Cambridge Industrial Trust

Cambridge Industrial Trust: 3Q13 DPU rose 3.9% y/y to 1.25¢ while distributable income rose 6% to $15.4m. Gross revenue was also 6% higher at $23m while net property income rose at a slower clip at 0.8% to $19.3m. The higher revenue was mainly due to additional rental from property acquisitions and completion of development projects, as well as positive rental reversions. Generally, expenses rose in tandem with higher AUM while borrowing costs were 15.2% higher at $5m on increased borrowings and committed facilities taken up in relation to acquisitions and asset enhancement initiatives post 3Q12. Cambridge’s current portfolio consists of 48 properties in Singapore, with~7.7m sq ft of GFA. Occupancy is strong at 97%, and WALE is 3.7 years. Gearing ratio is 27.9%. AEIs have commenced for 3 Pioneer Sector 3 to build a ramp-up warehouse for $45.4m, with GFA of ~303,753 sq ft targeted for completion end 2014. In 21B Senoko Loop, property will be partially demolished and redeveloped for $12.8m expected to be completed by end 2014. Acquisition in 30 Teban Gardens is expected in 4Q13, and divestment of 63 Hillview Avenue is completed in the quarter, sold at 28% above book value. Cambridge ended Sep with an NAV per unit of 69.6¢ translating to 1x P/B. The trust offers 7.1% annualized 3Q13 yield.