Cambridge – BT

Cambridge Reit posts Q2 net of $8m

CAMBRIDGE Industrial Trust (CIT) yesterday reported distributable income of $8 million for the second quarter ended June 30, beating its forecast of $6.8 million. Distribution per unit (DPU) is 1.560 cents for the period, said Cambridge Industrial Trust Management (CITM), the manager of the trust. CIT was listed in July last year.

‘We’re pleased that our acquisition efforts are paying off,’ said Ang Poh Seong, CEO of CITM.

CIT’s total net distributable income of $8 million for the quarter represents an annualised yield of 6.62 per cent, based on the closing price of 94.5 cents per unit on June 29, he said.

Annualised DPU of 6.257 cents is 22.2 per cent more than the forecast DPU.

The trust said all its properties are signed with long leases ranging from 5 to 15 years, with fixed rental escalation. The weighted average remaining lease term of CIT’s existing portfolio of 32 properties remained stable at 7.15 years as at the end of June. CIT has a portfolio of 32 properties with 507,800 square metres of lettable area valued at $662.4 million.

About 41.6 per cent of the portfolio is in the logistics and warehousing sector, with the next significant segment in the light industrial space accounting for 32.8 per cent. The remaining properties are represented across a well-diversified spectrum of tenant uses such as car showrooms, self-storage facilities as well as industrial and warehousing.

The overall occupancy of CIT’s portfolio of 32 properties remained at 100 per cent.

CIT said: ‘The demand for quasi-offices will spill into the demand for light industrial space resulting from the current rental pressure on prime office space in the Central Business District.’