Cambridge Industrial Trust

Cambridge Industrial Trust: Daiwa maintains Hold, raises TP slightly to $0.71 from $0.69. Cambridge is divesting its entire 69.4% stake in the Lam Soon Industrial Building (63 Hillview Avenue) for $140.8m which is DPU n DDM accretive. Daiwa does not expect any chance of sustainable yield compression until interest-rate (and 10-year Singapore bond yield) uncertainty is no longer a concern. A positive catalyst would be the announcement of more DPU accretive deals, while a risk would be the concentration of lease renewals for 2014.