Croesus Retail Trust

[Drizzt]

cash flow. it pays out more than earnings with the tax savings

[value seeker]

cash flow. it pays out more than earnings with the tax savings

Thank you Drizzt!

Is it possible for that portion to be as much as the income itself? Just wondering how sustainable.

[Nick]

I am wondering how can the trust have a yield of 8% when the PE is more than 20?

Looking at the Profit Forecast for FY 2014 and 2015 in their prospectus pg 107, I don't see how you managed to get a PE of 20 ? It would seem the only non-cash variable in the income statement is the fair value changes in the property valuation and management fees expenses being paid in units.

http://www.croesusretailtrust.com/attach...342_en.pdf [Prospectus]

[value seeker]

I am wondering how can the trust have a yield of 8% when the PE is more than 20?

Looking at the Profit Forecast for FY 2014 and 2015 in their prospectus pg 107, I don't see how you managed to get a PE of 20 ? It would seem the only non-cash variable in the income statement is the fair value changes in the property valuation and management fees expenses being paid in units.

http://www.croesusretailtrust.com/attach...342_en.pdf [Prospectus]

Hello Nick, i was looking at the ipo factsheet by uobkh that states eps is 4.61 cents vs dpu of 7.39 cents. That is how i derive at a pe of about 20.

[Nick]

I am wondering how can the trust have a yield of 8% when the PE is more than 20?

Looking at the Profit Forecast for FY 2014 and 2015 in their prospectus pg 107, I don't see how you managed to get a PE of 20 ? It would seem the only non-cash variable in the income statement is the fair value changes in the property valuation and management fees expenses being paid in units.

http://www.croesusretailtrust.com/attach...342_en.pdf [Prospectus]

Hello Nick, i was looking at the ipo factsheet by uobkh that states eps is 4.61 cents vs dpu of 7.39 cents. That is how i derive at a pe of about 20.

Ah ok.

[Drizzt]

cash flow. it pays out more than earnings with the tax savings

Thank you Drizzt!

Is it possible for that portion to be as much as the income itself? Just wondering how sustainable.

these are properties and if its tax savings passed on then i think should be ok. these kind of stuff is like pipelines, and we value them like they have a finite lifespan.

i would say there are probably more things to worry about then paying 100% of their cash flow, specifically the quality of the cash flow and the high leverage situation.

[orangetea]

Croesus... Nav 0.88 Ipo trades at 1.05 times nav = 0.93 Current level worth a try Recently AR Capital bought and sold... It could be AR Cap is managing for individual investors who decided to add as well as cash out, thought the volume sold was quite large last week. Disposed 1,220 lots at 0.869 and disposed 2,356 lots at 0.856 So far no other cornerstone investors added/sold past month. (Vested)

Results out today
Nav JPY72.4 about 90c compared to pre IPO of 88c

http://infopub.sgx.com/FileOpen/CRT_resu...eID=264179

http://infopub.sgx.com/Apps?A=COW_Corpor...cement.pdf

[arriyana]

Pretty much an under-exposed business trust that not many people talk and care about.

There are many reasons to avoid REITs now. But that doesn't mean they will make bad investments in the long term. Some REITs are still value for money, especially after the plunge in the past few days.

For those who are interested to diversify into Japan, try Croesus Trust. With distribution yield at ~8-9%, it is pretty attractive still in the low interest environment.

http://www.stokflok.com/content/croseus-retail-trust

[orangetea]

This is not a reit but a business trust.
No 90% payout like reit.

However it is reported that CRT intends to distribute 100% of its distributable income from Listing Date till 30 June 2015 and thereafter at least 90%. The actual level of distribution is not mandated by law so it may change.

The high yield is attractive couple with Abenomics.

[arriyana]

My bad. That is right. it is a business trust with underlying assets and not a REIT. Made the adjustments. Thanks for pointing it out