Cambridge Industrial Trust's DPU up 3.9%

Thanks to higher rental income from new acquisitions.

According to CIMB, Cambridge Industrial Trust's 3Q13 DPU was up 3.9% yoy, mainly the result of additional rental income contribution from the four acquisitions completed earlier this year. During this quarter, portfolio occupancy remained high at 97%.

Here's more:

Recently, CIT refinanced S$250m of debt facilities maturing in 1H14 and, in the process, lowered the trust’s borrowing cost to c.3.9%.

During this process, S$81.3m from the proceeds from various divested properties, including 63 Hillview Avenue, was used to retire part of the S$208m term loan due in 1H14 while the remaining S$100m was refinanced to June 2016. By doing so, CIT’s gearing was reduced to a healthy 27.9% (vs. 35.8% in 2Q13) with no refinancing needs till 2015.