AnnuAl RepoRt 2012 - listed...

24 Jurong Port Road

3 Pioneer Sector 3

30 Tuas Road

1 Third Lok Yang Road and 4 Fourth Lok Yang Road

31 Tuas Avenue 11

25 Changi South Avenue 2

23 Tuas Avenue 10

160 Kallang Way

120 Pioneer Road

9 Bukit Batok Street 22

81 Defu Lane 10

79 Tuas South Street 5

4/6 Clementi Loop

3C Toh Guan Road East

30 Toh Guan Road

21/23 Ubi Road 1

136 Joo Seng Road

2 Ubi View

11 Serangoon North Avenue 5

87 Defu Lane 10

361 Ubi Road 3

128 Joo Seng Road

1/2 Changi North Street 2

16 Tai Seng Street

70 Seletar Aerospace View

55 Ubi Avenue 3

130 Joo Seng Road

AnnuAl RepoRt 2012

63 Hillview Avenue

2 Jalan Kilang Barat

86/88 International Road

9 Tuas View Crescent

28 Senoko Drive


21B Senoko Loop

23 Woodlands Terrace

22 Chin Bee Drive

7 Gul Lane

31 Kian Teck Way


2 Tuas South Avenue 2

511/513 Yishun Industrial Park A


5/7 Gul Street 1

28 Woodlands Loop

25 Pioneer Crescent

30 Marsiling Industrial Estate Road 8

11 Woodlands Walk

43 Tuas View Circuit

23 Lorong 8 Toa Payoh

D

CambriDge inDustrial trust • annual report 2012

Cambridge industrial trust (“Cit”) is firmly committed to providing its

unitholders with a stable and secure income stream, through the

pro-active management of its property portfolio and with the

intention to deliver long-term capital growth.

mission and Vision

Contents

Mission and Vision/Contents 1 Corporate Information 2 Growing Our Reach

4 Chairman and Directors’ Message 7 Financial Highlights 8 Year in Brief

10 Growing Our Strengths 12 Manager’s Report 17 Structure of Cambridge Industrial Trust

18 Board of Directors 24 Management Team 26 Growing Our Success 28 Corporate Social Responsibility

30 Corporate Governance 41 Investor Relations 44 Tenants’ Testimonials 45 Property Locations

46 Property Portfolio 56 Singapore Industrial Property Market Overview 73 Financial Statements

138 Additional Information 140 Statistics of Unitholders 142 Notice of AGM Proxy Form

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Cambridge Industrial Trust (“CIT”) is a Singapore- based industrial real estate investment trust (“REIT”), principally investing directly or indirectly in income-producing real estate and real estate related assets in Singapore, which are used primarily for industrial, warehousing and logistics purposes.

CIT was constituted on 31 March 2006 under a Trust Deed (as amended), entered into between the CIT Manager (“CITM” or “the Manager”) and the CIT Trustee. CIT was officially listed on the Mainboard of the Singapore Exchange Securities Trading Limited (“SGX-ST”) on 25 July 2006 (the “Listing Date”) and has a market capitalisation of S$820.8 million as at 31 December 2012.

Since the Listing Date, CIT has grown its initial portfolio of 27 properties to a portfolio comprising 49 properties (“the Properties”) located across Singapore, with a

total gross area of approximately 7.8 million square feet (“sq ft”) and a property value of S$1.2 billion as at 31 December 2012. They range from logistics and warehousing properties to light industrial properties, which are located close to major transportation hubs and key industrial zones island-wide.

The Manager’s objective is to provide unitholders with a stable and secure income stream through the successful implementation of the following strategies:

• Pro-active asset management; • Acquisition of value-enhancing properties;• Divestment of non-core properties; and• Prudent capital and risk management.

CIT has a credit rating of “BBB-/Stable/--“which was assigned by Standard & Poor’s on 27 August 2009 and was reaffirmed on 23 May 2012.

Corporateinformation

Gross Revenue

Increased by 10.7% year-on-year

S$89.0million


Net ProperyIncome

S$76.2million


Total Assets

S$1.3billion

4.784cents

Distribution Per Unit


2


02

70 SeleTAR AeRoSPAce VIew

Cambridge industrial trust • annual report 2012

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24 Jurong Port Road

3 Pioneer Sector 3

30 Tuas Road


31 Tuas Avenue 11


23 Tuas Avenue 10

160 Kallang Way

120 Pioneer Road


81 Defu Lane 10


4/6 Clementi Loop


30 Toh Guan Road

21/23 Ubi Road 1

136 Joo Seng Road

2 Ubi View


87 Defu Lane 10

361 Ubi Road 3

128 Joo Seng Road


16 Tai Seng Street

30 Marsiling Inustrial Estate Road 8

55 Ubi Avenue 3

130 Joo Seng Road

63 Hillview Avenue




28 Senoko Drive



70 Seletar aeroSpace View

21B Senoko Loop


22 Chin Bee Drive

7 Gul Lane

31 Kian Teck Way





5/7 Gul Street 1

28 Woodlands Loop

25 Pioneer Crescent

11 Woodlands Walk


GRowINGoURReAcH

Focusing on execution and Delivery

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03

OUR P R e S e N c e

7.8 millionsq ft Total GFA

S$1.2billion

Property Value

49 Properties

99.2% occupancy Rate

4


In 2012, the Manager continued to focus on its core strategies of prudent

capital and risk management, acquiring value-enhancing properties, divesting

non-core properties and proactively managing CIT’s existing pool of assets.

l e t t e r t o U n i t h o l d e r S

Chairman andDirectors’ message

04

Dear Unitholders

Delivering Growth

FY2012 was another positive year for CIT. Despite the continued volatility in the global equity markets, the REITs sector in Singapore rebounded, and CIT was one of the top performing Singapore REITs for the year.

In 2012, we maintained a disciplined focus on our core strategies − acquiring value adding properties, divesting non-core properties and pro-actively managing the Trust’s portfolio including prudent capital and risk management. We are pleased to announce that by the end of FY2012, the Trust had delivered its seventh consecutive quarter of growth in Distribution Per Unit (“DPU”) since the start of FY2011. Combined with the strong performance in DPU, CIT’s unit price appreciated 42.1% during 2012, and at the time of producing this Report, trades 14.4% above book value.

We are also pleased that CIT, for the first time since its listing in 2006, has outperformed its Benchmark Index, comprising eight of the largest Singapore REITs and making up majority of the entire Singapore REIT market capitalisation. Unitholders who had invested in CIT since its IPO would have enjoyed total returns of 83.1% as at end December 2012.

overview of FY2012

CIT’s portfolio grew in a measured and balanced way during 2012 through development works, asset enhancements and acquisitions. During the year in review, CIT committed to acquiring nine high quality properties totalling S$280.41 million, five of which were completed by the year end. CIT

also divested two non-core properties, namely, 7 Ubi Close and 6 Tuas Bay Walk. In aggregate, the portfolio’s Gross Floor Area (“GFA”) grew by approximately 0.5 million sq ft in FY2012 and as at the end of the year, comprised 49 properties with a total GFA of 7.8 million sq ft.

In 4Q2012, CIT completed two asset enhancement initiatives (“AEI”) that had commenced in 2011, namely 30 Toh Guan Road and 4/6 Clementi Loop. Another AEI which commenced in 2012, located at 88 International Road, is scheduled for completion in 2Q2013. We intend to embark on other AEIs during 2013 which, like the abovementioned projects, will improve the overall quality of CIT’s portfolio thereby growing and strengthening the underlying portfolio income.

In addition, we undertook two development projects (previously termed as built-to-suit projects) at 43 Tuas View Circuit and 70 Seletar Aerospace View. These were completed in FY2012 ahead of schedule.

We also took pro-active measures to redeploy the compensation received from the Singapore Land Authority (“SLA”) for the compulsory land acquisition of two CIT’s properties. Three properties namely, 15 Jurong Port Road, 30 Marsiling Industrial Estate Road 8 and 11 Woodlands Walk, were purchased to replace the two properties that were compulsorily acquired. The total value of the three properties acquired was around S$100 million.

Owing to our pro-active lease management strategy, CIT experienced positive rental renewals for our multi-tenanted buildings in FY2012 averaging 11.0% on a weighted basis. A total of 618,0002 sq ft of space was renewed and this has had a positive impact in smoothening CIT’s lease expiry profile.


1 based on Cit’s 60.0% interest in the joint venture for 3 tuas south avenue 4, Cit’s share is equivalent to s$9.0 million2 includes single-tenanted and multi-tenanted properties in 2012

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In line with our prudent approach towards capital and risk management, we undertook several initiatives to strengthen the Trust’s balance sheet and maintain financial flexibility. These included further diversification of CIT’s sources of funding with the addition of a S$100 million short-term loan facility, a S$50 million revolving credit facility and a first issue of S$50 million Medium Term Notes (“MTN”) which is a part of a wider S$500 million MTN programme. We also reactivated CIT’s Distribution Reinvestment Plan (“DRP”) in 2012, which has generated an average take-up of approximately 38.0% per quarter. CIT’s DRP not only provides the Trust with an efficient and cost-effective way to enlarge its capital base and improve liquidity, but it also increases working capital. CIT’s gearing ratio currently stands at 36.0% (adjusted for the repayment of the Bridge Loan), which is comfortably within our targeted range.

Strong Financial Performance in FY2012

CIT delivered a strong set of financial results in FY2012. Gross revenue totalled S$89.0 million, an increase of 10.7% over that of FY2011. Net property income rose 10.3% year-on-year to reach S$76.2 million in FY2012, while the distributable amount gained 14.2% from the previous financial year to S$57.6 million. DPU grew 12.9% to 4.784 cents, which equates to an annualised yield of 7.1%, based on the closing price of S$0.675 per unit as at 31 December 2012.

As at 31 December 2012, CIT’s total assets increased by 17.9% to S$1.3 billion from 2011. Net asset value (“NAV”) per unit equated to S$0.647. Based on CIT’s closing price of S$0.675 as at 31 December 2012, this represented a premium to NAV of around 4.3%.

The Trust’s underlying property fundamentals remained resilient throughout FY2012. Portfolio occupancy remained high at 99.2% with an average

security deposit equivalent to 12.0 months rental per tenant. The weighted average lease expiry (by rental income) was maintained at 3.3 years and rental arrears continued to be minimal.

Awards and corporate Social Responsibility

Beyond the positive financial performance, the year has also been fulfilling for the Trust in other ways. We were awarded the Merit award for “The Best Corporate Governance – REITs category” in the Securities Investors Association Singapore (“SIAS”) Investors’ Choice Awards 2012. We, on behalf of CIT, were also a recipient of the Singapore Economic Development Board’s “Solar Pioneer Award 2012”, as well as the “Singapore HEALTH (Helping Employees Achieve Life-Time Health) Award 2012”.

We continue to be committed to being a good corporate and socially responsible entity. While our primary responsibility is to maximise returns for unitholders, we believe this can be achieved by operating our business ethically, responsibly and sustainably, and maintaining a balance between the environment, society (workplace and community) and corporate governance. More details of our initiatives can be found in the “Corporate Social Responsibility” section in this Annual Report.

outlook for 2013

Figures released by the Ministry of Trade and Industry (“MTI”) in February 2013 illustrated that Singapore’s economy had slowed, recording 2012 growth of around 1.3% year-on-year. This was mainly due to weakness in externally-oriented sectors. In 2013, MTI has forecast Singapore’s economy to grow between 1.0% to 3.0%. MTI has cautioned that externally-oriented sectors, especially in the electronics, wholesale and tourism-related services, may be affected by the slowdown in advanced economies.

The Trust’s underlying property fundamentals remained resilient throughout

FY2012. Portfolio occupancy remained high at 99.2% with an average security

deposit equivalent to 12.0 months rental per tenant. The weighted average lease

expiry was maintained at 3.3 years.

6



06

Nevertheless, Singapore’s industrial sector is expected to remain stable overall. With the Trust’s strong fundamentals and a focused execution of our core strategies, we are committed to growing the Trust in a sustainable and measured way with the objective of growing unitholder value. Moving forward, we will continue to source for CIT value-enhancing and yield-accretive acquisitions which can complement the Trust’s portfolio. As part of our disciplined capital recycling strategy, we will continue to divest any non-core properties and use the proceeds for either new acquisitions or retirement of debts, or a combination of both. We will also continue to source opportunities for new developments and also grow the AEI programme within CIT’s existing portfolio of properties.

Note of Appreciation

On behalf of the board, we would like to express our sincere appreciation to our Trustee, strategic partners, bankers and tenants for their support, as well as to

Mr Ian Keith Crow who retired as a board member on 31 October 2012 for his services and contributions to the Board. At the same time, we warmly welcome our new board members, Mr Ooi Eng Peng as our Independent Non-Executive Director, and Mr Lee Stuart Neibart as our Non-Executive Director. Their appointments took effect on 27 July 2012 and 31 October 2012 respectively.

We are also thankful for the professionalism and diligence of the management and employees, all of whom are integral to the success of CIT. Last but not least, we are deeply appreciative of our unitholders for placing your trust and confidence in CIT. We are dedicated to creating a strong and dynamic Trust that can consistently deliver long-term value to you, our unitholders, and we look forward to your continued support.

The Board had a fulfilling meeting with our unitholders at CIT’s Annual General Meeting (“AGM”) last year. We look forward to further interaction with you at the upcoming AGM, which will be held on 19 April 2013.

