ARA: Macquarie maintains Outperform, increases TP from $1.74 to $1.97, after accounting for additional recurrent fee income from Sep 2014 when ARA’s flagship real estate fund ADF I reaches the end of its fund life. Notes possible monetization of the assets via listings in Asia, as the private fund changes to a REIT...
Likes that ARA has announced bonus issues (1-for-5 in 2010 and 1-for-10 this year) to reward sh/h with higher dividends and to improve liquidity, and expects this to continue over time.
ARA has guided for a 4.8cts DPU for FY11, representing a 2.8% yield at its last traded price of $1.69. Stock currently trades at 6.9X P/B and is in a net cash position.
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