SINGAPORE (May 15): The trustee-manager of of Croesus Retail Trust reported a DPU of 2.05 cents for 3Q17, 15.2% higher than the DPU of 1.78 cents a year ago.
For 3Q17, CRT reported gross revenue of JPY 3,019 million, up 22.4% from JPY 2,466 million in 3Q16.
The increase was mainly attributed to CRT’s enlarged portfolio of income-producing properties with the acquisition of Fuji Grand Natalie in April 2016 and Mallage Saga and Feeeal Asahikawa in May 2016, coupled with higher variable rent from better tenant sales in Mallage Shobu and compensation from a tenant for early termination in Croesus Tachikawa.
Accordingly, CRT’s net property income (NPI) for 3Q17 rose 14.4% to JPY 1,611 million from JPY 1,409 million in the previous corresponding period.
Income available for distribution rose 25.4% to JPY 1,280 million in 3Q FY2017 from JPY 1,021 million in 3Q FY2016.
This was due mainly to higher NPI as well as the realised cost savings arising from the internalisation of the trustee-manager and lower finance cost from the full redemption and cancellation of the outstanding $100 million in aggregate principal amount of 4.60% fixed rate notes due 2017.
To mitigate its foreign currency exposure, CRT has hedged close to 100% of its expected distributable income up to June 2019.
As at end March, CRT’s portfolio continues to demonstrate stability and resiliency with a high occupancy rate of 97.7% and a long weighted average lease expiry of 6.5 years.
Barring any unforeseen circumstances, CRT says its properties are expected to continue generating robust and stable cash flows over the next 12 months.
Units of CRT closed at 97 cents on Friday.