DR cHUA YoNG HAI

Independent Chairman25 February 2013

cHRIS cAlVeRT

Chief Executive Officer & Executive Director25 February 2013

Chairman andDirectors’ message


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F o r F i n a n c i a l Y e a r e n d e d 3 1 d e c e M B e r 2 0 1 2

1 Computed based on total debt over gross assets 2 gearing is 36.0% adjusted for repayment of bridging loan3 Computed based on ebitDa excluding gain on disposal of investment properties divided by interest expenses4 Computed based on closing price of s$0.675 as at 31 December 2012, s$0.475 as at 31 December 2011 and s$0.530 as at 31 December 20105 performance is calculated on the change in unit price over the period, based on the closing price of the last day of the preceding period and the closing price of the current

period including the assumption that distributions paid were reinvested at the closing price on the ex-distribution dates

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FinancialHighlights

2012 2011 2010Balance Sheet S$’000 S$’000 S$’000Total assets 1,305,347 1,107,377 1,000,603

Total borrowings (net of transaction costs) 493,674 356,608 339,191

Unitholders’ funds 786,693 737,884 642,155

Key Financial Ratios

Net asset value per Unit 64.7 cents 62.0 cents 60.7 cents

Gearing ratios1 38.6%2 33.1% 34.7%

Weighted average effective interest rate (pa) 4.03% 4.1% 5.7%

Interest cover3 5.0 times 5.0 times 4.0 times

capital Management

Total term loan and overdraft facilities (in S$’000) 680,000 440,000 393,100

Total debt (in S$’000) 503,696 366,530 347,499

Units in issue (in ‘000) 1,216,015 1,189,198 1,057,065

Market capitalisation (in S$’000)4 820,810 564,869 560,245

Trading Statistics for Financial Year ended 31 December

Opening price (S$) 0.475 0.530 0.445

Highest price (S$) 0.680 0.545 0.570

Lowest price (S$) 0.475 0.425 0.425

Closing price (S$) 0.675 0.475 0.530

Volume weighted average price (S$) 0.58 0.49 0.50

Total volume traded (in million units) 476.46 582.03 265.50

Average volume per day (in million units) 1.90 2.33 2.10

Unit Price Performance5 53.44% -2.05% 29.80%

Gross Revenue { S$ million }

2011 2011 2011 20112012

76.2

69.1

2010

65.1

Net Property Income

{ S$ million }

2012

57.6

50.4

201044

.7

Distributable Amount{ S$ million }

2012

4.78

4

4.23

7

2010

4.89

2


{ cents }

2012

89.0

80.4

2010

74.2

8


Year in brief

08

2012

J A N U A R Y

30 January 2012Completed the acquisition of 3C Toh Guan Road East, a five-storey industrial warehouse building with ancillary office, for S$35.5 million

31 January 2012Achieved a DPU of 1.118 cents for 4Q2011

Completed the divestment of 7 Ubi Close for S$18.7 million

F e B R U A R Y

2 February 2012Established S$500 million MTN Programme

M A R c H

13 March 2012Issued S$50 million 4.75% Fixed Rate Notes (“FRN”) due in 2015 under the S$500 million MTN Programme

29 March 2012Completed the acquisition of 25 Pioneer Crescent, a four-storey industrial warehouse building with ancillary office, for S$15.3 million

A P R I l

18 April 2012Achieved a DPU of 1.171 cents for 1Q2012, an increase of 17.0% year-on-year

20 April 2012Convened our AGM where all three resolutions set out in the Notice of AGM were duly passed

M A Y

24 May 2012Standard & Poor's reaffirmed our credit rating of BBB-/Stable/--

29 May 2012 Completed the acquisition of 16 Tai Seng Street, a contemporary purpose-built, five-storey light industrial building with an ancillary showroom, for approximately S$59.3 million

J U N e

8 June 2012New units were issued at an issue price of S$0.5281 per unit and listed under the DRP. The take up rate was about 38.0%

J U l Y

4 July 2012Conducted a site visit for our analysts and media to showcase our industrial properties

5 July 2012Entered into a conditional Sales and Purchase Agreement (“SPA“) with Eurosports Auto Pte Ltd to acquire 30 Teban Gardens Crescent, a three-storey building with car showrooms, workshops and ancillary office, for S$41.0 million

30 July 2012Achieved a DPU of 1.180 cents for 2Q2012, an increase of 13.9% year-on-year

A U G U S T

1 August 2012Established a S$40 million Revolving Credit Facility (“RCF”)

S e P T e M B e R

12 September 2012 New units were issued and listed at an issue price of S$0.5776 per unit under the DRP. The take up rate was close to 40.0%

20 September 2012 Completed our development project, 43 Tuas View Circuit, a two-storey manufacturing factory plus an ancillary office


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092012

28 September 2012Entered into a conditional SPA to acquire 54 Serangoon North Avenue 4, a multi-storey light industrial facility, for S$21.0 million

o c T o B e R

3 october 2012 Awarded Merit for “The Best Corporate Governance – REITs category” at the Securities Investors Association (Singapore) 13th Investors’ Choice Awards 2012

15 october 2012 Awarded an aggregate compensation of S$76.7 million by SLA for the property at 30 Tuas Road

24 october 2012 Completed the acquisition of 30 Marsiling Industrial Estate Road 8, a six-storey light industrial building that houses production, cleanrooms, warehouse and ancillary offices, for S$39.0 million

Awarded the “Solar Pioneer Award 2012“ organised by Energy Innovation Programme Office (“EIPO“) and led by the Singapore Economic Development Board and the Energy Market Authority for solar installation at 30 Toh Guan Road

29 october 2012 Completed the acquisition of 11 Woodlands Walk, a purpose-built, a four-storey industrial building, for S$17.3 million

N o V e M B e R

1 November 2012Achieved a DPU of 1.204 cents for 3Q2012, an increase of 11.3% year-on-year

8 November 2012Completed the divestment of 6 Tuas Bay Walk for S$6.5 million

16 November 2012Organised a “Workplace Health and Safety Seminar” as part of our engagement with our tenants

23 November 2012Increased the existing S$320 million term loan facilities with a S$100 million short-term loan facility and a S$50 million RCF

30 November 2012Awarded Bronze – Singapore Health Award 2012 from the Singapore Health Promotion Board

Completed our development project at 70 Seletar Aerospace View, a three-storey industrial building with hangar and ancillary office

D e c e M B e R

11 December 2012Completed the AEI at 30 Toh Guan Road, a two-storey conventional warehouse facility

19 December 2012Entered into a 60/40 limited liability partnership with Oxley Group Limited, to acquire 3 Tuas South Avenue 4 for S$15.0 million

20 December 2012New units issued and listed at an issue price of S$0.6395 per unit under the DRP. The take up rate was around 36.0%

31 December 2012Received an aggregate compensation of S$31.2 million for the compulsory acquisition of the property located at 1 Tuas Avenue 3 by SLA

2013

J A N U A R Y

18 January 2013Completed the AEI of 4/6 Clementi Loop, a four-storey warehouse and office building, for S$23.3 million

Achieved a DPU of 1.229 cents for 4Q2012, an increase of 9.9% year-on-year

30 January 2013Completed the acquisition of 15 Jurong Port Road, an industrial building comprising of workshops and ancillary office, for S$43.0 million

10


10

3 TUAS SoUTH AVeNUe 4


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24 Jurong Port Road

3 Pioneer Sector 3

30 Tuas Road


31 Tuas Avenue 11


23 Tuas Avenue 10

160 Kallang Way

120 Pioneer Road


81 Defu Lane 10


4/6 Clementi Loop


30 Toh Guan Road

21/23 Ubi Road 1

136 Joo Seng Road

2 Ubi View


87 Defu Lane 10

361 Ubi Road 3

128 Joo Seng Road


16 Tai Seng Street


55 Ubi Avenue 3

130 Joo Seng Road

63 Hillview Avenue




28 Senoko Drive



3 tUaS SoUth aVenUe 4

21B Senoko Loop


22 Chin Bee Drive

7 Gul Lane

31 Kian Teck Way





5/7 Gul Street 1

28 Woodlands Loop

25 Pioneer Crescent


11 Woodlands Walk


GRowINGoURSTReNGTHS

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2012 S$89.0

million

Gross Revenue

S$76.2million

Net Property Income

4.784cents


S$57.6million

Distributable Amount

N U M B e R S

Creating ValueFor ourstakeholders

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12 manager’sreport


30 Marsiling Industrial Estate Road 8 86/88 International Road

A Year of continued Growth

2012 was a challenging year with continued economic uncertainties in the global environment. The Singapore economy grew 1.3% for the whole year. Despite the slowdown, we delivered a set of positive results, increasing DPU year-on-year by 12.9% to 4.784 cents from 4.237 cents.

Acquisition of Value-enhancing Properties

The number of properties in our portfolio grew from 45 in FY2011 to 49 in FY2012 and total assets increased by 17.9% to S$1.3 billion. In FY2012, we completed five out of the nine committed acquisitions.

We commenced the year with the completion of 3C Toh Guan Road East for S$35.5 million and 25 Pioneer Crescent for S$15.3 million respectively.

On 29 May 2012, we completed the acquisition of 16 Tai Seng Street (Phase I) for S$59.3 million. This is our first venture into Paya Lebar iPark (“PLiP”), Jurong Town Corporation’s (“JTC”) hub for light manufacturing and lifestyle-related industries such as printing, food processing and lifestyle furnishings. PLiP is JTC’s pilot project under its Park21 initiative to transform Singapore’s industrial landscape into a vibrant enterprise ecosystem. Well-known companies with established headquarters in the PLiP include the Breadtalk Group, Sakae Holdings and Charles & Keith Group. With a GFA of 175,262 sq ft, the property is leased to Nobel Design Holdings Ltd for six years. Phase II of 16 Tai Seng Street with a GFA of approximately 38,703 sq ft, at a cost of S$13.1 million is on track to be completed in 1Q2013. When completed, the total GFA of this property will be approximately 213,965 sq ft, with an end value of approximately S$72.5 million.

In 4Q2012, we completed the acquisition of two more properties located in the northern part of Singapore, 30 Marsiling Industrial Road 8 for S$39.0 million and 11 Woodlands Walk for S$17.3 million.

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13

In December, we entered into a 60/40 joint venture with Oxley Group Limited, one of the management company sponsors, to acquire our maiden property in the JTC Biomedical Park for S$15.0 million, on a vacant possession basis. The JTC Biomedical Park is a world-class manufacturing hub that hosts process development and manufacturing operations for major pharmaceutical, biotechnology and medical technology companies. Following the introduction by the Singapore Economic Development Board, we managed to secure as our long-term tenant, Agila Specialties Global Pte Ltd, for the next 25 years. Based on securing this tenant, the property is now valued at S$38.0 million. This well-located, premium investment-grade property will enhance the quality of our portfolio, lengthen our weighted average lease expiry profile and diversify our tenant base.

Following the calendar year ending 2012, the acquisition of 15 Jurong Port Road was completed on 30 January 2013 for S$43.0 million. The property is strategically located within one of the prime Jurong industrial districts and has a prominent frontage along the Ayer Rajah Expressway.

In FY2013, we will continue to focus on strategic acquisitions of properties which complement CIT’s portolio.

completion of our Development Projects

In FY2012, we completed two development projects, 43 Tuas View Circuit and 70 Seletar Aerospace View, with a total GFA of approximately 176,565 sq ft, for a total cost of approximately S$21.8 million. 70 Seletar Aerospace View, which was completed on 22 November 2012, is leased to Air Transport Training College Pte Ltd for 28.9 years.

Pro-Active Asset Management

As part of our strategy to organically grow our portfolio, three properties underwent AEI.

• 30 Toh Guan Road which involved the demolition of the existing and the redevelopment of a new two-storey warehouse was completed on 11 December 2012. This enhancement maximised the plot ratio. The new warehouse component is leased to Momentum Creations Pte Ltd for five years commencing 1 January 2013. The property is now undergoing Phase II of the AEI which involve the upgrading of the existing lifts and services to achieve the Green Mark standard. These will be completed by 4Q2013 and further enhance the overall quality of the building.

• The AEI for 4/6 Clementi Loop which involved the construction of a new four-storey warehouse was completed on 9 January 2013 for approximately S$23.3 million. The plot ratio of the property is now maximised with a GFA of approximately 300,920 sq ft.

• 88 International Road which was demolished is being rebuilt into a three-storey warehouse and production facility with a basement carpark. Completion is targeted for 2Q2013 and the plot ratio will be maximised from the current GFA of 53,360 sq ft to 155,292 sq ft. A lease has been secured to Yenom Industries Pte Ltd for seven years with an option to renew for a further three years.

Divestment of Non-core Properties

As part of our strategy to recycle capital, the following properties were divested in 2012:

• 7 Ubi Close in 1Q2012 for S$18.7 million.

• 6 Tuas Bay Walk in 4Q2012 for S$6.5 million.

Portfolio Summary

As at 31 December 2012, CIT had a total of 49 properties with an approximate GFA of 7.8 million sq ft, leased to 149 tenants. The portfolio was valued by independent valuer CBRE Pte Ltd at S$1,214 million1. NAV equated to 64.7 cents, an increase of 4.4% on the NAV of 62.0 cents a year ago.

DeliVering groWtH

1 this figure includes 88 international road which is currently undergoing development works and is valued at s$19.0 million as at 31 December 2012

14



We continue to actively manage and maintain a balanced portfolio of properties that is well-diversified across various tenant/trade sectors. As at 31 December 2012, the portfolio occupancy rate remained high at 99.2%, an increase of 0.7% over FY2011’s 98.5%. The occupancy rate for multi-tenanted buildings (“MTBs”) was 93.0% compared to FY2011’s 88.8%, an increase of 4.2%.

During the year, with the active asset management and leasing strategy, we have successfully reduced the aggregate lease expiry concentration in 2013 and 2014 from 49.7% to 44.6% (by rental income). CIT’s weighted average lease expiry remained stable at 3.3 years. Further, the trust continues to have a high level of security deposits averaging 12.0 months rental per tenant for FY2012. Concurrently, the contribution by the top 10 tenants to CIT’s rental was reduced from 50.6% to 46.5%, a 4.1% reduction. This is illustrated in the table below.

Top 10 Tenants (as a % of Rental Income)As at 31 December 2012

CWTYCH

Nobel Desig

n

Beyonics

Jurong Districe

ntre

Tye Soon

Nidec Component

Seksun

Hoe Leong

HC Design

10.0

8.0

6.0

4.0

9.0

7.0

5.0

3.0

2.0

1.0

0.0

9.4

8.5

4.6 4.5 4.3

3.4 3.2 3.23.0

2.4

lease expiry Profile (as a % of Rental Income)

35.0

25.0

15.0

5.0

30.0

20.0

10.0

0.0

Expiring Leases of Muti-Tenanted Properties as a % Rental Income

Expiring Leases of Single-Tenanted Properties as a % Rental Income

2013 20172014 20182015 20192016 2020 2021 2022 2023 2024 2041

4.42.5

1.1

0.9

0.81.6 2.3

1.2 1.0

7.3

11.0 10.8

16.5

9.5 7.2

21.9

15


15

Diversified Trade Sector(as a % of Rental Income)As at 31 December 2012

Single-Tenanted vs Multi-Tenanted Properties (as a % of Rental Income)

As at 31 December 2012

Our leasing strategy is based on optimising the overall portfolio rent and occupancy. We achieve this by deliberately managing the mix of single/master tenant leases versus MTB’s. As at 31 December 2012, our portfolio breakdown by rental income was 82.8% for single/master tenant leases and 17.2% for MTBs. While the single/master leases generally comprises the benefit of longer leases, with built-in rental escalations, the MTB’s typically comprises shorter leases that are ‘marked to market’ more regularly. In this later case, CIT has benefitted from positive rental reversions of 11.0% in FY2012 for MTBs.

