ESR-REIT

Cambridge Ind Trust Results Announcement

Cambridge Industrial Trust - Underappreciated growth and potential internalisation of manager

Written By Stock Fanatic on Friday, September 20, 2013 | 9/20/2013

■ We expect Cambridge Industrial Trust (CREIT) to announce plans to redeploy its divestment proceeds next month.

■ DPU CAGR of 13% in 2013-15E will be driven by announced acquisitions, enhancement projects, positive rental reversions and interest cost savings from debt refinancing.

■ Other catalysts include the normalisation of EPU in 3Q13 or potential changes to the trust management fee or structure.

■ Reiterate Outperform rating CREIT offers 28% total return ? 20% potential upside to our PT and 7.6% 2013E DPU yield.

■ OUTPERFORM (unchanged)

Redeployment of divestment proceeds: CREIT‟ s 63 Hillview Avenue was sold for SGD 141mn, 28% above its book value and at a 2.3% NPI yield. The divestment will be completed by end- September and we expect CREIT to utilise the proceeds to fund acquisitions or redevelopment projects at c.7% NPI yield.

2013-15E DPU growth of 28%, highest among SREITs: CREIT‟ s announced acquisitions, enhancement projects and positive rental reversions will contribute 15% DPU growth over the next two years. We expect a further 12% growth from SGD 80mn of assumed acquisitions (+7%) and potential interest cost savings (+5%) over the same period. These imply a 2014E DPU yield of 8.9% and a 2013-15E DPU CAGR of 13%.

Trading at 1.0x P/NAV and 21% discount to RNAV: CREIT has underperformed industrial REITs by 6% and is trading at a 21% discount to our RNAV estimate of SGD 0.85/unit.

We see several catalysts for CREIT:

(1) We expect EPU to normalise in 3Q13 after CREIT‟ s 1H13 performance fee had resulted in a 2Q13 EPU of S¢ 0.01

(2) CREIT is one of the few SREITs that do not have its trust manager as its largest unitholder, and unitholders could vote for a change in the management fee structure or the internalisation of the manager. This could potentially be 3-5% accretive to the EPU.

Share price performance over STI

Reiterate Outperform with a PT of SGD 0.81: CREIT offers a 7.6% 2013E DPU yield and is one of our top picks among SREITs. Our DDM-derived valuation uses a 3.25% risk-free rate, a 6.5% market risk premium, a beta of 0.85 and a terminal growth rate of 0.75%. Excluding our acquisition and refinancing assumptions, our fair value would be c.SGD 0.75/unit. (Read Report)

Source : Standard Chartered Equity Research

Cambridge Industrial Trust ST: the RSI is overbought

Trading Central | 2013-09-19 22:53:00

Alternative scenario: below 0.664, expect 0.643 and 0.63.

0.664 is our pivot point.

Our preference: our next up target stands at 0.733.

Alternative scenario: the downside breakout of 0.664 would call for 0.643 and 0.63.

Comment: the RSI is trading above 70. This could mean that either the stock is in a lasting uptrend or just overbought and that therefore a correction could shape (look for bearish divergence in this case). The MACD is negative and above its signal line. The MACD must break above its zero level to trigger further

Cambridge Industrial Trust ST: short term rebound towards 0.708

Trading Central | 2013-09-05 23:02:00

Alternative scenario: the downside breakout of 0.634 would call for 0.607 and 0.591.

Our pivot point stands at 0.634.

Our preference: short term rebound towards 0.708.

Alternative scenario: the downside breakout of 0.634 would call for 0.607 and 0.591.

Comment: the RSI is below its neutrality area at 50. The MACD is negative and above its signal line. The configuration is mixed. Moreover, the share stands below its 20 and 50 day MA (respectively at 0.66 and 0.69).

Supports and resistances:
0.724 *
0.708 **
0.692
0.655 last
0.645
0.634 **
0.607 *

Cambridge Industrial Trust ST: short term rebound towards 0.704

Trading Central | 2013-08-28 23:02:00

Our preference: short term rebound towards 0.704.

Our pivot point stands at 0.619.

Our preference: short term rebound towards 0.704.

Alternative scenario: the downside breakout of 0.619 would call for 0.592 and 0.576.

Comment: the RSI is below 50. The MACD is above its signal line and negative. The configuration is mixed. Moreover, the share stands below its 20 and 50 day MA (respectively at 0.66 and 0.7). Cambridge Industrial Trust is currently trading near its 52 week low at 0.61 reached on 29/08/12.

Supports and

not forgetting that there are always opportunists too

I am accumulating too. The reason for the fall in the price in recent days is due to trimming of investments in CIT by Franklin Resources, which is also trimming its investments across the REITS.

quietly cum some reits for LT investing. Good luck. Smiley

counter ( Date: 07-Aug-2013 10:10) Posted:

agree with you. in the 3rd quarter earnings report, CIT will revise its NAV from $0.67 to $0.695.

just accu slowly. will wln one.

anyone has any idea why REITs stock have to be double punished in these two months as if they are going to the dumps?

OSK : Cambridge Industrial Trust - Gaining In Strength

Cambridge Industrial Trust (CREIT) declared a 2Q13 distribution per unit (DPU) of 1.24 cents (+5.1% y-o-y), in line with our FY13 forecast. Revenue for the quarter jumped 14.1% y-o-y to SGD24.6m while net property income rose 13.4% y-o-y to SGD20.8m. In view of its sturdy growth profile over the next few years, we maintain BUY on CREIT, with a higher DDM-based (COE:8.6% TGR:2.0%) TP of SGD0.81.

