Cambridge Industrial Trust (CIT), a real estate investment trust, yesterday said that its distributable income in the quarter to March 31 came to $7.4 million, exceeding forecast by 8.8 per cent. This means 1.434 cents per unit is available to unitholders.

Trust manager CIT Management Ltd said the total income of $7.4 million represents an annualised yield of 7.09 per cent, based on the closing price of 82 cents per unit on March 30.

CIT’s gross revenue came to about $11 million, with net property income of $9.4 million.

The trust said the higher gross revenue for the quarter was due to rental revenue from two properties acquired during the quarter - 63 Hillview Avenue and 55 Ubi Avenue. Independent valuers priced the two at $91 million.

Net property income was 5 per cent higher than forecast, due to higher revenue and lower actual property expenses of $1.6 million, due mainly to lower land rent, property tax and non-routine expenses.

CIT said it expects to deliver the projected yield and is on track to increase its portfolio through further acquisition of properties.

The management company’s chief executive, Wilson Ang, said: ‘Besides completing the acquisition of two new properties this quarter, we have also announced four option agreements worth $58.3 million which, upon completion, will contribute an additional annual gross revenue of $5.71 million.

‘Together with signed MOUs worth $115 million as at March 31, 2007, we are targeting to acquire approximately $500 million worth of properties this year.’

Source: The Business Times, 27 April 2007