ARA Asset Mgt

ARA Asset Mgt: Good set of 1Q12 results that was above expectations. Rev at $34.3m, +26% yoy and +28.9% qoq, while net profit at $20.3m, +34% yoy and +49.3% qoq. Strong results was due to recurrent mgt fee income which increased by 5% to $23.1m, +4.5% yoy due to higher REIT mgt fees arising from an increase in the valuation of the property portfolios of the REITs under management; and Suntec REIT’s divestment of Chijmes in Jan12 and (ii) Fortune REIT’s acquisition of The Belvedere Garden Property and The Provident Centre Property in Feb12 In 1Q2012, the Group had also began to accrue for portfolio management fees receivable from the ADF II with the commencement of its investment period in Mar12. The acquisition and performance fees of $2.3m received in 1Q11 comprised primarily performance fees received in relation to the ARA Harmony Fund and acquisition fees in relation to the acquisition of 6 Changi North Way by Cache. Other income increased to $7.2m in 1Q12, +148% yoy, primarily due to a net gain on disposal of certain REIT units received by the Group as part payment for REIT management and acquisition fees and an increase in distribution income received. Technically, counter appears to be hooking upwards from Oversold Territory, which could signal further upside. Near-term support is tipped at recent lows of $1.44, while resistance appears to be at $1.48 (50day EMA), followed by recent high of $1.54