Portfolio - October 2010

My Portfolio for the month of October 2010.

Company	Date of Purchase	Puchase Price	Market Price	Gain/Loss
Ezion	07-May-07	$0.5700	$0.7050	24%
Aims Amp	29-Sep-10	$0.215	$0.225	5%
Innotek	01-Apr-10	$0.555	$0.515	-7%
Cambridge	14-Jul-10	$0.505	$0.545	8%
SP Austnet	12-Aug-10	$0.960	$1.190	24%

Dividend
Cambridge is giving out DPU of $0.01107. Payout will be on 6th Dec 2010.

Sell
NIL

Purchase
NIL.

Cambridge-DBSV

Attractive 9% yield

• S$50.4m cash call to fund property purchases

• Improved financial metrics, slight accretion to DPU

• 300 bps spread above Sreit sector average yield of 6.0% is attractive, Upgrade to BUY, TP revised to S$0.58

S$50.4m cash call to fund growth opportunities. Cambridge REIT (“CIT”) announced an equity fund raising (“EFR”) of S$50.4m via (i) private placement of 56.5m units (fully subscribed) and a preferential offering of up to 38.5m units, at S$0.531 per unit (fixed at 4.9% VWAP to price on 19 Oct).

Target yields of properties to be >8.0%. Proceeds will be used to fund the purchase of 4 properties of which 1 is a development project – CIT’s first undertaking. Post EFR, CIT will have stronger financial metrics (gearing of 36.4% after scheduled loan repayment in Nov’10), and reduced concentration of lease expiry in FY13-14 to 56.9%.

Enhancement plans unveiled, to boost DPU. CIT also unveiled AEI plans for 2 of its properties at a cost of S$13.1m, where incremental NPI yield is expected to be in excess of 15%. With the share placement and AEI works, we raised our forward FY11 DPU estimates to 2%.

3Q10 DPU of 1.18 Scts in line. Lower 3Q10 revenue and net property income (“NPI”) of S$18.2m (-2.6% yoy) and S$15.9m (-2.6% yoy) respectively were due to ongoing divestment program. Performance in 4Q10 should be lifted by contribution from its new acquisitions completed in recent weeks.

TP revised to S$0.58, Upgrade to BUY. We see relative value in Cambridge REIT given its high FY11-12 yield of 8.9-9.2%, which is a 300 bps above the average Sreit peers. Income visibility and stability is strong, given that most of its properties are sale-and-leaseback properties. Upgrade to BUY and raised TP to S$0.58.

Reits Dividend Yield

Trust	Market Cap (MIL)	Price on 21st Oct	Last Book Value	Price to Book (times)	Lastest DPU (cents)	Forecast DPU (Cents)	DVD Yield (%)	Forecast Yield (%)
Aims Amp	437.1	0.225	0.3	0.73	2.16	2.08	9.82	9.45
Ascendas	3993.6	2.1	1.54	1.36	13.34	14.7	6.35	7
Ascendas India	795	1.04	0.86	1.21	7.6	7.9	7.31	7.6
Ascott Residence	1350.7	1.22	1.34	0.91	7.35	7.74	6.02	6.34
Cache Log	623.5	0.985	0.87	1.13	7.7	7.8	7.82	7.92
Cambridge	543.6	0.565	0.576	0.98	4.71	5	8.34	8.85
CapitaComm	4090.9	1.45	1.4	1.04	7.88	7.6	5.43	5.24
CapitaMall	6399.1	2.01	1.5	1.34	9.04	9.6	4.5	4.78
CapitaRetail China	624.8	1.24	1.06	1.17	8.25	8.2	6.65	6.61
CDL Hospitality	2009.1	2.1	1.43	1.47	9.9	10.5	4.71	5
First Reit	259.7	0.94	0.98	0.96	7.68		8.17
Fraser Centrept	1158.6	1.51	1.22	1.23	9	9.5	5.96	6.29
Fraser Comm	509.8	0.16	0.38	0.42	0.96	1.3	6	8.13
Fortune Reit (HK)	6459.1	3.87	5.33	0.73	30.2	25.4	7.8	6.56
India Bulls	995.2	0.275	0.54	0.51	2.3	2.3	8.36	8.36
K-reit	1798.7	1.34	1.45	0.92	6.7	7	5	5.22
Lippo Mappletree Indon	288.5	0.545	0.84	0.65	4.7	4.9	8.62	8.99
Mapletree Ind	1696.7	1.16	0.86	1.35	7.06	7.46	6.09	6.03
Mapletree Log	2195.5	0.905	0.86	1.05	6.02	6.16	6.65	6.81
Parkway Life	1021.6	1.69	1.39	1.22	9.1	9.4	5.38	5.56
Saizen	177.7	0.16	0.41	0.39	0.26		1.63
Starhill Global	1175.5	0.605	0.86	0.7	3.9	4	6.45	6.61
Suntec	2765.5	1.5	1.78	0.84	9.7	9.7	6.47	6.47

