ARA Asset Management manages 25% rise in Q4 net profit to $22 million

ARA Asset Management, which manages real estate investment trusts and private real estate funds, has posted a 25 per cent rise in fourth quarter net profit to $22.1 million.

Revenue for the three months to Dec 31 was up 19 per cent at $43.8 million.

For the full year, net earnings inched up by 2 per cent to $74.3 million on the back of a 5 per cent rise in revenue to $140.4 million.

Recurrent management fees went up by 11 per cent to $114 million, driven mainly by higher reit management fees and real estate management fees.

Acquisition, divestment and performance fees grew 78 per cent to $14.7 million, driven mainly by Fortune Reit's acquisition of Fortune Kingswood and Suntec Reit's progress payment for its acquisition of 177 Pacific Highway in North Sydney, Australia in the fourth quarter.

Quarterly earnings per share increased to 2.62 cents from 2.3 cents previously while net asset value per share climbed by 1.04 cents to 32.84 cents.

ARA's asset under management hit a record $25.5 billion as at year end, mainly on the back of asset acquisitions made by the reits and private real estate funds divisions, as well as the establishment of new funds.

An unchanged final dividend of 2.7 cents a share was proposed.