Following the divestment of 23 Tuas Avenue 10 for S$16.5 million, Cambridge Industrial Trust has announced another divestment which is 2 Ubi View for S$10.5 million. The sale is approximate 6% above current book value of S$9.9 million and 40% premium to the purchase price of S$7.5 million in year 2006. The continued divestment of properties may have got shareholders like me slightly worried about the financial stability of Cambridge Industrial Trust which currently makes up 1% of my stock portfolio, especially in current market conditions where the industrial market is facing headwinds. Let me do some basic analysis on Cambridge Industrial Trust.

Debt

As of 30th June 2016, Cambridge Industrial Trust gearing ratio is 37.4% and the weighted average debt expiry is 3.1 years. Thus, debt remains healthy.

Interest Rate Exposure

86.6% of interest rate exposure has also been fixed for next 3.......