Singapore Exchange Ltd. · SGX:S68
Singapore Exchange — ARA Asset Management — H1 2016 Earnings Presentation
25 slides from Singapore Exchange's earnings presentation, August 2016
Slide 1: ARA Asset Management Limited
ARA Asset Management Limited Results for the half year ended 30 June 2016
Slide 2: Anchored by our core values
ANCHORED BY OUR CORE VALUES ARA Asset Management Limited An integrated real estate fund manager in Asia driven by a vision to be a best-of-class investment manager, offering bespoke solutions and enduring value to investors and partners 2
Slide 3: 1H2016 Highlights
1H2016 Highlights 3
Slide 4: 1H2016 Highlights
1H2016 HIGHLIGHTS Business expansion initiatives to drive future growth REITs: UNLOCKING VALUE WHILST SEEKING GROWTH AND DIVERSIFICATION Group Amfirst REIT completed the acquisition of the Mydin HyperMall for RM250 AUM of million and the divestment of AmBank Group Leadership Centre for RM36 millio
Slide 5: 1H2016 - Group AUM net of divestments
1H2016 - GROUP AUM NET OF DIVESTMENTS AUM of ~S$30 billion; achieved S$1 billion increase in gross AUM YTD GROUP AUM UNDER S$b MANAGEMENT 40.0 38.5 37.5 BY COUNTRY REITs - Real Estate 35.0 Private RE Funds - Real Estate 32.4 Private RE Funds - Capital 8% 28.8 3% 30.0 Real Estate Management Services
Slide 6: Diversified asset management platform
DIVERSIFIED ASSET MANAGEMENT PLATFORM Operational experience spanning the Asia Pacific Portfolio GFA Portfolio GFA 3.2% 5.8% 19.9% 22.1% 9.4% Singapore 32.5% Office 1H2016 China 1H2016 Approx. Approx. Retail Malaysia 49.8 m 49.8 m sq ft Hong Kong 15.1% sq ft Logistics 28.5% Australia Others 31.0% So
Slide 7: A resilient portfolio of funds & services
A RESILIENT PORTFOLIO OF FUNDS & SERVICES Nine REITs and 10 private real estate funds under management REITs ARA-NPS ARA-ShinYoung REITs REITs Listing Venue SGX-ST & SGX-ST HKEx Bursa SGX-ST HKEx Private REITs Private REITs HKEx Listing Year 2003 2004 2005 2006 2010 2011 2007; 2010(1) 2015; 2016 Foc
Slide 8: 1H2016 Results highlights
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Slide 9: 1H2016 Financial highlights
1H2016 FINANCIAL HIGHLIGHTS 10% growth in recurrent management fees; 7% growth in Adjusted Net Profit S$ '000 S$ '000 70,000 37,000 68,000 7% 10% 36,000 36,508 67,940 66,000 35,000 64,000 34,000 62,000 34,111 60,000 61,776 33,000 58,000 32,000 1H2015 1H2016 1H2015 1H2016 Recurrent Management Fees Ad
Slide 10: 1H2016 Financial highlights
1H2016 FINANCIAL HIGHLIGHTS 10% growth in recurrent management fees; 7% growth in Adjusted Net Profit Financial Highlights 1H2016 1H2015 Change Revenue Management fees(1) (S$’000) 67,940 61,776 10% Acquisition, divestment and performance fees(2) (S$’000) 2,318 7,529 -69% Finance income(3) (S$’000) 1
Slide 11: 1H2016 Financial highlights: Group balance sheet
1H2016 FINANCIAL HIGHLIGHTS Group balance sheet as at 30 June 2016 Group balance sheet as at 30 June 2016 S$’000 S$’000 Plant and equipment 2,590 Loan and borrowings 53,240 Intangible assets 1,218 Other payables 1,771 Associates and joint venture 15,406 Deferred tax liabilities 115 Financial assets
Slide 12: Sustained dividend policy
SUSTAINED DIVIDEND POLICY S cents 3.0 2.70 2.70 2.70 2.70 2.70 2.50 2.50 2.5 2.30 2.30 2.30 2.30 2.30 2.30 2.30 2.30 2.17 2.24 2.0 1.5 1.0 0.5 0.0 1H08 2H08 1H09 2H09 1H10 2H10 1H11 2H11 1H12 2H12 1H13 2H13 1H14 2H14 1H15 2H15 1H16 1-for-5 bonus issue 1-for-10 bonus issue 1-for-10 bonus issue 18-for
