- A business trust is not limited to only income-producing real estate assets. Therefore, examples of some business trusts listed on SGX that are not in real estate are Hutchison Port Holdings Trust and First Ship Lease Trust.
- It has less restrictive covenants. For instance, a business trust does not have to abide by a 45% gearing ratio unlike a REIT. In addition, ...
Business Model of Croesus Retail Trust
Croesus Retail Trust is a business trust listed on the SGX in 2013. Croesus Retail Trust manages and operates a portfolio of 8 suburban malls and collects rents from the tenants of the malls. These rents, after netting operating expenses, are then paid out to unitholders. Therefore, it behaves exactly like a REIT and should be considered a high dividend stock in one’s portfolio. It should be noted that a business trust is similar to a REIT but differs in several ways:
