OSPL - Good Morning S'pore - Central Dealing Desk

Stock Name: Cambridge
Company Name: CAMBRIDGE INDUSTRIAL TRUST

Research House: DBS Vickers

Price Call: HOLD

Target Price: 0.70

Stock Name: DBS
Company Name: DBS GROUP HOLDINGS LTD

Research House: Credit Suisse

Price Call: BUY

Target Price: 19.00

Stock Name: DBS
Company Name: DBS GROUP HOLDINGS LTD

Research House: UBS

Price Call: HOLD

Target Price: 18.10

Market Compass

05 November 2013~ Good Morning Singapore!

Singapore Idea Snippets:

05 Nov 2013 ~ Good Morning Singapore! Central Execution Team - The Excellence of Execution This product is made available by your Central Execution Team, for you as TRs of OCBC Securities to help you with your business and therefore it is confidential and only for internal circulation. It is not intended for onward circulation to non-OSPL TRs, clients or any other third party in this or any other version. Neither is this intended to be relied upon as a sole basis for any recommendation. TRs must also consider their clients' investment objectives, financial position and needs when intending to make or making any recommendation. For the front desk, by the front desk. All feedback to make this a better product is welcome. Global Flash: While You Were Sleeping Source: Marketwatch Quote for the day : You must not lose faith in humanity. Humanity is an ocean; if a few drops of the ocean are dirty, the ocean does not become dirty. - MAHATMA GANDHI Singapore: The Day Ahead SINGAPORE DAYBOOK :Twitter IPO seen as trend-setter for Web startups' share offers. Strong debut a good sign, weak start like Facebook's will send valuations down. [SAN FRANCISCO] There's more at stake in Twitter Inc's initial public offering than just shares held by employees and investors. The performance will influence how Silicon Valley's dealmakers value emerging Web startups. Venture capitalists and entrepreneurs will view a robust Twitter debut as a positive sign for other consumer-Internet IPOs and the prices that startups can command in funding rounds. A drop in shares - akin to the weakness that followed Facebook Inc's initial share sale in May 2012 - could chill startup valuations and send venture capital investments downwards. "If Twitter's IPO doesn't go well and the six months to one-year performance doesn't go well, it will suppress valuations in the consumer space," said George Zachary, a partner at Charles River Ventures in Menlo Park, California, and an early Twitter investor. "It affects peoples' animal reactions to pricing as opposed to the rational way they price." Facebook's 50 per cent drop in its first three months as a public company reverberated across the startup landscape. Venture investing in US Internet companies fell for three straight quarters before bouncing back in this year's second quarter, according to the National Venture Capital Association. (Source: The Business Times) MARKET SCOOP Hiap Hoe Q3 net profit more than doubles to $33.3 million Yongmao Q2 net up 76.4% at 14.9m yuan S&P assigns BB+ and axBBB+ with stable outlook to Viva Industrial Reit Genting Singapore Q3 EBITDA rises 20% to S$335m on year Viva Industrial Trust falls 1.9% from offer price F&N allows Heineken to enter soft drinks market in S'pore Kreuz's Q3 net profit up 60.3% Chasen's Q2 net profit falls 53% on higher expenses (Source: The Business Times) DBS VICKERS Securities says ... CAMBRIDGE INDUSTRIAL TRUST | HOLD | TP: S$0.70 Cambridge REIT (CREIT) reported a 5.9% and 0.7% y-o-y rise in revenues and net property income to S$23.8m and S$19.3m respectively The higher performance was mainly due to the contribution of various acquisitions (four properties) and development/asset enhancement projects (88 Int'l Rd and 4/6 Clementi Loop in 1H13) which more than offset the income vacuum from the divestment of four properties (of which 63 Hillview and 23 Lorong 8 Toa Payoh were only recently divested and thus were still contributing to topline in 3Q13) Portfolio occupancy remained high at c.97% Distributable income rose by 6.0% y-o-y to S$15.4m (including S$1.2m capital distribution), translating to a DPU of 1.251 Scts (+3.9% y-o-y) CREIT refinanced S$250m worth of debt facilities due in 2014 and in the process lowered average cost to c.3.9% The manager has also paid down S$108m of the loan, funded by its divestment