Croesus Retail beats forecasts as net property income outperformed by 4.8%

It’s looking to acquire more Japanese malls.

Mainboard-listed Croesus Retail registered a good year in FY14, as its net property income outperformed by 4.8%, resulting in a distribution per unit of $8.98 cents.

This is 6.3% above the REITs initial forecast. OSK DMG notes that the REIT’s net property income was better than initially forecast due to savings in property management and repair expenses despite an increase in utility expenses, as well as extra sales and promotion expenses to boost store traffic at Mallage Shobu.

“ We expect potentially positive Shobu rental revisions and potential acquisitions of more Japanese malls to drive DPU growth. We like CRT’s stability and expect it to maintain a close to 8% dividend yield at the current price,” noted the report.