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RESULTS PRESENTATIONFOR THE FULL YEAR ENDED
31 DECEMBER 2009
AGENDA
1. Business Overview
2. Financial Results
3. Strategy
2
1. BUSINESS OVERVIEW
Business Segments
ARA ASSET MANAGEMENT LIMITED
REITs Private Funds Real Estate Management Services
Corporate FinanceAdvisory Services
BusinessSegments
Management Services Advisory Services
• Base Fees
• Performance / Variable Fees
• Portfolio Management Fees
• Performance Fees
• Property Management Fees
• Convention &
• Advisory FeesRevenueSources
• Acquisition / Divestment Fees
• Return on Seed Capital
Exhibition Service Fees
For the REITs we manage For the private real estateNotes: We earn management fees We earn advisory fees forFor the REITs we manage, we earn:
• base fees based on the value of the properties of the REITs;
For the private real estate funds we manage, we earn:
• portfolio management fees based on the committed capital, NAV or
f h f d
Notes: We earn management fees for the provision of:
• property management services;
i & hibi i
We earn advisory fees for corporate finance advisory services rendered to related corporations.
• performance / variable fees based on the net property income of the REITs; and
gross assets of the funds;
• a share of the returns of the funds at the end of the funds’ lives for performance beyond certain hurdle rates
• convention & exhibition services; and
• management services for the common property of real estate developments.
• acquisition / divestment fees based on the value of properties acquired / divested by the REITs.
yas performance fees; and
• returns on seed capital.
p
4
Funds & Services
Diversified & complementary fund platforms & services
Description SGX‐listed with Hong K t il t
SGX‐listed with Si t il d
HKSE‐listed with HK ffi d
Bursa‐listed with M’siani l t
REITs
Kong retail assets Singapore retail and office assets
office and industrial/office assets
commercial assets
Property Value(1) HK$11,500m S$5,185m HK$4,887m RM988m
Rentable Area 2.0m sf 3.1m sf 1.2m sf 2.3m sf
Private Funds
Description Flagship strategic and opportunistic private real estate
Single‐asset private real estate fund invested in the Suntec Singapore
Open‐ended private fund investing in REITs listed
ADF ARA Asia Dragon Fund
AAIF ARA Asian Asset Income Fund
ARA Harmony Fund
opportunistic private real estate fund investing in Singapore, Hong Kong, China, Malaysia and other emerging economies in Asia
invested in the Suntec Singapore International Convention &
Exhibition Centre
investing in REITs, listed infrastructure and utilities trusts in the Asia‐Pacific
region
Real Estate
Description Property managementservices provider
Operations, sales and marketing services provider for convention, exhibition, meeting and event facilities
Management Services
5FY09 Financial Results
Notes: (1) Property values as of last publicly‐announced valuation.
Management Team
Experienced team with a proven track recordGroup CEOJohn Lim
REITs
Private Funds
CORPORATE DIVISIONSBUSINESS UNITS
Finance & ComplianceCheryl Seow
Suntec REITYeo See Kiat
ARA Asia Dragon FundAnthony Ang / Ng Beng Tiong
CEO / Fund Director
ARA Strategic Capital
Cheryl SeowGroup Finance Director
Corporate OfficeNg Beng TiongDir, Corp Office
Yeo See KiatCEO
Fortune REITJustina Chiu
COOStephen Finch
CEO
ARA Harmony FundChow Chee PengFund Director China Desk
Corporate Business DevelopmentMoses SongDirector
AmFIRST REIT
Prosperity REITStephen Chu
CEO
ARA Silver Fund(1)
Justine WingroveCEO
Mun Hon PhengCountry Head
Group Risk Mgmt & Internal AuditTang Boon Kang
Manager
Lim Yoon PengCEO
Cache Logistics Trust(1)
Daniel CerfCEO
Real Estate Management Services Corporate Finance Advisory Services