proceeds As a result, gearing ratio fell to c.27.9% (as of end 3Q13) CREIT will be renewing close to 26.1% of its leases in 2014, of which a majority will be single-tenanted properties The manager expects, out of the eight expiring head leases, to renew one, divest three and convert the remainder into multi-tenanted properties During the course of the conversion/renewal, earnings should remain fairly stable In addition, the completions of the acquisition of 30 Teban Gardens (by 4Q13 and the development projects at 3 Pioneer Sector 3 and 21B Senoko Loop (both by 4Q14)) will underpin a steady growth profile in the coming years We expect gearing to settle at c.31% after all these investments are accounted for by the end of 2014 CREIT continues to offer a steady, resilient and growing DPU growth profile of c.5-6% which, in our view, is transparent and easily achievable Our HOLD call is maintained, given limited upside to our roll-forward TP of S$0.74 CREDIT SUISSE Securities says ... DBS GROUP | OUTPERFORM | TP: S$19.00 DBS reported 3Q13 core net profit of S$862 mn (-3% QoQ, 1% YoY - CS/consensus S$760-830 mn) The beat was driven by better-than-expected non-interest income (trading, fee and investment gains) and slightly lower provisions The underlying drivers remained healthy and within expectations-loan growth (2.9% QoQ, 14.7% YTD), NIMs (-2 bp QoQ) and NPLs (up 2% QoQ) While the street would have to revise up FY13E numbers to reflect this beat, 3Q results do not change the guidance for FY14 by much Positives: (1) Healthy broad-based loan growth (2.9% QoQ), (2) Resilient fee income given the market conditions (-3% QoQ), (3) Cost discipline remains in focus (-4% QoQ) Negatives: (1) New NPA formation continues to remain high Looking forward to FY14, management is confident of delivering high-single digit revenue growth and mid-single digit earnings growth: 8-10% loan growth, flat NIMs, continued operating cost discipline and credit costs in-line with FY13 UBS Securities says... DBS GROUP | NEUTRAL | TP: S$18.10 DBS Q3 results showed a continuation of H1 trends NIM fell 2bps QoQ to 1.60% driven by a further narrowing of the core loan yield less deposit cost spread In Q3 this "core" spread fell 4bps to 1.92%, an all-time low (DBS' total gross lending yield is now just 2.6%) The drivers of this decline we believe are an on-going shift in mix of lending to shorter tenor "trade relate" business and the on-going impacts of QE on asset spreads around the region (too much cheap US$ liquidity) Year to date we estimate that c50% of DBS' net new lending has been to Mainland China A key driver of this growth is China corporates looking to tap cheaper sources of funding overseas than is available domestically With a closed capital account "trade finance lending" is one obvious way they can do this With a large pool of US$/HK$/S$ funding Singapore is an ideal place to provide this cheap, short-term credit (often collateralised with a mainland bank letter of credit) This type of activity we believe is contributing to the rapid rise in LDR for the Singapore bank system as a whole & DBS' strong funding base & HK franchise allows it to facilitate this activity for its clients DBS' "fully loaded" Basel III core tier 1 capital ratio continued to build in Q2, up c40bps to 11.7% This was not so much driven by capital retention but rather by tweaking lower the risk weighting it applies to large Chinese bank exposures The impact of this was a fall in the RWA/total asset ratio in the quarter to 58.8% from 62.8% at end Q2 This resulted in a 2-3% fall in RWAs QoQ despite c4% growth in total assets Our DCF derived target price of S$18 uses a cost of equity of 10% and a sustainable RoE of 12.0% This values the bank at 1.55x YE 13E tangible book vs a 12-13% forecast RoTE, equivalent to a FY 14E P/E of 12.0x

OSPL - Good Morning S'pore - Central Dealing Desk

Stock Name: Cambridge
Company Name: CAMBRIDGE INDUSTRIAL TRUST

Research House: CIMB

Price Call: HOLD

Target Price: 0.74

Stock Name: RH PetroGas
Company Name: RH PETROGAS LIMITED

Research House: OSK-DMG

Price Call: BUY

Target Price: 1.33

Stock Name: 5WH
Company Name: REX INTERNATIONAL HOLDING LTD

Research House: UOB KayHian

Price Call: BUY

Target Price: 1.47

Market Compass

07 October 2013~ Good Morning Singapore!

Singapore Idea Snippets:

