Bookmark & Share
Croesus Retail Trust (CRT) saw its distribution per unit (DPU) for Q1 2016 ended 30 September 2015 increase 3.0 percent to 2.08 Singapore cents from 2.02 Singapore cents in the previous quarter.
On a yearly basis, CRT’s DPU held flat from the previous year, while gross revenue increased 17.2 percent to two billion yen (S$23 million), primarily due to the acquisition of One’s Mall 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 Q1 2015.
Savings in property operating expenses and contribution from One’s Mall helped CRT achieve a 10.7 percent year-on-year increase in net property income to 1.2 billion yen (S$14.2 million).
Meanwhile, income available for distribution climbed 16.1 percent from 791 million yen (S$9.1 million) in Q1 2015 to 919 million yen (S$10.6 million) in Q1 2016. The higher positive variance compared to net property income is mainly due to the decrease in income tax expense and realised foreign exchange gain.
CRT has re-committed to distribute 100 percent of its distributable income from 1 July 2015 to 30 June 2016, and at least 90 percent of its distributable income thereafter. The Trust will make distributions to unitholders on a semi-annual basis with the amount calculated as at 30 June and 31 December each year.
“Despite compressing yields driven by the increase in real estate prices nationwide in Japan, we believe that the increasingly competitive market continues to hold great potential for us,” said Jeremy Yong, co-founder and group managing director of Croesus Merchants International Pte. Ltd. (the sponsor of CRT) and director of Croesus Retail Asset Management Pte. Ltd.
“Our focus on suburban malls also bodes well for us as they serve the everyday needs of Japanese consumers, thereby providing some resilience amidst a challenging economic backdrop,” he added.
Nikki De Guzman, Editor at CommercialGuru, edited this story. To contact her about this or other stories email nikki@propertyguru.com.sg
Related Articles:
Parkway Life REIT posts 15% DPU rise