Saturday, November 7, 2015

ARA Asset Management's 3Q earnings fall 44% to $17.1 mil

ARA Asset Management has announced a 44% earnings slump to $17.1 million in 3Q from a year ago.

Group revenue fell 28% to $38.2 million for the quarter to September, due to a 93% decrease in acquisition, divestment and performances fees to $1.2 million, as the $16.1 million performance fee from Harmony II fund was recognised in 3QFY2014, and was not repeated in the current quarter. However, the group's performance was partially mitigated by the 4% increase in management fees to $33.2 million.

ARA says it will continue to focus on growing its private real estate funds under management by establishing new funds, and will continue to evaluate investment and capital raising opportunities in South Korea and Australia.

The group did not declare any dividends for the current financial period.

ARA shares closed 1.4% lower at $1.40.


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