Cambridge Industrial Trust's DPU jumped 5.1%

Thanks to new acquisitions and rental escalations.

In a release, Cambridge Industrial Trust announced a distribution per unit of 1.240 cents for its second quarter ended 30 June 2013, up 5.1% from 1.180 cents in the same period a year ago. 

Based on an annualised DPU of 4.974 cents for 2Q2013 and the closing price of S$0.725 as at 28 June 2013, CIT’s annualised yield is approximately 6.9%.

The improved performance in DPU was contributed to by the completion of new acquisitions, development projects and AEIs, as well rental escalations and positive reversions.

Unlocking Value by Maximising of Plot Ratio

“2Q2013 has been a busy quarter as we commenced further AEI works designed to maximise part of the Trust’s under-utilised plot ratio.

In May 2013, the Manager completed the AEI works for 86/88 International Road by maximising the plot ratio from 0.8x to 1.4x which resulted in an increase in capital value from S$17.5 million to S$40.0 million. We have also recently announced the development of a ramp-up facility at 3 Pioneer Sector 3.

The AEI works is expected to commence in August and upon completion, the plot ratio will be maximised from 0.8x to 1.4x. In addition, we commenced the AEI at 21B Senoko Loop, where the plot ratio will increase from the current 1.4x to 2.4x when completed.

These two new AEIs will add a further combined GFA of approximately 385,128 sq ft to the portfolio when completed.

Moving forward, the Manager will continue to pursue AEI opportunities within the Trust in its efforts to improve portfolio total returns,” said Mr Chris Calvert, Chief Executive Officer of CITM.