Croesus RTrust   

CROESUS Forum

Yes, I took all my entitled rights and excess rights that they alloted to me.

They give out the DPU twice a year and the yield is about 8% based on 90 cents per unit. They gave 3.6 cents DPU for the period from 1 July to 31 Dec, 2016. Normally, I opted DRP instead of cash for the DPU because they give 3% discount to the new unit price. Like recent DRP the new unit issue price is $0.8423. I have received my new units today.

chengwh1      ( Date: 31-Mar-2017 22:16) Posted: Tq for the good explanations,... 1) Do you guys take up all the rights offered to you all these years ? 2) What is the dividend policy of Croesus, is it payout twice a year or three times a year ? Appreciated if you guys can help me with this !

 

Tq for the good explanations,...

1) Do you guys take up all the rights offered to you all these years ?

2) What is the dividend policy of Croesus, is it payout twice a year or three times a year ? Appreciated if you guys can help me with this !

 

Agreed, that why I asked the CFO to take more loans from the Japanese Banks but he said there is a capped to the loans. He did not disclosed the percentage.

paul1688      ( Date: 31-Mar-2017 20:10) Posted: This is probably the only Reit / BT on the SGX whereby I am very satisfied with their gearing (I would be disappointed if there are conservative) - leveraging on super low Japanese interest rate environment (smart leverage versus over extension - big difference) From what I can tell, Jap interest rates have been very low for two decades and I expect it will remain so for years and years to come driven by BOJ policy principle. Remarks: Vested. My view only. Not enticement to invest or buy or act. Pls DYODD. ehclim      ( Date: 31-Mar-2017 19:46) Posted: I had spoken to their Japanese CFO, they had taken loans from Japanese banks which interest is relatively low but there is capped to the loans so they had issued MTN too. However, they have to manage their gearing which is relatively high (about 45%) compare to other REITs.

 

This is probably the only Reit / BT on the SGX whereby I am very satisfied with their gearing (I would be disappointed if there are conservative) - leveraging on super low Japanese interest rate environment (smart leverage versus over extension - big difference) From what I can tell, Jap interest rates have been very low for two decades and I expect it will remain so for years and years to come driven by BOJ policy principle.

Remarks: Vested. My view only. Not enticement to invest or buy or act. Pls DYODD.

ehclim      ( Date: 31-Mar-2017 19:46) Posted: I had spoken to their Japanese CFO, they had taken loans from Japanese banks which interest is relatively low but there is capped to the loans so they had issued MTN too. However, they have to manage their gearing which is relatively high (about 45%) compare to other REITs. chengwh1      ( Date: 31-Mar-2017 19:26) Posted: Tq Lim,... so it looks like there was also a placement done in 2014,... immediately on the following year after listing,... therefore, it' s been like three years in a row already that they have done such exercises. However,... like GF said, at least Croesus is doing this placement for her currenct shareholders, not for any outsiders,... though I would still prefer that they don' t do so frequently,... If done once a year, it' s something like we have to reserve funds to  take-up more units every year, like it or not,  otherwise, our holdings will be diluted. Is there another way to view this ?

 

They are BT not Reit?

 

I had spoken to their Japanese CFO, they had taken loans from Japanese banks which interest is relatively low but there is capped to the loans so they had issued MTN too. However, they have to manage their gearing which is relatively high (about 45%) compare to other REITs.

chengwh1      ( Date: 31-Mar-2017 19:26) Posted: Tq Lim,... so it looks like there was also a placement done in 2014,... immediately on the following year after listing,... therefore, it' s been like three years in a row already that they have done such exercises. However,... like GF said, at least Croesus is doing this placement for her currenct shareholders, not for any outsiders,... though I would still prefer that they don' t do so frequently,... If done once a year, it' s something like we have to reserve funds to  take-up more units every year, like it or not,  otherwise, our holdings will be diluted. Is there another way to view this ? ehclim      ( Date: 31-Mar-2017 18:35) Posted: I mean in 2014.