07 Oct 2013 ~ Good Morning Singapore! Central Execution Team - The Excellence of Execution This product is made available by your Central Execution Team, for you as TRs of OCBC Securities to help you with your business and therefore it is confidential and only for internal circulation. It is not intended for onward circulation to non-OSPL TRs, clients or any other third party in this or any other version. Neither is this intended to be relied upon as a sole basis for any recommendation. TRs must also consider their clients' investment objectives, financial position and needs when intending to make or making any recommendation. For the front desk, by the front desk. All feedback to make this a better product is welcome. Global Flash: While You Were Sleeping Source: Marketwatch Quote for the day : I don't want to be the next Michael Jordan, I only want to be Kobe Bryant. - KOBE BRYANT Singapore: The Day Ahead SINGAPORE DAYBOOK : SGX unlocks volatile trio, but adds shackles. No short-selling or contra for Asiasons, Blumont and LionGold [SINGAPORE] Singapore Exchange (SGX) will allow the three volatile counters it had suspended to trade today - but with curbs. The shares of Asiasons Capital, Blumont Group and LionGold Corp will resume trading with restrictions against short-selling and taking on new contra positions, according to a regulatory announcement issued by the exchange yesterday. The move is expected to offer an escape route, albeit a potentially costly one, for traders who had open positions on the affected stocks after Friday's surprise intervention by SGX in suspending the counters, and possibly pave the way towards normalised trading. "It's a good move," one trader said. "Hopefully it will calm the market a little bit after last Friday, because it triggered a tsunami, you know. Carnage, man, pure carnage." (Source: The Business Times) MARKET SCOOP Blumont scraps S$146m coal mine purchase AsiaPhos' IPO 3.8 times subscribed Singapore's LionGold says in talks to acquire stake in gold miner Asiasons, ISDN, InnoPac say in compliance with listing rules Innopac, ISR Capital, ISDN shares trading off lows after SGX query BreadTalk targets S$1b in revenue by 2016 (Source: The Business Times) CIMB Securities says ... CAMBRIDGE INDUSTRIAL TRUST | NEUTRAL | TP: S$0.74 With a more challenging acquisition market, we expect CIT to grow at a slower pace in 2014 We have lowered our capex assumption for FY14 to S$85m from S$150m previously Consequently, we have reduced FY14/15 DPUs by about 6.8% on average Downgrade to Neutral from Outperform with lower DDM-based target price of S$0.74 As the industrial landscape becomes more regulated through various government policies, such as i) the shortening of industrial land leases and ii) upfront payment of land rents, both the acquisition and development market have become more challenged as investors find it more difficult to achieve similar returns as before Also, due to the availability of liquidity and with current low interest rates, the mismatch in pricing expectations between vendors and REIT managers has continued On this basis, we expect CIT to rely less on acquisitions or development for growth and more on AEIs in 2014 Previously, management indicated that it would focus on three key issues in 2H13: i) reduce the lease expiry profile in 2014; ii) refinance the S$308m debt that will be due in FY14 and iii) the sale of Lam Soon Industrial Of the three key issues, Lam Soon has successfully been divested at S$140.8m, while the refinancing of the debt due next year was previously highlighted to be at an 'advanced stage of negotiations' with several financial institutions For the 2014 lease expiry profile, we remain confident of management's ability to lower the level on a quarterly basis We have downgraded CIT to Neutral on the back of a more challenging growth environment in FY14 DMG OSK Securities says ... RH PETROGAS | BUY | TP: S$1.33 RH Petrogas (RHP) will issue 116m new shares, at SGD0.63/share, to a group of institutional investors, raising USD56m to fund drilling activities in the Basin and Island PSCs, which we expect to accelerate in FY14 The stock remains deeply undervalued, with current assets worth SGD0.98/share Multiple catalysts are expected over October and 4Q13 Maintain BUY with its TP adjusted to SGD1.33 postplacement Institutional support for drilling activity. 