Cambridge Industrial Trust's revenue down 3.1% to $23.3m

CEO also stepped down.

According to OSK, last Friday, Cambridge Industrial Trust reported 4Q13 results that were in line, as well as the disappointing – although unsurprising - resignation of CEO Christopher Calvert.

The group’s revenue of SGD23.3mil (-3.1% y-o-y) brought its FY13 gross revenue to SGD96.5mil (8.4% higher y-o-y), just below OSK's SGD98mil estimate.

Here's more:

Its portfolio’s performance as a result of recent acquisitions and AEIs are expected to maintain its strong DPU growth going into FY14F. We maintain our FY14F DPU of 5.4 cents, for an implied 7.7% yield. Maintain BUY on CREIT, with our SGD0.81 TP offering a potential 16% upside.

Outgoing CEO Christopher Calvert has delivered strong shareholder returns over the last 5 years by re-modelling and re-sizing the portfolio he inherited into one of the best performing industrial REIT in recent years.

CREIT has posted total shareholder returns (including distribution) of 300% since the beginning of 2009, outperforming its peers and the wider STI market index. We wish Calvert well as he moves on to the next phase of his professional career in Australia to be closer with his family.

Calvert has agreed to remain on board pending regulatory clearance with regard to the incoming CEO and subsequent disclosure. We have no doubt that the strong team which Calvert has nurtured will continue to manage the portfolio with a view of maximizing asset returns with a reasonable risk profile.
No changes to our FY14F earnings and DPU estimate of 5.4 cents. This is in view of the ongoing asset enhancement initiatives as well as full year contribution of CREIT’s four acquisitions last year.

Going into FY14 and FY15, the group’s growth strategy appears to be well supported by its low gearing of 28.7% with all-in interest expense of 3.6% and 83% fixed, and a further 31% of its portfolio unencumbered (SGD350mil).