AEI works at Cambridge Industrial Trust property at 3 Pioneer Sector 3.AEI works at Cambridge Industrial Trust property at 3 Pioneer Sector 3.

Ratings agency Standard & Poor’s has reaffirmed its ‘BBB-’ long term credit rating and stable outlook of Singapore-listed industrial REIT Cambridge Industrial Trust (CIT) (SGX:J91U).

In its report dated 28 May 2015, the agency notes that the stable outlook factors in the expectation that the REIT will maintain its business position, operate within its stated leverage range of between 30%-40%, and maintain its financial strength over the next 12-24 months.

Standard & Poor’s said said the REIT’s business risk profile reflects its stable income streams, high occupancy rates, evenly distributed lease expiry profile, and fairly good asset and tenant diversification. S&P also commented that Cambridge has a more conservative approach to interest rate risk than its Singapore-based peers, with more than 85% of debt being fixed rate.

Commenting on the results, Philip Levinson, CEO of the REIT’s manager, remarked, “We are delighted with Standard & Poor’s rating which recognises Cambridge Industrial Trust’s efforts in improving its portfolio quality through active asset management, as well as our disciplined financial approach, which minimises interest rate risk and ensures adequate funding sources.”

Units of Cambridge Industrial Trust are currently listed on the Singapore Exchange at SGD0.71.

AEI works at Cambridge Industrial Trust property at 3 Pioneer Sector 3.
AEI works at Cambridge Industrial Trust property at 3 Pioneer Sector 3.

By Ridzwan Rahmat

Ridzwan has been analysing REITs and business trusts since 2008, and personally manages a portfolio comprising mainly of SGX-listed REITs. He founded REITsWeek in 2013.