Shortly after Croesus Retail Trust issues a placement of 60 mil unit of its equity shares at between $0.745 to $0.77, yesterday night it was announced that they have entered an agreement of a SG$60 mil debt at 5% interest.
5% will definitely be hard to find accretive malls to purchase for the share holders, but if they swap it to a fixed interest rate of 2.65% for the next 4 years at a cost, it is possible.
With the latest placement and this debt, the new acquisition loan to value could be 57%.
A property that yields a net property income of 6% can still look accretive.
The steps taken seem more to indicate that they have something potential in the works, just that they have to “find” the money to grab it.
I ran a Dividend Stock Tracker that Updates Nightly the dividend yields and various metrics of the popular dividend stocks such as Blue Chip Stocks, REITs, Business Trusts and Telecom Stocks In Singapore. Start by bookmarking it and view it daily.
Here is my current portfolio. It is a FREE Google Spreadsheet that you can use to track your stock portfolio by transactions. It is especially good for a dividend portfolio or a passive ETF portfolio. Get it for Free Today.