90% of the proceeds will be used in exploration, development or production activities in the Basin and Island production-sharing contracts (PSCs) in Indonesia We believe that the large cash inflow will allow RHP to expand its drilling programme in FY14 Also, this increases RHP's free float from 23% to 36%, which may improve its trading liquidity - thereby lowering the "illiquidity discount" RHP should trade at SGD0.98 for today's assets Based on our assessment of RHP's 2P reserves and 2C contingent resources, RHP should trade at SGD0.98 today (post-placement) to reflect the market value of its reserves and resource We expect RHP to announce the results of the Zircon-1 well next week as well as the spudding of the exploration well Klagalo-1 in 4Q13 Subject to oil finds, additional appraisal wells may be drilled in the Zircon and Koi prospects this quarter Additional catalysts would be: i) the signing of new PSCs in Myanmar/Asean region, ii) approval to commence production in Fuyu-1 in China, and potentially iii) news of exploration and production (E&P) players like Sona Petroleum (SONA MK, NR) or Rex International (REXI SP, NR) acquiring a stake in RHP As the cash inflow to RHP adds to its value today, this implies a dilution of less than 20% The cash will be used productively in drilling new wells and raising the market value of resources by proving and then transferring them to 2P reserves Maintain BUY with its TP adjusted to SGD1.33 based on parity to our NPV-and-risking model UOB KAY HIAN says... REX INTERNATIONAL | BUY | TP: S$1.47 We initiate coverage with a BUY and target price of S$1.47 (based on expected monetary value of Rex's exploration assets using forecast from traditional geologist findings), representing a 58.1% upside Rex's most valuable asset is its access to the proprietary Rex Technologies that may significantly improve the odds of successful oil exploration With more than 80% accuracy in blind and live tests, Rex Technologies showed great promise and has helped Rex to secure strategic partnerships and concessions Results from Rex's first few exploration wells will be critical and is a potential catalyst A successful oil discovery may see a re-rating of the stock Results of the first exploration well are expected to be known by 1Q14 Using proprietary satellite and seismic imaging technologies, management believes Rex Technologies can produce an exploration success rate in excess of 50%, compared with a global average of 10-15% In addition, Rex Technologies also cuts the exploration process to 18-60 months from the 72-114 months required under conventional technologies Rex has conducted blind tests for Hibiscus and Fram and has shown an impressive 100% accuracy Over the past two years, Rex had analysed 59 prospects for North energy, accurately predicting 35 of the 41 wells that had been drilled (85% accuracy) Rex successfully predicted 24 out of 25 dry wells and 11 out of 16 commercial oil wells As Rex Technologies gains traction among market players, Rex has been able to secure concessions on better terms, such as eliminating common industry practices of paying entrance fees With its leverage, Rex has successfully farmed into 15 concessions ASX-listed Bass Strait Oil Company (BAS) is Rex's newest strategic partner as it partners with REX to reassess specific exploration opportunities in Gippsland Basin of Australia A potential multi-bagger with exploration target of 2,183mmbbl unrisked resources (EMV range: US$1.31-5.39/share) Oman Block 50, Rak Offshore and Sharjah Central form almost 90% of our total risked NAV, and are estimated to have a risked value attributable to Rex of US$1,319m (US$1.31/share) based on conventional chances of success To derive our target price of S$1.47, we applied a 20% discount to our risked NAV to account for the concentration risks from Oman Block 50, which forms almost two thirds of our risked NAV estimate