Suntec SingaporePieter Idenburg
CEO
ARA FinancialLow Poh Choo
Director
Manager
Corporate Development & HRPauline LimManager
CEO
CEO
APM Property ManagementSusan Sim
CEO
DirectorOffice Administration
Serene YeoManager
Notes:(1) To be listed / established 6
Regional Presence
Operations in 8 cities across Asia
Beijing
Tianjin
• New office established in Dalian
Dalian
Tianjin
Nanjing• Continue to seek to
establish ARA’s network in selected cities in China
Guangzhou
Hong Kong• Staff strength of 806(1) as at
31 Jan 10
K l L
Singapore
Kuala Lumpur
Notes:(1) Inclusive of real estate
7FY09 Financial Results
– New Office(1) Inclusive of real estate management services business division and employees in joint‐venture entities of the Group and various funds under management
Total Assets Under Management
S$13.5 billion (US$9.6 billion) as at 31 Dec 09
12.1
13.5
12 0
14.0
16.0
REITs ‐ Real Estate Private Funds ‐ Real EstatePrivate Funds ‐ Capital Real Estate Management Services
5.76.5
9.9
6 0
8.0
10.0
12.0
(S$b)
0.6
3.5
5.7
2.0
4.0
6.0
0.0
31 Dec 03 31 Dec 04 31 Dec 05 31 Dec 06 31 Dec 07 31 Dec 08 31 Dec 09
Assets Under Management 31 Dec 09 31 Dec 08 Change (%)
REITs – Real Estate (billion) S$8 6 (US$6 1) S$8 2 (US$5 9) 5%REITs Real Estate (billion) S$8.6 (US$6.1) S$8.2 (US$5.9) 5%
Private Funds – Real Estate (billion) S$3.4 (US$2.4) S$2.7 (US$1.9) 26%
Private Funds – Capital (billion) S$1.1 (US$0.8) S$1.1 (US$0.8) (6%)
l S i (1) (billi ) S$0 3 ( S$0 2)
8FY09 Financial Results
Real Estate Management Services(1) (billion) S$0.3 (US$0.2) ‐ n.m.
Total AUM (billion) S$13.5 (US$9.6) S$12.1 (US$8.6) 11%Notes:(1) Real estate management services AUM : Revenue base for real estate management services fee computation
2. FINANCIAL RESULTS
Results In Brief
Consistently strong earningsFinancial Highlights FY09 FY08 Change (%)
Revenue
Management fees(1) (S$’000) 67,102 64,484 4%g ( $ ) , ,
Acquisition and performance fees(2) (S$’000) 7,494 1,148 553%
Other income(3) (S$’000) 11,683 4,407 165%
Total Revenue (S$’000) 86,279 70,039 23%
EBIT (S$’000) 54,509 40,326 35%
N P fi (S$’000) 48 339 36 729 32%Net Profit (S$’000) 48,339 36,729 32%
Financial Measures
EPS(4) (S cents) 8.30 6.31 32%
Net Margin (%) 56% 52% 4% pts
Notes:
10FY09 Financial Results
(1) Recurrent REIT and private fund management fees , and real estate management services fees(2) REIT acquisition fees and private fund arrangement and performance fees(3) Comprises mainly distribution income from financial assets and gain on disposal of held‐for‐trading
securities received as part payment of REIT management fees(4) Based on 582,060,000 shares in issue as at 31 Dec 09 and 31 Dec 08
Dividend & Bonus Issue
Proposed final cash dividend of 2.50 Singapore cents per share & 1-for-5 bonus issue
Proposed final cash dividend
1H09 interim dividend (S cents) 2.30 Paid on 3 Sep 09
FY09 final dividend (S cents) 2.50 Subject to shareholders’ approval
Total FY2009 cash dividend (S cents) 4.80
Proposed bonus issue
Bonus shares (1) 1‐for‐5 Subject to SGX‐ST & shareholders’ approval
Timeline
Shareholders’ approval 26 Apr 10 AGM/ SGM
Ex date 29 Apr 10 Bonus Issue ex‐date tba
Payment date for final cash dividend 18 May 09
11FY09 Financial Results
Notes:(1) S$232,824 standing to the credit of the Company’s reserves will be applied towards paying up in full for the 116,412,000 bonus shares to be issued
Revenue By Segments
Stable and diversified income base
FY08 Total Revenue (S$m, % of total)Total: S$70.0m
FY09 Total Revenue: (S$m, % of total)Total: S$86.3m (+23%)
1.12%
4.46%
7.5
11.713%
40.558%
24.034%
40.447%
1.21%
9%
58%
25.530%
REIT management fees Private fund management fees
Real estate management services Acquisition & performance fees
