real estate fund manager's recurrent management fees to S$34.3 million.
This was thanks to higher Reit management fees arising from better asset performance after renovations, which also raised the valuation of the property portfolios of the Reits it manages.
In Q1, ARA also saw fee contribution from Suntec Reit's acquisition of three floors of strata office space at Suntec Tower Two, and Cache Logistic Trust's acquisition of three Australian properties in the last quarter of 2015.
There was also higher portfolio management fees from ARA China Investment Partners' purchases of two commercial properties in China, and the launch of private funds Harmony III and Harmony V in 2015.
Real estate management services fees received also rose.
ARA's shares ended half a cent lower at S$1.18 on the stock market.
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
Companies & Markets
Emerging-market optimism dashed by Fed as currencies, bonds sink
LHN warns H1 2024 net profit could decline by 28.6%
iPhone maker Hon Hai’s April sales rise 19% in positive signal
Worsening weather is igniting a US$25 billion market
TikTok tells advertisers: ‘We are not backing down’
EV automakers get reprieve in US tax credit rules