Croesus Retail Trust Q1 DPU unchanged

SINGAPORE - Croesus Retail Trust announced a distribution per unit (DPU) of 2.08 Singapore cents for its first quarter ended Sept 30, unchanged from the same period a year ago.

Croesus enjoyed a 17.2 per cent rise in gross revenue to 2 billion yen (S$23 million), due mainly to the acquisition of One's Mall in Chiba, Japan, in October 2014 and the tenant renewal exercise at Mallage Shobu. However, the increase was partially offset by the absence of a one-off income at Mallage Shobu, which was recorded in the year-ago quarter.

The contribution from One's Mall and savings in property operating expenses saw net property income for the quarter rise 10.7 per cent to 1.23 billion yen. Income available for distribution rose a higher 16.1 per cent to 919 million yen, due mainly to realised foreign exchange gain and decrease in income tax expense.

Looking ahead, the trust said the competition for acquiring real estate assets in Japan has been keen in recent quarters, and is expected to remain firm in the near term.

Barring any unforeseen circumstances, its properties are expected to continue generating robust and stable cash flows in the next reporting period and in the next 12 months.

It added that the movement of the Japanese yen is expected to contribute to a further acceleration in Japanese real estate prices. As a result of growing property prices in FY2015, the aggregate value of Croesus seven retail properties in Japan increased 7.9 per cent as at the end of FY2015, when compared to the prior valuation, which was completed at the end of the previous financial year.

Croesus said it has re-committed to distribute 100 per cent of its distributable income from July 1, 2015, to June 30, 2016, and at least 90 per cent of its distributable income thereafter. It will make distribut79ions to unitholders on a semi-annual basis with the amount calculated as at June 30 and Dec 31.