C A M B R I D G E I N D U S T R I A L T R U S T
A N N U A L R E P O R T 2 0 1 5
MANAGER’S REPORT
Prudent Capital and Risk Management
FY2015 was a transformational year for CIT’s capital
management structure. Continuing the momentum
built over the previous years, in FY2015 the Manager
further reduced the dependency on secured loans and
diversified the Trust’s debt maturity profile through the
use of unsecured loan sources. The enhanced capital
management indicators for CIT in 2015 are shown in the
table below:
Singapore benchmark interest rates have started to
normalise. In the light of impending interest rate hikes by
the US Federal Reserve, the Manager opted to fix almost
all of CIT’s interest rate exposure, providing stability of
distributions to Unitholders.
As at 31 December 2015, 97.4% of CIT’s interest
rate exposure was fixed for the next 3.0 years. The
Manager continues to monitor the macro interest rate
environment and will employ suitable risk management
strategies to ensure Unitholders’ distributions are not
materially impacted.
Key Capital Management Activities
In January 2015, CIT completed a secondary issuance of
$55 million of the previously issued four-year MTN due
in November 2018, bearing a coupon yield of 3.5%.
The issuance was well subscribed with the bulk of the
issuance being picked up by institutional investors. The
proceeds were used to retire the $50 million MTN that
expired in March 2015 and to fund general working
capital needs.
In May 2015, the Manager’s proactive engagement with
S&P on the refinancing plans for CIT resulted in S&P being
assigned a “BBB-“ rating on the MTN programme and
all its outstanding MTN series. In the same month, CIT
priced and issued a $130 million five-year MTN, bearing a
coupon yield of 3.95%. The issuance was more than two
times subscribed. The proceeds were used to partially
refinance the Club Loan Facility.
The refinancing of the $250 million Club Loan Facility
was completed by the end of June, using the proceeds
from the MTN and a new unsecured bilateral loan facility.
Following this refinancing, unencumbered investment
properties are in excess of $1.1 billion and there will be no
major refinancing requirements until FY2017.
Key Capital Management Indicators
As at 31 December 2015
Total Debt ($ million)
528.5
Gearing Ratio (%)
36.9
All-in Cost p.a. (%)
3.7
Weighted Average Debt Expiry (years)
3.2
Interest Coverage Ratio
4.0
Interest Rate Exposure Fixed (%)
97.4
Proportion of Unencumbered Investment Properties (%)
82.6
Available Committed Facilities ($ million)
36.5
AEIs/Development
Add’l GFA
(Sq ft)
Completion Development Cost
($ million)
21B Senoko Loop (Phase I)
27,057
16 March 2015
12.8
3 Pioneer Sector 3 (Phase II)
–
27 March 2015
12.4
31 Changi South Avenue 2
9,052
16 April 2015
1.5
86 International Road
–
1Q2016
2.2
Total for FY2015
36,109
28.9
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