Cambridge Industrial Trust

Cambridge Industrial Trust: decent 3Q12 results. Revenue and net property income at $22.5m and $19.2m, +8.5% and +8.9% yoy respectively, on the back of contributions from newly acq properties and positive rental renewals. DPU at 1.204 cts, +11.3% yoy. In 3Q12, the Trust enjoyed a high occupancy rate of 98.9% vs industrial avg of 93.8%. It has a wt avg lease expiry (WALE) of 3 yrs. The Trust Mgr says it will continue to proactively manage Cambridge’s portfolio to maintain max occupancy, while concentrating on strategic acq and AEIs. Regarding the Spore Land Authority’s compulsory acquisition of its 3 properties, Cambridge intends to reinvest the aggregate compensation proceeds totaling $101.6m and expected to be recived by 1Q13, into new properties or specific AEIs. In this regard, the Trust has already completed 2 acq with an invmt value totaling $56.3m in Oct ’12. Two of its AEIs are also on track to be completed by end of the yr, which will contribute positively to distributions in 4Q12. Annualized DPU of 4.79ct translates to 7.2% yield on last closing px at $0.665 The units trade at 1.09x P/B.