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 3, 2015

Analysis of Croesus Retail Trust - One of the highest yield in retail sector

Current Price on 3oth Aug 2015 = $0.895
  • Yield = 9.03%  
  • Price-to-book Ratio = 0.968
  • Assets per unit = $2.147
  • Debt per unit = $1.188 (including current liabilities)
  • Gearing = 56.6%
Croesus Retail Trust published their results at a time where everyone is panicky about stocks as it melts down. Let's take a closer look at what they have.

Yield is at one of the highest at 9.03%.  In fact, it is the highest among the retail reits, even better than LMIR. However, take note that both have assets in Japan and Indonesia respectively (instead of Singapore). With the recent revaluation, they are now trading at a discount, although a small one at 3% discount. Gearing (when include other liabilities) is at 56.6% which is extremely high.

Although they have a great yield at 9.03%, the market has counters which gave better returns (although it is not in the retail sector). Moreover, its gearing is quite alarming. I can get the same return at a much safer gearing. Price-to-book ratio is also not attractive enough for the yield that they are offering. I would say that they are just unfortunate.

I have no investment in this, and will monitor this counter since it offers high yield. But I will not buy this. There are better ones outside.

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