Croesus Retail Trust posts 18.2% rise in Q4 DPU

Croesus Shinsaibashi in Osaka, one of the Japan-based retail business trust’s 11 malls in Japan.
Croesus Shinsaibashi in Osaka, one of the Japan-based retail business trust’s 11 malls in Japan. PHOTO: CROESUS RETAIL TRUST

SINGAPORE - Japan-focused Croesus Retail Trust (CRT) reported a 18.2 per cent rise in fourth-quarter distribution per unit (DPU) to 2.01 Singapore cents from 1.70 cents.

Private equity giant Blackstone Group has launched a buyout offer for CRT and intends to take it private.

For the three month to end June, CRT saw an 11.9 per cent increase in gross revenue to 2.99 billion yen, due mainly to the acquisition of Fuji Grand Natalie on April 18, 2016, and Mallage Saga and Feeeal Asahikawa on May 27, 2016. Revenue was also boosted by higher variable rent from better tenant sales in Mallage Shobu and a strong performance by the cinema in Torius.

CRT's net property income edged up 0.1 per cent to 1.44 billion yen as gross revenue increase was offset by higher expense ratios in newly acquired properties and the expenses from refurbishment works in Mallage Shobu.

For the full year, DPU came to 7.66 cents, 12.2 per cent higher than the restated DPU for the previous financial year of 6.83 cents.

DPU was restated for the fourth quarter and full-year of the last fiscal year to reflect the effect of an enlarged unit base after a preferential offering on Aug 25, 2016.

DPU of 4.06 cents will be distributed for the second half-year.