 

Tq Lim,... so it looks like there was also a placement done in 2014,... immediately on the following year after listing,... therefore, it' s been like three years in a row already that they have done such exercises. However,... like GF said, at least Croesus is doing this placement for her currenct shareholders, not for any outsiders,... though I would still prefer that they don' t do so frequently,...

If done once a year, it' s something like we have to reserve funds to  take-up more units every year, like it or not,  otherwise, our holdings will be diluted.

Is there another way to view this ?

ehclim      ( Date: 31-Mar-2017 18:35) Posted: I mean in 2014. ehclim      ( Date: 31-Mar-2017 18:34) Posted: Although there was no rights or preferential rights, there was a private placement of 78.9m new units at $0.915.

 

I've accumulated a big position and kick myself for not buying more earlier. If there is another rights issue, I will binge buy.

chengwh1      ( Date: 31-Mar-2017 17:33) Posted: Yes,.. I would like to,.. however, at this stage,... I am still weighing on whether to go in or not, and at what price,... Yes,.. all that you have said is true, payout 90%, hence no cash, etc,.. but many of these trusts can still take loans, if their gearing level is not high. Another characteristic that I' d like to check is last year,they did a dividend payout in June. But in 2015, dividend payouts were only done in March and in September. Quite an unstable payment schedule, isn' t it ? Will they pay out again in June this year ? Appreciated opinions pls,... thank you,... ehclim      ( Date: 31-Mar-2017 17:10) Posted: Although they had done private placement, rights or preferential rights from 2014 to 2016, we cannot assume they will continue to do it in 2017. They needed to raise money to acquire accretive assets annually coincidentally because most business or retail trusts have to distribute 90% of their net income to the unitholders hence they have no cash in hand to acquire new asset. But whether Croesus needs to raise money to acquire new accretive asset in 2017, it is depend on whether there is any good asset to acquire and the Japanese retail market condition. I suggest you should attend the AGM to have better insight of their operation. I think this management team is very prudent.

 

I mean in 2014.

ehclim      ( Date: 31-Mar-2017 18:34) Posted: Although there was no rights or preferential rights, there was a private placement of 78.9m new units at $0.915. chengwh1      ( Date: 31-Mar-2017 17:24) Posted: They were listed in 2013, I recalled,... ard Apr/May. There was no exercise in 2014. Then the following exercises took place :- 1) In October, 2015 -  an offer of 22 for each 100 units held  @ SGD 0.61 per unit. 2) In August, 2016 last year - an offer of 10 units  for 259 units held  @ SGD 0.797 per unit. So,... I' m just thnking that they will probably do another one this year. Another reason why they will need to do this exercise for cash raising is because their gearing is already high, hence, may not qualify for loans anymore. It' s good to buy after an exercise is over because then,... the price would dip.

 

Although there was no rights or preferential rights, there was a private placement of 78.9m new units at $0.915.

chengwh1      ( Date: 31-Mar-2017 17:24) Posted: They were listed in 2013, I recalled,... ard Apr/May. There was no exercise in 2014. Then the following exercises took place :- 1) In October, 2015 -  an offer of 22 for each 100 units held  @ SGD 0.61 per unit. 2) In August, 2016 last year - an offer of 10 units  for 259 units held  @ SGD 0.797 per unit. So,... I' m just thnking that they will probably do another one this year. Another reason why they will need to do this exercise for cash raising is because their gearing is already high, hence, may not qualify for loans anymore. It' s good to buy after an exercise is over because then,... the price would dip. Just4win      ( Date: 31-Mar-2017 16:29) Posted: May I know what is this offering all about pls? Offer to  public or existing shareholders  ? Is this a regular annual event ?

