ARA ASSET MANAGEMENT LIMITED RESULTS FOR THE QUARTER ENDED 30 SEPTEMBER 2013

Transcription

1 ARA ASSET MANAGEMENT LIMITED 亚腾资产管理有限公司 RESULTS FOR THE QUARTER ENDED 30 SEPTEMBER 2013

2 1. YTD 3Q2013 Highlights 2

3 YTD 3Q2013 BUSINESS HIGHLIGHTS Building on established platforms, reaching for new heights Assets under Management as at 30September 2013 S$ 23.4 billion S$ 1.5 billion year on year 7.0% year on year Achieved on the back of : Improved asset performance driven by asset enhancement initiatives resulting in higher property valuations of the REIT portfolios under management Acquisitions by REITs under management Deployment of committed capital of ARA Asia Dragon Fund II Inclusion of additional committed capital for ARA China Investment Partners Higher valuation of the property in the ARA Harmony Fund following its asset enhancement works 3

4 ASSETS UNDER MANAGEMENT S$23.4 billion as at 30 September 2013 S$b REITs Real Estate Private RE Funds Real Estate Private RE Funds Capital Real Estate Management Services S$b Dec Dec Dec Dec Dec Dec Dec Dec Dec Dec Sep Assets Under Management (1) (S$ billion) 31 Dec Sep 2013 Change REITs Real Estate (2) % Private Real Estate Funds Real Estate % Private Real Estate Funds Capital (3) (16.4%) Real Estate Management Services (4) Notes: (1) Based on exchange rates as at 30 September 2013 (2) Comprises gross property value of REITs managed by subsidiaries & associated companies (3) Excludes capital committed for projects pending completion (4) Revenue base for real estate management services fee computation Total % 4

5 YTD 3Q2013 BUSINESS HIGHLIGHTS Forging partnerships Positioned for accelerated growth Strategic alliance with The Straits Trading CompanyLimited Start of an expanded long term partnership between The Straits Trading Company Limited i, Cheung Kong (Holdings) Limited i and Mr. John Lim Strengthened Sponsorship Expanded business network to bolster deal sourcing and origination capabilities AUM Growth S$100 million seed capital for new development fund S$830 million real estate portfolio to be managed on a separate account basis Capital Support Co investment vehicle expected to support up to S$10 billion of new ARA private funds over time 5

6 2. Financials and Track Record 6

7 YTD 3Q2013 FINANCIAL HIGHLIGHTS Good set of results with growing quality of earnings Financial Highlights YTD 3Q2013 YTD 3Q2012 Recurrent Management Fees (S$ 000) 84,030 74,059 13% Net Profit (1) (S$ 000) 56,811 47,338 20% (Exc. Unrealized M T M gains/losses) Recurrent Net Profit (2) (S$ 000) 43,202 37,295 16% Strong quality of earnings achieved on the back of: Higher REIT management fees Higher portfolio management fees from Private Funds division due to contributions from the ARA Asia Dragon Fund II and ARA China Investment Partners Higher real estate management fees from increased leasing activities for retail space in the newly revamped Suntec City (1) M-T-M refers to Marked-to-Market, adjusted for the effects of tax (2) Recurrent Net Profit refers to Net Profit excluding acquisition, divestment and performance fees, finance income and finance costs, adjusted for the effects of tax 7

8 FINANCIAL PERFORMANCE Solid business model delivers growing financial performance Revenue YTD 3Q2013 YTD 3Q2012 Change (%) Management fees (1) (S$ 000) 84,030 74,059 13% Acquisition, divestment and performance fees (2) (S$ 000) 2,910 6,709 (57%) Finance income (3) (S$ 000) 9,617 15,136 (36%) Other income (S$ 000) (89%) Total Revenue (S$ 000) 96,628 96,570 0% Operating Profit (Pre Tax) (S$ 000) 59,255 62,276 (5%) Share of Profit of Associates (S$ 000) 3,007 3,265 (8%) NtP Net Profit (S$ 000) 52,120 55,018 (5%) Net Profit (Excluding unrealised M T M gains/losses) (4) (S$ 000) 56,811 47,338 20% Recurrent Net Profit (5) (S$ 000) 43,202 37,295 16% AUM (S$ billion) % Notes: (1) Recurrent management fees from REITs, private real estate funds and real estate management services (2) Primarily REIT acquisition/divestment fees and project management and consultancy fees (3) Comprises mainly distribution income from financial assets and net gains on fair valuation/disposal of REIT units (4) M T M refers to Marked to Market, adjusted for the effects of tax (5) Recurrent Net Profit refers to Net Profit excluding acquisition, divestment and performance fees and finance income, adjusted for the effects of tax 8

