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Cambridge Industrial Trust - By CIMB
OUTPERFORM Maintained
S$0.24 Target: S$0.52
100% of management fees to be paid in cash. DPU for 3Q08 shrank 12.4% yoy from 1.7cts as the management had elected the full payout of management fees in cash, as opposed 65% in units and 35% in cash earlier. This was primarily to reduce dilutive effects to existing unit-holders.
Changes to assumptions. As all of CIT’s leases are on long lease arrangements, CIMB maintain their forward rental estimates. However they cut FY08 acquisitions of S$95m to S$32m, as MOUs for the acquisitions of Natural Cool Lifestyle Hub and a private lot at Tuas South St 5 had lapsed.
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