Cambridge Industrial Trust

Cambridge Industrial Trust - A busy year awaits (18/04)  
A busy year awaits Cambridge as its asset leverage of 35% and divestment proceeds provide it with further ammunition for growth. Yields are fairly attractive at more than 6% with upside from value-unlocking and accretive investments.  1QFY13 DPU met Street and our expectations, at 26% of our FY13 forecast. We raise FY13-15 DPUs by 1-3% for higher AEI / development assumptions and capital payouts. Our DDM-based target price rises with a lower discount rate of 7.5% (previously 7.7%). Maintain Outperform with catalysts expected from value-unlocking, accretive investments and strong reversions.