 

Thanks. chengwh1. Thumb up for keeping track of its development. Appreciate your sharing v much

chengwh1      ( Date: 31-Mar-2017 17:24) Posted: They were listed in 2013, I recalled,... ard Apr/May. There was no exercise in 2014. Then the following exercises took place :- 1) In October, 2015 -  an offer of 22 for each 100 units held  @ SGD 0.61 per unit. 2) In August, 2016 last year - an offer of 10 units  for 259 units held  @ SGD 0.797 per unit. So,... I' m just thnking that they will probably do another one this year. Another reason why they will need to do this exercise for cash raising is because their gearing is already high, hence, may not qualify for loans anymore. It' s good to buy after an exercise is over because then,... the price would dip. Just4win      ( Date: 31-Mar-2017 16:29) Posted: May I know what is this offering all about pls? Offer to  public or existing shareholders  ? Is this a regular annual event ?

 

Let me say just this one thing that what I like about Croesus, and dislike about some other similar trusts, is that they do rights issues to their own unitholders, instead of selling at a deep discount to third party private placees (who may be connected parties for all we know).  For this alone, they have my vote of confidence.  And as I recall, even after subscribing for the rights, the units increased in value and the yield on the rights shares was quite respectable.  Hence, there was big over-subscription for their recent issue.  They were also mind in over-allotments for excess rights applications.

chengwh1      ( Date: 31-Mar-2017 17:33) Posted: Yes,.. I would like to,.. however, at this stage,... I am still weighing on whether to go in or not, and at what price,... Yes,.. all that you have said is true, payout 90%, hence no cash, etc,.. but many of these trusts can still take loans, if their gearing level is not high. Another characteristic that I' d like to check is last year,they did a dividend payout in June. But in 2015, dividend payouts were only done in March and in September. Quite an unstable payment schedule, isn' t it ? Will they pay out again in June this year ? Appreciated opinions pls,... thank you,... ehclim      ( Date: 31-Mar-2017 17:10) Posted: Although they had done private placement, rights or preferential rights from 2014 to 2016, we cannot assume they will continue to do it in 2017. They needed to raise money to acquire accretive assets annually coincidentally because most business or retail trusts have to distribute 90% of their net income to the unitholders hence they have no cash in hand to acquire new asset. But whether Croesus needs to raise money to acquire new accretive asset in 2017, it is depend on whether there is any good asset to acquire and the Japanese retail market condition. I suggest you should attend the AGM to have better insight of their operation. I think this management team is very prudent.

 

Yes,.. I would like to,.. however, at this stage,... I am still weighing on whether to go in or not, and at what price,... Yes,.. all that you have said is true, payout 90%, hence no cash, etc,.. but many of these trusts can still take loans, if their gearing level is not high. Another characteristic that I' d like to check is last year,they did a dividend payout in June. But in 2015, dividend payouts were only done in March and in September. Quite an unstable payment schedule, isn' t it ?

Will they pay out again in June this year ? Appreciated opinions pls,... thank you,...

ehclim      ( Date: 31-Mar-2017 17:10) Posted: Although they had done private placement, rights or preferential rights from 2014 to 2016, we cannot assume they will continue to do it in 2017. They needed to raise money to acquire accretive assets annually coincidentally because most business or retail trusts have to distribute 90% of their net income to the unitholders hence they have no cash in hand to acquire new asset. But whether Croesus needs to raise money to acquire new accretive asset in 2017, it is depend on whether there is any good asset to acquire and the Japanese retail market condition. I suggest you should attend the AGM to have better insight of their operation. I think this management team is very prudent. chengwh1      ( Date: 31-Mar-2017 15:57) Posted: When is the date for the coming Preferential Offering ? Should be once a year, around August to November, right ?

 

They were listed in 2013, I recalled,... ard Apr/May. There was no exercise in 2014. Then the following exercises took place :-

1) In October, 2015 -  an offer of 22 for each 100 units held  @ SGD 0.61 per unit.

2) In August, 2016 last year - an offer of 10 units  for 259 units held  @ SGD 0.797 per unit.

So,... I' m just thnking that they will probably do another one this year. Another reason why they will need to do this exercise for cash raising is because their gearing is already high, hence, may not qualify for loans anymore. It' s good to buy after an exercise is over because then,... the price would dip.

