Analysis of Cambridge Industrial REIT

Current Price on 19th Apr 2013 = $0.85

• Current Yield = 5.81%  
• Price-to-book Ratio = 1.287
• Assets per unit = $1.047
• Debt per unit = $0.386 (including current liabilities)
• Gearing = 36.9%
• Secured NAV = $0.16 (18%)

Cambridge Industrial Trust has reported its results which is again an improvement from the previous results. It has pushed the price up to a high of $0.85. At this price, the current yield is 5.81% which is quite low. Its price-to-book ratio is 1.287 which is high. In all indicators, it has lost its attractiveness. Sabana REIT has better indicators i.e. higher yield and lower price-to-book ratio.

Nevertheless, I suspect that the price-to-book ratio can be better. There is an incident whereby CIT tried to sell one of their assets at 3 times their book value (which did not work out). I kept the analysis in my excel sheet and continued to track the data assuming that it has happened. The indicators seems better with price-to-book ratio dropping to near 1.0 level and Secured NAV at about 80%. These are some forward-looking scenarios which I don't normally rely on.

Well, if I continue to stick on to my investment philosophy, there is really nothing I can buy and I am still trying to tweak my thinking and analysis. But a lot of opportunities has passed by which I regretted. Need to learn to look forward.