Monday, January 27, 2014

Cambridge Industrial Trust -Growth Strategy Intact Despite Change Of CEO (DMG)

Cambridge Industrial Trust
Target Price: SGD0.81
Price: SGD0.70
Growth Strategy Intact Despite Change Of CEO

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

• 4Q13 results broadly in line with expectations. 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 our SGD98mil estimate. Net property income for the full year came in at SGD80.4mil (+5.5% y-o-y), 4% below our expectation, but the overall FY13 DPU of 4.976 cents (+4% y-o-y) is in line with our forecast of 5 cents.

• 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). Maintain BUY on CREIT, with a target price of SGD0.81.



Source/Extract/Excerpts/来源/转贴/摘录: DMG-Research,
Publish date: 14/01/14

No comments:

Post a Comment

Warren E. Buffett(沃伦•巴菲特)
Be fearful when others are greedy, and be greedy when others are fearful
别人贪婪时我恐惧, 别人恐惧时我贪婪
投资只需学好两门课: 一,是如何给企业估值,二,是如何看待股市波动
吉姆·罗杰斯(Jim Rogers)
“错过时机”胜于“搞错对象”:不会全军覆没!”
做自己熟悉的事,等到发现大好机会才投钱下去

乔治·索罗斯(George Soros)

“犯错误并没有什么好羞耻的,只有知错不改才是耻辱。”

如果操作过量,即使对市场判断正确,仍会一败涂地。

李驰(中国巴菲特)
高估期间, 卖对, 不卖也对, 买是错的。
低估期间, 买对, 不买也是对, 卖是错的。

Tan Teng Boo


There’s no such thing as defensive stocks.Every stock can be defensive depending on what price you pay for it and what value you get,
冷眼(冯时能)投资概念
“买股票就是买公司的股份,买股份就是与陌生人合股做生意”。
合股做生意,则公司股份的业绩高于一切,而股票的价值决定于盈利。
价值是本,价格是末,故公司比股市重要百倍。
曹仁超-香港股神/港股明灯
1.有智慧,不如趁势
2.止损不止盈
成功者所以成功,是因为不怕失败!失败者所以失败,是失败后不再尝试!
曾淵滄-散户明灯
每逢灾难就是机会,而是在灾难发生时贱价买股票,然后放在一边,耐性地等灾难结束
  • Selected Indexes 52 week range

  • Margin of Safety

    Investment Clock

    World's First Interactive Investment Clock