Croesus Retail Trust posts 6.9% rise in Q4 DPU to 1.7 cents

View of Fuji Grand Natalie, a suburban mall in Japan's Hiroshima prefecture, and its' surrounding areas.
View of Fuji Grand Natalie, a suburban mall in Japan's Hiroshima prefecture, and its' surrounding areas. PHOTO: CROESUS RETAIL TRUST

SINGAPORE - Croesus Retail Trust (CRT) reported a 6.9 per cent rise in distribution per unit (DPU) to 1.7 Singapore cents for the fourth quarter to 1.7 Singapore cents as revenue rose on the back of contributions from newly-acquired malls and a tenant renewal exercise.

Net property income (NPI) climbed 19.4 cent to 1.44 billion yen for the three months to June 30.

But fair-value gains on investment properties fell 6.2 per cent to 5.6 billion yen while derivative financial instruments incurred a loss of 820.6 million yen compared to a gain of 233.7 million yen a year ago. This pushed net profit down 21.5 per cent to 5.9 billion yen.

Income available for distribution rose 21.9 per cent to 1.1 billion yen for the fourth quarter.

Said Jim Chang, CEO and executive director of the trust's manager: "Going forward, we believe we are in good stead to ride on Japan's negative interest rate environment... Amidst a challenging market environment, we remain committed in seeking new opportunities to grow our portfolio through accretive acquisitions as and when the right opportunity arises, while we continue to work on rejuvenating our existing properties such as Torius and Feeeal Asahikawa to maximise their income-producing potential."

CRT acquired four malls in FY2016, namely Torius, Fuji Grand Natalie, Mallaga Saga and Feeeal Asahikawa, bringing its total portfolio of assets to 11 with a combined valuation of approximately S$1.5 billion.

For the full year, NPI rose 16.4 per cent to 5.45 billion yen. Correspondingly, income available for distribution climbed 18.5 per cent to 3,98 billion yen. DPU for the year was 11.2 per cent higher at 7.06 cents.

CRT has already paid out an advanced DPU of 1.95 cents for the period of Jan 1, 2016, to April 4, 2016, in June. As such, for the period of April 4, 2016, to June 30, 2016, unitholders will receive a DPU of 1.61 cents on Sept 28.