Croesus Retail Trust

Updates from the original writer for further reading

http://www.stokflok.com/content/croesus-...urnt-badly

@arriyana : Please do not create a new thread for the Company if there is such a thread. You can do a search first, http://www.valuebuddies.com/search.php . Thanks.

My apologies. Will take note in future.

Funny why Croesus Trust doesn't seem to gather much attention from most investors even though they are in almost every dividend investors portfolio.

But it seems like the institutional players are picking it up too.

You could read more about it http://www.stokflok.com/content/croesus-...are-buying

(20-02-2014, 06:42 PM)arriyana Wrote: Funny why Croesus Trust doesn't seem to gather much attention from most investors even though they are in almost every dividend investors portfolio.

But it seems like the institutional players are picking it up too.

You could read more about it http://www.stokflok.com/content/croesus-...are-buying

Not true that institutions are buying.
Its only recent that this Target AM bought.
A check on sgx reveals other funds have either sold or reduced.

Risks:
a. Japan exposure
b. Structure of managers to raise rental fees is limited

Pros:
a. Its a business trust so lesser risk of rights (fingers crossed)
b. Yield is reasonable

(20-02-2014, 07:33 PM)orangetea Wrote:

(20-02-2014, 06:42 PM)arriyana Wrote: Funny why Croesus Trust doesn't seem to gather much attention from most investors even though they are in almost every dividend investors portfolio.

But it seems like the institutional players are picking it up too.

You could read more about it http://www.stokflok.com/content/croesus-...are-buying

Not true that institutions are buying.
Its only recent that this Target AM bought.
A check on sgx reveals other funds have either sold or reduced.

Risks:
a. Japan exposure
b. Structure of managers to raise rental fees is limited

Pros:
a. Its a business trust so lesser risk of rights (fingers crossed)
b. Yield is reasonable

Another risk from Mother nature - Earthquakes

I think Croesus has one of the best yield available now, even though its leverage is pretty high even for industry standard.

Earthquake should be safely insured I believe though I have no source to verify.

(20-02-2014, 06:42 PM)arriyana Wrote: Funny why Croesus Trust doesn't seem to gather much attention from most investors even though they are in almost every dividend investors portfolio.

But it seems like the institutional players are picking it up too.

You could read more about it http://www.stokflok.com/content/croesus-...are-buying

My view is Abe-nomics will lose steam. Upcoming sales tax will hurt retail consumption.

(20-02-2014, 08:48 PM)arriyana Wrote: Earthquake should be safely insured I believe though I have no source to verify.

From page 64 of the IPO Prospectus (emphasis added):

Earthquake insurance will not generally be maintained on the Properties, except where the Probable Maximum Loss (as defined herein) for a Property is in excess of 15% of current building replacement construction cost. Probable Maximum Loss is defined as the probable maximum loss (i.e. repair and reprocurement expenses) that would be incurred if a major earthquake struck. Specifically, it means the loss generated by the largest earthquake that has a 10% probability of occurring during a 50 year assumed service life of a building corresponds to earthquakes that have a probability of occurrence once every 475 years.

==
Basically, on a probability-weighted basis, if they expect a building to suffer damage of over 15% of replacement cost, they will insure it. Otherwise, no insurance.

Investors in this Trust would do well to remember some choice lines from the film Dirty Harry: "You've got to ask yourself one question. Do I feel lucky? Well, do ya, punk?"

As usual, YMMV.

so it means properties in japan are relatively structurally sound?