RESULTS FOR THE QUARTER ENDED 30 SEPTEMBER 2011
1. BUSINESS OVERVIEW
BUSINESS SEGMENTS ARA ASSET MANAGEMENT LIMITED Business Segments REITs Private Real Estate Funds Real Estate Management Services Corporate Finance Advisory Services Revenue Recurrent (Primary Basis) Base Fees (Gross Property Value) Portfolio Management Fees (Committed Capital / Gross Property Value) Property Management Fees (Property Gross Revenue) Performance / Variable Fees (Net Property Income) 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 Vl Value) Advisory Fees (Purchase Vl Value) Return on Seed Capital 3
FUNDS & SERVICES Diversified & complementary fund platforms & services REITs Listing Venue SGX ST & SEHK SGX ST SEHK Bursa SGX ST SEHK Focus Suburban retail properties in Prime office & retail properties in Office & industrial/ office properties in Commercial properties in Logistics properties in the Asia Pacific Commercial properties in the PRC Hong Kong Singapore Hong Kong Malaysia region Property Value (1) HK$15,688m S$7,229m HK$6,643m RM1,024m S$820m RMB31,410m Private Real ADF ARA Harmony Fund Estate Funds Description ARA Asia Dragon Fund Flagship 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 Strategic alliance with Australian specialist real estate investment manager, APN Property Group (2) for private funds investing primarily in Australian real estate Fund Size US$1.1b (Committed Capital) S$400m (Gross Asset Value) Real Estate Management Services Description Property management services provider Operations, sales and marketing services provider & consultant for convention, exhibition, meeting and event facilities Notes: (1) Property values as of last publicly announced valuation (2) ARA currently holds a 14.1% interest in APN Property Group 4
ASSETS UNDER MANAGEMENT S$19.3 billion (US$14.9 billion) as at 30 Sep 2011 20.0 19.3 20.0 18.0 16.0 14.0 12.0 REITs Real Estate Private RE Funds Real Estate Private RE Funds Capital Real Estate Management Services 11.8 13.1 17.0 18.0 16.0 14.0 12.0 (S$b) 10.0 9.6 10.0 8.0 6.0 5.5 6.3 8.0 6.0 4.0 3.5 4.0 2.0 0.0 0.6 2.0 0.0 31 Dec 03 31 Dec 04 31 Dec 05 31 Dec 06 31 Dec 07 31 Dec 08 31 Dec 09 31 Dec 10 30 Sep 11 Assets Under Management (1) (S$ billion) 30 Sep 2011 31 Dec 2010 Change REITs Real Estate (2) 14.1 11.4 2.7 Private Real Estate Funds Real Estate 4.6 4.9 0.4 Private Real Estate Funds Capital (3) 0.3 0.3 Real Estate Management Services (4) 0.3 0.3 Notes: (1) Based on exchange rates as at 30 Sep 2011 (2) Comprises gross property value of REITs managed by subsidiaries & associated companies (3) Excludes capital committed forprojects pending completion (4) Revenue base for real estate management services fee computation Total 19.3 17.0 2.3 5
REVENUE & NET PROFIT HISTORY Strong track record of profitability and growth Revenue Net Profit S$m Recurrent management fees S$m Net Profit 120 Acquisition & performance fees Other income 112.5 70 100 96.2 60 86.3 50 80 70.00 62.1 40 60 30 34.0 36.7 48.3 63.8 54.9 40 27.6 31.3 20 13.4 13.5 20 10 0 FY2005 FY2006 FY2007 FY2008 FY2009 FY2010 YTD 3Q2011 0 FY2005 FY2006 FY2007 FY2008 FY2009 FY2010 YTD 3Q2011 6
DIVIDEND HISTORY Consistent and growing dividend payout Dividend Per Share Dividends Paid S cents 3.0 2.50 2.50 2.5 2.17 2.24 2.30 2.30 2.30 20 2.0 1.5 1.0 0.5 0.0 1H2008 2H2008 1H2009 2H2009 1H2010 2H2010 1H2011 S$m 20.0 18.0 16.0 14.0 12.0 10.0 8.0 6.0 4.0 2.0 0.0 17.5 17.7 16.1 14.6 12.6 13.0 13.4 1H2008 2H2008 1H2009 2H2009 1H2010 2H2010 1H2011 1 for 5 bonus issue 1 for 10 bonus issue 7
REGIONAL PRESENCE Established regional network Beijing Dalian Tianjin Nanjing Shanghai Guangzhou Hong Kong Established regional network spanning 11 cities in the Asia Pacific, including 6 cities in the PRC Mainland Kuala Lumpur Malacca Singapore Melbourne 8
MANAGEMENT TEAM Experienced team with a proven track record BUSINESS UNITS Group John Lim CORPORATE DIVISIONS REITs Private Real Estate Funds Finance & Compliance Cheryl Seow Group Finance Director Suntec REIT Yeo See Kiat Private Funds Group / ADF I Ng Beng Tiong Corporate Office Ng Beng Tiong Director Fortune REIT Anthony Ang ARA Harmony Fund Justine Wingrove Corporate Business Development Moses Song Director Prosperity REIT Mavis Wong Acting Real Estate Management Services China Desk Mun Hon Pheng Country Head Cache Logistics Trust Daniel Cerf APM Property Management Susan Sim Australia Desk Moses Song Country Head Hui Xian REIT Stephen Chu Suntec Singapore Pieter Idenburg Group Risk Mgmt & Internal Audit Tang Boon Kang Manager AmFIRST REIT Lim Yoon Peng Corporate Finance Advisory Services Corporate Development & HR Pauline Lim Manager ARA Financial Low Poh Choo Director Office Administration Serene Yeo Manager 9