Prudent capital and Risk Management

Building on our momentum in FY2012, we established alternative sources of funding that enhanced and complemented our existing financing facilities. As a result, our debt maturity profile has diversified further.

In February 2012, we established Cambridge-MTN Pte. Ltd., a wholly-owned subsidiary, and a S$500 million MTN programme. The MTN programme

complements our traditional lending sources and has allowed us to tap into alternative sources of unsecured debt. We issued the first S$50 million MTN to finance the acquisition of 16 Tai Seng Street.

In 2012, we restarted the DRP, which allows existing unitholders to elect to receive their distributions in script. At the time of writing, we have completed three quarters of the DRP with an average take up rate of 38.0%. We believe the DRP is an efficient way to raise additional working capital at affordable cost. This capital may be deployed to fund AEIs and capital expenditure to ensure the portfolio remains contemporary and in demand by end-users. In August 2012, we established a S$40 million RCF to fund various capital projects and for working capital purposes. In November 2012, we augmented the existing Club Loan Facility with a S$100 million Short Term Bridge Loan Facility maturing in March 2013 and a S$50 million RCF maturing in June 2014. The latter is designed to fund AEIs for properties secured within the Club Loan Facility.

Multi-Tenanted Properties

17.2

Single-Tenanted Properties

82.8

other Services

0.7

Manufacturing

21.9

Professional, Scientific and

Technical Activities

3.8

Transportation & Storage

36.1

Precision engineering

1.9

wholesale, Retail Trade Services

and others

26.8construction

8.8

16



source: ministry of trade and industry singapore, press release 22 February 2013

The SLA compulsory acquisition of 1 Tuas Ave 3 was completed on 31 December 2012 and we received The Collector’s award of S$29.2 million. 30 Tuas Road is expected to be surrendered to the SLA in 1Q2013, for which we will receive a collector’s award of S$72.4 million. In addition, the SLA has awarded CIT with a total ex-gratia amount of S$6.3 million for the two properties.

Since the SLA’s notices were received, we have actively sourced replacement properties in 2012. We used the Short Term Bridge Loan Facility to finance the acquisition of the replacement properties, and the proceeds received from the SLA have since been used to pay down this facility.

Our capital and risk management strategy remains front of mind, underpinning the development and maturity of the Trust. Our gearing ratio of 38.6% (as at 31 December 2012) was within our internal target of between 30% – 40%. Adjusted for the repayment of the bridge loan facility, CIT’s gearing ratio was 36%.

S$ M

illio

n

300

100

200

0

MTNs Term Loan Acquisition Term Loan Revolving Credit Facility Short Term Bridge Loan

100

220

60.7

53 50

20

Debt Maturity ProfileAs at 31 December 2012

2013 2014 2015 2016

17

DeliVering groWtH

MANAGeR

cambridge Industrial TrustManagement limited

(”CITM“)

17structure of Cambridgeindustrial trust

UNITHolDeRS

PRoPeRTIeS

DeliVering groWtH

TRUSTee

RBc Investor Services Trust

Singapore limited

Acts on behalf of

unitholders

Trustee fees

Property management

services

Property management and other fees

Holdings of Units

Net propertyincome

Ownership of assets

* CITM and CIPM are 80% and 100% owned respectively by CREIM Pte. Ltd., which is indirectly owned bytwo strategic sponsors, namely, National Australia Bank Group (“NAB”) (70%) and Oxley Group (30%)

SHAReHolDeRS

70%

National Australia Bank Group*

30%

oxley Group*

SHAReHolDeRS

56%

National Australia Bank Group*

24%

oxley Group*

20%

Mitsui & co., ltd.

Distributions

Management and other fees

Management Services

PRoPeRTYMANAGeR

cambridge IndustrialProperty Management Pte. ltd.

(”CIPM“)

18


18

The CITM Board comprises four independent directors, and four non-independent, non-executive directors and

one executive director. They bring to the Board a wide range of industry experience, expertise and knowledge in

real estate, asset management, finance and banking, law and strategic planning. The Board is committed to ensure

that CITM and CIT practise the highest standards of corporate governance, which are fundamental to

its responsibility to protect and enhance CIT unitholders’ values and interests.

board of Directors

1 the term “principal commitments” shall include all commitments which involve significant time commitment such as full-time occupation, consultancy work, committee work, non-listed company board representations and directorships and involvement in non-profit organisations. Where a director sits on the boards of non-active related corporations, those appointments should not normally be considered principal commitments.

Dr chua Yong Hai, 68 Independent chairman

Date of appointment as Director: 8 October 2008 Date of last re-appointment as Director: 28 October 2011

Description:

Dr Chua has many years of working experience in the investment management and real estate sectors holding key positions such as Director of Investments in the Ministry of Finance, first General Manager of Temasek Holdings Pte Ltd, Group Managing Director of United Engineers Ltd, Group General Manager of Suntec City Development Pte Ltd and Director of Lend Lease Corporation Ltd. Currently, he holds a number of non-executive directorships and chairmanships in several SGX-listed companies.

A Singapore government scholar, Dr Chua holds a PhD in Chemical Engineering from the University of New South Wales, and a Bachelor of Science (Honours) and a Graduate Diploma in Business Administration from the then University of Singapore. He is active in community and social work for which he has been awarded the Public Service Medal and the Public Service Star by the President of Singapore and is also a Justice of Peace.

Academic and Professional Qualifications:

• PhD in Chemical Engineering, University Of New South Wales

• Bachelor of Science (First Class Honours), University Of Singapore

• Graduate Diploma in Business Administration, University Of Singapore

• Qualified Chemical Engineer

Present Directorships as at 31 December 2012:

Listed Companies

• Frasers Centrepoint Asset Management (Commercial) Ltd (the Manager of Frasers Commercial Trust)

• Sakari Resources Limited

Other Principal Commitments1

• Cambridge-MTN Pte Ltd• Lend Lease Asian Retail Investment Fund

(No.1 – No. 6) Ltd• Singapore Cooperation Enterprise Ltd• Justice of Peace• Singapore’s Non-resident High Commissioner

to Maldives

Past Directorships in listed companies Held over the Preceding Three Years:

• Nil

19


19

Professor ong Seow eng, 52 Independent Director – chairman of the Audit, Risk Management and compliance committee

Date of appointment as Director: 6 November 2005 Date of last re-appointment as Director: 28 October 2011

Description:

Professor Ong is currently a Professor at the Department of Real Estate, National University of Singapore. He was on the board of the American Real Estate and Urban Economics Association as well as a past president of the International Real Estate Society and past president of the Asian Real Estate Society. He also held various positions in the former Overseas Union Bank Limited, the Government of Singapore Investment Corporation Private Limited, and the Inland Revenue Department of Singapore. Professor Ong holds a Doctorate of Philosophy in Finance and a Master of Business degree from Indiana University. He is also a CFA charter holder.


• Doctorate of Philosophy in Finance, Indiana University • Master of Business Degree, Indiana University• Bachelor of Science (First Class Honours), National

University of Singapore• Chartered Financial Analyst


Listed Companies

• Nil


• Professor, National University of Singapore – Department of Real Estate


• Nil

Mr Tan Guong ching, 66 Independent Director and Member of the Audit, Risk Management and compliance committee

Date of appointment as Director: 28 October 2008Date of last re-appointment as Director: 28 October 2011

Description:

Mr Tan was the CEO of the Housing and Development Board, which develops and manages a large portfolio of public housing, industrial and commercial properties. He served in several Government Ministries and was the Permanent Secretary to the Ministry of Home Affairs, Ministry of the Environment and Ministry of Communications. He sits on the Boards of several companies including StarHub Ltd and Singapore Technologies Telemedia Pte Ltd.

Mr Tan holds a Bachelor and a Master of Engineering from McMaster University, Canada.


• Bachelor and Master of Engineering, McMaster University, Canada

• Advanced Management Programme, Wharton University


Listed Companies

• Frasers Centrepoint Asset Management (Commercial) Ltd (the Manager of Frasers Commercial Trust)

• Singapore Shipping Corporation Limited• Starhub Ltd


• Asia Mobile Holdings Pte Ltd• Singapore Pools (Private) Limited• Singapore Technologies Aerospace Ltd• Singapore Technologies Telemedia Pte Ltd• STT Communications Ltd


• Pteris Global Limited


20 board of Directors

Mr Michael Patrick Dwyer, 57 Non-executive Director – Member of the Audit, Risk

Management and compliance committee

Date of appointment as Director: 7 August 2008 Date of last re-appointment as Director: 28 October 2011

Description:

Mr Dwyer is the Executive Chairman of Oxley Group, a private investment firm with investments in real estate, agriculture/alternative energy and natural resources. He is also a current management board member of the Council of Governors of the Asian Pacific Real Estate Association (“APREA”).

Mr Dwyer was the CEO, listed in one of the eight REITs on the Singapore Stock Exchange in 2006. It was the first independent cross-border listed property trust, raising S$500m at listing.

Mr Dwyer was intimately involved in the mortgage industry in Australia for over 15 years, having held the position of Joint Managing Director of a leading Mortgage REIT. He also has a strong involvement with the securities industry regulators and financial service associations in Australia.

Mr Dwyer is a qualified solicitor in Queensland, Australia and has 20 years of experience in all facets of commercial and property law.


• Solicitor Of Supreme Court of Queensland and Federal Court of Australia, The Solicitors’ Board Of Queensland


Listed Companies

• Nil


• DMI Holdings Pte Ltd • Ezyhealth Industrial Trust Management Pte Ltd• International Mezzanine Funds Group Ltd • International Mezzanine Funds Management Ltd • International Mezzanine Fund Pte Ltd• Oxley Global Limited & its subsidiaries


• Nil

Mr ooi eng Peng, 56 Independent Director – Member of the Audit, Risk Management

and compliance committee

Date of appointment as Director: 27 July 2012

Description:

Mr Ooi has over 30 years of real estate experience in property investment, development, project management and fund investment, and management businesses in both Asia and Australia. Mr Ooi was previously the CEO of Lend Lease Asia, based in Singapore from 2010 to 2011. From 2006 to 2010, he was the CEO of Investment Management and Retail Asia for Lend Lease based in Singapore. Prior to his roles in Asia, he was regional Chief Financial Officer (“CFO”) of Lend Lease Communities Asia Pacific (2003 to 2005), Global CFO of Lend Lease Investment Management (2002 to 2003) and CFO of Lend Lease Development (2000 to 2002), all based in Sydney.

Mr Ooi holds a Bachelor of Commerce from the University of New South Wales and is a member of the Certified Practising Accountants of Australia.


• Bachelor of Commerce, University of New South Wales, Australia

• Member of the Certified Practising Accountants of Australia


Listed Companies

• Perennial China Retail Trust Management Pte Ltd (the Manager of Perennial China Retail Trust)


• Cambridge SPV1 LLP• Frasers (Australia) Pte Ltd


• Nil

DeliVering groWtH

21

Mr Ian Andrew Smith, 56Non-executive Director

Date of appointment as Director: 28 October 2008 Date of last re-appointment as Director: 28 October 2011

Description:

Mr Smith is currently the General Manager of Real Estate at nabInvest Capital Partners Pty Limited, which is the direct investment management business of National Australia Bank Limited. His career spans business generation, fund management, engineering, project and development management.

His career history includes 17 years with Lend Lease Corporation Limited in Australia, predominantly in its real estate investment management business. He was the CEO and Director of ASX-listed Lend Lease US Office Trust. He was also the Portfolio Manager of the Lazard Global Listed Infrastructure Fund, prior to joining National Australia Bank Limited.

Mr Smith holds a Bachelor of Engineering and a Bachelor of Commerce from the University of Melbourne and a Master ofEngineering Science from Monash University.


• Master of Engineering Science, Monash University• Bachelor of Engineering, University of Melbourne • Bachelor of Commerce, University of Melbourne


Listed Companies

• Nil


• AREA Management Holdings Inc • Buckingham One Pty Limited• Cambridge Industrial Property Management Pte

Ltd (Singapore)• Cambridge Real Estate Investment Management

Pte Ltd (Singapore)• nabInvest Oxley Singapore Pte Ltd (Singapore)• Presima Inc


• Nil

Mr lee Stuart Neibart, 62Non-executive Director

Date of appointment as Director: 31 October 2012

Description:

Mr Neibart is currently the Global CEO and Partner of AREA Property Partners, a leading international real estate fund manager. From 1989 to 1993, Mr Neibart was the Executive Vice President and Chief Operating Officer (“COO”) with the Robert Martin Company, a real estate development and management firm with a portfolio of approximately seven million sq ft of commercial real estate. Mr Neibart holds the position of Director on various boards relating to AREA’s investment portfolio. Mr Neibart also serves on the Advisory Boards of both the Enterprise Foundation and the Real Estate Institute of New York University. He is also a past President of the New York Chapter of the National Association of Industrial and Office Parks.

Mr Neibart graduated with a Bachelor of Arts from the University of Wisconsin and a Master of Business Administration from New York University.


• Master of Business Administration, New York University

• Bachelor of Arts, University of Wisconsin


Listed Companies

• Retail Opportunities Investment Corporation (Delaware)


• ADEM 125 REIT Inc. (Delaware)• ADEM Riverside REIT Inc. (Delaware) • AP 1313 Randolph REIT Inc. (Delaware)• AP 680 SN REIT Inc. (Delaware)• AP EOS 21 REIT Inc. (Delaware)• AP Fairland Gardens REIT Inc. (Delaware)• AP Fairlawn REIT Inc. (Delaware)• AP Heritage REIT Inc. (Delaware) • AP L&T (Cayman) Inc. (Cayman Islands) • AP Management Holdco LLC (Delaware)• AP SF Multifamily 4A REIT Inc. (Delaware)• AP Sierra Vista REIT Inc. (Delaware) • Apollo ABP REIT, Inc. (Delaware)


22 board of Directors

Mr Masaki Kurita, 40Non-executive Director

Date of appointment as Director: 18 February 2008 Date of last re-appointment as Director: 2 January 2012

Description:

Mr Kurita was appointed to the Board on 18 February 2008 as an Executive Director and was re-designated as a Non-Executive Director on 2 January 2009 as part of the internal restructuring of the CIT Manager’s operations.

Mr Kurita has taken various positions in the Urban Planning & Development Department in Mitsui & Co., Ltd in the past 14 years with roles ranging from land acquisitions, development of office buildings and industrial property in Japan, and equity investment in the overseas real estate business.

