Posts Tagged ‘Cambridge Reit’

DBS still loves Reits

In Property, Reits on 02/05/2013 at 5:24 am

It prefers those with stronger earnings growth potential and/or have potential to deliver earnings surprises. Preferred S-Reits are Perennial China Retail Trust (PCRT), MGCCT and Cambridge Industrial Trust based on their upside potential.

PCRT is seen as attractive due to its valuations and earnings visibility as operations are ramping up at its malls. New development assets are also completed and seen generating cashflow. Target price is around $0.84.

MGCCT offers investors “an attractive opportunity to own iconic, best-of-breed commercial assets”. The trust has resilient cashflow with strong organic growth drivers. The target price at $1.18.

As for Cambridge, its completed acquisitions and asset enhancement initiatives (AEIs) are expected to contribute positively. Its target price is seen around $0.93. I personally am not comfortable with Cambridge because it lacks a tai kor.

It advises investors who benefited from price gains in Mapletree Industrial Trust, AReit, Suntec Reit and Parkway Life Reit shares, to consider selling these.


Cambridge Reit

In Property, Reits on 06/06/2012 at 1:59 pm

Almost no coverage from analysts, so this might interest

The yield is great, the gearing levels are ok but the lack of a big, conservative brother scares me. In times like this, need a big, stodgy brother like F&N, Keppel, or AMP; or effectively zero gearing (Lippo trusts). I consider CapitaLand too racy for me despite it’s a TLC.

Too clever by half?

In Investments, Property on 03/12/2009 at 9:57 am

The new-cosponsor MacarthurCook Industrial Reit (MI-Reit), AMP, and the new investors looked like they got a great deal when the recapitalisation of MI-Reit was annced in early November. Their entry price was 19.9 cents (taking into acct the entry price of 28 cents and the  rights issue of 2 for 1 at 15.9 cents). In the case of AMP,  it didn’t pay any cash for its initial investment. It sold properties and got shares valued at 28 cents. Ask Cambridge Reit about this.

There was a bun fight as Cambridge Reit said the deals destroyed value.

At the time the deal was done, the share price was 30 something cents. Having gone ex everything, it is now hovering at 20 cents.

So an investor coming in at 20 cents comes in almost at price that AMP etc entered. Now if I were AMP or one of the other 28-cents investors, I’d not be pleased at the engineers who planned and executed the deal.

So it is no surprise to read in today’s BT: “The new co-sponsor of MacarthurCook Industrial Reit (MI-Reit) yesterday said that it will focus on regaining unitholders’ trust before embarking on new acquisitions, likely industrial properties in Singapore and Japan.”

Cheapos (sorry value investors) like me will wait to see if it mkt price can come closer to rights issue price. All it needs is for Dubai to scare the markets one more time or another bad set of US economic numbers.