AWARDS & ACCOLADES Sterling recognition of ARA s commitment to excellence & corporate governance ARA is one of the six Singapore s companies to be selected as Asia s 200 Best Under A Billion by Forbes Asia in September 2011. Based on the 2010 list of eight Singapore companies selected, ARA is the only one to retain its spot this year. ARA has recently been recognized as a Business Superbrands in Singapore, a strong testament to ARA s excellent branding and recognition locally and abroad. ARA was awarded the inaugural Internal Audit Excellence Award (Merit, Overall Category) at the Investors Choice Awards 2011, organized by the Securities Investors Association of Singapore (SIAS). 10
2. FINANCIAL RESULTS
FINANCIAL HIGHLIGHTS YTD 3Q2011 net profit surged 44% to S$54.9m Financial Highlights YTD 3Q2011 YTD 3Q2010 Change (%) Revenue Management fees (1) (S$ 000) ($ 67,799 62,443 9% Acquisition and performance fees (2) (S$ 000) 20,368 1,094 n.m. Other income (3) (S$ 000) 7,996 7,287 10% Total Revenue (S$ 000) 96,163 70,824 36% Operating Profit (Pre Tax) (S$ 000) 59,317 43,442 37% Share of Profit of Associates (S$ 000) 1,811 330 449% Net Profit (S$ 000) 54,936 38,059 44% EPS (4) (S cents) 7.15 4.95 44% AUM (S$ billion) 19.3 14.7 31% n.m. not meaningful Notes: (1) Recurrent management fees from REITs, private real estate funds and real estate management services (2) Primarily REIT acquisition fees and private real estate fund arrangement/performance fees (3) Comprises mainly distribution income from financial assets (4) Based on 768,319,189 shares in issue following the 1 for 10 bonus issue in June 2011 12
REVENUE BREAKDOWN Strong revenue growth, even stronger excluding translation impact of SGD reporting S$m 120 100 80 60 40 20 0 REIT mgmt fees RE mgmt services fees Other income 70.8 7.3 1.1 9.9 19.3 33.2 + 36% yearon year Revenue 96.2 8.0 20.4 9.3 17.3 Private RE fund mgmt fees Acquisition & performance fees + 40% excluding translation impact of SGD reporting 99.2 8.0 20.4 9.3 19.0 41.2 42.5 YTD 3Q2010 YTD 3Q2011 YTD3Q2011(A) REIT management fees increased 24% to S$41.2m, boosted by Suntec REIT s Marina Bay Financial Centre acquisition and Cache Logistics Trust Private RE fund management fees fell 11% to S$17.3m due to translation impact of weaker USD. Absent this impact, private RE fund management fees would have been relatively constant RE management fees fell marginally by 6% to S$9.3m due to lower leasing commissions received by APM Acquisition & performance fees received in YTD 3Q2011 relate to performance fees from ARA Harmony Fund and acquisition fees from Suntec REIT and Cache Logistics Trust Other income increased 10% to S$8.0m primarily due to higher distribution income received 13
BALANCE SHEET Robust balance sheet Group balance sheet as at 30 Sep 2011 S$ 000 S$ 000 Non current assets Non current liabilities Plant and equipment 1,477 Financial liabilities 298 Tenancy deposits 498 Deferred tax liabilities 142 Associates 2,878 Financial assets 96,285 Intangible asset 145 101,283 440 Current assets Current liabilities Financial assets 18,223 Trade and other payables 21,874 Trade and other receivables 27,270 Financial liabilities 120 Cash and cash equivalents 57,089 Current tax payable 5,294 Derivative liabilities 869 102,582 28,157 Total liabilities 28,597 Shareholders equity 175,268 Total assets 203,865 Total liabilities & Shareholders equity 203,865 14
3. STRATEGY
STRATEGY Poised for the next phase of growth REITs Work with various partners to launch new REITs in new sectors and geographies Existing REITs to continue to focus on asset enhancements and acquisitions Private Real Estate Funds Place out remaining committed capital of ADF I Secured US$300m of capital commitments for ADF II Real Estate Management Services Support REITs and private real estate funds and increase properties under management Leverage on the Suntec brand to expand geographical reach ofconvention services 16
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 Group Finance Director cherylseow@ara.com.hk Global l Headquarters: 6 Temasek Boulevard Suntec Tower Four, #16 02 Singapore 038986 Tel: (65) 6835 9232 Fax: (65) 6835 9672 Website: www.ara asia.com