9 BALANCE SHEET Asset light business model with robust balance sheet Group Balance Sheet as at 30 September 2013 S$ 000 S$ 000 Non current assets Non current liabilities Plant and equipment 1,464 Financial liabilities 153 Tenancy deposits 1,023 Deferred tax liabilities 81 Associates 3,612 Financial assets 196, , Current assets Current liabilities Financial i assets 32,867 Trade and other payables 20,786 Trade and other receivables 38,384 Financial liabilities 22,671 Cash and cash equivalents 40,126 Current tax payable 8, ,377 52,283 Total liabilities 52,517 Shareholders equity 261,841 Total assets 314,358 Total liabilities & shareholders equity 314,358 9

10 REVENUE AND NET PROFIT TRACK RECORD Strong track record of revenue and net profit growth S$m Recurrent management fees Acquisition & performance fees Other income S$m Net Profit FY2005 FY2006 FY2007 FY2008 FY2009 FY2010 FY2011 FY2012 FY2005 FY2006 FY2007 FY2008 FY2009 FY2010 FY2011 FY

11 DIVIDENDS Rewarding shareholders S cents H08 2H08 1H09 2H09 1H10 2H10 1H11 2H11 1H12 2H12 1H13 Sustainable dividend policy 5.0 Singapore Cents per share annually, barring any unforeseen circumstances Interim dividend 2.3 Singapore Cents per share Final dividend 2.7 Singapore Cents per share 11

12 DIVIDENDS Growing total dividends over time S$m FY2008 FY2009 FY2010 FY2011 FY2012 Dividend growth over time 1 for 5 bonus issue 1 for 10 bonus issue 1 for 10 bonus issue Issued bonus shares while maintaining the constant dividend of 5.0 Singapore Cents per share Record total dividends paid for FY2012 of S$40.5 million 12

13 3. Business model 13

14 FUNDS & SERVICES Diversified funds management platforms and complementary real estate management age e services REITs Listing Venue SGX ST & SEHK SGX ST SEHK Bursa SGX ST SEHK Listing Year Focus Suburban retail properties in Hong Kong Prime office & retail properties in Singapore Office & industrial/ office properties in Hong Kong Commercial properties in Malaysia Logistics properties in the Asia Pacific region Commercial properties in the PRC Property Value (1) HK$22,188m S$7,936m HK$8,434m RM1,277m S$1,028m RMB 36,738m Private Real Estate Funds ADF ARA Asia Dragon Fund ADF II ARA Asia Dragon Fund II ARA Harmony Fund CIP ARA China Investment Partners Description Flagship strategic and opportunistic private real estate fund investing in Singapore, Hong Kong, China, Malaysia and other emerging economies in Asia 2nd strategic and opportunistic private real estate fund investing in Singapore, Hong Kong, China, Malaysia and other emerging economies in Asia Single asset private real estate fund which owns the Suntec Singapore Int l Convention & Exhibition Centre Core plus private real estate fund investing in high quality office and commercial properties in key cities in China, including Hong Kong Strategic alliance with Australian specialist real estate investment manager, APN Property Group (3) for private funds investing primarily in Australian real estate Fund Size US$1.1b (Committed Capital) US$441m (Committed Capital) S$630m (Gross Asset Value) US$830m (2) (Committed Capital) Real Estate Mgmt Svcs Description Property management Operations, sales and marketing services provider & consultant for services provider convention, exhibition, meeting and event facilities (1) Property values as of last publicly announced valuation (2) Including additional capital commitments of US$330 million in July 2013 (3) ARA currently holds a 14% interest in APN Property Group 14

