New SGD Issue Review : CReit 6Y 4.1%

ISSUER: Cambridge-MTN Pte. Ltd.
STATUS: Direct, unconditional, unsubordinated and unsecured Notes
CORPORATE CREDIT RATING:BBB- (Cambridge Industrial Trust’s Corporate credit rating; rated by Standard and Poor’s)
FORMAT/DOCS : Bearer / Issuer’s SGD 500 million Multicurrency Medium Term Note Programme dated 2 February 2012, supplemented by the Supplemental IM dated 1 March 2012
PRICING: Re-Offer Yield – 4.10% area
TENOR: 6-Year
INTEREST PAYMENT: Semi-annual, actual/365 (fixed)
ISSUE DATE: 29 April 2014
MATURITY DATE:  29 April 2020
GOVERNING LAW:   Singapore Law
SELLING RESTRICTIONS: Sections 274 and/or 275 of the Singapore Securities and Futures Act

After their small SGD 50 mio issue back in Mar 2012, we are seeing CReit back in the market for another small SGD 30 mio issue.

Their last issue was 4.75% for 3 years, so 4.1% for 6 years.

Looks like they intend to grow and they have lots of room to borrow.

     April 16 (Business Times) — CAMBRIDGE Industrial Trust (CIT) on Wednesday posted a distribution per unit (DPU) of 1.251 Singapore cents for its first quarter ended March 31, 2014 (Q1), a 1.4 per cent increase from 1.234 Singapore cents a year ago.
     Net property income fell 11.1 per cent from S$21.33 million a year ago to S$18.97 million, while net amount available for
distribution rose 3.3 per cent from S$15.1 million a year ago to S$15.6 in Q1.
     Gross revenue slipped 5.1 per cent to S$23.54 million in Q1, down from S$24.8 million in the same period a year ago. This was largely due to the straight line rent adjustment of S$0.9 million in the previous period and the effect of property divestments net of property acquisitions, completion of developed properties and rental escalations of S$0.4 million since Q1 2013, CIT said.
     Meanwhile, it completed two acquisitions totalling S$73 million in Q1: 30 Teban Gardens Crescent at a purchase price of
S$41 million and 11 Chang Charn Road at a purchase price of S$32 million.
     Both are industrial buildings in the west.
     In the same quarter, CIT also completed the divestment of 81 Defu Lane 10 for S$7.8 million, about 16 per cent above the book value of S$6.7 million.
     By end March, CIT has 48 properties in Singapore with about 7.8 million sq ft of gross floor area. Its portfolio occupancy
remains strong at 97 per cent, with a weighted average lease expiry of 3.6 years (by income) and average security deposits of
11.3 months.
     Philip Levinson, chief executive officer of CIT’s manager said: “With a gearing ratio of 29.9 per cent, we are well
positioned to pursue growth opportunities both within and outside our portfolio.”

Nobody really look at this one with Tencent, Korea Highway, Banglalink, Union Bank and Sinochem coming out today.