OSPL - Good Morning S'pore - Central Dealing Desk

Stock Name: Capitaland
Company Name: CAPITALAND LIMITED

Research House: UOB KayHian

Price Call: BUY

Target Price: 4.45

Stock Name: Starhill Gbl
Company Name: STARHILL GLOBAL REIT

Research House: OCBC

Price Call: BUY

Target Price: 0.95

Stock Name: Cambridge
Company Name: CAMBRIDGE INDUSTRIAL TRUST

Research House: DBS Vickers

Price Call: HOLD

Target Price: 0.78

Market Compass

26 July 2013~ Good Morning Singapore!

Singapore Idea Snippets:

26 July 2013~ Good Morning Singapore! Central Execution Team - The Excellence of Execution This product is made available by your Central Execution Team, for you as TRs of OCBC Securities to help you with your business and therefore it is confidential and only for internal circulation. It is not intended for onward circulation to non-OSPL TRs, clients or any other third party in this or any other version. Neither is this intended to be relied upon as a sole basis for any recommendation. TRs must also consider their clients' investment objectives, financial position and needs when intending to make or making any recommendation. For the front desk, by the front desk. All feedback to make this a better product is welcome. Global Flash: While You Were Sleeping Source: Marketwatch Quote for the day : Humor is perhaps a sense of intellectual perspective: an awareness that some things are really important, others not; and that the two kinds are most oddly jumbled in everyday affairs. - CHRISTOPHER MORLEY Singapore: The Day Ahead SINGAPORE DAYBOOK :CapitaLand rattles off a few blunt 'home truths' [SINGAPORE] In a candid assessment of the Singapore residential property market, CapitaLand yesterday warned of headwinds in the near term. Following the introduction of a 60 per cent cap on total debt servicing ratio that financial institutions must apply before issuing property loans, effective June 29, CapitaLand said in its latest financial results statement that "prices and sales volume of Singapore residential property are expected to moderate as the cumulative impact of the various property measures continue to be played out in the coming months". Analysts note that CapitaLand has been quite responsive to market changes and introduced discounts at its projects d'Leedon, Interlace and, most recently, Sky Habitat in Bishan. Referring to Sky Habitat, CapitaLand Residential Singapore CEO Wong Heang Fine said: "We are doing selective unit discounts - but not on a mass basis." (Source: The Business Times) MARKET SCOOP Advance SCT chairman removed as defendant, arbitration to resume Stamford Land Q1 net up 41.3% Q1 net profit up 11.9% for SATS SIA's Q1 boosted by Virgin sale and lower fuel costs OUE H-Trust debuts 0.6% above IP0 price AIMS AMP Reit's Q1 DPU unchanged at 2.5 cents Yangzijiangis first counter to trade RMB shares on SGX CapitaLand Q2 net profit slightly down on lower portfolio gains (Source: The Business Times) UOB KAY HIAN says... CAPITALAND | BUY | TP: S$4.45 CapitaLand reported 2Q13 net profit of S$383.1m bringing the 1H13 earnings to S$571.3m, up 10.1% yoy driven by strong revenue contribution from development projects in Singapore and China, as well as rental income from the shopping mall business Excluding the impact of portfolio gains of S$108.5m, revaluation gains of S$232m, S$10.5m in impairment charges and S$27.7m one-off loss booked in 1H13, the core 1H13 operating profit of S$269m is below our expectations accounting for 33.6% of our full year forecast of S$801.5m (36.5% of consensus forecast of S$736.7m) Strong residential sales of S$1.6b reported in Singapore (683 units of which lions share came from D'Leedon) which is more than a threefold increase over S$467m seen in 1H12 CapitaLand targets to launch Marine Point and Bishan St 14 in 2H13 In China, CapitaLand sold 1691 units with a sales value of S$640m in 1H13, 60% higher yoy The units sold were from The Metropolis in Kunshan, The Pinnacle and Paragon in Shanghai, The Loft in Chengdu and iPark under Raffles City Shenzhen Management guided for a cautious stance towards the housing market in Singapore in the near term with the recent government measures on Total Debt Servicing Ratio cap expected to have an impact on overall residential property sales However, management expects a sustainable demand for new homes over the long-term For