ARA Posts Solid 33% Jump In 4Q12 Net Profit
ARA Asset Management (ARA) 4Q12 net profit came in 33 percent higher at $17.7 million on 25 February 2013. The year-on-year growth in net profit was driven by a 39 percent jump in revenue to $36.9 million for the quarter ended 31 December 2012. The group’s management fees, which form the bulk of the revenue, grew 24 percent to $28.6 million, primarily due to higher valuation of the property portfolios held by the real estate investment trusts under management and higher portfolio management fees from its private real estate funds. In the same announcement, the board proposed a 1-for-10 bonus share issue, as well as a final cash dividend of $0.027 per share. Including the interim cash dividend of $0.023 per share, total cash dividend for the year came up to $0.05 per share, the same a year ago. But since the bonus shares, if approved, will qualify for the final cash dividend, the total proposed dividend for FY12 represents a 5% increase from the total dividend paid in FY11.
Significance: To drive the group’s expansion, ARA is forming a group investment office that will focus on growing the fund aspect of the business. This investment office will be helmed by Moses Song, who was appointed ARA’s chief investment officer in January 2013 and it will be tasked with building relationships and raising money.
GIC Sold A Quarter Of Its Stake In GLP To Rebalance Portfolio
The Government of Singapore Investment Corporation (GIC) offloaded about a quarter of its stake in high-end warehouse developer Global Logistic Properties (GLP) to raise about US$1.25 billion, according to Reuters. GIC said the sale was part of its portfolio rebalancing and that it remains a substantial long-term investor. GIC sold the shares at $2.60 apiece or a 5.5 percent discount based on GLP’s closing price of $2.75 on 25 February 2013, according to a term sheet, which was at the bottom of a $2.60 to $2.66 per share indicative range. JP Morgan is the global sole bookrunner for the deal, and markets sources note that they must have had strong confidence to be willing to take on such a large deal on its own. The sale means that GIC’s stake in GLP will fall to about 36 percent from 49 percent.
Significance: The large sell-down has caused a stir in GLP’s stock price but since GIC is not selling out completely and as a major shareholder would continue to be a key stakeholder in GLP, the impact could be temporary. As at 12pm today, the stock price has decreased $0.19 or approximately 6.9 percent to $2.56.
AsiaMedic Reverses Losses To Post $81k Net Profit
AsiaMedic posted a net profit of $81,000 for FY12 ended 31 December 2012, rebounding from a loss of $806,000 for the corresponding period a year ago. This was contributed mainly through a 13 percent increase in revenue to $11.9 million from 2011’s $10.6 million, which was primarily driven by growth in AsiaMedic’s core business of diagnostic imaging and wellness management. AsiaMedic’s balance sheet remains healthy, with cash generated from operating activities doubling from 2011 to $1.6 million as of 31 December 2012. Cash and cash equivalent balances increased to $9.2 million from end-2011’s $7.9 million. Chief executive officer Wong Weng Hong said: “Despite the completion of consultancy and management projects in Abu Dhabi in January 2012, AsiaMedic was able to deliver a much improved set of results for FY12. This is attributable to the group’s ability to strengthen its core business and diligent cost control. Our business teams have achieved success in their marketing initiatives, leading to greater number of patients across our business units.”
Significance: For the current year AsiaMedic will see developments in the expansion of its flagship centre in Shaw House and the provision of new services in Singapore and in the region. It is cautiously optimistic about its prospects this year and will maintain its strategy of exploring ventures that match the group’s expertise in advanced imaging and providing healthcare services to discerning patients.