ARA Asset: Macquarie maintains O/p and increases TP to $1.97 from 1.74. Upgrade TP to account for additional recurrent fee income from Sept14 when its flagship private real estate fund ADF I reaches the end of its fund life. Catalyst includes the successful first closing of ADF II over the next two mths and further asset growth from its listed REITs…..
Like ARA’s business model, which is scaleable and offer high RoEs in excess of 30% and high ROICs in excess of 50%. Despite its recent 1-for-10 bonus issue, ARA has guided for an unchanged DPS of 4.8c in FY11, which implies 10% uplift in div paid out and offers a 3% yield.
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