Slide 13: Trading performance
TRADING PERFORMANCE Outperformed broader market index since listing 300% ARA FSSTI Relative Price (1 Nov 2007 = 100%) 250% 200% 150% +82% 100% -24% 50% 0% Nov-07 Nov-08 Nov-09 Nov-10 Nov-11 Nov-12 Nov-13 Nov-14 Nov-15 • With its resilient business model, ARA continues to outperform the broader marke
Slide 14: Today: Regional network of strategic partnerships
TODAY Regional network of strategic partnerships and 1,207 employees across 18 cities 14
Slide 15: Established regional network
ESTABLISHED REGIONAL NETWORK Expanding regional footprint across Asia Pacific Strategic Partnerships The Cheung Straits Kong Trading Property Company Holdings Teachers Retirement CalPERS System of Texas New York State Common CWT Retirement Fund Am‐ Investmt Citic Bank Group Berhad NPS Anchor South I
Slide 16: Proven leadership
PROVEN LEADERSHIP Experienced team with a proven track record JOHN LIM GROUP CEO NG BENG TIONG MOSES K. SONG ASSISTANT GROUP CEO CUM CEO, ASSISTANT GROUP PRIVATE FUNDS CEO CUM GROUP CIO Private Funds Grp Investment REIT Division Division Real Estate Mgt Office Corporate JOHN LIM NG BENG TIONG CEO Se
Slide 17: Strategies
STRATEGIES Driving sustainable growth… 17
Slide 18: Driving sustainable growth
DRIVING SUSTAINABLE GROWTH Integrated business model REITs ARA Private Funds Country Desks Investment & Product Capital Asset Property Capital Development Raising Management Management Management Customised Strategic Investment, Asset Management In-house Property products to cater to partnerships po
Slide 19: Real estate investment trusts
REAL ESTATE INVESTMENT TRUSTS Strong Multi-product, Multi-jurisdiction REIT Platform • Track record of establishing, listing and managing listed REITs with 12% market share of the key Singapore and Hong Kong REIT markets REIT Development REIT Management Bespoke solutions Investment and Asset and Pro
Slide 20: ARA Private Funds
ARA PRIVATE FUNDS Expanding Suite of Private Real Estate Funds • Investor-cum-operator philosophy Capital Raising and Private Real Estate Funds Management Platform Development Strategic Extensive Industry Partnerships Relationships ARA Asia Dragon ARA Investment Investment and Asset and Property Fun
Slide 21: Country desks
COUNTRY DESKS Scaling the Business Model South China Country Desks Korea (China, Korea, Australia) Hong Kong Raising capital onshore Deploy capital for Singapore outbound Onshore Capital investments Deploy capital onshore Onshore Products Australia New Product Development Replicate ARA’s business mo
Slide 22: Strategic differentiator: Value-adding to our assets
Strategic Differentiator: Value-Adding to our Assets Asset Enhancement Capabilities of our Real Estate Management Services Division Over 22 million sq ft of AEI work completed successfully for our properties in different countries and asset classes Before AEI South Korea 1% Hong Kong Singapore 10% 1
Slide 23: Vision
VISION To be the premier real estate fund manager in Asia 23
Slide 24: Thank You
ARA Thank You
Slide 25: Disclaimer
DISCLAIMER These slides may contain forward-looking statements that involve risks and uncertainties. Actual future performance, outcomes and results may differ materially from those expressed in forward-looking statements as a result of a number of uncertainties, risks and assumptions. Representativ