Cambridge – Lehman

Stable Portfolio Yield

Investment Conclusion

We initiate coverage of Cambridge Industrial Trust (CIT) with a 1-Overweight investment rating and a 12-month sum-of-the-parts-based price target of S$0.80. Based on our projected FY08E distribution yield of 8.4%, which is 560bps above the Singapore government ten-year bond, we estimate CIT offers the potential for a total return of 26% at current levels. (This is an excerpt from our full initiation report – “Stable Portfolio Yield; Potential Suitors Could Come Knocking”)

Summary