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ARA Asset Management posts 6% increase in 1Q2015 net profit

ARA Asset Management posted a 6 per cent rise in net profit to S$18.97 million in the first quarter ended March 2015 from S$17.83 million a year ago, buoyed by a fourfold increase in share of profits of associates.

The jump in the share of profits of associates to S$3.2 million in the quarter from S$800,000 was mainly due to acquisition fees recorded from Hui Xian Reit's acquisition of Metropolitan Oriental Plaza in Chongqing, China.

Revenue over the period slipped one per cent to to S$37.70 million from S$38.18 million on the back of lower finance income due to lower distribution income versus the corresponding quarter in 2014 which included distribution of profits post-divestment of some properties and a net fair value gain on disposal of financial assets.

Earnings per share stood at 2.24 Singapore cents, up from 2.11 Singapore cents previously.

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The real estate fund management company did not declare a dividend for the quarter, unchanged from a year ago.

The group's asset under management (AUM) rose to S$27.2 billion as at end March 2015 from S$26.5 billion as at end 2014, driven by growth in the Reit's portfolio.