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Croesus Retail Trust: The EDGE.

Sunday, February 2, 2014

A reader kindly informed me that the latest issue of The EDGE has a write up on Croesus Retail Trust. The Trust is, of course, my latest investment and one of only two stocks I have bought in the last three months. So, what has The EDGE got to say?

"... amid the improved sentiments as Abenomics works its way through the world's third biggest economy, one counter considered to be the best proxy in Singapore to Japan seems to have gone unnoticed amongst investors."

1. The Trust's current distribution yield is amongst the best in the world of business trusts and REITs in Singapore and Japan. Current unit price: 87.5c.

2. Business trusts have not been well received in Singapore for various reasons, including their heavy use of debt and less predictable payout.

3. Books revenue in JPY but pays investors in S$.

4. Expects to charge higher rents from this year and the Trust plans to replace more than half of expiring leases with bigger brands.

Some other points were also made but, to be fair to the publication, you might want to get yourself a copy of The EDGE. Article is on page 16. The price went up recently: $5.00 a copy now.

If you want to find out more about Croesus Retail Trust right now, I have been blogging about the Trust lately. Just search for the articles in my blog. Free of charge. Wink, wink.

Actually, I believe that the current malaise in the Trust's unit price has also partly got to do with the fact that the initial euphoria we saw at the Trust's IPO and the eventual bursting of that bubble hurt many retail investors. I know some who were caught. Once bitten, twice shy or so the saying goes.

Well, I rather like to look at out of favour stocks with very attractive attributes for income investors (perhaps, with a dash of growth potential) and Croesus Retail Trust seems to fit the bill.

Related posts:
1. Croesus Retail Trust: What is my plan?
2. Croesus Retail Trust: Initiated long at 87c.
3. Croesus Retail Trust and Saizen REIT.


Anonymous said...

Hi AK,

Just thought I drop by to wish u a happy new year! The edge has another 9 recommendations. Can't say I agree with everything thou.

Wish u good wealth and health. Stay happy and contented!!

SGYI said...

Hi Ak,

Good to see all your post on CRT. I've been reading every single one of them. :p

This trust is indeed attractive and the best time to buy is when most people have not realised it yet.

AK71 said...

Hi Mike,

Yes, there are 9 more but I like Croesus Retail Trust the most from an income investment perspective.

Happy New Year! :D

AK71 said...


Well, we can only guess at the reasons why Croesus Retail Trust seems unloved at the moment. ;)

seefei said...

missed the buying from AK first blog CRT. glad 87 appears again.

AK, thanks for the post and the detailed analysis. otherwise, will be too worried about the downtrend STI to grab some discounted goodies from the market...

AK71 said...

Hi seefei,

Well, CRT's unit price seems to be basing. So, it is not going anywhere in a hurry although a near term catalyst could be the results announcement happening 10 days from now. ;)

Hope I am right. :)

ken ken said...

Hi Ak

Would you share what is the stocks that you holding now?

AK71 said...

Hi ken,

This is where you do some work. ;)

Look through my blog posts and you will know what are in my portfolio. I have shared everything in my blog posts before. :)

David & Thi said...

Just brought into SolidBuild REIT which is paying 8% yield as well as trading below its NTA.

Leverage is low too for this REIT.


Hi AK,

With the recent strength in the Yen, I wonder if holders of Saizen and CRT will benefit :)

Waiting eagerly for 12 Feb on Saizen's report.

AK71 said...

Hi Yee,

At current price, Soilbuild REIT is probably fairly priced if we were to compare it to Sabana REIT and AIMS AMP Capital Industrial REIT. They are all trading below NAV and have distribution yields from 7.8% to 8.4%. Gearing level is a few % lower for Soilbuild REIT but not very much lower.

Soilbuild REIT seems like a pretty decent investment for income at current prices but I am not interested in it as I already have a huge exposure to industrial properties S-REITs.

You could be interested in my blog post on the REIT and the comments it generated: Soilbuild REIT.

AK71 said...

Hi Solidcore,

I believe that both Saizen REIT and Croesus Retail Trust have hedged against possible weakness in the JPY. So, I do not expect any positive surprises in terms of distributable income in S$ terms. Well, I hope I am wrong. ;)


Hi AK,

The next saizen payout is at 3.25%, annualised gives us a decent 7.02%

Well deserved wait and looking forward to receiving the ka-ching on 21 March :)

AK71 said...

Hi Solidcore,

I am working on a new blog post which will give this topic a slight twist. Look out for it. ;)

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