You are here

Broker's take: RHB issues 'buy' call on Croesus Retail Trust

Thursday, April 2, 2015 - 09:44

RHB Research Institute Singapore on Thursday placed a "buy" call on Croesus Retail Trust (CRT) with a target price of S$1.15.

It said in its report that CRT has announced that the tenant renewal and asset enhancement exercise at Mallage Shobu is close to completion, with 69 and 28 new and refreshed shop transfers, as well as 58 tenants with improvements to the store facades by end-Q3 2015.

The report said CRT has a steady gearing ratio with healthy debt headroom.

The trust's distribution per unit has been fully hedged to cover the entire FY2015 and FY2016 at rates more favourable than current spot rates, added RHB.

"Management expects an overall potential rental uplift of 12 to 15 per cent for the entire mall from this exercise. With Japanese yen hedged till end-FY2016, we are positive on CRT."

Powered by GET.comGetCom