Cambridge Industrial Trust to launch equity fund raising for $50.4m

Cambridge Industrial Trust says it will launch an equity fund raising comprising of the private placement of 56.5 million new units to raise gross proceeds of $30 million; and a preferential offering of up to 38.5 million new units to raise gross proceeds of up to $20.4 million The new units to be offered at a price of $0.531 for the private placement and $0.531 for the preferential offering. Retail offering to be made on the basis of each unitholder having a preferential offer of one preferential unit for every 25 existing units in CIT held by entitled unitholders as at 5.00 p.m. on 29 October 2010. Cambridge Industrial Trust says the net proceeds will be used to part‐finance two announced properties (25 Tai Seng ave and 511, 513 Yishun Industrial Park A) and two potential acquisitions in the western part of Singapore, with aggregate cost of $74.3 million. Post‐completion of the equity fund raising, CIT’s gearing level is estimated to fall from 39.2% to 38.6%, strengthening CIT’s capital structure.

Mapletree Industrial soars on debut; attractive yield: NRA

Mapletree Industrial Trust (ME8U.SG) opens +23.7% at $1.15, vs $0.93 IPO price; last at S$1.17; MIT second Singapore sovereign wealth fund-backed entity to come to market this week, after GLP (MC0.SG) listed Monday; MIT offer was 38x subscribed. NRA Capital says IPO price translates to “attractive” annualized yield of 7.6% for FY11, projected FY12 yield at 8.0%. “We also like MIT for its diversified portfolio (70 properties across various types) which offers a level of resilience. We believe that MIT is a strong dividend play stock and would appeal to investors who prefer a stable income-yielding stock.” Tips various rental growth opportunities as portfolio’s average rent generally below market rents, opportunities for rental reversion as rental caps expiring, MIT has well-positioned lease expiry profile. Also likes exposure to industrial market which less volatile vs office market. Order book quotes suggest $1.20 near-term hurdle.

Mapletree Industrial Trust closes at $1.16, 24.7% over IPO price

Mapletree Industrial Trust (MIT), the Singapore-focused real estate investment trust (REIT) and one of the largest landlords of industrial space in Singapore, enjoyed a strong trading debut at 2.00 p.m. today on the Mainboard of Singapore Exchange.

The IPO raised gross proceeds of $1.19 billion from the offering of 594,913,000 units to the public and under the placement tranche, as well as the Mapletree cornerstone subscription units and the cornerstone units (as defined below). MIT’s units opened strongly at $1.15 per unit, a 23.7% increase over its offering price of $0.93 per unit (Offering Price). The units reached an all-day high of $1.20 per Unit, a 29.0% jump over its offering price. At the close of trading, the units ended 24.7% higher than its offering price of $0.93 at $1.16 per unit with 345 million units changing hands, making it the most actively traded counter on the SGX today. Commenting on the trading debut, Mr Tham Kuo Wei, Chief Executive Officer of Mapletree Industrial Trust Management Ltd, as manager of MIT, says, “We are delighted with MIT’s excellent trading debut, which is a strong indication of the market’s confidence in the fundamentals and growth prospects of MIT.”

MIT’s IPO 38 times oversubscribed

Trust expected to raise as much as $1.19b in gross proceeds from IPO

Mapletree Industrial Trust’s (MIT) initial public offering (IPO) saw a strong take-up rate with an oversubscription of about 37.9 times, led by demand from institutional players.