CapitaMalls Asia Limited, the revenue growth in 1H13 was mainly contributed by Olinas Mall and The Star Vista CMA's key markets Singapore, China and Malaysia are expected to perform well in 2013, on the back of sustained tenant sales growth and meaningful contribution from the malls that opened in 2012 We have a BUY recommendation with a target price of S$4.45/share, pegged at a 15% discount to our RNAV of S$5.23/share OCBC Securities says ... STARHILL GLOBAL REIT | BUY | TP: S$0.95 Starhill Global REIT (SGREIT) announced 2Q13 NPI of S$39.1m and distributable income of S$26.7m, up 5.2% and 14.7% YoY, respectively While the number of units outstanding was enlarged post conversion of 152.7m convertible preferred units (CPUs) into 210.2m ordinary units, income to be distributed to CPU holders declined 88.2% YoY to S$0.3m As a result, distribution to unitholders was up 22.1% to S$25.6m (S$0.9m retained), while DPU was up 10.2% YoY to 1.19 S cents Together with 1Q DPU of 1.37 S cents, 1H13 DPU totaled 2.56 S cents, up 19.1% YoY This forms 52.1%/51.2% of our/consensus full-year DPU forecasts, well within expectations The positive performance was mainly due to strong contribution from its Singapore and Australia portfolios Both Wisma Atria (WA) and Ngee Ann City (NAC) benefited from higher occupancies and positive rental reversions (15.1-15.6% increase for office segment and WA retail leases committed from Jul 2012 to Jun 2013) In addition, NAC saw its NPI grow 9.8% YoY due to a 10.0% rent increase for Toshin master lease This led to a 6.9% YoY growth in Singapore portfolio's NPI Australia portfolio NPI also jumped 32.7% YoY as a result of incremental income from its recently acquired Plaza Arcade, despite a weaker AUD (down ~5%) This has more than offset the soft performance at the other overseas portfolios For 2Q, we note that SGREIT's Singapore portfolio contributed 63.7% of total revenue, largely unchanged from 66.3% in 1Q Overall occupancy also stayed stable at 99.6%, compared to 99.7% seen in previous quarter Looking ahead, management believes the new renewal rate (+6.7%) for Toshin lease, 7.2% rental uplift from the Malaysia master leases, and continued repositioning of WA will help to bolster SGREIT's income in 2H13 On its capital management front, SGREIT also expects its debt duration to improve from 1.2 years to 3.5 years and the percentage of debts fixed/hedged will increase from 81% to over 90%, having secured loan facilities to refinance all its debts due in 2013 We maintain BUY with unchanged fair value of S$0.95 on SGREIT DBS VICKERS Securities says... CAMBRIDGE REIT | HOLD | TP: S$0.78 Cambridge REIT (CREIT) reported a 14% and 13% y-o-y rise in revenues and net property income to S$24.6m and S$20.8m, respectively The better performances were largely due to the contribution from acquisitions and development projects, rental escalations, offset by loss of income from divestments Portfolio occupancy remained high at c.98% with a weighted lease expiry of 3.2 years Distributable income rose by 8% y-o-y to S$15.3m (which was largely a distribution of capital as the Manager was entitled to a performance fee of S$13.9m after a voluntary 50% waiver) DPU was 1.24Scts (+5% y-o-y) CREIT also reported net revaluation gains of S$31.9m, 3% higher compared to Dec 12 values CREIT's organic growth performance is likely to remain stable The Manager has leased close to 500,000 sqft of space in 1H13 with positive uplifts of 5-10% CREIT has a weighted average lease expiry of 2.4 years There is a further c4.0% of its income up for renewal for the rest of 2013, implying that earnings are likely to be fairly stable The Manager continues to execute on development projects, with an aim in optimising the value of its portfolio One such strategy is to maximize available GFA in selected properties - 3 Pioneer Sector 3 and 21B Senoko Loop - where CREIT will raise the plot ratios of these properties to 1.3x and 2.4x respectively, adding close to 384k additional GFA to the portfolio While the impact is not expected to be substantial, we remain positive on the ability of CREIT to extract value within its portfolio, which is likely to imply further growth in rentals and capital values for the properties, and thus having a positive impact on unit holders' distributions Maintain HOLD and TP S$0.78, given limited upside

