Financial Performance Coursework Example
AmanahRaya Real Estate Investment Trust (AmanahRaya REIT), a real estate investment trust, is a solely owned subsidiary of Amanah Raya Berhad (ARB). The company was established in 2006 under the Trust Deed the same year between the manager (AmanahRaya-REIT Managers Sdn Bhd) and CIMB Islamic Trustee Berhad who was the trustee. AmanahRaya REIT is classified as a real estate investment fund, and it was among those listed in Bursa Malaysia Securities in 2007. By the end of 2016, the portfolio of the company included fifteen properties with its assets valued about RM1.040 billion.
Another company listed by Bursa Malaysia Securities in 2007 is AmFirst REIT. The company is also classified under a real estate investment fund and therefore, it directly competes with AmanahRaya REIT. The company was also established in 2006, and it is headquarters are located in Petaling Jaya, Malaysia. The projects of AmFirst REIT include Menara AmBank, Bangunan AmBank, and Menara AmFIRST among others.
Financial Performance of Amanahraya REIT and AmFirst REIT
The profitability ratio is the measure of the performance of a company. Profitability is basically the ability of a business to make earnings as compared to its expenses and extra costs that are incurred within a particular time of operation usually a period of one year. For most of the profitability ratios, having a greater value as related to that of a competitor or as compared to the same ratio from a preceding period designates that the company is performing well.
The common profitability ratios that are used to analyze the performance of a company include; operating margin, gross profit margin, the return on equity (ROE), return on assets (ROA), return on investments (ROI) and return on sales. Analyzing these profitability ratios provides information about the financial position, operation success, and the cash flow. The information on the reports e...
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