S-REIT Investment Blog: Analysis of Croesus Retail Trust

Welcome

Welcome to my investment blog where I share with you my analysis of REITs in Singapore.

I hope that my investment philosophy will bring me a steady stream of income apart from my job. I am aiming for at least $3,000 per month which can sustain the current expenses of myself and my family.

Do enjoy reading my blog and post any comments that you have. I welcome them because it is a time to learn from each other.

When I am looking at investing in REIT, here are some of the guidelines that I am looking at. Feel free to comment on it. I am willing to listen to ideas.

-> at least 8% yield.
-> Price that is lower than its NAV.
-> Low gearing (if possible)
-> High secured NAV.

Current Dividend income is $3,800/month.

Thursday, September 18, 2014

Analysis of Croesus Retail Trust

Current Price on 10th Sept 2014 = $0.945

Current Yield = 8.25%
Price-to-book Ratio = 1.034
Asset Per Unit = $2.182
Liabilities per unit = $1.244
Gearing = 57.0%

Croesus Retail Trust is one on my watchlist although I have recently sold my holdings on it. Plus its recent acquisition and private placement, it is worth another look.

Its current yield is 8.25% which is one of the best yields that we can get. Moreover, its price-to-book ratio is 1.034 which means we are paying a premium of 3.4%. Compared to Saizen REIT which is trading at 22% discount and even Accordia Golf Trust which is trading at 7% discount, it does seem expensive. Nevertheless, the high yield justifies the price. Its gearing looks very threatening at 57% which I thought was too high. It also mean that the risk is high as well.

The yield really look attractive, something which I was considering (thus this post). But after looking at other data, I am just glad that I have sold my holdings earlier.