Croesus Retail Q3 2017 Earnings Update For this week, I will be posting an earnings update on Croesus Retail Trust (CRT), which announced their third quarter earnings. CRT is the first Asia Pacific retail business trust listed on SGX with an initial focus in Japan. Currently their portfolio of core assets are derived there but with a long term focus on pursuing development or acquisition opportunities in the Asia Pacific region. The latest developments on their earnings are: 3Q YTD Gross Revenue increased 35% from 6,906mil to 9,326mil (JPY) 3Q YTD Net Property Income increased 22% from 4,009mil to 4,892mil (JPY) 3Q YTD DPU grew 9.9% from 5.14 cents to 5.65 cents (SGD) Occupancy stands 97.7% Weighted Average Lease Expiry of 6.5 years Cost of Debt reduced from 1.90% to 1.68% Following an announcement on 26 April 2017 on a potential acquisition of issued units in CRT, its share price has traded upwards from $0.94 to a high of $1.02. While discussions are still preliminary, I would encourage investors not to speculate but stick to the fundamentals. In my personal opinion, CRT has been strong on 3 fronts:1) Ability to drive acquisition and maintaining a high occupancy rate for their portfolio.2) Consistently grow their distribution per unit. 3) Sound hedging strategy to eliminate uncertainty on their currency. Comparison of Retail REITs When you step foot into a shopping mall, have your ever wonder whether it is owned by a listed...
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With Additional Information on Interest Rates It is an exciting time in our local market. We see STI experiencing a rally of close to 220 points with 7% gains, making them one of Asia strongest benchmarks in 2017 YTD. We might see another interest rate hike happening this month and a new launch of Nikko REIT ETF. In this article, I would also like to share some views on interest rates (due to popular demand) and compare the differences and similarities of Nikko Asia REIT ETF and Phillip APAC REIT ETF. Please note that I am currently not vested in either ETFs to prevent any conflict of interest. I do own shares that are components of these ETFs. Current interest...
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How might it affect you and the stock market? It is that time of the year again when Singapore market participants are paying attention to what the Finance Minister will say and his policies. Each year, the national budget is prepared and comes into effect on 1 April and ends on 31 March of the next calendar year. It includes government revenue and expenditure projections and policies changes that may affect certain industries. The markets showed little reaction, opening at 3106.81 and closing lower at 3096.69 as of yesterday. This is Mr. Heng Swee Kiat’s first major policy speech since recovering from his stroke last year. There were many insights shared, of which I will list what are most important...
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U.S. Presidential Election – The “shocking” win Be it the stock market or the political arena, last week was an action-packed week, which can be considered one of the most significant week this year. Unless you have been staying in a cave without any connection to the world, you should most probably know by now that Donald Trump has won the 2016 U.S. presidential election last Wednesday. Trump’s victory over Hillary Clinton by garnering the necessary 270 votes came as a surprise to many of the market watchers. [caption id="attachment_11777" align="aligncenter" width="700"]Source: http://edition.cnn.com/election/results/president[/caption] The market reacted strongly during the votes counting process and after the results were announced, with the Dow Jones Futures down 700 points or 5% at one point. And as sharply as the drop, the U.S. Futures rebounded and the U.S. market opened flat on the same day itself. This complete U-turn of market prices on the same day may be attributed to panic selling on Trump’s victory and the market’s realization that it may be a déjà vu of Brexit all over again. The sharp decline in the market after Brexit was plugged 2 days after the event and a sharp rally followed. Things to expect from President Trump With the House and the Senate under the Republicans’ control, any changes that Trump proposes will most likely pass through. Let us recap on some of the ideas Trump communicated during his election campaign: The intention to...
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