Proactive reshuffling of portfolio. Since the start of the year, CREIT has completed four acquisitions, divested 30 Tuas Road and completed both the asset enhancement initiatives (AEIs) at 88 International Road and 4/6 Clementi Loop. Meanwhile, the acquisition of Teban Gardens Crescent (with an initial yield of 8.2%), sale of 63 Hillview Avenue, AEI at 21B Senoko Loop and development at 3 Pioneer Sector 3 are scheduled for completion in 4Q13, 3Q13, 1Q15 and 4Q14 respectively. This proactive re-shuffling of assets has beefed up CREIT’s portfolio as well as benefitted unitholders with a higher dividend payout and brighter outlook.
Proposed sale of 63 Hillview Avenue. CREIT recently announced the divestment of its holdings at 63 Hillview Ave for SGD140.8m (28% higher than book value). This is a positive since the proceeds could be invested in higher-yielding assets versus the 2.3% (based on the selling price) yield from this property. Although it may be difficult to buy yield-accretive assets these days, we believe it could still be yield accretive for unitholders if the entire proceeds are used to trim outstanding debt, which currently carry an all-in cost of c. 4%. The company may also lower its overall gearing to c. 27.7% if it utilizes all of the proceeds to repay borrowings.
Room to trim debt cost. During the results briefing, Management said it is currently in advanced talks with various banks to refinance debts amounting to SGD308m due next year. After divesting its property at Hillview and ending up with SGD140m cash in hand, we believe CREIT will be in a strong position to negotiate for a better rate and possibly lower its all-in interest cost to < 4%

July 8, 2013

Lam Soon finally sold

While the divestment price of Lam Soon may marginally disappoint investors looking forward to its sale as a residential site, the sale should still be a positive given the greater certainty of value-unlocking in its entirety and accretion from the use of divestment proceeds.

http://www.remisiers.org/cms_images/research/Jul08-Jul12_2013/0807_CIMB_Cambridge.pdf

PROPOSED DIVESTMENT OF CAMBRIDGE INDUSTRIAL TRUST'S ENTIRE STAKE IN 63 HILLVIEW AVENUE

http://infopub.sgx.com/Apps?A=COW_CorporateAnnouncement_Content& B=AnnouncementLast3Months& F=880830#.UdoZUztTToI

http://sbr.com.sg/commercial-property/more-news/cambridge-industrial-trust-divests-entire-stake-in-63-hillview-avenue


Distribution per unit (“DPU”) grew by 5.4% yoy from 1.171 cents to 1.234 cents for 1st Qtr 13

Occupancy rate of 98.6% with a Weighted Average Lease to Expiry (“WALE”) of 3.4 years (by income) and average security deposits of 12.7 months per tenant

ASIA PACIFIC PROPERTY CONFERENCE 2013

http://info.sgx.com/webcoranncatth.nsf/VwAttachments/Att_3A8128AB0B60A2ED48257B96002621AE/$file/26062013SGXCITAsiaPacPropertyconfbyCiti_HK_FINAL.pdf?openelement

Bro, did you vest during those fifty cents days?

I have let go Cambridge else the pricing reaching my break even price...

sk6666 ( Date: 01-Jun-2013 20:55) Posted:

Bro marubozu1688, can u also comment this reit?

Another bad day. It drop almost 7%

I read this from my friend's blog. He is also investor in Cambridge

Why Singapore REIT drop so badly ?

Today Singapore industrial REIT drop around 7% e.g. Cambridge industrial REIT.
Fortune Reit a dual listing stock in both HK and Singapore drop nearly 7%.
The Link REIT one of the bigger commerical properties REITs in HK. It drop nearly 4%.

I invest heavily in Singapore industrial trust since 2010. I never experience such heavy drop.

Causes of correction.
1. Margin call is NOT the main reason. I confirm with my stock broker that most REITs investors are cash rich. They buy in cash not margin trading.
2. Profit taking. REIT perform too well recently. Any correction will trigger profit taking
3. Outlook for properties are health. However,with after Singapore Government's cool down measures. And market is expecting that US federal reserve may reduce size of QE. In result, Singapore properties market will not grow as quick as past 2 years. But REITs are trading 20 to 30% above their Net asset value. They may be consider as overvalue. Although their PE is only 10, REITs always include property value increase as their earning. If properties price don't appreciate as quick as last year, REITs earning will reduce. i.e. PE will go up.

http://investorsg.blogspot.sg

Return more than 6%. worth to pick the durian!!

WanSiTong ( Date: 23-May-2013 13:47) Posted:

I didn't notice that! You should instead pick the durian! Wasted !!?

stockseeker ( Date: 23-May-2013 13:24) Posted:

Victim of shorting 'syndicate' today? Hit 0.645 by mid-day before heading back up to 0.8+!! My jaw almost dropped

I didn't notice that! You should instead pick the durian! Wasted !!?

stockseeker ( Date: 23-May-2013 13:24) Posted:

Victim of shorting 'syndicate' today? Hit 0.645 by mid-day before heading back up to 0.8+!! My jaw almost dropped.

Burulnakan ( Date: 23-May-2013 12:31) Posted:

what is going on with Cambridge? Why suddenly drop to 0.8? :(

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Cambridge Ind Trust Results Announcement

Cambridge Industrial Trust - Underappreciated growth and potential internalisation of manager

Written By Stock Fanatic on Friday, September 20, 2013 | 9/20/2013

OSK : Cambridge Industrial Trust - Gaining In Strength

Why Singapore REIT drop so badly ?