Strong growth in management fees lifts ARA Asset Management 1H net profit

SINGAPORE - Strong growth in fees from managing real estate investment trusts (Reits) and investment portfolios lifted ARA Asset Management's results in the first half.

Net profit for the six months to June 30 rose 9 per cent to S$38.7 million, while revenue rose 10 per cent to S$81.6 million.

Management fees - accounting for the lion's share of total turnover - grew 10 per cent to S$68 million, undepinned by the growth in Reit management fees, portfolio management and service fees as well as real estate management fees.

Despite "overall prevailing uncertainty", ARA group chief executive John Lim said the performance of the company's property portfolios under management continues to be stable, and "opportunities to secure good investments at attractive valuations are still present in Asia, especially in these volatile times".

Earnings per share for the half-year was 3.88 cents, from 4.09 cents in the corresponding period a year ago. Net asset value per share was 54.92 cents as at June 30, up from 52.17 cents as at Dec 31 last year.

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