Bad Business Trust Share Performance: HPH Trust and Perennial China Retail Trust | Investment Moats Skip to Content

Bad Business Trust Share Performance: HPH Trust and Perennial China Retail Trust

Folks reading this blog would know that I got into HPH during IPO and turns out that this punt fell utterly apart when it crashed from IPO price of USD 1.01 to USD 0.95.

Today the price of the business trust reached a new low at 86 cents. Business trust as an investment in Singapore is really about an extreme theme of sponsors dumping assets to investors like me at an obscene price.

Reviewing many business trust as compared to dividend stocks and REITs seem to point to a trend where they are unable to keep their share price above IPO price.

The lure of high yields proved to be too much at times, but as investors we stand to lose more in terms of capital loss after factoring dividends.

Today another business trust was listed. Perennial China Retail Trust, which provides a yield of 5.3% despite pricing at the lower end of the spectrum (70 cents to 76 cents)

Its debut closed at 61 cents.

Still opportunity when timed correctly

Like all investment assets, there are good ones and there are duds. Business trust seem to be much worse currently because sponsors really use them as dumping grounds.

However, if you keep your time frame intermediate, and have a nose to really analyze their assets versus their valuation, you may be able to uncover some turnaround plays, or trusts that have their price beaten down but are really not that bad.

Treasury China Trust seem to be one that bucked the trend. Although it is a china business trust that develops real estate as well as managed china real estate paying out a 4-5% yield, its been buying back shares (not sure why) and have rewarded share holders who are willing to do scuttlebutt research with a nice recent price appreciation.

For those interested in tracking my most current holdings, you can review my portfolio over here. Learn to use our Free Stock Portfolio Tracking Google Spreadsheet to track stock transactions.

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