SGX MAS Research has initiated a buy rating on CIT with a 12 to 18 months prospective and target price $0.88 backed by DCF valuation. CIT has been on an acquisition path, almost doubling its portfolio since listing to 43 local industrial assets worth C.$967m as at Jun’08. The following key features should attract more investors -

1. Earnings stability from an asset portfolio leased on a long term basis.
2. S$ denominated earnings which is expected to remain strong against other currencies over the medium term.

In terms of growth opportunities, strategic alliances with Oxley Capital Group and Mitsui & Co Ltd can provide valuable experience and network into the Asia Pacific, forming a platform for potential portfolio growth through its established wide business. Potential deals from these networks could provide a basis for earnings upside surprise going forward. CIT has another S$62.8m worth of assets to be injected, when concluded could add a further $0.04 to our target price.