12FY09 Financial Results
Real estate management services Acquisition & performance fees
Other income
Balance Sheet
$ $
Sound balance sheetGroup balance sheet as at 31 Dec 09 S$’000 S$’000
Non‐current assets Non‐current liabilitiesPlant and equipment 1,095 Financial liabilities 18,515Tenancy deposits 625 Deferred tax liabilities 54y pAssociates 551Financial assets 92,432Goodwill 1,450
96 153 18 56996,153 18,569Current assets Current liabilitiesFinancial assets 4,174 Trade and other payables 17,760Derivative assets 147 Financial liabilities 38Trade and other receivables 22,451 Current tax payable 5,050Cash and cash equivalents 46,148
72,920 22,848
Total liabilities 41,417
Shareholders’ equity 127,656
13FY09 Financial Results
Total assets 169,073 Total liabilities & Shareholders’ equity 169,073
3. STRATEGY
Cache Logistics Trust (“CLT”)
Asia Pacific-focused logistics REIT jointly managed by ARA and CWT Limited
Overview of CLT
• Partner CWT Limited is a leading logistics operator listed in Singapore with global operationsg p g p
• REIT Manager, ARA‐CWT Trust Management (Cache) Limited, 60% owned by ARA and 40% owned by CWT
• Property Manager, Cache Property Management Pte. CWT Commodity Hub CWT Cold Hub
Ltd., 40% owned by ARA and 60% owned by CWT
• Initial portfolio comprises 6 high‐quality logistics properties in Singapore valued at S$730 million
• S i ith l t l l ti th h• Secure income with annual rental escalation through master lease arrangements for all the properties
Timeline
Schenker Megahub Hi‐Speed Logistics Centre
Timeline
• Letter of Eligibility‐to‐List received on 5 Feb 10
• Target for listing by 1H10
15FY09 Financial Results
C&P Changi Districentre C&P Changi DC II
Strategy
Seeking to become the premier real estate fund manager in Asia
Strong foundation
• Sound balance sheet – Ample cash reserves with limited borrowings
• Consistent earnings – Strong recurrent management fee income from REITs, private funds and real estate management services
• Experienced management – Experienced management team with a proven track record
• Critical mass – One of the largest real estate fund managers in Asia with AUM of over S$13b and well‐established operations in Singapore, Hong Kong, China and Malaysia
Sustaining our growth
• P i t f d ADF t k t l t b lk f i i it l it t b d f 2010 S k t• Private funds – ADF on track to place out bulk of remaining capital commitments by end of 2010. Seek to launch ADF II and new private funds, market conditions permitting
• REITs – Pursue growth in existing REITs under management and seek strategic partners to jointly establish and manage REITs in new sectors and/or marketsg /
• Real estate management services – Establishment of real estate management services (“REMS”) business division marks transformation to fully‐integrated real estate fund management platform. REMS division to leverage on REITs and private funds under management to drive growth
16FY09 Financial Results
DisclaimerThese slides may contain forward-looking statements that involve risks and uncertainties. Actual future performance, outcomes and results maydiffer 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 governmentpolicies, and the continued availability of financing in the amounts and terms necessary to support future business. You are cautioned not toplace 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 tothe inclusion of the information.
Contact
Cheryl SeowGroup Finance Directorcherylseow@ara.com.hk
Vincent YeoFinance Managervincentyeo@ara.com.hk
Singapore Office:6 Temasek BoulevardSuntec Tower Four, #16-02Singapore 038986Singapore 038986
Tel: (65) 6835 9232Fax: (65) 6835 9672
Website: http://www.ara-asia.com