ESR Reit (former Cambridge Industrial Trust)

Re: Cambridge Industrial Trust

Postby winston » Mon Nov 21, 2011 7:14 pm

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DBS calls buy on Cambridge Industrial, price target S$0.58/shr By YEO AIQI

DBS Group Research on Monday issued a buy call on Cambridge Industrial Trust, setting its 12-month price target at S$0.58 per share and buy price at S$0.47.

Cambridge Industrial today announced that it will purchase an industrial building on Toh Guan Road East for a purchase consideration of S$35.5 million.

DBS analysts Derek Tan and Lock Mun Yee said they understand the acquisition will be mainly funded by cash on its balance sheet, which they view as a positive catalyst.

'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 distribution per unit by 0.24 Singapore cents when completed in 1Q12, which we have already factored in our numbers.' said the analysts.

They added that Cambridge Industrial is trading at attractive yields of 9.1 to 10.7 per cent.

http://www.businesstimes.com.sg/sub/lat ... 41,00.html?
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Re: Cambridge Industrial Trust

Postby mini-investor » Sat Dec 17, 2011 2:47 pm

I think we need more details on the impact of recent acquisitions because it is not really reflected in the statistics due to delays... Hope that the upcoming report will show a stronger DPU and actual yield of this REIT...

http://s-reitinvestmentblog.blogspot.co ... /Cambridge
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Dividend Stocks

Postby Chinaman » Thu Apr 26, 2012 8:08 pm

champion - dividend stock : Cambridge Reit, ex liao price still firm firm aro 54 cts.
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Re: Cambridge Industrial Trust

Postby winston » Tue Jul 31, 2012 5:10 pm

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Acceptable gearing amid multiple acquisitions.

Management has been undertaking a portfolio reconstitution exercise since beginning of 2010, divesting nonperforming assets and redeploying capital into yield accretive acquisitions.

Amid multiple acquisitions, gearing has been pared down from 42.6% in Dec 2009 to 35.8% in Jun 2012.

With an internal target gearing 40%, CIT will still has some room for further acquisitions.

Together with an attractive yield of 8% and a strong pipeline of acquisitions, we maintain our BUY rating with a revised TP of S$0.660.

Source: DMG

http://www.remisiers.org/cms_images/res ... 2-CIT1.pdf
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Re: Cambridge Industrial Trust

Postby mini-investor » Mon Aug 06, 2012 6:51 pm

Cambridge Industrial REIT is still one of the highest yielding REIT on the market. Just that the price has risen by a lot as well which makes it unattractive. With a few catalysts upcoming, let's see what is the impact on its NAV and Yield.

http://www.s-reitinvestmentblog.blogspo ... /Cambridge
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Re: Cambridge Industrial Trust

Postby winston » Mon May 09, 2016 7:35 am

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Cambridge Industrial Trust has fallen from S$0.72 to S$0.52 now.

Cheap at 0.84 times NAV and offering a 8.5 per cent dividend yield, with a diversified tenant base and seven year maturity leases, low refinancing risk and stable cash flows.
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ESR-REIT

Postby behappyalways » Sat Jun 22, 2019 2:47 pm

ESR-REIT to issue 194 mil new units at 51.5 cents in private placement
https://www.theedgesingapore.com/capita ... -placement
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Re: ESR-REIT

Postby winston » Thu Apr 23, 2020 9:29 am

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ESR-REIT - Enough Selling Al-Ready!
Date: 25/03/2020
Price Target: 0.59

Interest expense savings from early refinancing; no refinancing in 2020.

Earnings relatively sheltered for now; retail tenants facing more challenges.

Long-term goals still intact despite a pause in near-term inorganic growth plans.

ESR-REIT Investors' Call

We just hosted an investors’ call earlier this afternoon with ESR-REIT (SGX:J91U) to get an update on how the current COVID-19 situation has affected its operations. There was quite a healthy turnout with almost 40 participants dialing in and many questions revolved around how tenants are being affected by COVID-19 and updates on the recent sell-off in ESR-REIT’s shares.

The call was timely given that ESR REIT share price has fallen 55% since the start of the year, before staging a 17% daily rebound today!

Mitigating Impact of COVID-19 on Operations. Nil Refinancing in 2020

Having already done an early refinancing of borrowings due in FY20, ESR-REIT will not have any refinancing risk for the rest of this year.

100% of the portfolio is unencumbered currently; ESR-REIT will have the flexibility to negotiate secured financing if necessary.

It may be difficult to take on new financing given current market conditions, but refinancing should not be an issue.

No Major Arrears; Earnings Relatively Sheltered

Approximately 2% of tenants are late on their rental payments on average and remains in this range currently.

