December 2014
December 2013
Total Debt (S$ million)
(excluding unamortised loan transaction costs)
480.0
362.2
Gearing Ratio (%)
34.8
28.7
All-in Cost p.a (%)
3.7
3.9
Weighted Average Debt Expiry (years)
2.2
2.6
Unencumbered Properties (S$ miilion)
407.5
354.5
Interest Rate Exposure Fixed (%)
89.6
82.8
Available Undrawn Facilities (S$ million)
90.0
77.8
FY2014 ACQUISITIONS / DIVESTMENT SUMMARY
Acquisitions
GFA (sq ft)
Completion
Purchase Price (S$million)
16 International Business Park
~69,258
19 Dec 2014
28.0
12 Ang Mo Kio Street 65
~180,424
12 Sep 2014
39.8
11 Chang Charn Road
~97,542
31 Mar 2014
32.0
30 Teban Gardens Crescent
~139,525
17 Mar 2014
41.0
Total for 2014
~486,749
140.8
Divestments
GFA (sq ft)
Completion
Book Value
(S$ million)
Gross Proceeds
(S$ million)
Premium to
Book Value
81 Defu Lane 10 45,242
24 Mar 2014
6.7
7.8
16%
Total for 2014 45,242
6.7
7.8
PRUDENT CAPITAL AND RISK MANAGEMENT
In 2014, the Manager focused on strengthening and
increasing the flexibility of the capital structure of CIT. We
continue to exercise prudent capital management while
supporting the Trust’s growth initiatives. The Manager
reduced the dependency on secured loans and further
diversified the Trust’s debt maturity profile by issuing
Medium TermNotes (MTNs) to bond investors at attractive
pricing levels.
In line with CIT's hedging policy and in light of potential
interest rate hikes by the US Federal Reserve, the
Manager has ensured that majority of its interest rate
exposure is fixed. This provides stability on distributions
to Unitholders. The Manager will continue to monitor
the interest rate environment and employ suitable risk
management strategies to ensure Unitholders continue
to enjoy steady distributions going forward.
DISCIPLINED CAPITAL MANAGEMENT
In April 2014, we priced and issued a S$30 million 6 year
MTN, bearing a coupon yield of 4.1% p.a. The proceeds
arising from the issue were used to finance general working
capital and capital expenditure requirements of CIT. The
MTN was well-received by fixed-income investors and the
issuance was over subscribed within a short span of time.
In October 2014, we priced and issued a S$100 million 4
year MTN, bearing a coupon yield of 3.5% p.a. This was
CIT’s largest MTN issuance to-date and was well-received
by investors. The issuance was 1.7 times subscribed and
was priced attractively compared to peers. The proceeds
arising from the issue were used to retire existing revolving
credit loans and partially fund new acquisitions.
These issuances strengthened CIT's capital structure
and reduced the dependency on secured loans. The
debt maturity profile of CIT is more diversified, reducing
refinancing risks in the coming financial years.
The Manager has enhanced key capital matrices of CIT as
set out below:
CAMBRIDGE INDUSTRIAL TRUST | A WINNING FORMULA
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