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Croesus Retail Trust Beats DPU Forecast For 1Q 2014
Corporate Digest | 14 November 2013

This article is written by REITSWeek, a subscription-only journal on REITs and Listed Real Estate Securities delivered weekly to institutional and individual investors, and has been republished with permission on Shares Investment.

Singapore’s first Japan-focused retail business trust, Croesus Retail Trust (CRT) (SGX: S6NU) has beaten forecasts for (net profit income) NPI and distributable income for its 1Q14. The trust, which listed last May on the Singapore Exchange, reported income available for distribution and net property income figures that exceeded original forecasts by 8.3 percent and 3.1 percent respectively.

In addition, CRT’s distribution per unit (DPU) stands at 3.26 cents for the period from 10 May 2013 to 30 September 2013. This is an increase of 4.6 percent over the forecasted DPU of 3.11 cents.

Gross revenue for the period under review met expectations, recording JPY1,998 million or 0.4 percent higher than the forecast. This increase was despite the impact of Typhoon Man-Yi that hit Japan in September, as well as a colder July season resulting in lower sales of summer season products.

CRT has attributed the higher-than-expected net property income of JPY1,269 million to lower property expenses which came in 4 percent below forecast. Income available for distribution of JPY1,139 million came about higher-than-expected thanks to property tax rebates and a decrease in current income tax.

Mr Jim Chang, chief executive officer and executive director of the trustee-manager has also attributed CRT’s occupancy rate and stable rents across its four retail properties as contributing factors to the quarter’s results. “With a healthy level of consumer activity as well as encouraging macroeconomic indicators showing promising signs of optimism and confidence in the Japanese economy, CRT will continue to focus on strengthening the portfolio to deliver sustainable and growing distributions to all unit holders”, said Mr Chang.

However REITSWEEK remains cautious on the counter due to several factors. Catch our full analysis on Croesus Retail Trust in the next issue.

At the point of writing, units of Croesus Retail Trust are trading higher by about 1 per cent on buoyant sentiment on the Singapore Exchange at $0.885.

REITSWEEK is a weekly journal of REITs and listed real estate securities. Visit www.reitsweek.com to subscribe and receive weekly updates, insights and reports on REITs and securitized property investments

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