ARA Asset Management's net profit up 18% to $87.5m in FY14

Thanks to higher REIT management fees.

ARA Asset Management Limited today reported that its net profit grew 18% yo $87.5m in FY14.

The growth was driven by higher recurrent management fees, which registered a 10% growth to $125.5m.

This was attributable mainly to higher REIT management fees arising from the improved asset performance post the various asset enhancement initiatives undertaken which have underpinned the higher property valuations, as well as fees arising from the acquisitions made by the various REITs in FY2013 and FY2014.

In addition, REIT management fees from the two privately-held Korean Real Estate Investment Trusts subsequent to the acquisition of ARA Korea Limited in April 2014 contributed to the increase.

ARA manages six REITs across the region. In Singapore, it manages Fortune REIT, Suntec REIT and Cache Logistics Trust. It also provides property management services and manages Suntec Singapore International Convention & Exhibition Centre.