ARA Asset Management

[Dividend Knight]

Interesting views. With blackrock increasing their stake in Suntec REIT, it means ARA and its group of companies will find it difficult to sell off the shares they receive as mgmt fees/have bought in 2015.

And if ARA intends to maintain its dividends of 5 cents, it has to generate 50 Mil of cash. Unfortunately, dividends from its REIT holdings yield only about 13 mil and the rest of the non REITS business provides approx 20mil (to my estimates). It leaves an annual shortfall of 17 mil (before cashflow spent due to investing activities), which has to be either funded by cash reserves or from the sale of units in REITS (which is now difficult due to black rock)

Why would it be difficult to sell units due to Blackrock?