Standard & Poor's Reaffirms Cambridge Industrial Trust ("CIT") BBB-/Stable/-- Rating

Standard & Poor's Reaffirms Cambridge Industrial Trust ("CIT") BBB-/Stable/-- Rating:

Key Points

• Cambridge Industrial Trust Management Limited, as manager of CIT, would like to announce that Standard & Poor's has reaffirmed the BBB-/Stable/-- credit rating of CIT in its report dated 1 June 2011.

Cambridge Updated Target Price following Q1 2011 result release

Cambridge Updated Target Price following Q1 2011 result release:

Brokerage	Recommendation	Target Price (S$)	Date
DMG	BUY	0.59	29/04/11

 

Latest updates at Stock Target Price.

Related Posts

• Cambridge Q1 2011 Quarterly Earnings Report 

Cambridge Q1 2011 Quarterly Earnings Report

Cambridge Q1 2011 Quarterly Earnings Report:

• Press Release
• Financial Statements
• Presentation Slides

Key Points

• The Trust has delivered a distribution per unit (“DPU”) of 1.001 cents to its Unitholders for 1Q2011, which will be payable to Unitholders on 14 June 2011.
• 1Q2011 DPU of 1.001 cents is 16.1% less than the DPU for 4Q2010. This is largely attributable to the distribution being diluted as a result of the recent Rights Issue.
• Fully underwritten and renounceable Rights Issue of approximately 132.1 million units raising gross proceeds of approximately S$56.7 million. Issue price of S$0.429 per Unit. Rights Issue was 2.51 times subscribed.
• Debt refinancing with S$320.0 million new term loan agreed (subject to loan documentation) with a syndicate of financial institutions. All-in debt cost is approx. 4.4% p.a.
• CIT increased its Acquisition Term Loan Facility from S$50.0 million to S$120.0 million. All-in debt cost is approx. 3.0% p.a.
• Distributable income for 1Q2011 was S$11.9 million, representing a 1.0% decrease from 4Q2010 distributable income of S$12.0 million.
• In 1Q2011, the Trust achieved healthy portfolio occupancy of 98.83%, weighted average lease to expiry of 3.9 years, low arrears of around 0.7% of annualised rent, and average security deposits equivalent to 14.1 months rent.
• As part of CIT’s efforts to enhance the intrinsic value of the portfolio, various initiatives were carried out, including:
• Divestment of 29 units at 48 Toh Guan Road East in 1Q2011 with total sale proceeds exceeding book value by 11.3%.
• Upgrading of 30 Toh Guan Road to improve the building façade and technical capabilities to enhance the quality of the property.
• Renegotiation of several leases which resulted in the smoothing out of CIT’s lease expiry profile, reducing the combined lease expiry concentration in 2013/2014 from 54.6% (by income) as at 31 December 2010 to 53.4% (by income) as at 31 March 2011.
• The Books will close from 5pm on 9 May 2011 for the purpose of determining Unitholders’ entitlement to the distribution. 
• Gearing at 33.3% as at 31 Mar 2011.
• NAV per unit of 61.2 cents as at 31 Mar 2011.

Author's Note
The DPU for the reporting quarter is 1.001 cents. It will be paid on 14 Jun 2011, with the Books closure on 9 May 2011.


The DPU was 1.193 cent in the previous quarter.

The DPU is significantly lower in the reporting quarter compared to the last quarter primarily because of the  distribution being diluted as a result of the recent Rights Issue in Apr 2011.

Related Posts

• Results Release 
• DPU History
• Cambridge Q4 2010 Quarterly Earnings Report
• Cambridge Q3 2010 Quarterly Earnings Report  
• Cambridge - Rights Issue to Raise Approx S$56.7 million for the Acquisition of Three Properties in Singapore

A-Reit, CacheLog, Cambridge - Date of Result Release for Q1 2011

Updated date of Result Release for Q1 2011:
A-Reit APR 21

CacheLog APR 26
Cambridge APR 28

Latest Update at Results Release.

