I will be subscribing to the rights issue and also will be applying for excess rights. This has been something which I've been waiting for quite some time now. The dividend income I've been getting from this stock has been quite stable for the past 2 years which I believe the management knows what they are doing.
I attended the retail investor seminar of CRT just a few months back which reaffirms my decision to invest in this stock. You can read more about what the management of CRT said during the seminar here: Investing in Japan's Shopping Centres - Croesus Retail Trust Retail Investor Seminar
Croesus Retail Trust Acquires Torius Property in Fukuoka Prefecture, Japan for JPY 7,997 million
Torius Property will be the eighth property in Croesus Retail Trust’s (“CRT”) portfolio, marking its first foray into Kyushu Island, and will be the fourth property acquired by CRT since its IPO in May 2013. The rights issue will be offered for Units of twenty-two (22) Rights Units for every one hundred (100) existing Units at S$0.610 per Rights Unit.
Torius Property is a large-scale suburban retail mall located in the satellite town of Hisayama-machi of Kasuya-gun, which is approximately 13 km from central Fukuoka City in Fukuoka Prefecture, on Japan’s Kyushu Island. It comprises of 36 single or double storey buildings and offers a diverse and unique mix of 145 tenants. Some of Torius Property’ tenants include Costco (wholesale supermarket), Nafco (interior and furniture, DIY), United Cinema (cinema), Rakuichi Rakuza
(amusement centre) and Daiso (100 yen shop). Other notable facilities at Torius Property include a petting zoo, as well as an outdoor barbecue park that enhances the mall's appeal as a family outing and gathering destination.
The current stock price for CRT is about S$0.815 per unit. Getting the rights units at S$0.610 will improve the yield I receive from this stock moving forward. Subscribing to the rights issue shows my trust in the management to provide good income for shareholders in the future.
The new property that they will be buying has good NPI yield of 7.84% as compared to the NPI yield of CRT's existing portfolio of 5.3%. Torius Property has a high occupancy rate of 95.3%.
The commencement of trading of rights entitlement will start on 9th October 2015 and end on 19th October 2015. The last date and time for acceptance of the Rights Entitlements and payment for Rights Units will be on 23rd October 2015.
Its time for more dividend income!
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1. The Japan story - Croesus retail trust and Saizen Reit
2. Investing in Japan's Shopping Centres - Croesus Retail Trust Retail Investor Seminar
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