29 August 2014

Croesus Retail Trust 4Q FY 2014 Result

Croesus Retail Trust (CRT) posted a set of above expectation results with twin boosts from higher revenue, especially at Mallage Shobu and lower property costs. This was despite the introduction of a higher consumption tax on 1 April 2014. FY 2014 distribution income of JPY 707.4 million (S$8.51 million) for the 4Q which was 10% ahead of the estimate. For the three months ended 30 Jun 2014, gross revenue was JPY 1.58 billion. Net property income for the quarter beat its forecast by 2.6% at JPY 1.02 billion. Looking ahead, CRT expect the tenant remixing exercise at Mallage Shobu to yield positive returns when the current low occupancy cost is marked to market. The group is also exploring third party acquisitions in addition to its two present Right of First Refusal (ROFR). With a gearing of 51.7%, it has room to raise JPY 16 billion worth of debt to fund its potential purchases.

The Board of Directors has declared a dividend of 3.74 cents per ordinary share for 4Q FY 2014 which is payable on 26 September 2014.

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