Stock Name: Cambridge
Company Name: CAMBRIDGE INDUSTRIAL TRUST
DBS Vickers Securities in a Mar 15 research report says: "The manager of Cambridge REIT (CREIT) announced that it is proposing to acquire 16 Tai Seng Street for $59.3 million.
"Based on the estimated initial $5.0 million increase to net property income (NPI) or an initial yield of close to 8.0%, we estimate net rent to be $2.37 psf pm for the property, which is at the higher end of rental transactions that we have tracked in that micro-location in recent months.
"Acquisition is expected to be accretive to earnings and will be partly funded by its recent issue of $50 million fixed rated MTN notes (cost of 4.75%). Gearing is expected to increase slightly to 35%.
"Stock remains attractive with FY2012-2013F yields of close 9.1-9.6%. Target price of 58 cents. BUY."
Company Name: CAMBRIDGE INDUSTRIAL TRUST
| Research House: DBS Vickers | Price Call: BUY | Target Price: 0.58 |
DBS Vickers Securities in a Mar 15 research report says: "The manager of Cambridge REIT (CREIT) announced that it is proposing to acquire 16 Tai Seng Street for $59.3 million.
"Based on the estimated initial $5.0 million increase to net property income (NPI) or an initial yield of close to 8.0%, we estimate net rent to be $2.37 psf pm for the property, which is at the higher end of rental transactions that we have tracked in that micro-location in recent months.
"Acquisition is expected to be accretive to earnings and will be partly funded by its recent issue of $50 million fixed rated MTN notes (cost of 4.75%). Gearing is expected to increase slightly to 35%.
"Stock remains attractive with FY2012-2013F yields of close 9.1-9.6%. Target price of 58 cents. BUY."
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