Singapore Stock Market News

Cambridge Industrial Trust - Lower margins

StockFanatic
Publish date: Thu, 27 Nov 2014, 11:49 AM
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We note that CIT's NPI margins have softened since 3Q13 as increasingly more of its properties are converted from single-tenanted buildings (STBs) to multi-tenanted buildings (MTBs). In anticipation of more such conversions in 2015, coupled with the impending headwinds from the industrial rental market, we lower our DPU forecasts for the next two years by c.7.4%. We maintain our Hold rating on CIT, with a lower DDM-based (discount rate: 8.3%) target price of S$0.70.
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