Cambridge - Rights Issue to Raise Approx S$56.7 million for the Acquisition of Three Properties in Singapore

Cambridge - Rights Issue to Raise Approx S$56.7 million for the Acquisition of Three Properties in Singapore:

• Press Release
• Announcement

Key Points

• Proposed acquisition of three properties for an aggregate purchase consideration of S$116.8 million on a sale-and-leaseback basis to respective  vendors for lease terms of between 5 and 6 years with options to renew.
• CIT’s unitholders (“Unitholders”) are invited to participate in the Rights Issue to raise gross proceeds of approximately S$56.7 million, plus an opportunity to apply for Excess Rights Units.
• Rights Issue will be offered on a 1-for-8 basis (fractional entitlements to be    disregarded) at a price of S$0.429 per Rights Unit (the “Issue Price”) which is at a 15.0% discount to the closing price of S$0.505 per Unit on the SGX-ST on 10 March 2011 and a 13.7% discount to TERP.
• The Manager of CIT has undertaken to support the Rights Issue by Subscribing for the Rights Units represented by its Rights Entitlements.
• Expected benefits of the Acquisitions (as defined herein) and the Rights Issue (collectively, the “Transactions”) to Unitholders:
• Enhancing and improving the quality of CIT’s portfolio (the “Portfolio”) and increasing the size of the Portfolio thus generating economies of scale
• Pro forma DPU accretion and pro forma distribution yield of 10.1% for existing Unitholders
• Improving Portfolio and tenant trade sector diversification 
• Positive impact on the weighted average lease expiry and lease expiry profile
• Potential increase in liquidity through the Rights Issue
• Providing Unitholders with the pro-rata opportunity to participate in the growth of CIT at an Issue Price which is at a discount to the closing price per Unit

• The Rights Issue is expected to close on 6 April 2011 at 5.00 pm (for manual
  applications) and at 9.30 pm (for Electronic Applications).

Related Posts

• Cambridge issues and list 38,483,354 new units pursuant to the preferential offering - 18 NOV 2010
• Cambridge Notice of Advanced Distribution - 18 NOV 2010
• Cambridge to Launch Equity Fund Raising to raise up to S$50.4m for the acquisitions of 4 properties - 21 OCT 2010

Cambridge Q4 2010 Quarterly Earnings Report

Cambridge Q4 2010 Quarterly Earnings Report:

• Press Release
• Financial Statements
• Presentation Slides

Key Points

• DPU of 1.193 cents for the reporting quarter.
• Portfolio valuation as at 31 December 2010 was S$928.5 million, an increase of 5.7% from the 30 June 2010 valuation, on a like-for-like basis.
• Three new acquisitions costing S$74.3 million (including acquisition costs), were completed and part financed by a S$40.0 million Private Placement in August 2010 and a S$50.4 million Private Placement/Preferential Offering in October 2010.
• Gearing reduced to 34.7% as at 31 December 2010 from 42.6% as at 31 December 2009.
• 4Q2010 distributable income increased by 11.2% to S$12.0 million as compared to 3Q2010 distributable income of S$10.8 million, which translated to a distribution per unit (“DPU”) of 1.193 cents, which is 0.5% more than the 3Q2010 DPU of 1.187 cents. 
• An advanced distribution of 0.627 cents per unit was paid on 6 December 2010 in conjunction with the private placement exercise cum preferential offering carried out in October 2010. The balance of 0.566 cents DPU will be payable on 24 March 2011.
• The Books will close from 5pm on 18 Feb 2011 for the purpose of determining Unitholders’ entitlement to the distribution. 
• NAV per unit of $0.607 as at 31 December 2010.

