Croesus Retail Trust posts flat quarter
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Singapore-listed Croesus Retail Trust achieved a 17.2 per cent increase in quarterly earnings to $23 million from its Japanese shopping centre investments.
But that was not enough to change its distribution per unit (DPU) for the quarter, which remained flat at 2.08 cents.
The retail property investor says its earnings rose on the back of its acquisition of One’s Mall in Chiba and lease renewals at Mallage Shobu in the Saitama Prefecture.
However, the increase was partially offset by the absence of a one-off income at Mallage Shobu recorded in the first quarter last year.
Net property income rose 10.7 per cent accordingly.
CRT has seven retail properties in Japan with a combined net lettable area of about 251,000 sqm.
The company says competition for buying real estate assets in Japan has been keen over recent quarters, a trend expected to continue in the short term.
Questions & Answers
Q.Why did Croesus Retail Trust's distribution per unit remain flat despite an increase in earnings?
Why did Croesus Retail Trust's distribution per unit remain flat despite an increase in earnings?
The flat distribution per unit occurred because a one-off income from Mallage Shobu, recorded in the first quarter last year, was absent this quarter. This partially offset the earnings growth from new acquisitions and lease renewals.
Q.What contributed to Croesus Retail Trust's increase in quarterly earnings?
What contributed to Croesus Retail Trust's increase in quarterly earnings?
The rise in earnings was primarily due to the acquisition of One’s Mall in Chiba and successful lease renewals at Mallage Shobu in the Saitama Prefecture. Net property income also saw a 10.7 per cent increase.
Q.What is the current state of the real estate market for acquisitions in Japan?
What is the current state of the real estate market for acquisitions in Japan?
Competition for buying real estate assets in Japan has been strong over recent quarters. This trend is expected to persist in the short term, indicating a challenging environment for further acquisitions.
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