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Croesus Retail Trust (CRT) announced that it recorded a gross revenue of 1.99 billion yen (S$23.39 million) in the quarter ended 30 June (Q4 2015).
This is not only 25.5 percent higher than the 1.58 billion yen (S$18.64 million) seen in same period a year ago, but also eclipsed the 1.27 billion yen (S$14.90 million) projection by 57.0 percent.
The strong results is mainly attributed to the acquisition of One’s Mall in October 2014. Another key reason is the improved contribution from Mallage Shobu, following its tenant renewal exercise and asset enhancement initiative (AEI) that was completed in June 2015.
As for net property income (NPI), it rose by 18.2 percent to 1.21 billion yen (S$14.18 million) year-on-year and exceeded the 820.1 million yen (S$9.65 million) forecast by 47.0 percent.
The healthy NPI is credited to the additional contribution from One’s Mall, but was partially offset by higher expenses incurred for Mallage Shobu’s AEI, said CRT’s manager Croesus Retail Asset Management Pte Ltd.
Consequently, distributable income for Q4 2015 reached 876.7 million yen (S$10.31 million). This is not only a 23.9 percent jump from the 707.4 million yen (S$8.32 million) posted a year ago, but also surpassed the 640 million yen (S$7.53 million) projection by 37.0 percent. Distribution per unit (DPU) also edged up to 2.02 Singapore cents from 2.0 cents in Q4 2014.
“The higher positive variance compared to the growth in net property income is due mainly to foreign exchange gains and lower administrative expenses, though this was partially offset by higher finance costs pertaining to interest expenses arising from medium term notes issued in January 2014,” it explained.
The robust results propelled CRT’s gross revenue for the whole of FY2015 to 7.64 billion yen (S$89.82 million) from 5.48 billion yen (S$64.47 million) last year. NPI also surged to 4.68 billion yen (S$55.01 million) from 3.53 billion yen (S$41.48 million) previously.
As a result, DPU for the entire year increased to 8.08 Singapore cents versus 7.86 cents in FY2014.
“With a full-year DPU of 8.08 Singapore cents, we are able to derive an 8.6 percent full-year distribution yield, which is one of the highest amongst the property business trusts and real estate investment trusts listed on the Singapore Exchange (SGX),” said Jim Chang, the CEO and Executive Director of CRT’s manager.
Nikki De Guzman, Editor at CommercialGuru, edited this story. To contact her about this or other stories email nikki@propertyguru.com.sg
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