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.

Monday, January 6, 2014

Analysis of Croesus Retail Trust

Current Price on 3rd January 2014 = $0.88
  • Current Yield = 9.48%  
  • Price-to-book Ratio = 1.022
  • Assets per unit = $1.642
  • Debt per unit = $0.78 (including current liabilities)
  • Gearing = 47.5%

I have updated the details of Croesus Retail Trust on my excel sheet with a currency exchange rate of 1:85. I know currently is 1:82 so this is a conservative estimate.

Yield is at a high of 9.42% which is the highest in the REIT sector. However, its price-to-book ratio has been dropping because of its QE plans. With more Yen moving around, the value is not as high as before. Its gearing is also at a high of 47.5% which gives them some instability. Its yield can also be impacted because they collect in Yen.

Similar to LMIR, this is currently a SGD/JPY play. The good thing is that their debts are also in Yen so gearing is not impacted. Moreover, they are 100% freehold which helps to preserve the value of the land. However, with its QE programme still in place, I am expecting Japanese Yen to drop further and that will affect its yield and to a larger extent Price-to-book ratio. If I enter, it will be purely based on its high yield only. I am still considering.

1 comment:

  1. The trust's presentation mentions it has forex hedges (p20) but there is not much info. Please see if there is more info on this and if it addresses your concern about currency risk.