Croesus Retail Trust

(08-10-2013, 06:04 PM)Tiggerbee Wrote:

(16-06-2013, 11:32 PM)BeDisciplined Wrote: Sigh, I sala again...this REIT is doing better than Mapletree Greater China Trust...why? Besides having higher projected yield, they are many risks such as currency, location of malls, size of mall, Japanese economy etc....still perform better than MGCT.....always sala

If I recall, Croesus hedge at least 80% of their currency exposure so the dividend payout in SGD is mitigated. Also, Japan is expected to maintain ultra low interest rates for a very long time so interest rate risk is much lower vs Singapore REITS. Also, the current yield for Croesus is about 8.5%, which is much higher than MGCT yield of about 6%.

How about proposed increase in sales tax from 5% to 8% ? It might have a big negative impact on the consumer spending and hence, the rental.

(08-10-2013, 06:04 PM)Tiggerbee Wrote:

(16-06-2013, 11:32 PM)BeDisciplined Wrote: Sigh, I sala again...this REIT is doing better than Mapletree Greater China Trust...why? Besides having higher projected yield, they are many risks such as currency, location of malls, size of mall, Japanese economy etc....still perform better than MGCT.....always sala

If I recall, Croesus hedge at least 80% of their currency exposure so the dividend payout in SGD is mitigated. Also, Japan is expected to maintain ultra low interest rates for a very long time so interest rate risk is much lower vs Singapore REITS. Also, the current yield for Croesus is about 8.5%, which is much higher than MGCT yield of about 6%.

MGCT owns assets in HK and China which experiences inflation enabling the landlord to continually increase rent ie positive rental reversion. This organic growth is extremely strong in HK retail properties. On the other hand, Japan has not experienced inflation so rental growth is an alien concept. Just look at Croesus master leases - I don't think there is no step up in rent component. So lower growth compensated with a higher yield. Another factor is the difference in gearing & croesus is not a reit - its a biz trust. Please correct me if I am wrong.

(Not Vested in either)

Croesus financial results announcement: http://www.croesusretailtrust.com/attach...217_en.pdf

Will they declare any dividends?

(19-10-2013, 11:59 AM)Shulu Wrote: Croesus financial results announcement: http://www.croesusretailtrust.com/attach...217_en.pdf

Will they declare any dividends?

No.

It will come next quarter.

As seen from HWZ:

Quote:

From the prospectus, page 90 of the PDF:

"After CRT has been admitted to the Official List of the SGX-ST, CRT will make distributions to Unitholders on a semi-annual basis, with the amount calculated as at 30 June and 31 December each year for the six-month period ending on each of the said dates. However, CRT's first distribution after the Listing Date will be for the period from the the Listing Date and ending on 31 December 2013 and will be paid by the Trustee-Manager on or before 31 March 2014. Subsequent distributions will take place on a semi-annual basis. Under the Trust Deed, the Trustee-Manager is required to pay distributions within 90 days after each of the said dates."

this one looks cheap dropped from 1.1x to now 85-86 cents nia
any reasons for the major decline? given that markets have been soooo bullish

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DBS and UOB report attached for viewing
please comment if its a good buy now at 85-90 cents range

(19-10-2013, 03:19 PM)ForeverAlone Wrote: this one looks cheap dropped from 1.1x to now 85-86 cents nia
any reasons for the major decline? given that markets have been soooo bullish

REITs as an asset class have fallen in value since the Tapering fears started a few months ago.

I see, thank you so much
86 cents seems quite cheap at over 8% yield
maybe I shall buy a bit try try haha

ForeverAlone Wrote:I see, thank you so much 86 cents seems quite cheap at over 8% yield maybe I shall buy a bit try try haha

Croesus...
Nav 0.88
Ipo trades at 1.05 times nav = 0.93
Current level worth a try

Recently AR Capital bought and sold... It could be AR Cap is managing for individual investors who decided to add as well as cash out, thought the volume sold was quite large last week.

Disposed 1,220 lots at 0.869 and disposed 2,356 lots at 0.856

So far no other cornerstone investors added/sold past month.

(Vested)

I am wondering how can the trust have a yield of 8% when the PE is more than 20?