Just4win      ( Date: 31-Mar-2017 16:29) Posted: May I know what is this offering all about pls? Offer to  public or existing shareholders  ? Is this a regular annual event ? chengwh1      ( Date: 31-Mar-2017 15:57) Posted: When is the date for the coming Preferential Offering ? Should be once a year, around August to November, right ?

 

Although they had done private placement, rights or preferential rights from 2014 to 2016, we cannot assume they will continue to do it in 2017. They needed to raise money to acquire accretive assets annually coincidentally because most business or retail trusts have to distribute 90% of their net income to the unitholders hence they have no cash in hand to acquire new asset. But whether Croesus needs to raise money to acquire new accretive asset in 2017, it is depend on whether there is any good asset to acquire and the Japanese retail market condition. I suggest you should attend the AGM to have better insight of their operation. I think this management team is very prudent.

chengwh1      ( Date: 31-Mar-2017 15:57) Posted: When is the date for the coming Preferential Offering ? Should be once a year, around August to November, right ?

 

May I know what is this offering all about pls? Offer to  public or existing shareholders  ? Is this a regular annual event ?

chengwh1      ( Date: 31-Mar-2017 15:57) Posted: When is the date for the coming Preferential Offering ? Should be once a year, around August to November, right ?

 

When is the date for the coming Preferential Offering ? Should be once a year, around August to November, right ?

 

Good news for CRT http://www.channelnewsasia.com/news/asiapacific/japan-considers-easing-chinese-visa-rules-to-extend-tourism-boom/3638472.html

 

Great value stock. High NAV of S$1. Buy for dividend payment enough but also prime target for takeover/privatisation.

 

CRT' s Q2 DPU up 5.2% from year-ago restated DPU thanks to acquisitions

Tuesday, February 14, 2017 - 08:29

CROESUS Retail Trust (CRT) enjoyed a 5.2 per cent rise in distribution per unit (DPU) for the second quarter ended Dec 31, 2016, to 1.81 Singapore cents, from a restated DPU of 1.72 cents in the year-ago period that reflects an enlarged unit base arising from a preferential offering in August.

This came on the back of an enlarged portfolio due to acquisitions.

During the quarter, gross revenue jumped 30.7 per cent to 3.18 billion yen (S$39.8 million), due to a larger portfolio of income-producing properties, following the acquisitions of Torius, Fuji Grand Natalie, Mallage Saga and Feeeal Asahikawa.

In addition, higher variable rent which arose from stronger tenant sales at Mallage Shobu, as well as a one-off compensation from an early lease termination, also buoyed CRT' s gross revenue.

CRT restated its DPU for the year-ago comparison to take into account a preferential offering of 27.68 million units in August 2016. Otherwise, the DPU' s year-on-year rise would have been 1.1 per cent.

  

CRT' s net property income for the quarter rose 23.2 per cent from a year ago to 1.69 billion yen.

Similarly, CRT' s half-year DPU of 3.6 Singapore cents was 7.5 per cent higher than the restated year-ago DPU of 3.35 Singapore cents. If the preferential offering is not factored into the year-ago comparison, first-half DPU would be 2.9 per cent higher than the DPU of 3.50 Singapore cents in the year-ago period.

Jim Chang, CEO of the trustee-manager, noted that CRT' s financial performance for the first half reflects its ongoing efforts in areas such as enhancement initiatives and tenant renewal exercises.

Asset enhancement initiatives and tenant renewal exercises are currently being evaluated by the trustee-manager, as part of plans to grow CRT' s income base.

At Torius, the trustee-manager is in the process of negotiating with potential tenants for its new building plans a tenant replacement exercise is also underway at Feeeal Asahikawa, which is located in Asahikawa, the second-largest city in Hokkaido.

CRT' s distribution for the period of July 1 to Dec 31 will be paid out on March 31 this year.