Farewell Croesus Retail Trust

Yet another of my stock bites the dust. Fourth delisting! Not so long after internalization of the manager, someone decides to buy over the whole thing. It was around 20% premium to NAV, which I thought to be quite reasonable, so I sold it immediately at offer price. I'm fine with forfeiting the dividends as time is money. I'm left with a grand total of 1 share from DRP. Don't worry guys, I'll vote no to help with the headcount condition (lol)

I actually wanted to put the proceeds into Dasin Retail Trust, another business trust holding retail assets. With the latest acquisition of Shiqi Metro Mall at a huge discount to market value, the pro-forma NAV blows up to around $1.48, giving us a PB ratio of about 0.54! Even without the income support, the yield might be worth it. Then I thought, the shares were too illiquid and I don't really know how Zhongshan will develop... I still don't understand why the sponsor sold the property at such a big discount? I'll bank on my domestic bias and buy Capitaland Mall Trust instead. I have been wanting to buy it for a while but it was always too pricey. Seldom buy REITs at price above book but I really like their properties...


  1. Hi, you said that "with the latest acquisition of Shiqi Metro Mall at a huge discount to market value, the NAV blows up to around $1.48".

    On the company's website, I only found the NAV to be $1.06?
    So how do you come to the figure of $1.48?

    1. Hi Redponza,

      That is the current NAV. The $1.48 figure is from the pro-forma NAV in one of their announcements related to the sales and purchase agreement of that mall: http://dasintrust.listedcompany.com/newsroom/20170616_231116_CEDU_QMWLH6UX983QQARH.1.pdf

      I'll amend the post to make it clearer.