[caption id="attachment_1225" align="alignright" width="117" caption="Cambridge Industrial Trust"][/caption] Update On 11th December 2008, after trading hours, Cambridge Industrial Trust announced their successful refinancing deal of 390m, 3 year tenor term loan at an effective interest rate of 6.6% per annum. Rationale Qualitative Assurance - fear allayed By 2009, many REITs would have hefty term loans due for refinance, Cambridge Industrial Trust is one of them. The on-going credit crunch saw many banks cutting back on their lending. They would rather earn less than to suffer potential loss if the money lent cannot be recovered. One REIT in Japan had collapse after it had trouble repaying its debt. I was afraid Cambridge Industrial Trust could also face trouble refinancing its loan. I excited Cambridge in October 2008 at a significant loss (I sold at 30.5 cts comparing to acquisition cost of 49.5 cts). Looking back, I wonder whether my fear then had been irrational. Fortunately (or not?) I manage to get it lower now, at 22.5 cts. My fear is allayed when Cambridge managed to refinance all its debt. While there is no foreseeable respite to the credit crunch in the near term. I am quite confident the credit market should stablise within 3 years, when its term loan is due again. Quantitative Assurance - Impact on forward DPU for 2009 and beyond I compared the new term loan facility with the existing one found in 3Q 2008 results: Read more...