Shares & Derivatives
Croesus Retail Trust: What is the forward yield?
By A Singaporean Stockmarket Investor (ASSI)  •  May 15, 2014
Not feeling 100% tonight. So, I am just going to zoom in on what bothers people most and skip the rest of the stuff which look OK anyway. So, what bothers people most? The latest quarterly DPU of 1.76c. If we were to simply annualise 1.76c, we would get 7.04c and based on a unit price of 93c, that is a distribution yield of only 7.57%. This definitely falls short of the IPO forecast of an 8% distribution yield. An 8% distribution yield based on 93c would mean a DPU of some 7.44c per annum or 1.86c per quarter. Yikes! With only 1.76c, we have a shortfall of some 0.1c and this is after purchasing 2 more properties in the last quarter too!
There is a simple explanation. There are costs involved in the purchase of those 2 malls and they only contributed to income in the month of March......
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By A Singaporean Stockmarket Investor (ASSI)
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