Analysis of Croesus Retail Trust

IPO Price = $0.93

• Current Yield = 7.96%  
• Price-to-book Ratio = 1.053
• Assets per unit = $1.683
• Debt per unit = $0.800 (including current liabilities)
• Gearing = 47.5%

Croesus Retail Trust has launched its IPO at a price of $0.93. I have to admit that it is very attractive. Its yield is 7.96% which is very high according to today's standards. The closest one which we are having is Ascendas Hospitality Trust at 7.41%.

However, its price-to-book ratio is at 1.053 which is a premium. Although they are acquiring the assets at a discount, its balance sheet still shows a premium so I am not very sure why it is the case. Moreover, its gearing is quite high as well at 47.5%.

Looking at the current situation where most of the REITs are trading at a yield of about 5% and at a premium, I will definitely grab this chance and apply for as many lots as possible, hoping to get some. Moreover, once it is listed, I will analyze quickly and decide whether to get more because of its high yield.