FINANCIAL STATEMENT ANNOUNCEMENT FOR THE FOURTH QUARTER AND FULL YEAR ENDED 31 DECEMBER 2016

The Directors of Cambridge Industrial Trust Management Limited ("CITM"), as manager ("Manager") of Cambridge Industrial Trust ("CIT") are pleased to announce the unaudited results of the Group and CIT for the fourth quarter and full year ended 31 December 2016.

CIT is a Singapore-based real estate investment trust constituted by the Trust Deed entered into on 31 March 2006 between CITM as the Manager of CIT and RBC Investor Services Singapore Limited as the Trustee of CIT, as amended and restated. CIT was listed on the Singapore Exchange Securities Trading Limited ("SGX-ST") on 25 July 2006.

CIT's distribution policy is to distribute at least 90% of its annual distributable income, comprising income from letting of its properties after deduction of allowable expenses. The actual level of distribution will be determined at the manager's discretion.

As at 31 December 2016, CIT and its subsidiaries (the "Group") have a diversified portfolio of 49 properties located across Singapore with a diversified tenant base of around 215 tenants across the following business sectors: logistics, warehousing, light industrial, general industrial properties, car showroom and workshop, and business park. The portfolio has a carrying value of approximately S$1.35 billion and a total gross floor area of approximately 8.4 million square feet.

The Group's results included the consolidation of its wholly-owned subsidiaries, Cambridge-MTN Pte. Ltd. ("Cambridge MTN"), Cambridge SPV1 LLP ("Cambridge LLP") and Cambridge SPV2 Pte. Ltd. ("Cambridge SPV2"). The commentaries below are based on Group results unless otherwise stated.

Summary of Group's Results

4Q2016 S$'000

4Q2015 S$'000

Inc/ (Dec)

%

FY2016 S$'000

FY2015 S$'000

Inc/ (Dec)

%

27,783

28,489

(2.5)

112,087

112,244

(0.1)

19,699

21,607

(8.8)

82,273

86,156

(4.5)

13,003

14,781

(12.0)

54,476

61,813

(11.9)

0.996

1.139

(12.6)

4.173

4.793

(12.9)

-

-

-

7.73

8.88

(12.9)

Gross revenue Net property income Amount available for distribution Distribution per unit ("DPU") (cents) Annual Distribution Yield (%)(a) Note:

(a) Annual Distribution Yield is computed based on the closing price of S$0.54 as at 30 December 2016, being the last trading day of the year.

Distribution and Book Closure Date Details

Distribution period

1 October 2016 to 31 December 2016

Distribution rate

0.996 cents per unit

Books closure date

3 February 2017

Payment date

28 February 2017

The Manager has determined that the distribution reinvestment plan ("DRP") will not apply to the distribution for the period from 1 October 2016 to 31 December 2016.

1(a) Income statement together with a comparative statement for the corresponding period of the immediately preceding financial year

Statement of Total Return (4Q2016 vs 4Q2015)

Note

Group

Trust

4Q2016 S$'000

4Q2015 S$'000

Inc/ (Dec)

%

4Q2016 S$'000

4Q2015 S$'000

Inc/ (Dec)

%

(a)

27,783

28,489

(2.5)

27,111

27,849

(2.6)

(1,300)

(1,264)

2.8

(1,283)

(1,247)

2.9

(b)

(1,892)

(1,440)

31.4

(1,892)

(1,440)

31.4

(b)

(2,251)

(1,944)

15.8

(2,251)

(1,944)

15.8

(b)

(2,641)

(2,234)

18.2

(2,636)

(2,230)

18.2

(8,084)

(6,882)

17.5

(8,062)

(6,861)

17.5

19,699

21,607

(8.8)

19,049

20,988

(9.2)

(c)

(1,749)

(1,784)

(2.0)

(1,749)

(1,784)

(2.0)

(d)

(456)

(383)

19.1

(448)

(375)

19.5

(e)

18

20

(10.0)

17

20

(15.0)

(f)

(5,141)

(5,304)

(3.1)

(5,141)

(5,165)

(0.5)

(7,328)

(7,451)

(1.7)

(7,321)

(7,304)

0.2

12,371

14,156

(12.6)

11,728

13,684

(14.3)

-

-

-

434

335

29.6

12,371

14,156

(12.6)

12,162

14,019

(13.2)

(g)

533

-

100.0

533

-

100.0

-

(192)

(100.0)

-

(192)

(100.0)

(h)

(45,056)

(1,486)

n.m

(46,331)

(1,426)

n.m

(32,152)

12,478

n.m

(33,636)

12,401

n.m

-

-

-

-

-

-

(32,152)

12,478

n.m

(33,636)

12,401

n.m

Gross revenue

Property manager's fees Property tax

Land rental

Other property expenses

Property expenses Net property income

Management fees Trust expenses Interest income Borrowing costs

Non-property expenses Net income before distributable income from subsidiary

Distribution income from subsidiary

Net income after distributable income from subsidiary

Gain on disposal of an investment property

Change in fair value of financial derivatives

Change in fair value of investment properties

Total (loss)/return for the period before income tax and distribution

Less: Income tax expense*

Total (loss)/return for the period after income tax before distribution

*Amounts less than S$1,000

Distribution Statement

Group

Trust

Note

4Q2016 S$'000

4Q2015 S$'000

Inc/ (Dec)

%

4Q2016 S$'000

4Q2015 S$'000

Inc/ (Dec)

%

(i)

(32,152)

12,478

n.m

(33,636)

12,401

n.m

45,155

2,303

n.m

46,639

2,380

n.m

13,003

14,781

(12.0)

13,003

14,781

(12.0)

(j)

0.996

1.139

(12.6)

0.996

1.139

(12.6)

3.984

4.519

(11.8)

3.984

4.519

(11.8)

Total (loss)/return for the period after income tax before distribution

Net effect of non-taxable items

Net income available for distribution for the period Distribution per unit (cents): For the period Annualised

  1. - Not meaningful

    Notes:

    1. Gross revenue comprises gross rental income, other income and straight line rent adjustments. Excluding the straight line rent adjustments for both periods, 4Q2016 adjusted gross revenue was S$27.4 million, S$0.6 million or 2.1% lower than the adjusted gross revenue in 4Q2015.

      The decrease was mainly attributed to several master lease expiries and subsequent conversion to multi-tenancy and divestment of properties, notwithstanding there were revenue contributions from the leasing up of properties and rent escalations in the existing portfolio.

    2. The increase in property tax, land rental and other property expenses (mainly the maintenance costs) of S$1.2 million was the result of more buildings being converted from single-tenancy to multi-tenancy since 4Q2015, where CIT bears these costs.

      The number of multi-tenanted buildings in the portfolio has increased from 20 to 23 since 4Q2015.

    3. The Manager has elected to receive its management fee wholly in cash for 4Q2016. The management fee decreased due to lower assets under management, a result of property divestment proceeds being used to repay borrowings and fair value loss from independent valuation of investment properties.

    Cambridge Industrial Trust published this content on 25 January 2017 and is solely responsible for the information contained herein.
    Distributed by Public, unedited and unaltered, on 24 January 2017 23:01:08 UTC.

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