The take-up means that more than $20.1 billion in total of application money was made available for the IPO, MIT said yesterday.

MIT is expected to raise as much as $1.19 billion in gross proceeds from its IPO, if an overallotment option of 91.75 million units is exercised.

Mapletree is selling 1.28 billion MIT units at 93 cents apiece. This includes some 595 million units, comprising 489 million units that were placed out and 106 million units that were sold to the public.

Six cornerstone investors, namely AIA, Prudential Asset Management (Singapore), Henderson Global Investors, Columbia Wanger Asset Management, US investment firm DE Shaw and Dutch pension fund APG, will subscribe for a separate 323 million units.

Mapletree’s two subsidiaries, Mapletree Dextra Pte Ltd and Sienna Pte Ltd, will also subscribe for 359 million units, giving Mapletree a post-IPO stake of about 31 per cent if the greenshoe option is fully exercised.

The placement tranche of 489 million units was oversubscribed by 39.6 times, with a total value exceeding $18 billion.

The public tranche included 25.5 million units reserved for subscription by the directors, management, employees and business associates of Mapletree.

The remaining 80.6 million units, representing about 6.3 per cent of the total unit sale (excluding the overallotment), was about 27.7 times oversubscribed, translating to total value of about $2.1 billion.

MIT’s offer price represents an annualised distribution yield of 7.6 per cent for fiscal 2010, which is estimated to rise to 8 per cent for fiscal 2011.

It expects to pay out all of its distribution income to unitholders from listing until March 31, 2012, MIT said at a briefing last week.

MIT, which is the third real estate investment trust to be launched by Temasek Holdings’ Mapletree Investments, has a portfolio of 70 industrial properties in Singapore.

Global Logistic Properties (GLP) also saw firm interest in its IPO, which was more than 12 times oversubscribed.

Out of the 88,393 public offer applications for GLP, 85,136 applications, or 96 per cent, were successful ones.

The balloting results of the GLP applications also threw up some startling numbers. It showed that there were 22 successful applicants from the public who had initially applied for at least one million shares, coughing up at least $1.96 million upfront.

They were eventually allotted 10,000 shares each.

Shares of GLP continued their uptrend yesterday, gaining 5.53 per cent or 12 cents to end at $2.29. It was the most active stock on the Singapore Exchange, with 262 million shares changing hands.

Trading of the units of MIT is expected to start tomorrow at 2pm.

CIT 3rdQ 2010 Financial results

3Q Highlights
• Successfully acquired new assets worth S$37.1 million, supported by a S$40.0 million Private Placement in August 2010.

• Reduced gearing from 42.3% to 39.2%, following loan prepayment of S$32.0 million. Further repayment is planned.

• Improved financial flexibility with a new three-year Acquisition Term Loan and Revolving Credit Facility totalling S$70.0 million.

• Delivered distributable income in 3Q2010 of S$10.8 million, which translated to a distribution per unit (“DPU”) of 1.187 cents.

• Successfully completed an asset enhancement

Overview of 3Q2010 Financial Results

	3Q2010 (S$m)	2Q2010 (S$m)	Q-o-Q Incr /(Decr)%	3Q2009 (S$m)	Y-o-Y Incr / (Decr) %
Gross Revenue	18.2	18.3	-0.5	18.7	-2.6
Net Property Income	15.9	16.1	-0.9	16.4	2.6
Distributable Income	10.8	10.8	(-)	11.2	-3.6
DPU (cents)	1.187	1.238	-4.1	1.344	-11.7
Annualised DPU (cents)	4.709	4.966	-5.2	5.332	-11.7

Property Portfolio
The carrying value of the property portfolio increased by S$7.3 million during the quarter to S$838.5 million as at 30 September 2010, mainly as a result of the acquisition of 22 Chin Bee Drive, less divestments during the period.

The Trust’s underlying property fundamentals have remained resilient, with 3Q2010 portfolio occupancy maintained at almost 100%, a weighted average lease expiry of 4.1 years and continued low arrears trending at around 0.7% of annualised rent. The 3Q2010 occupancy rate for CIT of 99.97%, remains higher than the national average of 92.3%1.

