Cambridge Industrial Trust Distribution Up 4%

Cambridge Industrial Trust (SGX: J91U), a real estate investment trust that focuses on industrial properties in Singapore, just announced its full year earnings. CIT currently has a portfolio of 47 properties in Singapore that are grouped under 4 segments; logistics, warehousing, light industrial and general industrial.

Major Announcement

Together with its earnings report, Cambridge also announced that its Chief Executive Officer, Mr. Chris Calvert, will be resigning due to family reasons. Mr. Calvert has been with Cambridge Industrial Trust Management, the management company of CIT, for more than 5 years. A new CEO has been appointed and the REIT’s awaiting regulatory approval before further details are made known.

Performance for the Year

CIT has been able to increase its annual distribution per unit by 4% year-on-year to 4.976cents. At its current price of S$0.700 per unit, that is a yield of 7.1%. Annual revenue also went up by 8.4% to S$ 96.5 million compared to a year ago. Although the operating net income is down 23.8% due to higher expenses, the total return for the year increased 18% after gains from the disposal of some non-core assets were taken into account. Occupancy for the REIT has been good at 97%. On the acquisition side, the trust completed 4 acquisitions, amounting to S$ 92.7 million.

Outlook for 2014

From the REIT’s earnings presentation, it will continue to look for more acquisitions in 2014. CIT will also emphasize on divesting itd non-core assets while starting new asset enhancement initiatives. Given that its gearing is still manageable at 28.7%, it can be quite flexible in its options for financing these activities.

Foolish Bottom Line

Cambridge Industrial Trust is one of the REITs that are offering a yield above 7% yield. Other REITs that have a focus on industrial properties here in Singapore include Ascendas REIT (SGX: A17U), Mapletree Logistics Trust (SGX: ME8U), Sabana REIT (SGX: M1GU) and Soilbuild Business Space REIT (SGX: SV3U).

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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. Motley Fool Singapore contributor Stanley Lim doesn’t own shares in any companies mentioned.