Author's Note
The DPU for the reporting quarter is 1.193 cents. There was already an advance distribution of 0.627 cents per unit for the period from 1 Sep 2010 to 17 Nov 2010 paid on 6 Dec 2010 in conjunction with the private placement exercise cum preferential offering carried out in Oct 2010. The balance of 0.566 cents DPU for the period from 18 Nov 2010 to 31 Dec 2010 will be payable on 24 March 2011, with the Books closure on 18 Feb 2011.

The DPU was 1.187 cent in the previous quarter.

Related Posts

• Results Release 
• DPU Information Page 
• Cambridge Notice of Advanced Distribution - 18 NOV 2010
• Cambridge issues and list 38,483,354 new units pursuant to the preferential offering - 18 NOV 2010
• Cambridge to Launch Equity Fund Raising to raise up to S$50.4m for the acquisitions of 4 properties - 21 OCT 2010 
• Cambridge Q3 2010 Quarterly Earnings Report

Cambridge's 3 properties affected by land acquisition

NOTICE OF COMPULSORY LAND ACQUISITION AFFECTING
3 OF CIT’S 43 PROPERTIES:

• Press Release

Key Points

• CIT has received a formal notice from Singapore Land Authority (“SLA”) on 11 January 2011 with regard to the compulsory acquisition of land on Tuas Road, Pioneer Road, Tuas West Road, Tuas West Drive and Tuas South Avenue 3 for the construction of Tuas West Mass Rapid Transit (“MRT”) extension and road works along the Pan Island Expressway, Tuas Road,  Pioneer Road, Tuas West Road, Tuas West Drive and Tuas South Avenue 3.
• Based on the Company’s initial assessment, three of CIT’s 43 properties will be affected to varying degrees by this land acquisition:
1. 30 Tuas Road (Lot No 1289X pt Mukim 7)
2. 120 Pioneer Road (Lot No 3237M pt Mukim 7); and
3. 1 Tuas Avenue 3 (Lot 1422X Mukim 7)
• All or part of the land where these properties are situated will be possessed by the Government by January 2013.
• The relevant authorities will be arranging for their representatives to discuss the details of the compulsory land acquisition with the Company, including details of compensation. 
• The Company will continue to assess the situation and will issue further announcements when it has more information.

Cambridge completes acquisition of 511 and 513 Yishun Industrial Park A - 30 NOV 2010

Cambridge completes acquisition of 511 and 513 Yishun Industrial Park A.

• Press Release

Key Points

• Completion of the acquisition of the property located at 511 and 513 Yishun Industrial Park A, Singapore 768768 and 768736 respectively.
• Use of proceeds from the private placement and preferential offering of S$21.8 m for part payment of the purchase price for 511 & 513 Yishun Industrial Park A and estimated acquisition costs.

Related Posts

• Cambridge issues and list 38,483,354 new units pursuant to the preferential offering - 18 NOV 2010
• Cambridge to Launch Equity Fund Raising to raise up to S$50.4m for the acquisitions of 4 properties - 21 OCT 2010

Cambridge issues and list 38,483,354 new units pursuant to the preferential offering - 18 NOV 2010

Cambridge issues and list 38,483,354 new units pursuant to the preferential offering. See press release.

Key Points

• This announcement is in relation to CIT’s equity fund raising comprising:
  
  • The private placement of 56,498,000 new units in CIT at an issue price of  S$0.531 per Placement Unit to raise gross proceeds of approximately S$30.0 million.
  • The pro-rata and non-renounceable preferential offering of 38,483,354 new units in CIT on the basis of one Preferential Unit for every twenty-five existing units in CIT held by Entitled Unitholders1 as at 5.00 p.m. on 29 October 2010, fractions of a Preferential Unit to be disregarded, at an issue price of S$0.531 per Preferential Unit to raise gross proceeds of approximately S$20.4 million.
• The Manager wishes to announce that the issuance of the Preferential Units has been completed on 18 Nov 2010. With the issuance of the Preferential Units, the total number of Units in issue has increased to 1,057,065,216 Units.