In line with the Manager’s strategy of implementing value-adding asset enhancement initiatives (“AEI”) for the Trust, a S$1.6 million AEI at 1 Third Lok Yang Road/4 Fourth Lok Yang Road for the tenant, YCH DistriPark, was completed in July 2010.

This resulted in a NPI yield of 20.0%. There are three other AEIs in the pipeline which are expected to yield between 10%-16%. A number of leases have also been re-structured to facilitate these AEIs, which, in turn enable the Manager to maximise the properties’ plot ratios, and enhance capital values.

Distribution Reinvestment Plan
Given that a cash distribution of 0.68 cents per unit for the period 1 July 2010 to 22 August 2010 was paid to Unitholders in September 2010, the Manager has determined that the DRP will not apply to the remainder of 3Q2010.

Outlook
Singapore’s economy expanded by 17.9% on an annualised basis in the first half of 2010.
The Ministry of Trade and Industry has maintained the GDP growth forecast at 13.0% to 15.0% for 20102. This improvement in macro economic conditions has positively impacted the industrial real estate sector, evidenced by recent URA’s statistics. Property prices and rentals for multiple-user factory space increased by 5.7% and 1.3% respectively in 2Q20103.
”While recent economic data has illustrated the pace of growth has slowed from 1H2010, the Manager remains optimistic that the industrial real estate market will steadily improve in 2H2010 based on the existing sectors demand and supply fundamentals,” said Mr. Calvert.

Event	Important Dates
Distribution Period	1 July 2010 to 30 September 2010
Distribution Rate
1 July 2010 to 22 August 2010	0.680 cents per unit (paid on 16 Sept 2010)
23 August 2010 to 30 Sept 2010	0.507 cents per unit
Last Day of Trading on “Cum” Basis	Monday, 25 October 2010
Ex-date	Tuesday, 26 October 2010
Books Closure Date	Thursday, 28 October 2010
Distribution Payment Date (1)	Tuesday, 30 November 201

Reits Dividend Yield

Trust	Market Cap (MIL)	Price on 14th Oct	Last Book Value	Price to Book (times)	Lastest DPU (cents)	Forecast DPU (Cents)	DVD Yield (%)	Forecast Yield (%)
Aims Amp	445.5	0.225	0.3	0.75	2.16	2.08	9.6	9.24
Ascendas	3869.1	2.08	1.58	1.32	13.48	14.7	6.48	7.07
Ascendas India	797.7	1.02	0.86	1.19	7.6	7.9	7.45	7.75
Ascott Residence	1284.2	1.16	1.34	0.87	7.35	7.74	6.34	6.67
Cache Log	620.3	0.98	0.87	0.92	7.7	7.8	7.86	7.96
Cambridge	58.8	0.56	0.59	0.95	4.96	5	8.86	8.93
CapitaComm	4147.4	1.47	1.36	1.08	7.6	7.6	5.17	5.17
CapitaMall	6653.8	2.09	1.5	1.39	9.04	9.6	4.33	4.59
CapitaRetail China	787.2	1.26	1.09	1.16	8.28	8.2	6.57	6.51
CDL Hospitality	2066.5	2.16	1.43	1.51	9.9	10.5	4.58	4.6
First Reit	255.5	0.925	0.98	0.94	7.68		8.3
Fraser Centrept	1166.2	1.52	1.22	1.23	9	9.5	5.92	6.25
Fraser Comm	478.9	0.155	0.38	0.41	0.96	1.3	6.19	8.39
Fortune Reit (HK)	6459.1	3.87	5.33	0.73	30.2	25.4	7.8	6.56
India Bulls	995.2	0.275	0.54	0.51	2.3	2.3	8.36	8.36
K-reit	1812.2	1.35	1.5	0.9	6.6	7	4.89	5.19
Lippo Mappletree Indon	583.1	0.54	0.84	0.64	4.7	4.9	8.7	9.07
Mapletree Ind	1360.3	0.93	0.86	1.08	7.06	7.46	7.59	8.02
Mapletree Log	1930.2	0.87	0.85	1.02	6.02	6	6.92	6.9
Parkway Life	997.4	1.65	1.39	1.19	9.1	9.4	5.52	5.7
Saizen	177.7	0.16	0.41	0.39	0.26		1.63
Starhill Global	1185.2	0.61	0.86	0.71	3.9	4	6.39	6.56
Suntec	2820.8	1.53	1.78	0.86	9.7	9.7	6.34	6.34

