Shares & Derivatives
9.5% Yielding Croesus Retail Trust makes Acquisition with debt and rights issues
By Investment Moats  •  September 29, 2015
Japan based retail business trust Croesus Retail Trust made an acquisition with debts and rights issue. Current Share Price: $0.85 Last Dividend per Share: $0.0808 (Dividend Yield 9.6%) Presentation Slides here Croesus Retail Trust is rather similar to that of iREIT Global, a German Office Trust majority owned by Shanghai Tong:
  1. Both have properties not in Singapore
  2. Both are highly leveraged (iREIT 42% and Croesus 47%)
  3. Both markets have in the past 5 years declining currency versus the Singapore dollar
  4. Both have very low foreign denominated borrowing rates
  5. Both have market cap rates around 6-7%
  6. Both are somewhat carry trade plays
  7. Both are in places experiencing slow growth
  8. Both yield more than 9% currently

The purchase

The purchase looks not bad in that it is in another prefecture. This creates a geographical diversification. Not so important in Singapore, rather important in earthquake prone Japan. The land lease ......
Read the full article
By Investment Moats
Investment Moats is set up by Kyith Ng and have been around since 2005. He aims to share his experiences making sense of money, how money works and ways to grow his money. It hopes that by sharing his experiences, both good and bad, season investors can advice and critique his decisions and new investors can learn from them and find their own style ...
LEAVE A COMMENT
LEAVE A COMMENT

Your email address will not be published.

*

Your Email Address will not be published
*

Read More Articles
More from thefinance