Related Posts

• Cambridge Notice of Advanced Distribution - 18 NOV 2010
• Cambridge to Launch Equity Fund Raising to raise up to S$50.4m for the acquisitions of 4 properties - 21 OCT 2010

Cambridge Notice of Advanced Distribution - 18 NOV 2010

Cambridge Notice of Advanced Distribution. See press release.

This is a follow up of the earlier announcement dated 21 October 2010 relating to the Equity Fund Raising and acquisitions.

Key Points

• Distribution of the distributable income for the period from 1 October
  2010 to 17 November 2010 in advance.
• Advanced Distribution of 0.627 cents per Unit in cash will be paid on 6 December 2010.
• Unitholders whose securities accounts with The Central Depository (Pte) Limited were credited with Units as at 5.00 p.m. on 29 October 2010 will be entitled to the Advanced Distribution.

Related Posts

• Cambridge issues and list 38,483,354 new units pursuant to the preferential offering - 18 NOV 2010
• Cambridge to Launch Equity Fund Raising to raise up to S$50.4m for the acquisitions of 4 properties - 21 OCT 2010

Cambridge - Updated Target Price following Q3 2010 result release

Updated Target Price for Cambridge following Q3 2010 result release:

DMG	BUY	S$0.62	21/10/10
DBS Vickers	BUY	S$0.58	25/10/10
Phillip Securities	HOLD	S$0.61	25/10/10

 
Latest updates at Stock Target Price.

Related Posts
Cambridge Q3 2010 Quarterly Earnings Report

Cambridge to Launch Equity Fund Raising to raise up to S$50.4m for the acquisitions of 4 properties - 21 OCT 2010

Launch of Equity Fund Raising to raise up to S$50.4 m for the acquisitions of 4 properties:

• Press Release
• Presentation Slides

Key Points

• Acquisition of 25 Tai Seng Avenue, 511 & 513 Yishun Industrial Park a and potential acquisitions of two properties in the western part of singapore.
• Equity fund raising to raise up to S$50.4 million.
• Equity Fund Raising to comprise:  
• Private Placement of 56,498,000 new units in Cambridge Industrial Trust to raise gross proceeds of approximately S$30.0 million
• Preferential Offering of up to 38,483,354 new units in CIT to raise gross proceeds of up to approximately S$20.4 million 
• New units to be offered at a price of S$0.531 for the Private Placement and S$0.531 for the Preferential Offering. 
• Retail Offering to be made on the basis of each unitholder having a preferential offer of one (1)  Preferential Unit for every twenty five (25) existing units in CIT held by entitled unitholders as at 5.00 p.m. on 29 October 2010, plus the opportunity to apply for additional units.
• Net proceeds to be used to part‐finance two (2) announced properties and two (2) potential acquisitions, all located in Singapore, with aggregate cost of approximately S$74.3 million.  
• Expected benefits to CIT from the addition of these properties:
• Improvement in asset quality through an enlarged portfolio; 
• Improved portfolio and tenant diversification; and  
• Positive impact on weighted average lease tenure and weighted average lease expiry 
• Post‐completion of the Equity Fund Raising, CIT’s gearing level is estimated to fall from 39.2% to 38.6%, strengthening CIT’s capital structure. 

Cambridge Q3 2010 Quarterly Earnings Report

Q3 2010 results for Cambridge:

