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Croesus Retail Trust has hedged 100 percent of the REIT’s distributable income for the period up to 31 December 2015 to insulate unitholders from possible losses arising from the volatile exchange rate between the Singapore Dollar and Japanese Yen.
“We have responded promptly to protect CRT and our investors from the unprecedented weakening of the Yen, which has declined about 9.3% in the past four months against the Singapore dollar,” said Jim Chang, CEO of Croesus Retail Asset Management.
“In the previous quarter, we had extended our hedges to cover at least 80 percent of our distributable income up to 31 December 2015. Today, we are increasing our hedges to cover approximately 100 percent of our distributable income to better manage the foreign exchange (forex) risks.”
Together with this move, CRT aims to deliver strong and sustainable returns to its shareholders with its resilient assets and positive rental reversions from its tenant replacement exercise at Mallage Shobu, he added.
Notably, CRT will distribute 100 percent of its distributable income up to 30 June 2015 and at least 90 percent thereafter. The distributable income it receives is denominated in Japanese Yen, but it is paid out to unitholders in Singapore Dollars semi-annually.
Looking ahead, the trust is well-positioned to sustain its performance for the first quarter of the 2015 financial year up to the next 12 months thanks to upcoming financial contributions from the recently acquired One’s Mall and the ongoing rental reversion exercise.
Muneerah Bee, Senior Journalist at PropertyGuru, edited this story. To contact her about this or other stories emailmuneerah@propertyguru.com.sg
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