Real-estate fund manager ARA Asset Management announced that it has posted a net profit of $36.7 million for the financial year ended 31 Dec 2008 (FY2008), an 8% increase from the $34 million achieved in FY2007.

Total revenue for FY2008 rose 13% to $70 million from $62.1 million in FY2007, boosted by a 57% increase in recurrent management fee income from REITs and private funds to $64.5 million from $41.2 million previously. At the same time, the group also achieved a net margin of 52% for the year. As at Dec 31, 2008, the group’s total assets under management stood at $12.2 billion.

Despite the current challenging economic climate, the group says the REITS under its management continue to “achieve positive rental reversions and steady increases in net property income, which translates to higher recurrent REIT management fees”.

The group’s flagship private real estate fund, the ARA Asia Dragon Fund (ADF), had a very active year. In Dec 2008, the ADF completed the acquisition of the Nanjing International Finance Center, a prime landmark office-cum-retail building in the heart of Nanjing for RMB1.6 billion (about $350 million). As at December 2008, the ADF’s real estate investments have a gross valuation of approximately US$1.9 billion.

During the year, the group said it had strengthened its China network with the establishment of new offices in Tianjin and Nanjing in collaboration with the ADF’s joint-venture partners to add to the existing office in Beijing.

John Lim, group CEO of ARA, said, “Looking ahead, we remain optimistic on the long-term growth prospects for China and view the current market dislocations as an opportunity for well-capitalised vehicles such as the ADF to acquire assets at attractive valuations. As part of our expansion plans for China, we have significantly strengthened our network in the country and the Group now has offices in Beijing, Tianjin and Nanjing. We are well-positioned to leverage our growing investment platform and take advantage of opportunities that may arise to continue our growth.”

The board has proposed a final dividend of 2.24   cents per share for FY2008. Including the interim dividend of 2.17 cents per share which was paid out on Sept 2, 2008, the total dividend declared for FY2008 is 4.41 cents per share, representing a payout ratio of 70%.