DBS Vickers cuts Cambridge Industrial Trust to hold with 73 cents price target

Stock Name: Cambridge
Company Name: CAMBRIDGE INDUSTRIAL TRUST

Research House: DBS Vickers

Price Call: HOLD

Target Price: 0.78

DBS Vickers has downgraded its call on Cambridge Industrial Trust (CREIT) to hold with a target price of $0.78.

CREIT announced that it is proposing to divest Lam Soon Industrial Building (or 63 Hillview Avenue) for $140.8 million. The proposed selling price represents CREIT’s 69.4% stake in the strata share value of the property (97 out of 154 free freehold strata units) and is a 28% premium over the latest valued book value. The exit yield is estimated to be about 2.3%. The buyer is QF Properties Pte Ltd which is a JV set up by Enviro-Hub Holdings (listed on SGX) and BS Capital, a wholly owned company of its chairman Raymond Ng.

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Cambridge Industrial Trust rated 'buy' by DBS

Stock Name: Cambridge
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."

Cambridge Industrial Trust rated 'buy' by DMG

Stock Name: Cambridge
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."

Cambridge Industrial Trust rated 'buy' by DBS

Stock Name: Cambridge
Company Name: CAMBRIDGE INDUSTRIAL TRUST

Research House: DBS Vickers

Price Call: BUY

Target Price: 0.58

DBS Vickers Securities in a Nov 21 research report says: "Cambridge REIT (CREIT) announced the proposed acquisition of 3C Toh Guan Road East, an industrial building comprising of a 5-storey warehouse building and an ancillary office for a consideration of $35.5 million ($36 million, including attributable fees).

"We understand that the acquisition will be mainly funded by cash on its balance sheet, which we view as a positive catalyst, since this has been a drag on share price performance; the REIT faced a couple of delays in completing its acquisitions announced previously, resulting in lower than optimal distributions.

"This acquisition is estimated to boost DPU by 0.24 cents when completed in 1Q12, which we have already factored in our numbers. CREIT currently offers a FY2011-2013F DPU yield of 9.1-10.7%. Target price of 58 cents. MAINTAIN BUY."

Cambridge Industrial Trust rated 'buy' by DBS

Stock Name: Cambridge
Company Name: CAMBRIDGE INDUSTRIAL TRUST

Research House: DBS Vickers

Price Call: BUY

Target Price: 0.58

DBS Vickers Securities in an Oct 14 research report says: "Gross revenues and net property income were up by 13.9% and 10.3% to $20.7 million and $17.6 million respectively. Distributable income came in at $12.9 million, +19% y-o-y.

"DPU was lower by 8.8% y-o-y due to increased share base from share placement in April 2011, but is an improvement from a quarter ago. Ongoing asset recycling by the manager will ensure that CREIT's portfolio remain fresh and relevant. Gearing of 33% is comfortable and with no debt refinancing over the next 2 years.

"Prospective FY2011-2012 DPU yield of 9.5-11.1% is attractive. Revised target price of 58 cents. We slightly raised our FY2012/2013 earnings to account for new acquisitions/BTS projects. BUY"

Cambridge Industrial Trust rated 'buy' by DMG

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."

Cambridge Industrial Trust rated 'buy' by DMG

Stock Name: Cambridge
Company Name: CAMBRIDGE INDUSTRIAL TRUST
Research House: DMG

DMG & Partners Securities in a Mar 11 research report says: "CREIT is proposing to raise $56.7 million through a fully underwritten renounceable 1-for-8 rights issue. Net proceeds of $53.8 million from the EFR would be utilized, together with $40.9 million debt financing and existing cash to fund 3 acquisitions of $116.8 million.

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Cambridge Industrial Trust upgraded to 'buy' by Phillip Securities

Stock Name: Cambridge
Company Name: CAMBRIDGE INDUSTRIAL TRUST
Research House: Phillip Securities

Phillip Securities Research in a Feb 14 research report says: "Revenue and DPU came in 2.3% and 4.8% higher than our forecasts respectively. However growth was flat on a y-o-y basis. Full year revenue was $74.2 million (-0.3% y-o-y), net property income was $65.1 million (flat y-o-y) and distributable income was $44.7 million (+1.1% y-o-y). Full year DPU was 4.892 cents (-8.7% y-o-y).

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Cambridge - Cambridge Industrial cut to Outperform by CLSA

Stock Name: Cambridge
Company Name: CAMBRIDGE INDUSTRIAL TRUST
Research House: CLSA

CLSA downgrades Cambridge Industrial Trust (J91U.SG) to Outperform from Buy on reduced upside to its $0.54 target price, says Dow Jones.



CLSA trims FY10-12 DPU estimates by 2%-3% to reflect dilution due to enlarged unit base following recent private placement to help fund S$37.1 million acquisition of 2 industrial properties in Singapore.



Research house notes CIT plans to retire $32 million of debt this month, bringing gearing to 39.5% from 41.5%; “our key concern is further equity dilutive acquisitions.” REIT off 1.0% at $0.505.