Mr Kurita holds a Bachelor of Engineering from Keio University, Tokyo, Japan.


• Bachelor of Engineering, Keio University


Listed Companies

• Nil


• Mitsui & Co. (Asia Pacific) Pte. Ltd.• UE Managed Solutions Pte Ltd


• Nil

Mr lee Stuart Neibart, 62Non-executive Director

Other Principal Commitments1 (Cont’d)

• Apollo Domestic Emerging Market Fund I, Inc. (Delaware)

• Apollo International Real Estate Capital Advisors, Inc. (Delaware)

• Apollo International Real Estate Management, Inc. (Delaware)

• Apollo Real Estate Capital, Inc. (Delaware) • Apollo Real Estate Capital Advisors II, Inc. (Delaware) • Apollo Real Estate Capital Advisors III, Inc. (Delaware) • Apollo Real Estate Capital Advisors IV, Inc. (Delaware) • Apollo Real Estate Management, Inc. (Delaware) • Apollo Real Estate Management II, Inc. (Delaware) • Apollo Real Estate Management III, Inc. (Delaware) • Apollo Real Estate Management IV, Inc. (Delaware) • Apollo Real Estate Mezzanine Advisors, Inc. (Delaware) • Apollo Real Estate Mezzanine Management, Inc.

(Delaware) • AREA International Management, Inc. (Delaware) • AREA Management Holdings LLC (Delaware)• AREA Real Estate Finance Corporation (Maryland) • AREA Sponsor Holdings, LLC (Delaware)• AREFIN Co-Invest Corporation (Maryland) • AREIF I Manager Corporation (Delaware) • AREIF V Realty Trust, Inc. (Maryland) • Kronus Property European II, Inc. (Delaware) • Kronus Property International, Inc. (Delaware)• Kronus Property, Inc. (Delaware)• Kronus Property III, Inc. (Delaware) • Kronus Property IV, Inc. (Delaware) • Kronus Property V, Inc. (Delaware) • NRDC Equity Partners LLC (Delaware)• Two Bridges Realty Inc. (Delaware) • VEF Advisors, LLC (Delaware) • VEF Group Incentive, LLC (Delaware)


• Nil

DeliVering groWtH

23

Mr christopher Dale calvert, 42executive Director and chief executive officer

Date of appointment as Director: 4 August 2010

Description:

Mr Calvert joined the CIT Manager as the CEO in December 2008 and was appointed Executive Director on 4 August 2010. He is responsible for the overall planning, management and operation of CIT. He works with the Board members to determine the overall business, investment and operational strategies for CIT. He has over 20 years of property and management experience in valuation, consultancy, real estate fund management, and investment management in the Asia Pacific region. Prior to joining the CIT Manager, Mr Calvert was CEO (Asia) of MacarthurCook Industrial REIT, responsible for the assembly of an industrial property portfolio and the subsequent IPO of the REIT in early 2007. He was also the CEO (Asia) of Blaxland Funds Management, a real estate fund manager.

Mr Calvert holds a Bachelor of Business and Property and is a Qualified Valuer from the Australian Property Institute. He is also an active advocate of APREA.


• Bachelor of Business and Property, Royal Melbourne University

• Qualified Valuer, Australian Property Institute


Listed Companies

• Nil


• Advocate of Asia Pacific Real Estate Association (“APREA”)

• Cambridge-MTN Pte Ltd• Cambridge SPV1 LLP


• Nil

Mr Victor ong wei Tak, 47 Non-executive Director – Alternate Director to Mr Michael

Patrick Dwyer

Date of appointment as Alternate Director: 19 October 2010

Description:

Mr Ong was appointed as an alternate director to Mr Michael Patrick Dwyer. Mr Ong is Joint-CEO of Oxley Group and has over 20 years of experience in real estate development, funds management and investment banking in Australia and Asia. In Asia, he was an Executive Director of Allco Funds Management (Singapore) Limited and the CEO of Bluestone Asia Group Ltd.

In Australia, Mr Ong was a director responsible for the development of the funds management operation at Trafalgar Managed Investments Limited. He co-founded Paladin Australia Limited in 1994, a funds management company acquired by Deutsche Bank in 2000. Prior to this, he was a senior executive with the Lend Lease Group for seven years in the property and funds management divisions.

Mr Ong holds a Degree in Building from the University of New South Wales and a Master of Business (Applied Finance) from the University of Technology, Sydney.


• Master of Business (Applied Finance), University of Technology, Sydney

• Degree in Building, University of New South Wales


Listed Companies

• Nil


• Bluestone International Limited & its subsidiaries• Oxley Global Limited & its subsidiaries


• Nil

24


24 managementteam

The management team has an extensive experience and a proven track record in

fund, asset and property management in Singapore and the region. A number of

the management are real estate specialists with strong credentials and

investment experience.

chris calvertchief executive officer and executive Director

Refer to Description on page 23

David Masonchief Financial officer

Mr Mason joined the Manager in July 2010 as CFO. The CFO reports to the CEO and oversees the Finance and Corporate Services departments for CIT. He is responsible for the financial performance of CIT and for ensuring its key performance indicators are achieved. In addition, he is responsible for preparing regular performance reports for investors and regulators.

Prior to joining the Manager, Mr Mason was a Financial Consultant to YTL Starhill Global REIT Management Limited, advising on various projects and other financial matters for Starhill Global REIT (formerly known as Macquarie Prime REIT). He was also the Senior Vice President, Finance and Accounting of Starhill Global REIT. Mr Mason has over 13 years of experience in the REIT sector in Singapore and Australia.

He holds a Bachelor of Accounting (Honours) from Birmingham City University and is a Chartered Accountant. He is a member of the Institute of Chartered Accountants in England and Wales and the Institute of Chartered Accountants in Australia. He is also board member of APREA.

Nancy Tan Head of Real estate

Ms Tan joined the Manager in February 2009 and was appointed as the Head of Real Estate in February 2011. She reports to the CEO and formulates strategic plans to maximise the returns on CIT’s assets. She oversees the asset management, investment and property management departments for CITM. She has over 20 years of experience in the real estate and asset management industry.

Prior to joining the Manager, Ms Tan was the Fund Manager of MacarthurCook Industrial REIT, where she assisted in expanding the portfolio from 12 to 21 properties worth approximately S$555.4 million. She also held management positions in a number of established real estate firms, including Far East Organisation and City Developments Limited.

Ms Tan holds a Bachelor of Science (Estate Management) from the National University of Singapore and a Graduate Diploma in Marketing from the Marketing Institute of Singapore.

25

DeliVering groWtH

25

DeliVering groWtH

caroline FongHead of Investor Relations and corporate communications

Ms Fong joined the Manager as Head of Investor Relations and Corporate Communications in June 2012. She reports directly to the CEO and is responsible for creating and presenting CIT’s investment message to the investment community. She works closely with the senior management team to ensure that the opinions of the investment community are relayed to the Board. Ms Fong has over eight years of investor relations’ experience, is well-connected in the REITs industry and has extensive knowledge of its regulatory requirements.

Prior to joining the Manager, Ms Fong was the Head of Investor Relations in CapitaMalls Asia, responsible for creating the story of the company’s retail businesses in five other countries. She was also the Associate Director, Listings in Singapore Exchange Limited, advising companies on corporate governance and regulatory framework in Singapore.

Ms Fong holds a MA in Finance in Investment from the University of Nottingham (UK) and a BSc in Banking and Finance from the University of London.

cindy Seetohcompliance Manager

Ms Seetoh joined the Manager in June 2010 as the Compliance Manager. She reports to the CEO and is responsible for all internal and external compliance processes for the Manager. She is also the liaison for corporate secretarial matters. Ms Seetoh has more than eight years of professional experience in compliance.

Prior to joining the Manager, Ms Seetoh was the Head of Compliance and Financial Crime Prevention of Newedge Financial Singapore Pte. Ltd., where she oversaw all compliance and financial crime prevention related matters.

Ms Seetoh holds a Bachelor of Business and Commerce from Monash University, and is a member of the Golden Key International Honour Society.

She is a gradute of the Institute of Chartered Secretaries and Administrators.

Michael longDevelopment Manager

Mr Long joined the CIT Property Manager in August 2011 as Development Manager. He reports to the CEO and is responsible for implementing the strategic goals and objectives for development projects, and subsequently providing the direction and leadership necessary to achieve them. He has over 20 years of experience in the real estate development and construction industry in an array of sectors including large-scale industrial, residential, commercial and retail projects.

During this period, Mr Long has successfully delivered premium quality projects working as a Senior Project Manager for Confluence Project Management in Singapore and Bovis Lend Lease in Singapore, London and Sydney. He has a proven ability to build key relationships and communicate effectively with authorities, consultants, financiers, managers and peers alike.

Mr Long holds a Clerk of Works, Building Diploma from Sydney TAFE and is an active member of the Project Managers Institute of Australia.

26


26

25 PIoNeeR cReSceNT


27


27

GRowINGoURSUcceSS

Developinga resilientportfolio

24 Jurong Port Road

3 Pioneer Sector 3

30 Tuas Road


31 Tuas Avenue 11


23 Tuas Avenue 10

160 Kallang Way

120 Pioneer Road


81 Defu Lane 10


4/6 Clementi Loop


30 Toh Guan Road

21/23 Ubi Road 1

136 Joo Seng Road

2 Ubi View


87 Defu Lane 10

361 Ubi Road 3

128 Joo Seng Road


16 Tai Seng Street


55 Ubi Avenue 3

130 Joo Seng Road

63 Hillview Avenue




28 Senoko Drive



25 pioneer creScent

21B Senoko Loop


22 Chin Bee Drive

7 Gul Lane

31 Kian Teck Way





5/7 Gul Street 1

28 Woodlands Loop

25 Pioneer Crescent


11 Woodlands Walk


2 Divestments

2 Development

projects

4 asset enhancement

initiatives

9acquisitions(Committed)

2012

28


Corporate socialresponsibility

people are our core assets and we are committed to being an “employer of Choice”.

We focus on providing a safe and balanced work environment, promoting health and

wellness, engaging in effective communication and continuous development.

occupational Health and Safety and workplace environment

We are responsible for the occupational health and safety of all our employees and we monitor the activities of operational sites to the best of our ability to provide a safe working environment.

We have successfully renewed the certification of our Occupational Health and Safety (“OHS”) Management System to meet the OHSAS 18001:2007 International Standard. At the same time, we work with our tenants and contractors to ensure their OHS standards are consistent with our own and are adhered to on our sites. During the year, we conducted our inaugural “Workplace Health and Safety Seminar” for our tenants and contractors.

Our OHS objectives are:

• Achieve zero harm in the workplace• Achieve OHSAS targets and maintain OHSAS

18001 certification• Foster corporate and tenant awareness of OHSAS

Health and wellness

We believe “Health is Wealth”, and have introduced a weekly sports fitness activity as part of our health and wellness programme. Activities include tennis, zumba and yoga as well as team building events in which all employees can participate. We have also engaged health professionals to offer free health screening and health talks which have been a great benefit to our employees. We have also introduced flexible working hours for our employees to encourage an appropriate work-life-balance. In 2012, we saw a reduction of approximately 29.0% in medical leave taken as compared to 2011 and an increased productivity within the workplace.

We were awarded Bronze – Singapore Health Award 2012 by the Singapore Health Promotion Board in November 2012 in recognition of our company’s effort to promote work-life balance and help employees achieve a healthy lifestyle.

Talent Management and continual Improvement

We have established a talent management programme as part of our succession planning process, to attract, retain and groom employees, as well as focus on training and upgrading skills.

Our employees attended a total of 1,500 training hours during 2012. In addition to the Annual Training Programme designed for all employees, we have also recently launched a management and leadership training programme, divided into two phases, namely “The Next Step” and “Stepping Forward” where continuous management training is conducted and enforced. We also introduced The Internship Programme with the aim of creating the future talent pool by attracting students with opportunities to learn from our experiences and the industry.

We also conduct biannual employment satisfaction surveys to ensure management hear the views and concerns of employees and are aware of our workforce’s changing needs.

community

CIT believes team building and community engagement goes hand in hand. In 2012, we have contributed over 1,000 corporate hours, an average of 40 hours per employee to volunteer activities.

Consistent with our commitment to help those less fortunate, we have donated money and volunteer services to a number of local and overseas organisations that address worldwide issues, including assisting the disabled, women and children, heart disease and cancer awareness and reducing poverty.


28

29

DeliVering groWtH

29

DeliVering groWtH

“Build a House in Batam”, Project in Indonesia

For example:

• We supported one of our employees who cycled over 1,000 km in seven days from Canberra to Melbourne in May 2012 in the “Ride for The Little Black Dress” cycling event organised by the Jodi Lee Foundation (http://www.jodileefoundation.org.au). This effort promoted an awareness of colorectal cancer, which is becoming the number one cancer in Singapore, especially among men over 40 years of age.

• In June 2012, we raised money for Sunrise Children’s Villages (www.scv.org.au), an organisation caring for hundreds of orphaned or disadvantaged Cambodian children. The donations helped to cover the cost of sending 10 Sunrise children to new schools.

• Since 2010, we have not stopped baring our sole, and in June 2012, our staff, together with their family members and friends, once again joined in the Habitat-Barclays’ “Bare Your Sole” barefoot walk (http://www.bareyoursole.org.sg). To spread the awareness further we decided to declare a day without shoes in the office as part of our support to the “One Day without Shoes Campaign” by Raffles Institute. We took the opportunity to share the message with our visitors and guests that day.

• In March and September 2012, we joined with our key partner, Habitat for Humanity (http://www.habitat.org), on a “Build A House in Batam” project, where we built houses for the under-privileged in Batam, Indonesia.

• Christmas is a day of giving, and for Christmas in 2012, we distributed groceries to the children at the Chen Su Lan Methodist Children’s Home (http://www.cslmch.org.sg), an organisation

approved by the Voluntary Welfare Organisation, registered under the Charities Act and a full member of the National Council of Social Services, whose mission is to provide a loving and nurturing environment for the needy and disadvantaged children.

environment

We are committed to environmental stewardship and have implemented a number of environmentally friendly initiatives such as recycling programmes and energy-saving practices. For example:

• As part of our efforts to “go green” we started to use eco-friendly products in our office, and placed recycle bins in the office for papers, plastics and cans.

• We will be installing a 150 kwp Solar PV system on the roof of 30 Toh Guan Road as part of our sustainability effort, with the goal of achieving a Green Mark Certificate for the building. The system is expected to generate approximately 175 mwh annually and will bring about cost savings for the Trust.

