Cambridge Industrial Trust

Cambridge Industrial Trust: CIMB maintains O/p with $0.81 TP. House took mgt on a non-deal roadshow to SG, HK and Msia. House found investors generally less familiar with the industrial space and the role of govt regulation in SG, which mitigates landlords’ exposures to uncertain macros. IPO assets pave the way for 5-10% rent reversions and development works in FY13/14. Combined with record acquisitions and BTS projects from 2012, estimate 5% CAGR DPU growth for FY13/14 and strong yield of 7%) Add that he share price has re-rated and the stock now trades at a 15% premium to book value, making it easier for acquisitions to be accretive. Yet with vendors raising price expectations, Cambridge will focus on development projects over FY13-14 and ruled out pre-emptive equity fundraising.