Ezion Holdings +2.8% in good volume; Buy: OCBC

Ezion Holdings (5ME.SG) +2.8% at $0.74 at 10:52 a.m.; stock among SGX’s top-10 most traded today, still benefiting from news late Wednesday provider of marine logistics, support services to oil & gas industry has entered JV with Germany’s BBC Chartering for ownership of multi-purpose vessel, has chartered vessel to BBC for US$28 million ($36.3 million) over 6 years, says Dow Jones.

OCBC, which has Buy rating, says “though the impact (from deal on Ezion earnings) may not be significant, we are positive on this development as it paves the way for larger contracts going forward, if execution is smooth. We are expecting more clarity by Feb 2011.” Raises fair value to $0.82 vs $0.79 after tweaking FY11 earnings to account for deal; tips FY11 net profit of $56.7 million on revenue of $151.1 million. Shares off day’s high at $0.75, orderbook quotes suggest minimal upside beyond there for now.

Ezion +0.7%; new deal could signal more jobs - DMG

Ezion Holdings (5ME.SG) +0.7% at $0.725 as offshore support vessel supplier’s US$28 million ($36.2 million) chartering contract supportive, says Dow Jones. While boost to annual revenue small as contract runs for 6 years, deal suggests company’s expansion gaining traction in Australia, where it’s in midst of setting up 2 marine supply bases to support offshore oil & gas industry. Vessel will be chartered to Germany-based BBC Chartering & Logistic, which will use it for hauling cargo in Australia, Papua New Guinea from U.S. “We are positive on the partnership with BBC as it enables Ezion to tap on BBC’s specialised fleet of heavy lift and project cargo vessels and this could lead to more new long-haul cargo contracts from oil and gas majors operating in Australia and Papua New Guinea,” says DMG, which has Buy call with $0.89 target. Orderbook quotes suggest shares not expected to clear $0.75.

JOINT VENTURE WITH BBC CHARTERING & LOGISTIC GMBH & CO. KG FOR THE OWNERSHIP OF A VESSEL; AND CHARTER OF THE VESSEL TO BBC FOR AN APPROXIMATE VALUE OF

The Board of Directors of Ezion Holdings Limited (the “Company” or “Group”) is pleased to
announce that the Company has entered into a joint venture agreement (“JV Agreement”) with
BBC Chartering & Logistic GmbH & Co. KG (“BBC”), a company incorporated in Germany for
the joint ownership of a vessel.

BBC is a Germany based specialized shipping company with a fleet of 140 vessels. It has a
long history of service to the Oil & Gas industry and is one of the largest carriers of windmills,
project cargoes, drilling and line pipe in the world. BBC has significant experience in carrying
military cargoes for the United States of America, United Kingdom and Germany militaries as
well as the United Nation peacekeeping forces.

Pursuant to the JV Agreement, a joint venture company known as “Teras BBC Houston (BVI)
Limited” (“Teras BBC” or “JV Company”) has been established in the British Virgin Islands.
Teras BBC will have an issued and paid up capital of USD100,000.00 and is owned equally
between the Company and its joint venture partner, BBC.

The JV Company has chartered the vessel to BBC for an approximate value of USD 28 million
over a 6-year period. The vessel will be used mainly for the haulage of cargos that are required
by the Oil & Gas industry in Australia and Papua New Guinea from the United States of America.

The abovementioned charter contract is however not expected to have a material impact on the
Group’s earnings per share or net tangible assets per share for the financial year ending 31st
December 2010.

None of the Directors or substantial shareholders of the Company, has any interest, directly or
indirectly, in the abovementioned transactions, save for their shareholdings in the Company.