The Trust was awarded the “Solar Pioneer Award 2012” in October 2012 during the Singapore International Energy Week organised by the EIPO and led by the Singapore Economic Development Board and the Energy Market Authority. This award recognises solar installation projects which pioneer system design, size and installation techniques, and help to build solar system integration capabilities in Singapore.

30


30 Corporategovernance

cambridge Industrial Trust Management limited, (the “Manager”) as manager of CIT is committed to maintaining high standards of corporate governance in line with the Singapore Code of Corporate Governance. The Board and Management believe that sound corporate governance policies and practices are essential to protect the assets of CIT and interests of its unitholders.

The Manager has general powers of management over the real estate and real estate related assets of CIT. The Manager‘s main responsibility is to manage CIT’s assets and liabilities for the benefit of the unitholders. It sets the strategic direction of CIT and gives recommendations to the Trustee on the acquisition, property development, divestment and/or enhancement of assets of CIT in accordance with its stated investment strategy. This comprises compliance with the applicable provisions of the Securities and Futures Act (“SFA”) and all other relevant legislation, including the Rules of the SGX-ST Listing Manual (“Listing Manual”), the Code on Collective Investment Schemes (including its property funds appendix (“Property Funds Appendix”)), and the Trust Deed.

The Manager also supervises the execution of works by the Property Manager to ensure that it meets its objectives pursuant to the property management agreement.

The Manager holds a Capital Markets Services Licence (“CMS Licence”) issued by the Monetary Authority of Singapore (“MAS”) to carry out REIT management under the SFA.

This report provides an insight on the Manager’s corporate governance framework and practices in compliance with the Code of Corporate Governance 2005 (the “Code”). As CIT is a listed REIT, not all principles of the Code may be applicable to CIT and the Manager. Any deviations from the Code are explained.

A revised Code (“New Code”) of Corporate Governance was issued by the MAS on 2 May 2012. Although the New Code will only take effect in respect of annual reports relating to financial years commencing from 1 November 2012, some of the revised principles and guidelines are being complied within this report.

CIT received the Merit Award for ‘The Best Corporate Governance – REITs category’ in the SIAS Investors’ Choice Award 2012, and the Manager will continue to improve and refine its practices to adhere to the spirit of the Singapore Code of Corporate Governance.

Board Matters

The Board’s conduct of Affairs

Principle 1: every company should be headed by an effective Board to lead and control the company. The Board is collectively responsible for the long-term success of the company. The Board works with Management to achieve this objective and Management remains accountable to the Board.

The Board is elected by the Manager’s shareholders to lead and to supervise the management of the business and affairs of the Manager and the Trust. The prime stewardship responsibility of the Board is to ensure that the Trust is managed in the best interest of all stakeholders, which includes protecting CIT’s assets and unitholders’ interest and enhancing the value of unitholders’ investment in CIT.

The functions of the Board are defined broadly as follows:

• To provide entrepreneurial leadership, set strategic and financial objectives, major corporate policies, annual budgets, and ensure that the necessary human resources are in place for the Manager to meet its objectives;

• To establish a framework of prudent and effective controls which enables risk to be assessed and managed;

• To review senior management performance; and

• To set the Manager’s values and standards and ensure that obligations to shareholders and others are understood and met.

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The Board oversees a system of internal controls and business risk management processes that set the guidelines which govern matters reserved for Board’s decision and approval, approval limits for investments and divestments, bank borrowings, capital expenditure and cheque signatories.

The Board meets at least once every quarter, and on such other occasions that necessitate its involvement; to review the performance and strategies of CIT.

Board Members Board Meetings1 ARcc Meetings

Held Attended Held AttendedDr Chua Yong Hai 4 4 N/AProf Ong Seow Eng 4 4 4 4Mr Tan Guong Ching 4 4 4 3Mr Ooi Eng Peng 4 22 4 23

Mr Michael Patrick Dywer 4 3 4 4Mr Victor Ong Wei Tak(alternate to Michael Patrick Dwyer)

4 1

N/AMr Masaki Kurita 4 4Mr Ian Andrew Smith 4 4Mr Ian Keith Crow 4 44

Mr Lee Stuart Neibart 4 15

Mr Christopher Dale Calvert6 4 4 4 4

1 not including other meetings attended by directors with management.2 mr ooi eng peng was appointed as an independent non-executive Director of the manager and a member of the arCC on 27 July 2012. 3 mr ooi eng peng attended the meeting as an invitee prior to his appointment.4 mr ian Keith Crow resigned as a Director with effect from close of business on 31 october 2012. 5 mr lee stuart neibart was appointed as a non-executive Director of the manager on 31 october 2012. 6 mr Christopher Dale Calvert, being also the Chief executive officer attends all arCC meetings although he is not a member of the arCC.

The Audit, Risk Management and Compliance Committee (“ARCC”) was established to assist the Board in its oversight of CIT and the Manager’s governance in relation to financial, risk, audit and compliance matters.

As at 31 December 2012, the number of meetings held and directors’ attendances are set out in the tables below:

composition of the Board

Principle 2: There should be a strong and independent element on the Board, which is able to exercise objective judgement on corporate affairs independently, in particular, from Management and 10% shareholders7. No individual or small group of individuals should be allowed to dominate the Board’s decision making.

The Board is represented by members with a breadth of expertise in banking, finance, accounting, real estate, law

and management. It comprises nine members, of whom four are Independent Non-Executive Directors. The CEO is the only Executive Director on the Board.

The Board members as at 31 December 2012 are as follows; the profiles of the directors are found on pages 18 to 23:

Name of Directors DesignationDr Chua Yong Hai Independent Chairman Professor Ong Seow Eng Independent Director and Chairman of ARCCMr Tan Guong Ching Independent Director and Member of ARCCMr Ooi Eng Peng Independent Director and Member of ARCCMr Michael Patrick Dwyer(Alternate: Mr Victor Ong Wei Tak)

Non-Executive Director and Member of ARCC

Mr Ian Andrew Smith Non-Executive DirectorMr Masaki Kurita Non-Executive Director Mr Lee Stuart Neibart Non-Executive DirectorMr Christopher Dale Calvert Executive Director and CEO

7 the term “10% shareholder” shall refer to a person who has an interest or interests in one or more voting shares in the company and the total votes attached to that share, or those shares, is not less than 10% of the total votes attached to all the voting shares in the company. “Voting shares” exclude treasury shares.

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The Board believes that the current board size, composition and balance between Executive, Non-Executive and Independent directors is appropriate and provides sufficient diversity without interfering with efficient and effective decision-making. It allows for a balanced exchange of views, robust deliberations and debates among members and effective oversight over Management, ensuring no individual or small group dominates the Board’s decisions or its process.

With the background, skills, experience and core competencies of its members, the Board is of the view that it has the appropriate mix of expertise, skills and experience needed in the strategic direction and planning of the business of CIT. The Board composition is reviewed periodically to ensure that the board size is appropriate and comprises directors with an appropriate mix of expertise, skills and experience to discharge their duties and responsibilities.

The Board also reviews periodically and at least annually the independence of its directors based on guidelines set out under the New Code. In respect of financial year ended 31 December 2012, Dr Chua Yong Hai, Professor Ong Seow Eng, Mr Tan Guong Ching and Mr Ooi Eng Peng are considered independent.

To enable the Board of Directors to be able to properly discharge their duties and responsibilities as Board or Board Committee members, the Board is provided with routine updates on developments and changes in the operating environment, including revisions to accounting standards, and laws and regulations affecting CIT and/or the Manager. Directors are also encouraged to participate in industry conferences, seminars and training programmes in connection with their duties.

Newly appointed directors are given induction training on joining the Board together with an induction pack which includes constitutional documents of CIT and the Manager, contact information of each Board member, management staff and Company Secretary. The training covers business activities of CIT, its strategic directions and policies, the regulatory environment in which CIT

and the Manager operate, the Manager’s corporate governance practices, and statutory and other duties and responsibilities as directors. Where a director has no prior experience as a director of a listed company, further training in areas such as accounting, legal and industry-specific knowledge is provided.

As a principle of good corporate governance, all directors are appointed for three years, subject to extension for a further three years at the Board’s and shareholders’ discretion. Letters of appointment are issued to directors upon their appointment, which sets out their duties and responsibilities to the Manager and CIT, which includes seeking the Chairman’s prior approval before accepting additional commitments which may affect time allocated to their role as a director of the Manager.

None of the directors of the Manager has entered into any service contract directly with CIT.

chairman and ceo

Principle 3: There should be a clear division of responsibilities between the leadership of the Board and the executives responsible for managing the company’s business. No one individual should represent a considerable concentration of power.

The roles of the Chairman and the CEO are separate. The Chairman and the CEO are not related to each other, nor is there any business relationship between them. This is consistent with the principle of instituting an appropriate balance of power and authority.

The Chairman of the Board is an Independent Director. He leads the Board, ensures its effectiveness on all aspects of its role; sets its meeting agenda and ensures that adequate time is available for discussion for all agenda items; promotes a culture of openness and debate at the Board; arranges for directors to receive accurate, timely and clear information; monitors CEO’s effective communication with unitholders and other stakeholders; encourages constructive relations within the Board and between the Board and Management; facilitates the effective contribution of non-executive

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33directors and promotes high standards of corporate governance in general.

The CEO has full executive responsibilities over the business direction and operational decisions in managing CIT. He ensures the quality and timeliness of the flow of information between Management and the Board, unitholders and other stakeholders.

Board Membership

Principle 4: There should be a formal and transparent process for the appointment and re-appointment of directors to the Board.

Given the current scale of operations of the Manager, the Board does not consider it necessary to establish a nominating committee. The Board retains the responsibility for the identification, review and appointment of suitable candidates to join the Board as its members, taking into consideration the candidate’s skill, experience, ability to perform, commitments, independence and the needs of the Board.

The Board recognises that Board renewal is a continuous process and one that is essential for ensuring that the Board remains relevant in CIT’s business environment. Nominations, which may be by any of the shareholders, are openly discussed and objectively evaluated by the Board before any appointment and/or reappointment is made. Appointment of directors is also subject to MAS approval.

Board Performance

Principle 5: There should be a formal annual assessment of the effectiveness of the Board as a whole and the contribution by each director to the effectiveness of the Board.

The Board has in place a formal process to annually assess the effectiveness of the Board through feedback from individual directors on areas relating to the Board’s competencies and effectiveness.

All directors are requested to complete a Board Evaluation Questionnaire designed to seek their view on the various aspects of the Board performance so as to assess the overall effectiveness of the Board. The results of the evaluation will be reviewed by the Board. Action plans will be implemented for areas which the Board are of the view that improvements are required to enhance the overall effectiveness of the Board.

Individual director’s performance is evaluated annually and informally on a continual basis by the Board. The criteria taken into consideration include the value of contribution to the development of strategy, the degree of preparedness, industry and business knowledge and experience each director possess which are crucial to the business of CIT and the Manager.

Access to Information

Principle 6: In order to fulfil their responsibilities, directors should be provided with complete, adequate and timely information prior to board meetings and on an on-going basis so as to enable them to make informed decisions to discharge their duties and responsibilities.

All directors have unrestricted access to CIT’s and the Manager’s records and information. A Deed of Access, which sets out their rights to access or inspect the records and information, is issued to directors upon their appointment.

The Board is provided with timely and complete information both prior to board meetings and on an ongoing basis so as to allow the Board to make informed decisions to discharge its duties and responsibilities. Generally, board papers are distributed at least one week prior to board meetings to ensure that directors have sufficient time to review the information provided. However, sensitive matters may be tabled at the meeting itself, or discussed without papers being distributed.

Board members have separate and independent access to the Manager’s Senior Management as well as to the Company Secretaries. At least one Company Secretary attends all board meetings and ensures that board procedures and applicable rules and regulations are complied with. The appointment and the removal of the Company Secretary is subject to Board’s approval. The Company Secretary, together with the CEO ensures good information flows between management and the directors.

The Board takes independent professional advice as and when necessary, with approval from the Chairman, to enable it to discharge its responsibilities effectively. Individual directors can access independent professional advice with the consent of the Chairman or ARCC Chairman. For complex matters, the Board may from time to time appoint a sub-committee to assist the Board in its deliberations and to provide recommendations.

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Remuneration Matters

Procedures for Developing Remuneration Policies

Principle 7: There should be a formal and transparent procedure for developing policy on executive remuneration and for fixing the remuneration packages of individual directors. No director should be involved in deciding his own remuneration.

Given the current scale of operations of the Manager, the Board feels that it is not necessary to form a dedicated Remuneration Committee. Instead, the Manager submits all material remuneration policy matters to the Board for determination. Where necessary, the Board may from time to time appoint a sub-committee to assist the Board in the deliberation and recommendation for matters relating to employee remuneration and like issues.

level and Mix of Remuneration

Principle 8: The level and structure of remuneration should be aligned with the long-term interest and risk policies of the company, and should be appropriate to attract, retain and motivate (a) the directors to provide good stewardship of the company, and (b) key management personnel to successfully manage the company. However, companies should avoid paying more than is necessary for this purpose.

Disclosure on Remuneration

Principle 9: every company should provide clear disclosure of its remuneration policies, level and mix of remuneration, and the procedure for setting remuneration, in the company’s Annual Report. It should provide disclosure in relation to its remuneration policies to enable investors to understand the link between remuneration paid to directors and key management personnel, and performance.

CIT, constituted as a Trust, is externally managed by the Manager and accordingly, it has no personnel of its own. Directors’ fees and remuneration of the CEO and employees of the Manager are paid by the Manager and not by CIT. The CEO and Non-Independent Non-Executive

Directors are not paid any directors’ fees. Independent Directors are paid basic fees for their board and board committee membership. Directors’ fees are reviewed periodically to benchmark such fees against the amounts paid by other listed real estate investment trusts. No director decides on his own fees.

The remuneration policy adopted keeps in mind the objective of attracting, motivating, rewarding and retaining quality staff. Staff remuneration comprises a fixed component in the form of basic salary and a variable component in the form of short-term and long-term bonuses. Variable bonus is linked to the performance of the individual and the Manager, which in turn is linked to the performance of CIT; in the context of the industry and the economy. This will help to align staff interests with those of CIT’s unitholders. Independent remuneration study is conducted periodically to align the compensation of employees to market rates.

As a further means of staff alignment, employees are entitled to receive units in CIT as part of the Manager’s Employee Share Incentive Program. At the time of writing, staff collectively are holding 744,790 units.

Accountability and Audit

Accountability

Principle 10: The Board should present a balanced and understandable assessment of the company’s performance, position and prospects.

