(18-03-2013, 11:09 PM)mrEngineer Wrote: [ -> ]I am just wondering how long can the REITs industry last. If property bubble market burst, rentals income fall, REITs income fall, management income of ARA drops, less demand of REITs IPO, bigger pressure for ARA to exit investments in private funds, no carried interest to grow fund and the vicious cycle continues. Same as when Asia boom is overrated and Chinese do not start consumption to generate GDP fast enough.
ARA have to secure properties with good locations in order to sustain and recover from a tough period like that.
I agree but REITS are here to stay simply because it serves a disintermediation purpose. It is win-win for the investors and the business owners.
REITs with its economies of scale and expertise can do a better job than strata owners. Thus, it is able to produce better yield. Of course, if the property market collapses, all property owners suffer.
If the market suffers a mild correction, it is an opportunity where property owners including REITs may pick up some gems that were too expensive earlier.
No wonder the buying is so strong.
3 funds now owning close to 20%.
If ARA buys 1-2 private equity property fund and grows the AUM by 30-50%, it will give the company further scale and presence. :-)
Ocean Tower in Shanghai had been sold to ARA, according to the following report. My guess - it was acquired by the CIP fund and not ADF II
"
The Ascendas fund also sold Ocean Tower, another office building in the same district, to ARA Asset Management in the first quarter of this year for about CNY1.9 billion, according to real estate firm Jones Lang LaSalle"
http://www.4-traders.com/ASCENDAS-REAL-E...ountview=0
(22-04-2013, 10:51 PM)Boon Wrote: [ -> ]Ocean Tower in Shanghai had been sold to ARA, according to the following report. My guess - it was acquired by the CIP fund and not ADF II
"The Ascendas fund also sold Ocean Tower, another office building in the same district, to ARA Asset Management in the first quarter of this year for about CNY1.9 billion, according to real estate firm Jones Lang LaSalle"
http://www.4-traders.com/ASCENDAS-REAL-E...ountview=0
I was wrong - haha ! According to Colliers report, it was acquired by ADF II, with gross yield in the range of of 5.4% to 5.6%
Look under INVESTMENT of the report:
http://www.colliers.com/en-gb/china/~/me...04-08.ashx
net profit down 16%, sianzzz
I thought the results was ok. Recurrent up 14%
That should be the focus instead of net profits as it incorporates lumpy stuff.
But overall stock is not cheap. Hehe
- ARA Asset Management's 1Q13 net profit fell 16% YoY to S$16.8m, mainly due to lower acquisition, divestment, and performance fees.
Ya still ok la, lets see how full year of 2013 goes.. hope they can try for the dynasty IPO again
Results are ok. Recurrent up y-o-y.On a q-o-q basis, it dipped slightly but this was mainly due to suntec AEI. Overall decent.