Singapore’s first Japan-focused retail business trust, Croesus Retail Trust (CRT) (SGX: S6NU) has beaten forecasts for NPI and distributable income for its 1Q 2014. The trust, which went to IPO last May on the Singapore Exchange, reported income available for distribution and net property income figures that exceeded original forecasts by 8.3 per cent and 3.1 per cent respectively.

Croesus Retail Trust wento to IPO in May with an initial portfolio of four fully-tenanted shopping malls. Photo: Croesus Retail Trust

In addition, CRT’s DPU stands at 3.26 Singapore cents for the period from 10 May 2013 to 30 September 2013. This is an increase of 4.6 per cent over the forecast1 DPU of 3.11 Singapore cents.

Gross revenue for the period under review met expectations, recording JPY 1,998 million or 0.4 per cent 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 JPY 1,269 million to lower property expenses which came in 4 per cent below forecast. Income available for distribution of JPY 1,139 million came about higher-than-expected thanks to property tax rebates and a decrease in current income tax.

Mr Jim Chang, CEO and Executive Director of the 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.

Units of Croesus Retail Trust are currently trading higher by about 1 per cent on buoyant sentiment on the Singapore Exchange at S$0.885.