Risk Management and Internal controls

Principle 11: The Board is responsible for the governance of risk. The Board should ensure that Management maintains a sound system of risk management and internal controls to safeguard unitholders’ interests and the company’s assets, and should determine the nature and extent of the significant risks which the Board is willing to take in achieving its strategic objectives.

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35The Board is responsible for providing a balanced and understandable assessment of CIT’s performance, position and prospects, which extend to interim and other price sensitive public reports, and reports to regulators (if required). Management provides the Board with relevant information on the performance of CIT and the Manager on a timely basis and as the Board may require from time to time, in order for the Board to effectively discharge its duties.

The Board meets regularly to review the financial performance of the Manager and CIT against the previously approved budget, taking note of any significant variances for quarter-on-quarter and year-to-date performance. In assessing business risks, the Board takes into account the economic environment and risks associated with the property industry.

The Board also reviews the risks to the assets of CIT, examines the management of liabilities, and will act upon any comments from internal and external auditors of CIT.

Given the importance of compliance and risk management, the ARCC has been tasked to oversee this aspect of the Manager and CIT’s operations. The ARCC reviews and assesses the adequacy of the Manager’s financial, operational, compliance, information technology controls, risk management policies and systems established by the Management. The ARCC also oversees the establishment and operation of the risk management system, including reviewing the adequacy of risk management practices for material risks, such as commercial and legal, financial and economical, operational and technology risks, on a regular basis; and reviews major policies for effective risk management.

The Manager has put in place a system of internal controls to safeguard CIT’s assets, unitholders’ interests and to manage risk in general.

Key risks, control measures and management actions are continually identified, reviewed and monitored. A Key Risks and Controls Matrix (the “Risk Matrix”) is established to document CIT’s and the Manager’s relevant material risks by risk category (Commercial & Legal; Economical/ Financial; Operational; and Technology) and the controls put in place to mitigate or manage such risks. In addition to the Risk Matrix, reports on the internal controls are also provided to the ARCC on a periodic basis to assess the adequacy of the existing internal controls and risk framework.

The ARCC, through the assistance of internal and external auditors, reviews and reports to the Board on the effectiveness and adequacy of CIT’s risk management and internal control system, including financial, operational, compliance and information technology controls,

taking into consideration the reports and assurance provided by Management, recommendations of both internal and external auditors and the timely and proper implementation of all required corrective, preventive or improvement measures.

In line with the strategic objectives to provide unitholders with a stable and secure income stream and to achieve long term growth in net asset value per unit; the Manager critically analyses each transaction before proceeding. To arrive at an investment decision, the Manager identifies the risk exposures and determines how to mitigate, transfer, manage and/or reduce those risks, where possible, to a level which is appropriate for the corresponding expected return on that investment. Extensive procedures, including due diligence, are carried out at various stages of the investment process. The Board reviews management reports and feasibility studies on proposed acquisitions, as prepared by experienced officers of the Manager, and approves where it is in the interests of unitholders.

The Manager is committed to conduct its business within a framework that fosters the highest ethical and legal standards. Accordingly, the Manager has adopted a whistle-blowing policy. The objective is to provide a channel for employees to raise concerns and provide reassurance that they will be protected from reprisals or victimisation for whistle-blowing in good faith.

Based on the risk management and internal controls system established and maintained by the Manager, audits conducted by the internal and external auditors and their recommendations, and together with Management’s quarterly and annual undertaking confirming their responsibilities for and effectiveness of the internal controls; pursuant to Rule 1207(10) of the Listing Manual, the Board with the concurrence of the ARCC is satisfied that the Manager’s system of internal controls includes financial, operational, compliance controls and risk management systems was adequate for the year ended 31 December 2012, to provide reasonable assurance that assets are safeguarded and that proper accounting records are maintained and financial statements are reliable.

Dealing in cIT Units

The Trust Deed requires each director of the Manager to give notice to the Manager of their acquisition of units or of any changes in the number of units which they hold, or in which they have an interest, within two business days after such acquisition, or the occurrence of the event giving rise to changes in the number of units which they hold, or in which they have an interest. The SFA also requires directors and CEO of the Manager to give such notice. All dealings in units by the directors and CEO of the Manager are to be announced through SGXNET.

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In general, the directors and employees of the Manager are encouraged to hold the units and not to deal on short-term considerations.

The Manager has adopted an internal policy which provides guidelines for dealing in Units, under which directors, CEO and employees are prohibited from dealing in units in the period commencing:

1. One month before the public announcement of CIT’s annual results and, where applicable, CIT’s property valuations ending on the date of announcement of the relevant results;

2. Two weeks before and three days after the performance fees calculation period for the half year ended 30 June and 31 December;

3. Two weeks before the announcement of CIT’s quarterly results, ending on the date of announcement of the relevant results; and

4. At any time whilst in possession of undisclosed material information.

In addition, while in possession of undisclosed material information, directors and employees of the Manager are not to advise others to trade in CIT units or communicate such information to another person.

Prior to the commencement of the prohibition period, directors and employees will be reminded not to trade during this period or whenever they are in possession of undisclosed material information.

In addition, the Manager has given an undertaking to the MAS that it will announce to the SGX-ST the particulars of its holdings in the units and any changes thereto within two business days after the date on which it acquires or disposes of any units. The Manager has also undertaken that it will not deal in CIT units during the period commencing two weeks before the public announcement of CIT’s quarterly results or one month before the annual and semi-annual results, and if applicable, property valuation, and ending on the date of announcement of the relevant results.

Review Procedures for Related Party Transactions The Manager has established an internal control system to ensure that all future transactions involving the Trustee and any related party of the Manager or CIT are undertaken on normal commercial terms and will not be prejudicial to the interests of CIT and the unitholders. Generally, the Manager will demonstrate to the ARCC that such transactions satisfy the foregoing criteria, which may entail obtaining quotations from parties unrelated to the Manager, or obtaining one or more valuations from independent valuers, in accordance with the Property Funds Appendix.

In addition:

• Transactions equal to or exceeding S$100,000 in value but below 3% of the value of CIT’s net tangible assets are subject to review by the ARCC at regular intervals;

• Transactions equal to or exceeding 3%, but below 5% of the value of CIT’s net tangible assets, are subject to the review and prior approval of the ARCC. Such approval will only be given if the transactions are on normal commercial terms and consistent with similar types of transactions made by Trustee with third parties which are unrelated to the Manager; and

• Transactions (either individually or as part of a series or if aggregated with other transactions involving the same related party during the same financial year) equal to or exceeding 5% of the value of CIT’s net tangible assets, are reviewed and approved by the ARCC who may, as it deems fit, request advice on the transaction from independent sources or advisers, including the obtaining of valuations from independent valuers. Further, under the Listing Manual and the Property Funds Appendix, such transactions would have to be approved by the unitholders at a meeting of unitholders.

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Where matters concerning CIT relate to transactions entered into, or to be entered into, by the Trustee for and on behalf of CIT with a related party of the Manager or CIT, the Trustee is also required to ensure that such transactions are conducted on normal commercial terms and are not prejudicial to the interests of CIT and the unitholders.

Further, the Trustee has the ultimate discretion under the Trust Deed to decide whether or not to enter into a transaction involving a related party of the Manager or CIT. If the Trustee is to sign any contract with a related party of the Manager or CIT, the Trustee will review the contract to ensure that it complies with the requirements relating to interested party transactions in the Property Funds Appendix and the provisions of the Listing Manual relating to interested person transactions, as well as such other guidelines issued by MAS and the SGX-ST that apply to REITs.

CIT will, in compliance with Rule 905 of the Listing Manual, announce any interested person transaction if such transaction, either by itself or when aggregated with other interested person transactions entered into with the same interested person during the same financial year, is 3% or more of CIT’s latest audited net tangible assets.

Dealings with conflicts of Interest

The following key protocols have been established to deal with conflict of interest issues:

• All executive officers are employed by the Manager;

• All resolutions in writing of the directors of the Manager in relation to matters concerning CIT must be approved by a majority of the directors, including at least one Independent Director;

• At least one-third of the Board is comprised of Independent Directors;

• In respect of the matters in which a director or his associates have an interest, direct or indirect, such interested director will notify his interest and, where appropriate, abstain from voting. In such matters, the Board may also seek external professional advice to assist in their deliberations;

• All Related Party Transactions must be reviewed by the ARCC and approved by a majority of the ARCC. If a member of the ARCC has an interest in a transaction, he or she will, where appropriate, abstain from voting;

• Directors receive training about their duties including the importance of not being influenced by directives from the shareholders which may conflict with the obligations of the Manager owed to clients, unitholders or third parties who may, in turn, owe obligations to CIT, or with their broader duties as directors;

• Notwithstanding any request from its shareholders, decisions regarding service providers retained by the Manager go through a due diligence process conducted by the Manager to ensure that appropriate services are acquired in the circumstances;

• To prevent misuse of confidential information, employees must not disclose, or use for their own purposes, or cause any unauthorised disclosure of, any information of a confidential nature relating to the business of the Manager or its affiliates or its agents or customers;

• Under the Trust Deed, other than a meeting convened for the removal of the Manager, the Manager and its associates are prohibited from being counted in a quorum for or voting at any meeting of unitholders convened to approve any matter in which the Manager or any of its associates has a material interest. For so long as CITM is the Manager, the controlling shareholders (as defined in the Listing Manual) of the Manager and their respective associates are prohibited from being counted in the quorum for or voting at any meeting of unitholders convened to consider a matter in respect of which the relevant controlling shareholder and/or their associates have a material interest; and

• If the Manager is required to decide whether or not to take any action against any person in relation to any breach of any agreement entered into by the Trustee for and on behalf of CIT with an affiliate of the Manager, the Manager shall be obliged to consult with a reputable law firm (acceptable to the Trustee) for legal advice on the matter. If that law firm is of the opinion that the Trustee, on behalf of CIT, has a prima facie case against the party allegedly in breach under such agreement, the Manager is obliged to take appropriate action in relation to such agreement. The directors of the Manager will have a duty to ensure that the Manager so complies. Notwithstanding the foregoing, the Manager shall inform the Trustee as soon as it becomes aware of a breach of any agreement entered into by the Trustee for and on behalf of CIT with an affiliate of the Manager and the Trustee may take such action as it deems necessary to protect the rights of unitholders and in the interest of unitholders. Any decision by the Manager not to take action against an affiliate of the Manager shall not constitute a waiver of the Trustee’s rights to take such action as it deems fit against such affiliate.

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Audit committee

Principle 12: The Board should establish an Audit committee with written terms of reference which clearly set out its authority and duties.

The Audit, Risk Management and Compliance Committee (“ARCC”) has been tasked to oversee compliance and risk management of the Manager’s and CIT’s operations.

The ARCC comprises four non-executive members, three of them, including the Chairman, are independent. The members of the ARCC are:

1. Professor ong Seow eng chairman 2. Mr Tan Guong ching Member3. Mr ooi eng Peng Member 4. Mr Michael Patrick Dwyer Member

The separation of the roles of the Chairman of the Board and the Chairman of the ARCC ensures greater independence of the ARCC in the discharge of its duties.

Members of the ARCC bring with them invaluable experience and professional expertise in the accounting, finance, legal and business domains.

The ARCC has explicit authority to investigate any matter within its terms of reference. It has full access to, and the co-operation of the Management and full discretion to invite any director or staff to attend its meetings. The ARCC has adequate resources, including access to external consultants and auditors, to enable it to discharge its responsibilities properly.

The ARCC functions are broadly defined as assisting the Board in fulfilling its oversight responsibilities by:

• Reviewing the significant financial reporting issues and judgements so as to ensure the integrity of the financial information provided by the Manager to any governmental authority or the public and any announcements relating to the company’s financial performance;

• Reviewing and monitoring the effectiveness and adequacy of the systems of internal controls, including financial, operational, compliance, information technology and risk management controls and procedures that Management and the Board have established;

• Ensuring that procedures are in place for compliance with all applicable laws, regulations, rules, codes of conduct and standards of good practices;

• Reviewing comprehensiveness of the audit and business processes to manage risks and safeguard both CIT’s and the Manager’s assets and enhance shareholders’ value;

• Reviewing the effectiveness of the company’s internal audit function; including its audit plans and the scope and effectiveness of the internal audit procedures;

• Reviewing the adequacy, independence, effectiveness, objectivity and fees of the external auditors and recommending to the Board on the proposals to the unitholders any replacement, appointment or reappointment of the auditors; and approving the remuneration and terms of their engagement; and

• Reviewing related party transactions to ascertain compliance with internal procedures and provisions of applicable laws and regulations.

The ARCC’s activities for financial year ended 31 December 2012, included the following:

(a) Financial Reporting

The ARCC reviewed the interim and annual financial statements and financial announcements required by the SGX-ST, for recommendation to the Board for approval.

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39(b) external Audit

The ARCC reviewed and approved the audit plan and scope with the external auditors and critically reviewed the report on the audit of the year-end financial statements.

The ARCC also reviewed and considered the re-appointment of the external auditors and is satisfied with the suitability, independence and objectivity of the external auditors and has recommended to the Board its re-appointment.

The review took into consideration (i) adequacy of the resources and experience of the auditing firm and the audit partner, (ii) the terms of the engagement, (iii) size and complexity CIT and its subsidiary, (iv) the number and experience of supervisory and professional staff assigned to each audit, (v) the fees paid for audit and non-audit services performed, and (vi) suitability, objectivity and independence from Management and the Manager based on their performance to date.

The aggregate amount of the audit fees paid/payable by CIT and its subsidiaries to the external auditors for financial year ended 31 December 2012 was S$263,000, of which audit and non-audit fees amounted to S$153,000 and S$110,000 respectively.

Accordingly, the Manager confirms that CIT complies with Rule 712 and 715 of the Listing Manual with respect to the suitability of the audit firm for CIT and its subsidiaries.

(c) Internal Audit

The 3-year Internal Audit Rotational Plan for Year 2012 to 2014 was approved by the ARCC during the year. ARCC reviewed the scope of internal audit work and its audit program; it reviewed the findings during the year and Management’s responses thereto; and it satisfied itself as to the adequacy of the internal audit function.

(d) Interested Person Transactions/Related Party Transaction

The ARCC reviewed interested person transactions/related party transactions to ensure compliance with internal procedures, provisions of the Listing Manual and the Property Fund Appendix.

(e) whistle Blowing

The ARCC ensures that the Whistle Blowing Policy put in place provides an avenue through which staff may raise, in good faith and in confidence, any concerns about possible improprieties in matters of financial reporting or other matters to the Chairman of the ARCC and that there will be independent investigation and appropriate follow-up action taken.

