Shares & Derivatives
Cromwell European REIT IPO.
By A Singaporean Stockmarket Investor (ASSI)  •  September 9, 2017
Cromwell European REIT is a mega IPO that will raise S$ 2 billion. I looked at the distribution yield first. 7.5% (@ 57 euro cent per unit) to 7.7% (@ 55 euro cents per unit). Then, I looked at the gearing level. 34.3% to 36.6%. It would have been better if it were below 30% but it is not excessive. Then, I do what I do pretty often which is to compare with other REITs in the same sector. Alamak. This is where the problem lies. This REIT has a rojak portfolio of 81 retail, office and light industrial properties in 6 European countries(Denmark, France, Germany, Italy, Poland and The Netherlands). How to do comparative analysis like that? OK, with IREIT Global taking a pan-European strategy, it could be a good candidate for comparison in future. As of now, IREIT Global still has properties in Germany only. IREIT Global offers a similar distribution yield (7.6% at 76 cents per unit) but its gearing level is higher at 41.3% ......
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By A Singaporean Stockmarket Investor (ASSI)
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