Author: tfwee
Cambridge – Issue of units to manager in lieu of management fees
ISSUE OF UNITS TO MANAGER IN LIEU OF MANAGEMENT FEES
In relation to the initial public offering of units in Cambridge Industrial Trust, the Joint Global Coordinators were ABN AMRO Rothschild and CLSA Merchant Bankers Limited, and the Joint Lead Underwriters and Bookrunners were ABN AMRO Rothschild and CLSA Singapore Pte Ltd.
Cambridge Industrial Trust Management Limited (“CITM”), the Manager of Cambridge Industrial Trust (“CIT”), wishes to announce that 801,493 new units in CIT (“Units”) have been issued to CITM on 12 October 2007. The Units were issued at an issue price of $0.8099 per Unit, in lieu of the payment of 97% of the base fee (“Base Fee”) component of the management fee in respect of the initial portfolio of 27 properties to CITM for the period from 1 July 2007 to 30 September 2007.
The Base Fee is defined in the trust deed constituting CIT (the “Trust Deed”) as 0.5% per annum of the value of the deposited property. In accordance with the Trust Deed, the issue price was determined based on the volume weighted average traded price for a Unit for all trades done on the Singapore Exchange Securities Trading Limited, in the ordinary course of trading, for 10 business days immediately preceding the relevant business day.
The Manager has elected to receive 97% of the Base Fee in Units as disclosed in the section entitled “The Manager and Corporate Governance” on page 224 of CIT’s prospectus dated 14 July 2006 issued in connection with the initial public offering of Units.
Following the above issue of Units, the total Units in issue is 515,305,653 of which CITM’s holding is 3,851,099.
PST – OCBC
– Pacific Shipping Trust (PST) has been stuck in a sideways trend over the last 12 months.
– While we observed a shallow gradient for the ascending trend line along with the formation of higher lows since June 06, we have not witnessed any new highs above S$0.465.
– However, as the 50-day moving average has fallen below the 100-day moving average and seems close to cutting the 200-day moving average, coupled with the downwards trending stochastic indicator, this could spell more downside for PST.
– Nevertheless, we expect the price to bottom out around the trend line and the support at S$0.415, and stage a strong rebound thereafter, with the share price heading towards the resistance set at S$0.465.
FSL – OCBC
– First Ship Lease Trust (FSLT) staged a breakout above the downtrend line 2 weeks ago.
– And this breakout was confirmed shortly when FSLT pulled back to test the resistance-turned-support before heading higher. At this juncture, the rally has broken past the 50-day moving average.
– We expect FSLT to rise towards the 1st resistance at S$0.925 before the rally weakens for a temporary consolidation.
– Our confidence in its underlying strength is derived from both the RSI and stochastic indicators which are on the uptrend, as well as the bullish candlestick formation on 27 Sept and 10 Oct.
– 1st resistance at S$0.925, 2nd resistance at S$0.98, and support is set at S$0.83.
Rickmers – OCBC
– Rickmers has fallen below its IPO price (??) after closing at S$1.51 yesterday.
– Yesterday’s sell off was on the back of high volume, which indicates a little more downside is expected, but the reversal candlestick formation also suggests the sell off is close to bottoming.
– Hence, we do not expect the Rickmers to slip very much further as it is trading close to the lower band of the descending trend channel, which is also close to our support at S$1.49.
– We also observed that the short-term stochastic indicator has just cut up inside the oversold territory, hence we anticipate a rebound ahead.
– 1st resistance level set at S$1.58 and 2nd resistance level set at S$1.66.
K-REIT – BT
K-Reit’s Q3 distributable income up 31%
Better occupancies and higher rentals lead to improved performance
K-REIT Asia yesterday said that its third-quarter income distributable to its unitholders rose 31.3 per cent to $5.4 million – from $4.1 million a year ago – as the trust benefited from higher rents in its properties.
The better performance pushed the real estate investment trust’s distribution per unit to 2.23 cents, up 30.4 per cent from the 1.71 cents paid out for the same three months last year.
Net property income increased 19.7 per cent to $7.5 million, from $6.3 million a year ago.
K-Reit attributed the improved performance to higher revenues as a result of better occupancies and higher rentals achieved for new and renewed leases.
‘The portfolio attained 99.6 per cent committed occupancy as at end-September 2007 on the back of continued strong underlying demand for office space,’ K-Reit said. ‘Average gross rental rates reached $4.43 per square foot per month (psf pm) in September 2007, from $3.71 psf pm for the same period in 2006.’
Also in the third quarter, the trust announced its maiden acquisition since its listing in April 2006.
It said it will buy parent company Keppel Land’s one-third stake in One Raffles Quay for $941.5 million. The acquisition will more than double K-Reit’s portfolio to $1.8 billion.
The acquisition is subject to the approval of shareholders of both Keppel Land and K-Reit at their respective extraordinary general meetings, which will be held today. Keppel Land owns about 40 per cent of K-Reit.
Going forward, K-Reit will actively seek acquisitions of prime commercial properties in Singapore and other Asian growth cities to grow its portfolio size to a targeted $2 billion, it said.
The trust said that about 70 per cent of its portfolio’s net lettable area is due for renewal between 2008 and 2010, which puts it in a good position to ride on the rising rental market, which is underpinned by strong demand and tight supply.
K-Reit’s shares closed one cent down at $2.95 yesterday. The stock has climbed 18 per cent since the start of the year.