The ARCC meets at least four times a year. It has full access to the external and internal auditors and meets with the auditors, without the presence of Management, at least once a year.

The number of ARCC meetings held and corresponding attendances for the financial year ended 31 December 2012 are set out on page 31.

Internal Audit

Principle 13: The company should establish an internal audit function that is adequately resourced and independent of the activities it audits.

Given the Manager’s size and scale of operations, the manager outsources the internal audit function. PricewaterhouseCoopers (PwC) has been appointed as the internal auditor for another 3-year period from 2012. PwC adopts the Standards for the Professional Practice of Internal Auditing set by the Institute of Internal Auditors.

The internal auditor primary reporting line is to the Chairman of ARCC and administratively to the CEO. The ARCC reviews and approves the annual internal audit plan, and ensures that the internal auditor has adequate resources to perform its functions. The ARCC also reviews the results of internal audits and Management’s actions in resolving any audit issues reported.

The ARCC is satisfied with the suitability of the internal auditors and is of the view that the internal audit function is adequately resourced to perform its functions, and has appropriate standing within the Manager.

Unitholders Rights and Responsibilities

Unitholders Rights

Principle 14: companies should treat all unitholders fairly and equitably, and should recognise, protect and facilitate the exercise of unitholders’ rights, and continually review and update such governance arrangements.

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communications with Unitholders

Principle 15: companies should actively engage their unitholders and put in place an investor relations policy to promote regular, effective and fair communication with unitholders.

conduct of Unitholders Meetings

Principle 16: companies should encourage greater unitholders participation at general meetings of unitholders, and allow unitholders the opportunity to communicate their views on various matters affecting the company.

The Manager upholds a strong culture of continuous disclosure and transparent communication with unitholders, the investing community and other stakeholders. The Manager has developed a disclosure policy, which requires timely and full disclosure of financial reports and all material information relating to CIT by way of public releases or announcements through the SGX-ST via SGXNET. This will be subsequently followed up with the release on CIT’s website at http://www.cambridgeindustrialtrust.com. There is also a dedicated investor relations and corporate communications team which handles communications with institutional investors, the investment community, analysts and the media.

One of the key roles of the CEO, together with the Head of Investor Relations and Corporate Communications, is to keep the market and investors apprised of CIT’s financial performance and corporate developments. The Manager believes in regular, effective, unbiased and transparent communication and conducts regular briefings for analysts and media representatives, which generally coincide with the release of CIT’s results. During these briefings, the Manager will review CIT’s most recent performance, as well as discuss the business outlook for CIT. In accordance with the Manager’s objective of transparent communication, briefing materials are released to the SGX-ST and made available on CIT’s website.

For the financial year ended 31 December 2012, Management has attended and participated in 24 conferences and road shows held in Hong Kong, Singapore, Japan, Europe and the USA; and met with close to 400

investors and analysts. Such conferences, roadshows and meetings allow the Manager to share with potential and existing institutional and retail investors the Manager’s strategies in enhancing unitholders’ investment in CIT.

In compliance with the Property Funds Appendix, an Annual General Meeting (“AGM”) of unitholders will also be held after the close of the financial year allowing the Manager to interact with investors. A copy of CIT’s Annual Report will also be sent to unitholders no later than four months from the end of each financial year. Notice of the AGM will be published on SGXNET, newspapers and CIT’s website. If any unitholders are unable to attend the AGM, they are entitled to appoint up to two proxies to attend and vote on their behalf.

At the AGM, each distinct matter will be proposed as a separate resolution. Unitholders will be invited to raise questions they may have relating to the resolution to be passed before voting on each of the resolutions by poll, using an electronic voting system. This will allow all unitholders present, or represented at the meeting to vote on a one unit, one vote basis. The voting results will be screened at the meeting and announced via SGXNET after the meeting.

As and when an extraordinary general meeting (“EGM”) is to be convened, a circular containing details of the matters proposed for the unitholder’s consideration and approval will also be sent to unitholders; together with the notice of the EGM. Such notice will also be published on SGXNET, newspapers and CIT’s website.

Board members, Management and the external auditors will be present at the AGM and EGM.

As part of the Manager’s efforts to encourage greater unitholders’ participation at the AGM, a Question and Answer session is held at the end of the AGM to allow unitholders the opportunity to put forth any questions and clarify any issues they may have with the Board members, Management or external auditors regarding the affairs of the Manager and CIT.

CIT’s website also provides visitors with the option to sign up for a free email alert service when there is any newly posted information on the website or provide any feedback via the electronic feedback form on the website.

41

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investorrelations

Cit is committed to maintain an effective investor and media relations by adopting an

open, transparent and effective two-way communication with our investors, analysts,

media, unitholders and the investment community.

Unit Price Performance

2012 has been an exciting year for CIT. The industrial sector witnessed a positive re-rating with investors seeking high yield products and perceived defensive investments due to the uncertain economic environment. CIT closed at $0.675 on 31 December 2012, a 42.1% rise since the start of the year. CIT’s market capitalisation grew from S$564.8 million to S$820.8 million for the year, with an average trading volume of more than 1.9 million units a day.

The total return of CIT (as measured by the Trust Index) exceeded the total returns of the Benchmark Index for the half year ended 30 June 2012 and 31 December 2012, resulting in performance fees being payable to the Manager for the first time since inception. The Benchmark Index comprises eight1 of the largest SREITs which make up the majority of the total SREIT market capitalisation. In FY2012, the CIT Index outperformed the Benchmark Index by 9.2%. The structure of CIT’s performance fee strongly aligns the Manager’s interests with that of the unitholders.

Unit Price Performance of cIT from 1 January 2012 – 31 December 2012

Performance of cIT Index vs Benchmark Index from 1 January 2012 – 31 December 2012

High low Average Daily Volume (million)

cambridge Industrial Trust S$0.680 S$0.475 1.898

STI Index 3,195.74 2,657.77 –

FTSe ReIT Index 783.73 575.01 –

outperforming eight1 of the largest S-ReITs

JAN 2012 MAR 2012 MAY 2012 JUL 2012 SEP 2012 NOV 2012 DEC 2012FEB 2012 APR 2012 JUN 2012 AUG 2012 OCT 2012100

130

160

110

140

170

120

150

180

190

Tota

l Ret

urn

Ind

ex (S

$)

CIT Benchmark CIT Index

cIT outperformed BenchmarkIndex by 9.2% for FY2012

CIT Index: 148.86(High-water Mark)

CIT Index: 183.11

Benchmark Index: 178.06

Benchmark Index: 148.13(High-water Mark)

1 ascendas reit, mapletree logistics trust, mapletree industrial trust, mapletree Commercial trust, suntec reit, CapitaCommercial trust, Capitamall trust, CDl Hospitality trust

% R

elat

ive

Per

form

ance

Vo

lum

e

0.00

1,000,000

500,000

2,000,000

1,500,000

0

15

30

5

20

35

45

10

25

40

50 2,500,000

APR 2012 AUG 2012FEB 2012 JUN 2012 OCT 2012JAN 2012 MAY 2012 SEP 2012MAR 2012 JUL 2012 NOV 2012 DEC 2012

comparative Price Trends STI Index FTSE REIT Index CIT VolumeCIT

42


investorrelations

1 global property research 2 morgan stanley Capital international

3 investable market index4 all Country World index

5 standard & poor’s

Investor Relations

The Manager believes in disseminating information in a timely and accurate manner. We regularly meet with existing and potential investors and analysts. As part of our effort to diversify our investor base, we participated in roadshows and conferences in Singapore, Malaysia, Hong Kong, Japan and London in 2012. We also conducted several site visits to our properties for the media, analysts and investors to provide greater insights to our portfolio and operations. In total, we met with close to 400 investors and analysts in 2012. As at 31 December 2012, the split of institutional versus retail investors’ stood at approximately 60:40, with more than half our institutional investors coming from the USA and Europe.

We announced our financial results four times in the year, and conducted media and analyst briefings to accompany the half-year and full-year results. All other announcements including acquisitions, investor presentation slides and annual reports are uploaded concurrently on the Singapore Exchange and our website. Investors and stakeholders are kept abreast of all the latest developments through our website and e-mail communications. In 2012 we revamped our website, introduced a mobile site and launched an eNewsletter to enhance the way we engage with the investment community and our stakeholders. We also participated in the Securities Investors Association (Singapore) (“SIAS”) seminar for the retail investors. We are pleased to share that we were awarded Merit for “The Best Corporate Governance – REIT’s category” by SIAS Investors’ Choice Award 2012.

Key Indices that include cIT

Dow Jones Global Developed Total Stock Market Index

GPR1 General ex-US Index

Dow Jones Global Real Estate Yield Index GPR1 General Index

Dow Jones Developed Markets Select RESI Index

GPR1 General Quoted ex-US Index

Dow Jones Global Index GPR1 General Quote Far East Index

FTSE ASEAN All Cap Index GPR1 General Quoted Singapore Index

FTSE ASEAN Small Cap Index GPR1 General Singapore Index

FTSE Asia Pacific All Cap Index MSCI2 AC Asia Pacific IMI3

FTSE Asia Pacific Small Cap Index MSCI2 AC Far East IMI3

FTSE Developed Asia Pacific All Cap Index MSCI2 ACWI4 IMI3

FTSE Europe Asia Pacific All Cap Index MSCI2 Pacific IMI3

FTSE Global Small Cap Index MSCI2 Singapore Small Cap Index

FTSE ST All-Share Index MSCI2 World IMI3

FTSE ST Real Estate Index S&P5 Global Broad Market Index

FTSE Strait Times Real Estate Investment Trust Index

S&P5 Global Intrinsic Value Index

GPR1 Far East Index S&P5 Global Real Estate Investment Trust Index

Analyst coverage

Research House Analyst

CIMB Lee Syn Yi / Tan Siew Leng

CLSA Asia-Pacific Markets Wong Yew Kiang

Daiwa Institute of Singapore David Lum

DBS Vickers Derek Tan

OSK/DMG & Partners Research Pang Ti Wee

Standard Chartered Bank Kai Yip / Regina Lim

42

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43

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Investor Relations And Media calendar 2012

1 February 2012 Post FY2011 Results Media and Analysts’ Briefing

13–17 February 2012 Morgan Stanley Non-deal Roadshow (Singapore, Hong Kong, London)

19 February 2012 Post 1Q2012 Results Media and Analysts’ Briefing

20 April 2012 Annual General Meeting

24 April 2012 Macquarie APREA Investor Day (Hong Kong)

26 April 2012 DBS Pulse of Asia Conference (Hong Kong)

26–27 April 2012 SGX DBS Vickers Asian Horizon (Singapore)

27 April 2012 Daiwa Non-deal Roadshow (Tokyo)

9 May 2012 Presentation to DBS Traders (Singapore)

10 May 2012 Citigroup Asia-Pacific Property Conference (Singapore)

29 May 2012 Presentation to CIMB Traders (Singapore)

18 June 2012 Presentation to OCBC Traders (Singapore)

23 June 2012 SIAS Corporate Profile Seminar (Singapore)

26–28 June 2012 OSK/DMG ASEAN & Hong Kong Corporate Day (Singapore, Kuala Lumpur)

4 July 2012 Analysts and Media site visit (Singapore)

30 July 2012 Post 2Q2012 Results Media and Analysts’ Briefing

31 July 2012 Post 2Q2012 Results Investors Luncheon hosted by JP Morgan

16 August 2012 Nomura/Daiwa Non-deal Roadshow (Tokyo)

23 August 2012 OCBC S-REITs CEO Forum (Singapore)

4 September 2012 UBS ASEAN Day (Singapore)

5 September 2012 UBS Property Day (Singapore)

1 November 2012 3Q2012 Results Investors Luncheon hosted by DBS

7 November 2012 Morgan Stanley Asia Pacific Summit (Singapore)

8–9 November 2012 OSK/DMG Non-deal Roadshow (Hong Kong)

Site Visit for Media and Analysts

Unitholders’ enquiries

For any queries, please contact Ms caroline FongHead of Investor Relations and corporate communications T (65) 6222 3339E [email protected]

Unitholder Registrar

B.A.c.S Private limited63 Cantonment RoadSingapore 089758T (65) 6593 4848

Unitholder Depository

For unitholding account-related matters such as change of details and unitholding records histories, please contact:

The central Depository (Pte) limited4 Shenton Way#02-01 SGX Centre 2Singapore 068807T (65) 6535 7511E [email protected]

44


tenants’testimonials

CIT is able to understand and cater to our business needs. I look forward to continuing our relationship with CIT as we extend our lease for a further three years till 2016.

MAUNG SHwe TINT (RAVI) DIRECTORReliance Products Pte Ltd

Since 2007, our relationship with CIT has gone from strength to strength. The support and understanding accorded have given us opportunities to meet our growing business demand. We look forward to a sustainable working relationship with CIT in the years ahead.

DR loH c K MANAGING DIRECTORPresscrete Engineering Pte Ltd

We have been CIT’s tenant since 2006 and have always enjoyed an excellent tenant-landlord relationship through CIT’s active engagement. This is also one of the main reasons that we extended our lease at 28 Woodlands Loop for a further five years till 2018. I am delighted and confident that our partnership with CIT’s management will continue to strengthen.

DR RIcKY SoUw CHAIRMANSanwa Plastic Industry Pte Ltd

44

We have a strong and positive partnership with CIT. CIT’s professionalism and pro-active engagement has given us the opportunity to grow and we are glad to have secured a 15 years lease with them.

