Cambridge Industrial Trust

Cambridge Industrial Trust: decent set of 2Q12 results. DPU at 1.18cts, +13.9% yoy, marking the 5th consecutive qtrly growth in DPU. This was on the back of a 10.4% yoy increase in gross revenue to $21.5m and a 8.8% rise in net property income to $18.4m, which lifted distributable amount by 14.8% to $14.1m. Operating performance for the Reit remained strong. Occupancy remained at 99.1% spread across 165 tenants and 47 properties, with a wt avg lease expiry (WALE) of 3.1yrs. Gearing was at 35.8%, within the target range of 30-40%. In relation to the compulsory land acq by the Spore Land Authority affecting Cambridge’s property at 1 Tuas Ave 3, the trust has been awarded $29.2m as compensation and an ex-gratia payment of $2m by the SLA. The compensation is expected to be received by Jan ’13. The trust has yet to receive notification of the compensation value to be awarded for the remaining 30 Tuas Road property that has been affected. Cambridge trades at annualized 2Q12 yield of 8.3%, 0.93x P/B.