Will put some planned AEIs on hold for now but works at UE BizHub and 7000 Ang Mo Kio Ave 5 will continue (albeit at a possibly slower rate at Ang Mo Kio).

Based on worst-case scenario sensitivity analysis, earnings will drop S$40m if all expiring leases this year are not renewed and there are no new leases signed (still represents an implied 12% dividend yield).

In fact, leasing activities in the first two months of FY20 have been very encouraging; approximately 2% of the portfolio has been renewed so far and rental reversions remain flat.

Do not expect portfolio to be too adversely affected; only experienced a 3% decline in portfolio valuation during GFC in 2008-2009.

4.1% of leases that are expiring in FY20 are from four single-tenanted assets on master leases.
One has renewed its master lease.

Two have already been converted into multi-tenancies; average occupancy of 94% currently.
One has been identified as a non-core asset and has been put up for sale.


Retail Tenants Are Most Affected

Retail (and F&B) clients make up approximately 7.5% of Gross Rental Income. So far only some of these retail tenants have come forward to ask for rental rebates; ESR REIT will pass on government property tax rebates to these retail tenants.

Industrial tenants have not asked for any rental rebates at this point.

The convention hall and hotel component at UE Bizhub is on a master lease with UE, and ESR REIT will receive a fixed contribution from the master lease and thus will not be impacted in terms of cash flows.

Long-term Goals Still Intact

Stronger financing position. Expect further savings in borrowings once the bonds due in
April/May FY20 are redeemed.

Will be refinanced with a loan facility that has been committed.

Projected interest savings of S$1.7m in FY20 once the bonds are redeemed.

Will put on hold M&A activities for now, but long-term goal to expand overseas and extend portfolio land lease expiry remains.

Recent sharp sell-offs possibility due to margin-calls on investors.

Most of its major shareholders remain the same; one major shareholder has only decreased his holdings by 1% (not too significant and should be strategic in nature as this shareholder has an ownership stake in the Manager as well).

Maintain BUY

We continue to like ESR-REIT for its proactive management of its portfolio and operations. Despite the relatively high gearing of 41.5% currently, there is no refinancing risk in FY20, and there would be interest expense savings from 2Q20 onwards.

About 2% of the 13.5% of leases expiring this year have already been renewed and we take comfort in the flat rental reversions especially in the current turbulent economic landscape. For single-tenanted assets (4.1% of expiries in FY20), three out of four assets have been repositioned, and the remaining asset will be divested.

Lastly, it is the financial might and support of a strong Sponsor that will help names like ESR-REIT stand out in times of uncertainty.

In fact, ESR Cayman (the Sponsor), just increased its stake in AIMS APAC REIT (SGX:O5RU) by S$13m last week.

At current prices, the implied FY20 dividend yield is approximately 14%. We maintain our BUY call with a Target Price of S$0.59.

Source: DBS Research - 25 Mar 2020
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Re: ESR-REIT

Postby winston » Thu Apr 23, 2020 9:31 am

Company Profile:

ESR-REIT, formerly Cambridge Industrial Trust, is a Singapore-based industrial real estate investment trust.

The Trust principally invests directly or indirectly in income-producing real estate and real estate related assets, which are used for industrial, warehousing and logistic purposes.

The Trust operates through the leasing of investment properties segment. Its properties range from logistics, warehousing, light industrial, general industrial to car showroom and workshop, and are located close to transportation hubs and industrial zones island-wide.

It also includes multi-story suburban office building in specially designated Business Park zone of which serves as regional headquarters for multinational companies catering to knowledge-based activities.

The Trust's portfolio includes single-tenanted and multi-tenanted properties. Its portfolio consists of approximately 50 properties located across Singapore.

The Trust's Manager is Cambridge Industrial Trust Management Limited.

Source: Reuters
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Re: ESR Reit (former Cambridge Industrial Trust)

Postby winston » Thu Apr 23, 2020 10:04 am

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March 25, 2020

DBS Equity Picks: Add ESR REIT to 38,000 shares @ $0.28 to Dividend category

We see the 50% plunge in ESR REIT’s stock price since the 20 February sell-down as a great entry
opportunity.

We continue to like ESR REIT for its proactive management of its portfolio and operations –
(1) there is no refinancing risk in FY20;
(2) there would be interest expense savings from 2Q20 onwards,
(3) 2% of the 13.5% of leases expiring this year are already renewed,
(4) flat rental reversions in the current climate,
(5) 3 out of 4 single tenanted assets have been repositioned and the remaining asset will be divested,
(6) backed by a strong sponsor ESR Cayman.

At current price, the implied FY20 dividend yield is approximately 14%.

Source: DBS
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