15 BUSINESS SEGMENTS Delivering value to shareholders ARA ASSET MANAGEMENT LIMITED Business Private Real Estate REITs Real Estate Segments Corporate Finance Funds Management Services Advisory Services Revenue Recurrent (Primary Basis) Base Fees (Gross Property Value) Portfolio Management Fees (Committed Capital / Gross Property Value) Performance / Variable Fees (Net Property Income) Property Management Fees (Property Gross Revenue) Convention & Exhibition Service Fees (Gross Revenue) Revenue One off (Primary Basis) Acquisition / Divestment Fees (Gross Property Value) Performance Fees (IRR above Hurdle) Consultancy Fees (Project Value) Advisory Fees (Purchase Value) Return on SeedCapital 15

16 3. Strategy 16

17 ARA GROUP INVESTMENT OFFICE Driving the Group s expansion Capital Raising Deal Sourcing & Origination ARA Group Investment Office Product Development 17

18 2013 STRATEGY IMPLEMENTATION Poised for the next phase of growth Investor Driven Build Relationships Develop Products Build Teams and Expertise Joint Ventures / Alliances New Markets New Capital Operating Pan Asia Sources Partners Capabilities Same Focus Mergers & (Fund Acquisitions Management) 18

19 Established regional network Expanding regional footprint across Asia Beijing Shenyang Dalian Nanjing Shanghai Guangzhou Hong Kong Kuala Lumpur Ipoh Klang Singapore Malacca Established regional network spanning 13 cities in the Asia Pacific, including 6 cities in the China Mainland Network extends across Singapore, Hong Kong, China, Malaysia and Australia Staff strength of approximately 1,097 (1) as at 30 September 2013 Melbourne Notes: (1) Inclusive of real estate management services business division and employees in joint venture entities of the Group and various funds under management 19

20 MANAGEMENT TEAM Experienced team with a proven track record Group John Lim Public Market John Lim Private Market Ng Beng Tiong Property Management Services CIO Moses Song Corporate Divisions Suntec REIT Yeo See Kiat ADF I Ng Beng Tiong APM Singapore Anthony Yip Deputy Chairman ARA Financial Low Poh Choo Senior Director Finance & Compliance Cheryl Seow SeniorDirector Director, Group Finance Fortune REIT Anthony Ang ADF II Paul Yi APM China Mun Hon Pheng, China Group Business Dev Private & Public Mkt Mark Chu Director Corporate Office Ng Beng Tiong Director Prosperity REIT Mavis Wong ARA Harmony Fund Siew Siew Hoon Fund Director APM Malaysia Chan Lai Hing General Manager China Desk Mun Hon Pheng Head Group Risk Mgmt & IA Tang Boon Kang Senior Manager Cache Logistics Trust Daniel Cerf CIP Derek Lai Senior Portfolio Manager Suntec Singapore Arun Madhok Australia Desk Low Poh Choo Head Group HR & Corp Dev Pauline Lim Senior Manager AmFIRST REIT Zuhairy bin Md. Isa Acting China RMB Funds Mark Chu Director Suntec International Arun Madhok Japan / Korea / India / GCC Desk Group Office Admin Serene Yeo Senior Manager Hui Xian REIT Tom Cheung 20

21 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. Representative examples of these factors include but are not limited to general market and economic conditions, interest rate trends, competition from other real estate investors, changes in operating expenses including employee wages and benefits, changes in government policies, and the continued availability of financing in the amounts and terms necessary to support future business. You are cautioned not to place undue reliance on the forward looking statements in these slides, which are based on the current view of management on future events. Information from external sources in these slides has not been independently verified by us nor have the external sources quoted consented to the inclusion of the information. Contact Cheryl Seow Senior Director, Group Finance cherylseow@ara.com.hk Global Headquarters: 6 Temasek Boulevard Suntec Tower Four, #16 02 Singapore Tel: (65) Fax: (65) Website: asia.com 21