• Press Release
• Financial Statements
• Presentation Slides

Key Points

• Successfully acquired new assets worth S$37.1 million, supported by a S$40.0 million Private Placement in August 2010.
• Reduced gearing from 42.3% to 39.2%, following loan prepayment of S$32.0 million. Further repayment is planned.
• Improved financial flexibility with a new three-year Acquisition Term Loan and Revolving Credit Facility totalling S$70.0 million.
• Delivered distributable income in 3Q2010 of S$10.8 million, which translated to a distribution per unit (“DPU”) of 1.187 cents.
• Successfully completed an asset enhancement initiative, with three others in the pipeline, plus leases re-negotiated.
• An advanced distribution of 0.680 cents per unit was paid on 16 September 2010 in conjunction with the private placement exercise carried out in August 2010. The balance of 0.507 cents DPU will be payable on 30 November 2010.
• The Trust holds S$86.2 million in cash as at 30 September 2010, including approximately S$35.0 million relating to divestment proceeds. It is committed to use these proceeds to repay the syndicated term loan facility on 17 November 2010. This is expected to further reduce gearing to approximately 36.8%.
• The carrying value of the property portfolio increased by S$7.3 million during the quarter to S$838.5 million as at 30 September 2010.
• The 3Q2010 occupancy rate for CIT of 99.97%, remains higher than the national average of 92.3%.
• Book closure at 5.00 pm on 28 Oct 2010 for the purpose of determining unitholders’ entitlements to distribution.  
• The distribution that will be paid on 30 Nov 2010.

Author's Note
The DPU for the reporting quarter is 1.187 cents. This includes the advanced distribution of 0.680 cents per unit paid on 16 September 2010 for the period 1 July 2010 to 22 August 2010 because of the private placement exercise, and the balance of 0.507 cents per unit to be paid on 30 November 2010. The Manager has determined that the Distribution Reinvestment Plan (DRP) will not apply to the remainder distribution of 0.507 cents for 3Q2010.

DPU was 1.238 cents for the previous quarter.

Cambridge - Change to Date of Result Release for Q3 2010

Change to Date of Result Release for Q3 2010 for Cambridge from OCT 19 to OCT 20. See press release.

Latest Update at Results Release.

Date of Result Release for Q3 2010 for Cambridge, CRCT

Updated date of Result Release for Q3 2010:
Cambridge   Oct 19
CRCT   Oct 20 (AM)

Latest Update at Results Release.

Updated Target Price for Cambridge after announcement of acquisition

Updated Target Price for Cambridge after announcement of acquisition:

DBS Vickers

HOLD

S$0.54

30/09/10

Latest updates at Stock Target Price.

Cambridge's proposed acquisition of 25 Tai Seng Avenue - 2 SEP 2010

Cambridge's proposed acquisition of 25 Tai Seng Avenue. See press release.

Key Points

• Cambridge Industrial Trust Management Limited, as manager of Cambridge Industrial Trust (“CIT” and the manager of CIT, the “Manager”), is pleased to announce the proposed acquisition of the property located at 25 Tai Seng Avenue, Singapore 534104 (“25 Tai Seng Avenue”).
• The Acquisition is subject to the Vendor’s shareholders approval and is expected to be completed in 4th quarter of 2010.
• The building at 25 Tai Seng Avenue was completed in 2009. It comprises a seven-storey light industrial building located within the Paya Lebar iPark. 
• The appraised value of 25 Tai Seng Avenue, based on a valuation conducted by Colliers International Consultancy & Valuation (Singapore) Pte Ltd (“Colliers”) on 5 August 2010 using the direct comparison method, discounted cash flow analysis and the capitalisation approach, is S$21.5 million.
• The purchase consideration of 25 Tai Seng Avenue is S$21.1 million, which was arrived at on a willing-buyer and willing-seller basis, based on the appraised valuation conducted by Colliers.
• The estimated total cost of the Acquisition is approximately S$21.5 million, comprising:


• the purchase consideration of 25 Tai Seng Avenue of S$21.1 million; 
• the acquisition fee payable to the Manager under the trust deed dated 31 March 2006 constituting CIT entered into between the Trustee and the Manager (as amended) in respect of the Acquisition, which amounts to approximately S$0.2 million; 
• the professional and other fees and expenses incurred or to be incurred in connection with the Acquisition which amount to approximately S$0.2 million.


