Cambridge Industrial Trust announces 1.345 cents DPU for Q2

Cambridge Industrial Trust has announced a distribution of 1.345 cents per unit for the quarter April 1, 2009, to June 30, 2009 (2Q09).

Total net distributable income for 2Q09 was $10.7 million with a DPU of 1.345 cents. This represents an annualised yield of 15.4% based on the closing price of 35 cents per unit as at June 30.

The industrial trust says most of the properties are signed with long-term leases, with fixed rental escalation and no pre-termination clauses. Only 6.5% of rental income expires in the next four years (including 2009) and the average security deposit per tenant equates to 16 months. The weighted average remaining lease term of CIT’s existing portfolio of 43 properties remained stable at 5.1 years (by income) as at 30 June 2009.

As at 30 June 2009, the trust has a portfolio of 43 properties with 654,005.50 sq m of lettable area with a carrying value of $880.3 million, or a NAV per unit of $0.62. The weighted average land lease on these properties is 38.9 years, excluding freehold property which comprises 5.4% of total lettable area.

About 36% of the portfolio of the trust’s properties is in the manufacturing sector, with the next significant segment in the logistics and warehousing sector accounting for 34% and the remaining properties are represented across a spectrum of trade sectors such as construction and engineering, self storage and showroom.

Cambridge Industrial Trust says its gearing ratio at June 30 increased to 43.8% as a result of the downward revaluation of the portfolio. Its long-term target is to reduce the gearing ratio to 30% over time. It adds that it does not have any debt expiring until Feb 2012.

Source : The Edge – 23 Jul 2009

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