DATE OF RELEASE OF UNAUDITED FINANCIAL RESULTS FOR SECOND QUARTER ENDED

AIMS AMP Capital Industrial REIT Management Limited, as manager of AIMS AMP Capital Industrial REIT (“AIMSAMPIREIT”), is pleased to announce that AIMSAMPIREIT’s unaudited financial results for second quarter ended 30 September 2010 will be released on 29 October 2010, after market
close.

SP AusNet: HY2011 Net Profit After Tax Update

SP AusNet is now able to confirm an improvement in net profit after tax for HY2011, in the range of 15 - 25% over the previous corresponding period, driven mainly by a favourable tax position. The tax deductions were arrived at after completion of SP AusNet's tax returns on 30 September 2010...

DATE OF RELEASE OF CIT’S UNAUDITED FINANCIAL RESULTS FOR THE THIRD QUARTER ENDED 30 SEPTEMBER 2010

Cambridge Industrial Trust Management Limited, the Manager of Cambridge Industrial Trust (“CIT”), is pleased to announce that CIT’s unaudited financial results for the third quarter ended 30 September 2010, will be released on Tuesday, 19 October 2010 after market close.

SP Ausnet says half-year net profit boosted 15–25% by tax deductions

SP AusNet says it has posted a 15–25% increase net profit after tax for HY2011, driven mainly by a favourable tax position. The tax deductions were arrived at after completion of SP AusNet’s tax returns on 30 September 2010. The favourable movement in income tax expense amounts to $28 million and includes: SP Ausnet says the underlying business also continues to perform well, particularly in electricity distribution where revenues are well ahead of the previous corresponding period. “While we are pleased with these positive financial effects, we appreciate that our securityholders are aware of events that presently cause uncertainty for our business, including the outcome of the electricity distribution price review (due October 31), ongoing tax audits and bushfire-related litigation. Our position on these has not changed since our previous advice,” says SP Ausnet.

Singapore’s high-yield REITs attractive, Morgan Stanley says

Singapore’s real-estate investment trusts will see increasing demand from investors as high dividend yields, low borrowing costs and an appreciating currency boost their attractiveness, Morgan Stanley said. Yield spreads for REITs will remain high while interest rates are low, meaning cheaper funding costs for the trusts, analysts Brian Wee and Wilson Ng wrote in a reported dated Oct. 1. The rise of Singapore’s dollar against the U.S. currency may add to demand for the city-state’s Singaporean dollar- denominated REITs, the analyst said. “As long as interest rates stay low, Singaporean REITs will be in a favorable position because their funding costs will remain low,” wrote the analysts. “We think the downside for Singaporean REITs is limited, as yields will support prices.” The brokerage boosted its investment rating on Mapletree Logistics Trust, an industrial landlord, and Ascott Residence Trust, a serviced-apartment operator, to “overweight” from “equal weight” because of their attractive dividend yields. Morgan Stanley cut its rating on Ascendas Real Estate Investment Trust to “underweight” from “equal weight” on high valuations, the report showed.

Downside for Singapore REITs limited near-term: Morgan Stanley

Downside for prices of Singapore REITs limited in near term given investors’ continued demand for higher yields amid current low interest rates, says Morgan Stanley, according to Dow Jones. Morgan Stanley adds rising asset values, especially for office properties, also supportive, while stronger SGD vs USD will help underpin SGD-denominated assets. Still, REITs could find it challenging to pursue yield-accretive acquisitions as competition for assets heats up, capital values continue rising. Rolls over target prices to peg at end-2011 valuations. Ups CapitaCommercial (C61U.SG) target to $1.55 from $1.40, keeps at Overweight, ups Suntec (T82U.SG) target to $1.50 from $1.31, keeps at Equalweight, ups CapitaMall (C38U.SG) target to $2.06 from $2.00, keeps at Equalweight, upgrades Ascott (A68U.SG) to Overweight from Equalweight, keeps target at $1.30, ups CDL Hospitality (J85.SG) target to $2.03 from $2.00, keeps at Equalweight, upgrades Mapletree (M44U.SG) to Overweight from Equalweight, ups target to $0.97 from $0.90, cuts Ascendas (A17U.SG) to Underweight from Equalweight, lifts target to $2.01 from $1.96.