Shares & Derivatives
Croesus Retail Trust: Cap rates and growth.
By A Singaporean Stockmarket Investor (ASSI)  •  February 22, 2014
When we invest in a company, it is important to be forward looking. After all, we are investing for the future and not the past. So, although numbers could tell us about the past and the status quo, to forecast performance is a little more difficult. However, if there is some consistency, then, there could be some measure of predictability. This is probably one reason why many like investing in real estate because their values and rental rates are sticky in the short or even medium term.
Related to this, we often hear people talking about cap rates and some readers have asked me before what exactly are these. Well, cap rate is short for capitalisation rate. Basically, it is a property's net income as a percentage of its purchase price. So, it is a measure of investment yield. This yield is part of the total return on our investment......
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By A Singaporean Stockmarket Investor (ASSI)
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