Stock Name: Cambridge
Company Name: CAMBRIDGE INDUSTRIAL TRUST
DMG Partners Research in a Jan 13 research report says: "After meeting with the management of Cambridge Industrial Trust (CIT) recently, we believe FY2012 would be one of the most exciting years for CIT since listing in FY2006.
"With the acquisitions of 4 properties, DPU is expected to grow by c.12% in FY2012. Although consensus expects a slowdown in Singapore's economy in FY2012, we believe the rental rate of industry property will remain resilient, following our sensitivity study of industrial rental rate vs Singapore's PMI.
"Although CIT's FY2011 DPU is expected to fall by c.13% y-o-y; due to the enlargement of share base as a result of April rights issue, the contribution from abovementioned projects should allow CIT's DPU to pick up in FY2012. Target price of 59.5 cents posting an potential upside of 22.7%. MAINTAIN BUY."
Company Name: CAMBRIDGE INDUSTRIAL TRUST
| Research House: DMG | Price Call: BUY | Target Price: 0.595 |
DMG Partners Research in a Jan 13 research report says: "After meeting with the management of Cambridge Industrial Trust (CIT) recently, we believe FY2012 would be one of the most exciting years for CIT since listing in FY2006.
"With the acquisitions of 4 properties, DPU is expected to grow by c.12% in FY2012. Although consensus expects a slowdown in Singapore's economy in FY2012, we believe the rental rate of industry property will remain resilient, following our sensitivity study of industrial rental rate vs Singapore's PMI.
"Although CIT's FY2011 DPU is expected to fall by c.13% y-o-y; due to the enlargement of share base as a result of April rights issue, the contribution from abovementioned projects should allow CIT's DPU to pick up in FY2012. Target price of 59.5 cents posting an potential upside of 22.7%. MAINTAIN BUY."
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