Wednesday, February 11, 2015

Croesus Retail Trust

Croesus Retail Trust: Croesus Retail Trust (CRT) 2QFY15 distributable income spiked 22.7% to ¥874.8m, but DPU grew only 3% y/y to 2.08¢, weighed by an increase in unitbase from a private placement in Sep 14 to raise proceeds for its One's Mall acquisition.

Meanwhile, gross revenue and NPI surged 52% and 49% to ¥1,952.1m and ¥1,199.4m, respectively, boosted by additional contribution from three newly-acquired malls (Luz Omori, Croesus Tachikawa and One’s Mall), as well as better tenant sales at Mallage Shobu.

Across its fully-occupied retail portfolio of seven properties, CRT's lease expiry profile (by net lettable area) stood at a healthy 8.8 years, while aggregate leverage increased 1.9 ppt q/q to 50.9%, with debt term of 3.3 years and average debt cost of 1.96%.

At $0.955, CRT trades at 1.13x P/B and an indicative yield of 8.7%.

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