• CIT has sufficient financial flexibility and capacity to fund the Acquisition which is expected to complete by 4th quarter of 2010.
• The Manager believes that 25 Tai Seng Avenue is a quality industrial asset that has been purchased at an attractive yield which is comparable or better than yields of recent transactions in the market. Additionally, the acquisition of 25 Tai Seng Avenue will further reduce the reliance of CIT’s income stream on any single asset and tenant, increase the weighted average lease tenure of CIT’s portfolio as at 30 June 2010 and reduce CIT’s lease expiry concentration in 2013 and 2014.

Cambridge completes acquisition of 22 Chin Bee Drive - 29 SEP 2010

Cambridge completes acquisition of 22 Chin Bee Drive/Use of proceeds from the private placement. See:

• Press Release

Key Points

• Cambridge Industrial Trust Management Limited, as manager of Cambridge Industrial Trust (“CIT” and the manager of CIT, the “Manager”), is pleased to announce the completion of the acquisition of the property located at 22 Chin Bee Drive, Singapore 619870 (“22 Chin Bee Drive”).
• RBC Dexia Trust Services Singapore Limited, in its capacity as trustee of CIT (the “Trustee”), has today completed the acquisition of 22 Chin Bee Drive from Deluge Fire     Protection (S.E.A.) Pte Ltd pursuant to a put and call option agreement dated 12 August 2010 entered into between the Trustee and Deluge Fire Protection (S.E.A.) Pte Ltd.
• Chin Bee Drive, which was completed in 2008, comprises two levels of warehousing facilities and a mezzanine level of office space, a six-storey ancillary office and a five-  storey annex comprising a workers’ dormitory. It is located in the west of Singapore and is accessible via the Ayer Rajah Expressway and the Pan Island Expressway.
• Further to the announcement dated 12 August 2010 in relation to the private placement of 83,683,000 new Units at an issue price of S$0.478 per Unit (the “Private Placement”), the Manager wishes to announce that S$10.0 million of the net proceeds from the Private Placement has been utilised for the part payment of the purchase price for 22 Chin Bee Drive and estimated acquisition costs.
   

Stock Target Price - Updated Target Price for Cambridge following its announcement of private placement and acquisition

Updated Target Price for Cambridge following its announcement of private placement and acquisition:

DMG	BUY	S$0.62	13/08/10
Phillip Securities	HOLD	S$0.52	16/08/10

Latest updates at Stock Target Price.

REIT Financial News - 13 AUG 2010: Cambridge - Announcement of Acquisition and Private Placement

ACQUISITION OF 22 CHIN BEE DRIVE AND 1 & 2 CHANGI NORTH STREET 2
LAUNCH OF PRIVATE PLACEMENT OF 83,683,000 NEW UNITS
S$50.0 MILLION THREE-YEAR TERM LOAN FACILITY
See : Press Release

Key Points

• The trustee of CIT has entered into two separate Put and Call Option Agreements to acquire the Target Properties:



1. Deluge Fire Protection (S.E.A.) Pte Ltd in respect of the acquisition by CIT of the property located at 22 Chin Bee Drive, Singapore 619870 (22 Chin Bee Drive)
2. ETLA Limited in respect of the acquisition by CIT of the property located at 1 Changi North Street 2, Singapore 498808 and 2 Changi North Street 2, Singapore 498775 (1 & 2 Changi North Street 2)



• To raise gross proceeds of approximately S$40.0 million by issuing 83,683,000 new units in CIT by way of a private placement to:



• institutional and other investors at an issue price of S$0.478 per New Unit 
• at an issue price of S$0.503 per New Unit to the Oxley Group and Mitsui & Co., Ltd.



• The Trustee has today entered into a facility agreement with National Australia Bank Limited ("NAB") pursuant to which NAB will make available to the Trustee a S$50.0 million three-year secured term loan facility (the “Acquisition Term Loan Facility”) and a S$20.0 million secured revolving credit facility of same tenor (the “Revolving Credit Facility”).