My first exposure to China retail sector was my purchase in Metro in 2008. Bought with CPF, I have held on to it until now, with near to 200% return (including dividend) and yield based on purchase price is near to 15%. Just two days ago, Quarz Capital Management have written an open letter to urge Metro to return cash. Hopefully that will get Metro to take some action to further unlock shareholder’s value.
I decided to purchase Metro rather than CRCT was due to my familiarity to the brand then and hence CRCT seldom came to my mind as a purchase idea.
My main reason to purchase CRCT is its high dividend yield. I was attracted by the more than 7% yield and the trust have increased its dividend payout over the years, though the increase is not linear and dropped in two years. With these information, I believe that the group can continue to give consistent dividend in the coming years.
I expect that in near term, the dividend payout will be pretty stable. While the recent purchase of Galleria, Chengdu is DPU accretive for the trust, I feel that the impact will be pretty small.
I will sell when Mr Market decides to value it higher and provides me a return of at least 3 years of dividend, without any change in its fundamental.
20161H revenue and net profit income is pretty stable and there is a slight dip in the interim DPU. I will continue to hold on to my lots to collect dividend.