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.

Friday, May 3, 2013

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.

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