Singapore Daily Bulletin – 21/01/13

Cambridge Industrial Trust’s FY12 Distributable Income Grows 14.2%
Cambridge Industrial Trust (CIT) announced a 14.2 percent jump in distributable income to $57.6 million on the back of a 10.9 percent growth in gross revenue to $89 million for the full year period ended 31 December 2012. 2012 saw CIT enter into a total of nine acquisitions committed at a cost of $280.4 million, including two further acquisitions at Jurong Port Road and Tuas South Avenue 4 entered in 4Q12. The company attributes the improved performance to the contribution of additional income from the five completed acquisitions out of the nine in 2012, as well as the increase in the rental from multi-tenanted properties and rental escalations. CIT’s distribution per unit is $0.04784 for FY12, up 12.9 percent from FY11 and $0.01229 for 4Q12, up 9.9 percent from a year ago. Its portfolio occupancy remains strong at 99.2 percent with a weighted average lease expiry of 3.3 years and 12 months of security deposits.

Significance: With the acquisition of the remaining four properties to complete this year, it will contribute positively to the trust’s financial performance going forward.

Logistics Holdings Debuts On Catalist Board
Construction and interior fitting-out firm, Logistics Holdings made its debut on the Catalist board on 18 January and closed at $0.265, 15.2 percent above its initial public offering price of $0.23. Logistics raised net proceeds of approximately $5.96 million from its listing and plans to expand its operations by acquiring heavy duty and large capacity, automated and advanced construction equipment and machinery as well as constructing a dormitory to house its foreign workers. It will also explore potential joint ventures or strategic alliances in its related businesses. Acting mainly as a contractor for the government and its related bodies, the company is also bullish about public-sector projects. The Building Construction Authority has forecast that public-sector demand will account for 53 percent, or $14-17 billion, of total construction demand that is projected at $26-32 billion for the year. Shares of Logistics opened flat at $0.265 today.

Significance: The company notes that its listing status will elevate its profile and play a key role in strengthening its foothold in the construction industry and enable it to secure more projects in future.

SingPost Acquires Major Stake In Famous Holdings For $60m
Singapore Post (SingPost) is buying a 62.5-percent stake in a freight-forwarding company, Famous Holdings (FH) for $60 million to help grow its logistics business. The companies have also agreed on an option to transact the remaining 37.5-percent stake at the end of 2015 at a price to be determined based on an agreed formula. FH is a Singapore-based company engaged in non-vessel operating common carrier operations, total logistics and supply chain management services. It has a regional network with offices in six countries, namely Singapore, Japan, Australia, China, Malaysia and the United States. Chief executive officer of SingPost, Wolfgang Baier was pleased to share that FH’s freight-forwarding capabilities are complementary to its e-commerce logistics capabilities in regional fulfilment and warehousing, as well as its postal and parcel delivery networks.

Significance: SingPost’s acquisition of FH is in line with its strategy to strengthen its capabilities to provide fully integrated logistics solutions, which has been underway over the past 18 months with addition of new or expanded facilities such as warehouses and a second regional airfreight hub in Singapore.