, Singapore

Croesus Retail Trust targets 20-30% DPU hike

It will engage cost saving and asset enhancement initiatives.

Croesus Retail Trust (CRT) is shifting focus to cost savings and asset enhancement initiatives (AEIs) to enhance DPU growth, said RHB.

According to the research house, since listing, CRT has focused on increasing its portfolio which had been successful. Going forward, it believes that the company would likely shift its focus to cost savings initiatives such as lowering cost of debt by refinancing and from internalisation of its asset manager.

In addition, CRT it said, would also focus on AEIs to improve rental income from its retail malls.

"As a result, we expect a low probability of equity placement exercises in the next two years," it said.

Management expects DPU to increase between 20-30% in the next few years from successful implementation of these initiatives, which would be more DPU accretive than an acquisition.

RHB notes that these initiatives should also provide more stability to its share price and lower the probability of equity placements going forward.

In terms of macroeconomic outlook, RHB said that Japan’s negative interest rate environment would likely lower CRT’s average cost of debt and generate substantial cost savings for the company when it refinances its debt.

Furthermore, CRT has an average forex hedging rate of SGD/JPY 83.57 for FY17F and SGD/JPY 76.39 for FY18F, representing a 10% DPU increase just from forex hedges alone, it added. 

Join Singapore Business Review community
Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!

Exclusives

Singapore’s new law weaves safety net for gig workers
Gig workers will be enabled to secure their retirement, benefit from improved workplace safety, and gain greater visibility within the industry.
HR & Education
Here’s how Gen Z consumer preference reshapes APAC’s marketing landscape
Gen Z consumers are observed to purchase based on pleasure and purpose, whilst being conscious of cost and convenience.

Event News

Event News

SBR National Business Awards 2024 Winner: Wiseasy Technology Pte Ltd Cards & Payments
Lay Cheng Tan, Co-Founder & Chief Investment Officer, and Mayank Raheja, Managing Director (EMEA & SA) of Wiseasy Technology Pte Ltd, provided insights into preventing fraud and inefficiency with the WiseQ QR Payment Solution.
Cards & Payments SBR National Business Awards 2024 Winner: Wiseasy Technology Pte Ltd
Lay Cheng Tan, Co-Founder & Chief Investment Officer, and Mayank Raheja, Managing Director (EMEA & SA) of Wiseasy Technology Pte Ltd, provided insights into preventing fraud and inefficiency with the WiseQ QR Payment Solution.