ESR Reit (former Cambridge Industrial Trust)

[sreitinvestor]

Second quarter 2010 results for Cambridge

Key Points
* Almost full occupancy rate of 99.97% in 2Q2010, as compared with Singapore’s industrial average of 92.3%.
* Total distributable income attributable to Unitholders in 2Q2010 was S$10.8 million, which translated to a distribution per unit (“DPU”) of 1.238 cents.
* Completion of the divestments of 27 Pandan Crescent, 37 Tampines Street 92 and 17 strata units at 48 Toh Guan Road East with total gross sale proceeds of S$31.3 million, exceeding book value by S$1.1 million.
* Distribution Reinvestment Plan (“DRP”) was implemented to strengthen the balance sheet. The 1Q2010 DRP received a take-up rate of approximately 14%, an increase from 10% in 4Q2009.
* The Transfer Books and Register of Unitholders will be closed at 5.00 pm on 23 July 2010 for the purpose of determining unitholders’ entitlements to distribution.
* The distribution that will be paid on 8 September 2010.


http://sreitinvestor.blogspot.com/p/dat ... lease.html

[Chinaman]

Not that bad this counter inching up abit ....come 8'Sep collecting another round kopi money aro $490..like kena 4D consolation prize, hehe.

BTW, can I have Sreit guru's view among these 3 reits stocks which 1 look promising?
basically, the later 1 (AscendasIndT) comparing with the earlier 2.

CambridgeReit vs AscendasReit vs AscendasIndT


look forward to see your valuable input and Thank you in advance.

[bluechipstamp]

SGX listed Frencken did a sale-and-leaseback with CIT today, selling off her Changi prop for 22.1m. It's entertaining to read the announcements by both parties:

Frencken:
The total consideration of S$22,110,000 (exclusive of GST) for the Properties (the "Sale
Consideration") was arrived at based on a willing buyer and willing seller basis after
taking into account various commercial factors including the prevailing market conditions,
the location of the Properties and offer prices from other interested buyers.

Based on the valuation of the Properties carried out by an independent property valuer,
HBA Group Property Consultants Pte Ltd (the "HBA") on 20 May 2009, the open market
value of the Properties, based on the direct comparison method is S$14,300,000.

Wow, good job Frencken! You managed to sell your property at > 50% above valuation! Let's see what the sucker says:


Cambridge:
1 & 2 Changi North Street 2 has been appraised by Colliers International Consultancy & Valuation (Singapore) Pte Ltd (“Colliers”), using the direct comparison method, discounted cash flow analysis and the capitalisation approach.

The following table sets out the respective appraised values of each Target Property as at
their respective valuation dates:

Code: Select all

      Target Property                  Appraised Val           Date of Valuation         Indep Valuer
1 & 2 Changi North Street 2               22.2                   5 August 2010               Colliers


Wow, good job Cambridge! You managed to buy your property below valuation! Who's the sucker seller?

[ichew]

haha
the 2 valuations r way off each other... quite jialat
the suckers may be the investors of these 2 coys?
sorry, dont mean to offend anyone
frenken has no mention of sharing the spoils with shdrs
cambridge ... well... after their last saga, i conclude tat this is more to boost mgt fees.

still so long as both coys r able to generate returns, i guess mebbe there r no suckers ...a win-win-win for all

[peter]

with such rich valuation, I wonder whether Cambridge consider this acquisition to be yield accretive. There were no mention on this.

[profittaker]

haha ichew, I was just going to say that. I am vested in Cambridge btw.

haha
the 2 valuations r way off each other... quite jialat
the suckers may be the investors of these 2 coys?
sorry, dont mean to offend anyone
frenken has no mention of sharing the spoils with shdrs
cambridge ... well... after their last saga, i conclude tat this is more to boost mgt fees.

still so long as both coys r able to generate returns, i guess mebbe there r no suckers ...a win-win-win for all

[cif5000]

with such rich valuation, I wonder whether Cambridge consider this acquisition to be yield accretive. There were no mention on this.

Look at the seller's announcement. It's about 8.4% gross yield for the next 7 years.

[bluechipstamp]

with such rich valuation, I wonder whether Cambridge consider this acquisition to be yield accretive. There were no mention on this.

It's impt to be mindful that the sale comes with a 7 year lease commitment. The 2 parties may have structured a deal that has a high selling price, but a correspondingly high rental. By just looking at the sale figure, you will not get a true picture of who the "sucker" is. Since the building has about 20 years lease left, and the committed rental for the 1st 7 years are known, it's not too difficult to plug in the cash flows into Excel and compute an approx IRR. From there, you'll know whose valuation is closer to reality.

A few other things to ponder:

1. Given that Cambridge is trading at 9-10% yield currently (according to tankie's reitdata, I didn't verify), it will be tough to find any yield accretive acquisition that's funded via equity.

2. A dog never bites the hand that feeds it. Who pays for the "independent" valuers?

3. In a rising market, would u sell your HDB based on last year's valuation? Why would Frencken use a valuation done > 1 year back?

[sreitinvestor]

Cambridge Industrial Trust
Q3 2010 results for Cambridge:
Key Points
* Successfully acquired new assets worth S$37.1 million, supported by a S$40.0 million Private Placement in August 2010.
* Reduced gearing from 42.3% to 39.2%, following loan prepayment of S$32.0 million. Further repayment is planned.
* Improved financial flexibility with a new three-year Acquisition Term Loan and Revolving Credit Facility totalling S$70.0 million.
* Delivered distributable income in 3Q2010 of S$10.8 million, which translated to a distribution per unit (“DPU”) of 1.187 cents.
* Successfully completed an asset enhancement initiative, with three others in the pipeline, plus leases re-negotiated.
* An advanced distribution of 0.680 cents per unit was paid on 16 September 2010 in conjunction with the private placement exercise carried out in August 2010. The balance of 0.507 cents DPU will be payable on 30 November 2010.
* The Trust holds S$86.2 million in cash as at 30 September 2010, including approximately S$35.0 million relating to divestment proceeds. It is committed to use these proceeds to repay the syndicated term loan facility on 17 November 2010. This is expected to further reduce gearing to approximately 36.8%.
* The carrying value of the property portfolio increased by S$7.3 million during the quarter to S$838.5 million as at 30 September 2010.
* The 3Q2010 occupancy rate for CIT of 99.97%, remains higher than the national average of 92.3%


http://sreitinvestor.blogspot.com/p/dat ... lease.html

[winston]

Not vested. From Phillips:-

Cambridge Industrial Trust – Results (Lee Kok Joo)
Recommendation – Hold
Closing Price - $0.0.55
Target Price - $0.61

• 3Q10 revenue of $18.2 million, net property income of $15.9 million, distributable income of $10.8 million

• 3Q10 DPU of 1.187 cents; comprising advanced distribution of 0.68c (paid) and 0.507c (payable on 30 Nov)

• Announced acquisition of 2 more properties and 2 potential properties

• Equity fund raising to raise $50.4 million

• Maintain hold, raise target price to $0.61