NOTICE OF COMPULSORY LAND ACQUISITION AFFECTING 3 OF CIT’S 43 PROPERTIES

Cambridge Industrial Trust Management Limited, the Manager of Cambridge Industrial
Trust (“CIT”) (“the Company”) wishes to announce that it has received a formal notice
from Singapore Land Authority (“SLA”) on 11 January 2011 with regard to the compulsory
acquisition of land on Tuas Road, Pioneer Road, Tuas West Road, Tuas West Drive and
Tuas South Avenue 3 for the construction of Tuas West Mass Rapid Transit (“MRT”)
extension and road works along the Pan Island Expressway, Tuas Road, Pioneer Road, Tuas West Road, Tuas West Drive and Tuas South Avenue 3.

Based on the Company’s initial assessment, three of CIT’s 43 properties will be affected to varying degrees by this land acquisition:
1) 30 Tuas Road (Lot No 1289X pt Mukim 7)
2) 120 Pioneer Road (Lot No 3237M pt Mukim 7); and
3) 1 Tuas Avenue 3 (Lot 1422X Mukim 7)
All or part of the land where these properties are situated will be possessed by the Government by January 2013.
The relevant authorities will be arranging for their representatives to discuss the details of
the compulsory land acquisition with the Company, including details of compensation.
The Company will continue to assess the situation and will issue further announcements when it has more information.

My comments:
Base on the gross rental income in FY 2009, the land acquisition of these 3 properties will reduce CIT's revenue by approximately 5.5 mil (or 1.375 mil per quarter).
This will in turn reduce the DPU per quarter starting in year 2013. As for how much reduction in DPU and compensation amount given by SLA, more information needs to be provided.
Questions that I have:
(1) Amout of DPU reduction
(2) Are the 3 properties fully paid up? I suppose not since CIT gearing is pretty high.
(3) How much is SLA compensating
(4) What is CIT's plan on using the compensation. To pay off debts or more acquisition in line.

Daiwa tips mixed bag from S-REIT earnings

Ahead of the earnings release for Singapore REITs starting with Ascendas REIT (A17U.SG) later today, Daiwa says it expects “a mixed bag for net-property income and distribution-per-unit growth because several S-REITs completed major acquisitions and refinancing during the quarter.”

It also expects distortions from asset refurbishments, divestments, and negative rental reversions to accelerate in the office space. “We expect the hospitality-related S-REITs to continue to record the strongest underlying DPU growth, though the pace might moderate in 2011.”

It says the 12 S-REITs under its coverage trade at a weighted average FY11 DPU yield of 5.7%.

“We maintain our Neutral view for the broad sector and continue to prefer the industrial-property and hospitality names for their above-sector average yields and positive DPU growth in the current low interest-rate environment.”

In industrial space, it rates Ascendas REIT, Mapletree Logistics Trust (M44U.SG), Cambridge Industrial Trust (J91U.SG) at Buy. In hospitality rates, Ascott Residence Trust (A68U.SG), CDL Hospitality Trusts (J85.SG) at Buy.

First Reit - DATE OF RELEASE OF FULL YEAR 2010 FINANCIAL RESULTS

Bowsprit Capital Corporation Limited, as Manager of First Real Estate Investment Trust (“First REIT”) will be announcing the unaudited financial results of First REIT for the fourth quarter and full year ended 31 December 2010 on Friday, 21 January 2011.

S-REIT valuations no longer compelling - JPMorgan

JPMorgan says “2011 will likely be a volatile year for S-REITs sector with a total return expectation of 8.0%, dominated largely by the dividend yield.”

It notes this compares with its return expectation of about 15% for the STI. It says while rental growth expectation for most commercial segments remains positive and physical market transactions will continue to pick up, the potential supply in the equity market through primary and secondary issuances will keep unit prices in check.

It adds, valuations are no longer compelling as S-REITs are trading at a forward dividend yield of 6.0%, P/B of 1.1X and 7.5% premium to house NPV estimates. It downgrades CapitaCommercial Trust (C61U.SG) to Underweight vs Neutral on lack of growth, deteriorating portfolio quality and rich valuation.

It also cuts CapitaMall Trust (C38U.SG) to Neutral vs Overweight "as we believe that constant cash calls from the sector would put pressure on the stock.

Cambridge Industrial Trust- 4th Quarter Financial results release date

Cambridge Industrial Trust Management Limited, the Manager of Cambridge Industrial
Trust (“CIT”), is pleased to announce that CIT’s unaudited financial results for the fourth
quarter and full year ended 31 December 2010, will be released on Thursday, 10
February 2011 after market close.

Aims Amp- 3rd Quarter Financial Results Release date

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 third quarter ended 31 December 2010 will be released on 25 January 2011, after market close.

First REIT started at Buy by OCBC; $0.84 fair value

OCBC initiates coverage on First REIT (AW9U.SG) with a Buy recommendation and $0.84 fair value estimate.

The research house says FREIT "is well-positioned to capitalise on the growing demand for higher quality healthcare from the middle-class in Indonesia as well as increasing eldercare needs in Singapore."

OCBC notes FREIT has completed acquisitions of two Indonesian hospitals recently "which we view as yield-accretive in nature."

It adds, FREIT would benefit largely from the support of its "strong and committed" sponsor PT Lippo Karawaci -- Indonesia's largest listed property company.

The house also likes the management's strong execution capabilities and FREIT's attractive distribution yield, "which is well above the S-REIT average."

OCBC's $0.84 fair value yields potential upside of 13.7% and total return of 22.6%.