Croesus Retail Trust posts DPU of 2.02 cents for Q2

Singapore

CROESUS Retail Trust (CRT), with a portfolio of four retail properties across Japan, posted a distribution per unit (DPU) of 2.02 cents for the second quarter of FY2014 ended Dec 31, 2013, 1.8 per cent higher than its IPO forecast of 1.98.

Gross revenue for Q2 was 1.29 billion yen, which is 1.2 per cent higher than the IPO forecast. Net property income was 805.87 million yen, 2.4 per cent higher than the IPO forecast.

The main positive variance was from property management expenses. This was offset by increased sales and promotion expenses at suburban shopping centre Mallage Shobu. However, overall property expenses were lower than forecast by 0.8 per cent.

Income available for distribution was 713 million yen (S$8.8 million), which is 6 per cent higher than the IPO forecast. The higher income available for distribution was mainly due to property tax rebates. This was offset by the difference between the actual and forecasted distribution hedge rate for the period.

For H1 FY2014, distribution per unit is 5.24 cents, and income available for distribution is 1.85 billion yen. The net property income is 2.08 billion yen, and gross revenue is 3.29 billion yen.

This is CRT's first distribution and it will be paid on March 31, 2014.

Jim Chang, chief executive officer and executive director of Croesus Retail Asset Management, the trustee-manager of CRT, said: "Across 1H FY2014, we are seeing a healthy level of consumer activity at our properties as well as encouraging macroeconomic indicators that point to growing optimism and confidence in the Japanese economy. We are in a good place to benefit from these economic conditions given our close to 100 per cent occupancy rates and stable rents across CRT's four retail assets."

The company also said that its properties are expected to continue generating stable cash flows and that it is expected to meet its IPO forecast for the period ending June 30, 2014.

CRT's counter closed up 2.5 cents at 91.5 cents yesterday.