Friday, January 6, 2012

LOFTY GOALS….. ARA Asset Management does have lofty goals.

An analyst report dated Jan 5 from IIFL this morning said ARA plans to increase its Assets Under Management (AUM) by S$2bn/annum, similar to the average annual growth achieved over 2004-10.

Another big ambition: The listing a new US$1bn REIT in 2012.

DBS Vickers recently described ARA as "Asia’s finest asset manager with a high cashflow generating business model and little earnings downside."

The Group also plans to list more RMB-denominated REITs in Hong Kong over the next 2-3 years.

There is yet more: ARA plans to drive its medium-term growth by raising and deploying the US$1bn of committed capital for ARA’s Asia Dragon Fund 2 private fund and organic growth of AUM for currently listed REITs.

IIFL expects annual AUM growth of S$1.6bn for ARA over 2011-13.

IIFL has a target price of $1.67 for the stock, representing an upside of 34% from the recent $1.25. Not as exciting is the forecast dividend yield for FY11 and FY12 of 4% and 4.2%, respectively.

http://www.nextinsight.net/index.php/story-archive-mainmenu-60/916-2012/4773-aras-lofty-goals-in-2012-and-beyond-china-2012-forecast

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