Stock Name: Cambridge
Company Name: CAMBRIDGE INDUSTRIAL TRUST
Research House: DMG
DMG & Partners Securities in an Apr 29 research report says: "Cambridge Industrial Trust (CIT) reported a lower DPU of 1.0 cents in 1Q11 (-21.4% y-o-y; -16.1% q-o-q), representing 19.9% of our FY2011 DPU estimate. The sharp drop in DPU is mainly attributable to the rights issue which was listed in April 2011.
"We expect CIT's DPU to pick up in subsequent quarters as two acquisitions are expected to be completed and commence contributions in 2Q11. Given the 132 million rights units have been officially listed on April 15, we lowered our FY2011-2012F DPU estimates by 13.9-9.2% respectively to account for the enlarged share base.
"Consequently, our target price is lowered to 59 cents, based on DDM. CIT is still trading at undemanding spread of 6.5% versus pre-crisis spread of 4.9%. MAINTAIN BUY."
Company Name: CAMBRIDGE INDUSTRIAL TRUST
Research House: DMG
DMG & Partners Securities in an Apr 29 research report says: "Cambridge Industrial Trust (CIT) reported a lower DPU of 1.0 cents in 1Q11 (-21.4% y-o-y; -16.1% q-o-q), representing 19.9% of our FY2011 DPU estimate. The sharp drop in DPU is mainly attributable to the rights issue which was listed in April 2011.
"We expect CIT's DPU to pick up in subsequent quarters as two acquisitions are expected to be completed and commence contributions in 2Q11. Given the 132 million rights units have been officially listed on April 15, we lowered our FY2011-2012F DPU estimates by 13.9-9.2% respectively to account for the enlarged share base.
"Consequently, our target price is lowered to 59 cents, based on DDM. CIT is still trading at undemanding spread of 6.5% versus pre-crisis spread of 4.9%. MAINTAIN BUY."
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