Gone were the days where Croesus Retail Trust lingered at below its IPO price of S$0.93 around one year ago. It has been on an upswing recently, up almost 8% in a month. This can be due to the positive news where it still has the first right of refusal to 2 additional malls in Japan.Other than that, there are 3 compelling reasons why Croesus Retail Trust is worth another look:
- Strong Financials: Besides reporting Actual results that out-performed forecasts in 3 straight quarters, it is offering a dividend yield of 7.37%.
- Right Place, Right Time: Croesus Retail trust properties are all situated in Japan, a country where many asset values have fallen drastically for the past decade. Nevertheless, under Abenomics, the middle income crowd seems to be getting back into shape.
- Awards: Winning the title of "Best Small Cap Company" drives in the notion that management team is delivering a good job in steering the company to greater heights.
- Growth Plans: Opportunities of Rental Reversions are intact. With accretive acquisitions & rental increases -> it can lead to higher distributions in the future too.
Nevertheless, investors will have to take note of the high gearing ratio (53.5% as of 31 March 2014) which seems to be more than the average REITs in the market. If you are interested about the company, you can read more here.
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