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, May 14, 2015

Analysis of Croesus Retail Trust

Current Price on 30th Apr 2015 = $0.94
  • Yield = 8.85%  
  • Price-to-book Ratio = 1.138
  • Assets per unit = $2.028
  • Debt per unit = $1.202 (including current liabilities)
  • Gearing = 59.3%
I have recently made purchases for Croesus Retail Trust (& Accordia Golf Trust) for these reasons.

Firstly, the yield is high at 8.85%. With its current acquisitions, I expect the yield to improve. The only concern is that Japanese Yen is falling due to the country's Quantitative Easing policy. The price-to-book ratio is quite high though at 1.138 but I am expecting a revaluation upside as their valuation is undemanding compared to recent transactions.

Gearing is at an unhealthy range of 59.3% but with the current QE in place, there will be a lot of cheap Japanese Yen around so interest rates will continue to be low. Moreover, I am expecting a round of equity fund raising which I favour as I have a chance to buy at a cheap price.

I am vested with 56,000 shares which I bought at $0.945. Will continue to look closely at this and the general Japan Economy.

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