Cambridge Industrial Trust looks to tech sector to take up its space

Mainboard-listed Cambridge Industrial Trust (CIT) expects more firms from the technology sector to take up space at its industrial properties this year.

“The technology sector has been pretty vibrant, and we’ve had a lot of leasing inquiries in that respect,” noted Ms Nancy Tan, head of real estate at CIT Management, which manages the real estate investment trust (Reit).

Potential tenants include those involved in semiconductor processing, nanotechnology, as well as product-testing services.

Speaking at a results briefing yesterday, Ms Tan said that this is “all part of the (evolving) lifestyle”, much of which is centred on the use of smartphones.

CIT has 50 properties with a total gross floor area of about 8.4 million sq ft, including logistics, warehousing, general industrial, as well as car showroom and workshop properties.

The Reit announced a distribution per unit (DPU) of 5.004 cents for the financial year ended Dec 31 last year, up 0.6 per cent from the same period a year earlier.

DPU for the fourth quarter came in at 1.252 cents, just 0.1 per cent higher than the 1.251 cents in the previous quarter.

Gross revenue for the year rose 3 per cent to $99.3 million, driven mainly by “additional revenue from property acquisitions and newly developed properties, net of divestments, and rent escalations to several properties”, said CIT.

It acquired 16 International Business Park in Jurong East – its first purchase of a business park – in December last year for $28 million.

Net property income for the year, however, dropped 3.2 per cent to $77.8 million as a result of higher property expenses due to the conversion of single-tenancy properties to multi-tenancy ones.

“We will continue to explore value-creating acquisition opportunities, proactively manage our high-quality Singapore portfolio, and deliver value through ongoing asset-enhancement initiatives, while maintaining a disciplined financial and capital-management approach,” said Mr Philip Levinson, chief executive of the Reit manager.

For instance, CIT will install solar panels on 10 of its 50 properties by the first half of this year.

This will help tenants reduce their energy costs, while enabling the Reit to be “socially responsible in the way we manage our buildings”, added Mr Levinson.

CIT units closed 0.5 cent higher at 68.5 cents yesterday.

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