Thursday, November 10, 2016

Added: CapitaRetail China Trust


Bought 11,000 shares of CRCT today at $1.42

I had previously bought CRCT at $1.42 on 8th Mar 2016 and sold it at $1.60 on 28th Sep 2016 (Link). 

Seeing the price drop back to $1.42, so mai tu liao (don't wait any longer), fast hand fast leg go in and buy.



Reasons for buying CRCT:
1) Trading at a discount of 10% (PB 0.90)
2) Div yield at 7.4%
3) A potential dividend declare & XD of $0.05 in Feb 17
4) Eyeing on CapitaMall Trust & Frasers Centrepoint Trust for the longest possible but it is no where near my TP of $1.90
5) Seeing the success of CMT in Singapore, CRCT will more or less have the same great successful strategy and mall management skillset passed down to them
6) 5 out of 7 Directors opt for the Distribution Reinvestment Plan which issues them shares instead of cash as their dividends
7) 3Q 2016 Rental Reversion 4.8%, YTD 2016 Rental Reversion 5.6%
8) Completed acquisition of Galleria, which will boost portfolio's performance from 1st Oct 16


1 negative point to note for CRCT is higher property tax impose by local tax authority wef 1st Jul 2016 will impact and reduce its profit :(

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