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.’

Cambridge Industrial Trust’s (“CIT”) DPU outperform forecast by 22.2%

Highlights:

• Annualised distribution per unit (“DPU”) of 6.257 cents is 22.2% higher than the forecast DPU of 5.120 cents for the second quarter ended 30 June 2007.

• Net Property Income of S$11.0 million exceeds IPO forecast by 22.8%, total Distributable Income to Unitholders exceeds forecast by 18.5%, giving DPU of 1.560 cents for the second quarter ended 30 June 2007.

• In 2Q2007, three investment properties valued at S$40.4 million were acquired bringing total investment properties under management to S$662.4 million as at 30 June 2007.

• Option Agreements with a total asset value of approximately S$196.38 million were signed and announced to date. MOUs for approximately S$82.47 million worth of properties were entered into as at 31 July 2007.

Source : SGX

CIT ACQUIRES THREE PROPERTIES FOR A TOTAL OF S$108.5 MILLION

The Proposed Acquisition

Cambridge Industrial Trust Management Limited (the “Manager”), the Manager of
Cambridge Industrial Trust (“CIT”), has identified the following Properties to be acquired by CIT (collectively known as the “Acquisitions”).

– 1 Tuas Avenue for a purchase price of S$32,500,000. DPU Impact : +0.0597 cents⁽²⁾;

– 120 strata units of Enterprise Hub located at 48 Toh Guan Road East for a purchase
price of S$71,000,000. DPU Impact : +0.0937 cents⁽²⁾; and

– Natural Cool Building located at 81 Defu Lane 10 for a purchase price of S$5,000,000. DPU Impact : +0.0077 cents⁽²⁾

⁽²⁾ Based on simple annualisation on the audited results for the financial period ended 31 December 2006 and the assumption that CIT had purchased, held and operated the respective property for the same annualised period based on long term gearing ratio of 40%.

Note : The above is a modified short extract. For a full version, go to SGX Announcements (Click on link below)

Source : SGX

CAMBRIDGE INDUSTRIAL TRUST ACQUIRES 1 JOO KOON CRESCENT AND 23 WOODLANDS TERRACE FOR A TOTAL OF S$29.208 MILLION

1. Cambridge Industrial Trust Management Limited (the “Manager”), the Manager of Cambridge Industrial Trust (“CIT”), has identified 1 Joo Koon Crescent and 23 Woodlands Terrace (the “Properties”) to be acquired by CIT at a purchase price of S$13,800,000 and S$15,408,000 respectively (collectively known as the “Acquisitions”).

2. In connection with the Acquisitions, RBC Dexia Trust Services Singapore Limited, as trustee of CIT (the “Trustee”), has entered into separate conditional put and call option agreements (the “Option Agreements”) with Yeow Heng Industries Pte Ltd (“Yeow Heng”), and Metform Industries Pte Ltd (“Metform”) respectively, to acquire the two Properties.

3. The Acquisitions are expected to be financed by debt or alternative funding sources in line with the Manager’s capital management strategy in optimizing the funding of the Trust. The above Properties will be accretive to CIT’s distributable income.

4. Information On The Properties (Extracts)

1 Joo Koon Crescent
– Purchase Price: S$13.8 million
– Lease Term: 11 years with 7% rental escalations on the commencement of the fourth, seventh and tenth year.
– DPU Impact: +0.0317 cents

23 Woodlands Terrace
– Purchase Price: S$15.408 million
– Lease Term: 7 years with 5% rental escalations on the commencement of the third,fifth and seventh year. The tenant has an option to extend for another term of 7 years.
– DPU Impact: +0.0317 cents

DPU Impact : Based on simple annualisation on the audited results for the financial period ended 31 December 2006 and the assumption that CIT had purchased, held and operated the respective property for the same annualised period based on long term gearing ratio of 40%.


Source : SGX

COMPLETION OF THE ACQUISITION OF 28 SENOKO DRIVE AND DP COMPUTERS BUILDING LOCATED AT 128 JOO SENG ROAD FOR A TOTAL SUM OF S$22.0 MILLION.

1. Cambridge Industrial Trust Management Limited (the “Manager”), the Manager of Cambridge Industrial Trust (“CIT”), is pleased to announce the completion of the acquisition of two properties with a combined acquisition value of S$22.0 million. 28 Senoko Drive, Singapore 758214 was acquired at a purchase price of S$12.0 million while DP Computers Building located at 128 Joo Seng Road, Singapore 368356 (collectively known as the “Properties”) was acquired for S$10.0 million on 25 June 2007.

2. On 25 June 2007, RBC Dexia Trust Services Singapore Limited as trustee of CIT (the “Trustee”) exercised the put and call option agreement dated 25 April 2007 with Tat Seng Packaging Group Ltd (“Tat Seng”) for the purchase of 28 Senoko Drive. On the same day, the put and call option agreement dated 9 April 2007 (collectively known as the “Option Agreements”) with DP Computers Pte Ltd (“DP”) was also exercised by the Trustee for DP Computers Building.

3. Pursuant to the exercise of the respective Option Agreements, the Trustee signed and completed the sale and purchase agreements for the two Properties respectively.

4. The purchase price and other acquisition-related costs of the Properties are fully funded by debt.

5. 28 Senoko Drive – Located along Senoko Drive, the Property is a single-storey industrial cum warehouse facility with a four-storey ancillary office building. It has a gross floor area of 14,803.0 sq m, and is built on a land area of 20,070.9 sq m. The land has a leasehold title of 30 years commencing from 16 December 1979 with an option for further term of 30 years. The Property will be leased back to Tat Seng for 15 years with an option to renew for a further term of 5 years upon the completion of the sale and purchase. The rent escalation of 7% will commence at the beginning of the fourth, seventh, tenth and thirteenth years.

DP Computers Building – Located at the junction of Joo Seng Road and Kampong Ampat, the Property is a seven–storey light industrial building. It has a gross floor area of 8,626.0 sq m occupying a land area of 3,458.4 sq m. The land has a leasehold title of 30 years with effect from 1 May 1992 with an option for a further term of 30 years. DP and Seng Huat Packaging Pte Ltd will jointly leaseback the Property for 7 years with an option to renew for a further term of 3 years. The rent escalation of 5% will commence at the beginning of the third and fifth years.

Source : SGX