MR loH See MooNMANAGING DIRECTORTat Seng Packaging Group Ltd


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45propertylocations

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136 Joo Seng Road2

21/23 Ubi Road 11


361 Ubi Road 36


70 Seletar Aerospace View10

130 Joo Seng Road11

2 Ubi View3

87 Defu Lane 105

128 Joo Seng Road7

16 Tai Seng Street9

55 Ubi Avenue 313

63 Hillview Avenue14

lIGHT INDUSTRIAl

9 Tuas View Crescent2

86/88 International Road1

43 Tuas View Circuit17


23 Woodlands Terrace10

28 Senoko Drive8

21B Senoko Loop11

22 Chin Bee Drive12


511/513 Yishun Industrial Park A13

5/7 Gul Street 115

25 Pioneer Crescent16

7 Gul Lane3

28 Woodlands Loop7


31 Kian Teck Way4



11 Woodlands Walk19

GeNeRAl INDUSTRIAl

3 Pioneer Sector 3

30 Tuas Road


2

24 Jurong Port Road1

4

3

loGISTIcS


31 Tuas Avenue 111

160 Kallang Way4



3C Toh Guan Road East10

23 Tuas Avenue 103

120 Pioneer Road5

81 Defu Lane 107

4/6 Clementi Loop9

30 Toh Guan Road11

wAReHoUSING

23 Lorong 8 Toa Payoh1

cAR SHowRooM &woRKSHoP

2 Jalan Kilang Barat12

SeNToSA

SecoNDlINK

STRAITSoF JoHoR

KePPelTeRMINAl

SeMBAwANGwHARVeS

JURoNG ISlAND

PASIR PANJANGTeRMINAl

JURoNG PoRT

STRAITSoF JoHoR

cHANGI INTeRNATIoNAl

AIRPoRT

Major HighwaysMRT Routes

14

JoHoR cAUSewAY lINK

711

29

1 136

3

54

7

10

25

9

8

12

14

910

11

6

13

710

19

811

18

41

12

16

14

15

3

17

26

5

1

38

4

23

1

46


46

3 Pioneer Sector 32

24 Jurong Port Road1

1 Third Lok Yang Road and 4 Fourth Lok Yang Road4

30 Tuas Road3

propertyportfolio

CAR SHOWROOM & WORKSHOP

23 Lorong 8 Toa Payoh1

L O g i S t i C S

47

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31 Tuas Avenue 111


4 160 Kallang Way

79 Tuas South Street 58120 Pioneer Road5 9 Bukit Batok Street 226

WA R e H O u S i n g

81 Defu Lane 107

3C Toh Guan Road East10 30 Toh Guan Road11

3 23 Tuas Avenue 10

4/6 Clementi Loop9

47

deliVering groWtH

48


70 Seletar Aerospace View10

16 Tai Seng Street9

128 Joo Seng Road7 1/2 Changi North Street 28

L i g H t i n d u S t R i A L

21/23 Ubi Road 11 136 Joo Seng Road2 11 Serangoon North Avenue 542 Ubi View3

87 Defu Lane 105 361 Ubi Road 36

2 Jalan Kilang Barat12

55 Ubi Avenue 313 63 Hillview Avenue14

130 Joo Seng Road11

48 propertyportfolio

49

deliVering groWtH

11 Woodlands Walk19

geneRAL induStRiAL

9 Tuas View Crescent2

7 Gul Lane3


13


25 Pioneer Crescent16


28 Senoko Drive8


86/88 International Road1 31 Kian Teck Way4


15 5/7 Gul Street 1


18

22 Chin Bee Drive12

28 Woodlands Loop7

49

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43 Tuas View Circuit 17

11 21B Senoko Loop10 23 Woodlands Terrace

50


50

Address Tenant lettable Area

(Sq ft)

land lease expiry/Title

Acquisition Date

Purchase Price (S$)

occupancy (%)

31 Dec 2012

Gross Rental Income (S$)31 Dec 2012

Valuation (S$)

31 Dec 2012

124 Jurong Port Road

CWT Limited 817,021

2037 / Leasehold estate of 30 years +

12 years w.e.f. 1 March 1995

25 July 2006

96,000,000 100 8,513,006 95,000,000

23 Pioneer Sector 3

Jurong Districentre

Pte Ltd412,818


30 years w.e.f. 16 December 1990

25 July 2006

49,000,000 100 3,951,783 54,000,000

330 Tuas Road1

YCH DistriPark (Pte) Ltd

571,189


30 years w.e.f. 1 July 1979

25 July 2006

73,000,000 100 6,273,977 72,400,0002

4

1 Third Lok Yang Road

and 4 Fourth Lok Yang

Road

YCH DistriPark (Pte) Ltd

114,111

2031 / Leasehold estate of 30 years

w.e.f. 16 December 2001

25 July 2006

12,414,000 100 1,413,938 15,000,000

l o g i S t i c S

Single or multi-storey distribution and logistics facilities catering for tenants that are 3rd party logistics and supply chain management

providers or trading companies.

propertyportfolio


(Sq ft)


Acquisition Date

Purchase Price (S$)

occupancy (%)

31 Dec 2012


Valuation (S$)

31 Dec 2012


Exklusiv Auto Services Pte Ltd /

Triangle Auto Pte Ltd &

DCH Foton Auto Pte Ltd

50,792


30 years w.e.f. 1 February 1992

25 July 2006

12,869,747 100 1,429,509 16,000,000

c a r S h o w r o o M & w o r k S h o p

Multi-storey industrial facility used by tenants for car showroom and service workshop. Such facility comes with low office content

combined with warehouse space mainly for spare parts.

1 to be compulsorily acquired by sla in 1Q20132 Valuation figure as at 31 December 2011

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51

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(Sq ft)


Acquisition Date

Purchase Price (S$)

occupancy (%)

31 Dec 2012


Valuation (S$)

31 Dec 2012

131 Tuas

Avenue 11

SLS Bearings (Singapore)

Pte Ltd75,579


30 years w.e.f. 1 April 1994

25 July 2006

8,700,000 100 926,100 10,500,000

225 Changi

South Avenue 2

Wan Tai and Company (Private) Limited

72,998


30 years w.e.f. 16 October 1994

25 July 2006

7,300,000 100 760,725 12,000,000

323 Tuas

Avenue 10

Reliance Products Pte Ltd

102,310


29 years w.e.f. 1 November 1997

25 July 2006

8,550,000 100 708,908 13,600,000

4160 Kallang

WayHC Design

Pte Ltd322,604


w.e.f. 16 February 1973

25 July 2006

23,200,000 100 2,136,873 27,400,000

5120 Pioneer

Road

Compact Metal

Industries Ltd244,513



24 October 2007

26,500,000 100 2,136,645 30,000,000

69 Bukit Batok

Street 22

Ascender Investment

Pte Ltd157,863



25 October 2007

18,300,000 100 1,962,450 21,000,000

781 Defu Lane

10

Natural Cool Airconditioning & Engineering

Pte Ltd

45,242



15 November

20075,000,000 100 407,925 6,100,000

879 Tuas

South Street 5

Creative Polymer

Industries Pte Ltd

67,942



30 April 2008

10,400,000 100 833,392 10,500,000

94/6

Clementi Loop

Hoe Leong Corporation

Ltd189,962



13 June 2011

40,000,000 100 3,200,496 40,000,000

103C Toh Guan

Road EastTye Soon Limited

192,864



30 January 2012

35,500,000 100 2,554,059 35,500,000

1130 Toh Guan

RoadMulti-

tenanted289,151


30 years w.e.f. 16 August 1995

25 July 2006

35,000,000 95.7 4,943,197 56,200,000

wa r e h o U S i n g

Single or multi-storey warehouse facilities with low content of office space that are used by both MNCs and local SMEs predominantly as storage space for raw material, semi-finished or finished goods; coupled with light

industrial activities such as assembly and packing. This also includes self-storage business.

52


52


(Sq ft)


Acquisition Date

Purchase Price (S$)

occupancy (%)

31 Dec 2012


Valuation (S$)

31 Dec 2012

121/23 Ubi

Road 1

Nidec Component Technology

Co., Ltd.

202,770



25 July 2006

25,000,000 100 2,370,375 30,600,000

2136 Joo

Seng Road


Co., Ltd.

101,321



25 July 2006

10,310,000 100 1,088,168 13,500,000

3 2 Ubi ViewCSE Global

Limited43,654

2059 / Leashold estate of 60 years

w.e.f. 4 January 1999

25 July 2006

7,500,000 100 591,003 9,150,000

411 Serangoon

North Avenue 5

MI Technologies

Pte Ltd146,619


30 years w.e.f. 16 April 1997

25 July 2006

14,000,000 100 1,445,378 18,500,000

587 Defu Lane

10

The Excalibur Corporation

Pte Ltd109,920

2050 / Leashold estate of 30 years +


25 July 2006

13,064,000 100 1,092,576 15,600,000

6361 Ubi Road 3

Chartered World

Academy Pte Ltd /

Armorcoat International

Pte Ltd

96,843



8 June 2007

18,000,000 100 1,679,900 18,000,000

7128 Joo

Seng Road

Seng Huat Packaging

Pte Ltd / DP Computers

Pte Ltd

92,849


30 years w.e.f. 1 May 1992

25 June 2007

10,000,000 100 1,058,400 12,400,000

81/2 Changi

North Street 2

ETLA Limited

125,870

2061 / Leasehold estate 30 years +


19 October 2010

22,110,000 100 1,801,983 23,100,000

2065 / 30 years + 30 years w.e.f.

23 November 2005

l i g h t i n d U S t r i a l

Single or multi-storey of manufacturing/production space with low content of office space used by both MNCs and local SMEs for light industrial activities such as light manufacturing, assembly, non-pollutive industrial and

businesses that engage in high technology, R&D or type 1 e-business kind of activities.

propertyportfolio

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53

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(Sq ft)


Acquisition Date

Purchase Price (S$)

occupancy (%)

31 Dec 2012


Valuation (S$)

31 Dec 2012

916 Tai Seng

Street

Nobel Design

Holdings Ltd175,262



29 May 2012

59,250,000 100 2,543,011 59,250,000

1070 Seletar Aerospace

View

Air Transport Training College Pte Ltd

53,7292041 / Leasehold

estate 30 years w.e.f. 16 October 2011

22 November

2012 8,600,0001 100 89,055 8,800,000

11130 Joo

Seng RoadMulti-

tenanted91,894



25 July 2006

12,000,000 97.8 1,537,503 12,500,000

122 Jalan

Kilang BaratMulti-

tenanted66,374

2062 / Leasehold estate of 99 years w.e.f. 1 July 1963

25 July 2006

20,000,000 100 2,503,544 28,300,000

1355 Ubi

Avenue 3Multi-

tenanted117,383



27 February 2007

18,800,000 89.5 1,828,315 18,200,000

1463 Hillview

AvenueMulti-

tenanted296,295 Freehold

29 March 2007

72,200,000 88.7 4,266,434 110,000,000

1 pending finalisation of the actual cost

54


54


(Sq ft)


Acquisition Date

Purchase Price (S$)

occupancy (%)

31 Dec 2012


Valuation (S$)

31 Dec 2012

186/88

International Road

Gliderol Doors (S) Pte Ltd

84,002



25 July 2006

14,000,000 100 1,050,298 11,700,000

Yenom Industries Pte Ltd



19,000,000

29 Tuas View

Crescent

United Central

Engineering Pte Ltd

71,581



25 July 2006

5,600,000 100 612,990 9,200,000

3 7 Gul Lane


Co., Ltd.

48,427


30 years w.e.f. 16 May 1981

25 July 2006

3,200,000 100 406,823 5,800,000

431 Kian Teck

Way


Co., Ltd.

33,088


19 years w.e.f. 1 September 1993

25 July 2006

3,200,000 100 367,133 4,100,000

545 Changi

South Avenue 2

Chung Shan Plastics Pte Ltd

73,684


30 years w.e.f. 1 September 1995

25 July 2006

8,250,000 100 659,365 12,600,000

62 Tuas South

Avenue 2CS Industrial Land Pte Ltd

220,3812059 / Leasehold estate of 60 years

w.e.f. 4 January 1999

25 July 2006

23,000,000 100 2,119,005

31,600,000

728

Woodlands Loop

Sanwa Plastic Industry Pte Ltd

131,857



25 July 2006

13,000,000 100 1,440,968 16,900,000

828 Senoko

Drive

Tat Seng Packaging Group Ltd

159,338



25 June 2007

12,000,000 100 1,498,000 13,400,000

931 Changi

South Avenue 2

Presscrete Engineering

Pte Ltd50,644



27 July 2007

5,800,000 100 466,358 8,100,000

1023

Woodlands Terrace

Metfom Industries Pte Ltd

124,425



26 October 2007

15,408,000 100 1,243,620 16,600,000

g e n e r a l i n d U S t r i a l

propertyportfolio

Single or multi-storey of manufacturing/factory facilities with low content of office space catering to both MNCs and SMEs for industrial purposes which includes but not limited to

manufacturing, altering, repairing, finishing, precision engineering.

55

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55

DeliVering groWtH


(Sq ft)


Acquisition Date

Purchase Price (S$)

occupancy (%)

31 Dec 2012


Valuation (S$)

31 Dec 2012

1121B Senoko

Loop

Tellus Marine Engineering

Pte Ltd115,770



28 January 2008

14,670,000 100 1,363,474 15,500,000

1222 Chin Bee

Drive

Deluge Fire Protection

(S.E.A) Pte Ltd

120,653


w.e.f. 16 September 2005

28 September

2010 15,000,000 100 1,367,438 15,500,000

13 511/513 Yishun

Industrial Park A

Seksun International

Pte Ltd

224,689 2054 / Leasehold estate of 30 years +

29 years w.e.f. 1 June 1995

30 November

2010

32,600,000 100 2,823,103 33,200,000



1460 Tuas

South Street 1

Peter’s Polythylene Industries Pte Ltd

44,675



29 June 2011

6,400,000 100 520,000 6,400,000

155/7 Gul Street 1

Precise Industries Pte Ltd

98,864


6 months w.e.f. 1 April 2008

15 July 2011

14,500,000 100 1,364,160 14,500,000

1625 Pioneer Crescent

Kalzip Asia Pte Ltd

76,003



29 March 2012

15,300,000 100 816,129 15,800,000

1743 Tuas View

Circuit

Peter’s Polythylene Industries Pte Ltd

122,836



20 September20121 13,200,0002 –3 – 14,700,000

18

30 Marsiling Industrial

Estate Road 8

Beyonics International

Pte Ltd217,953



24 October 2012

39,000,000 100 564,516 39,000,000

1911

Woodlands Walk

Hup Fatt Brothers

Engineering Pte Ltd

96,625



29 October 2012

17,300,000 100 237,634 17,300,000

g e n e r a l i n d U S t r i a l

1 top obtained2 pending finalisation of the actual cost3 occupancy is subject to prospective tenant satisfying certain criteria required by JtC

56


singapore industrial property market overview

A S AT 2 2 F e B R U A R Y 2 0 1 3 ,prepared by DTZ Debenham Tie Leung (SEA) Pte Ltd for the purpose of the annual report

1.0 economic overview

1.1 Gross Domestic Product Growth (GDP) Growth Being an open economy, Singapore’s economic growth in 2012 was affected by the weak external economic

conditions in 2012. The Ministry of Trade and Industry (“MTI”) announced in February 2013 that real GDP growth for Singapore was a three-year low of 1.3% in 2012, compared to the growth of 5.2% in 2011 (Table 1).

1.2 Sectoral Performance

Based on the latest Index of Industrial Production released by the Economic Development Board (”EDB”) on 25 January 2013, output of the manufacturing sector, a key demand driver of industrial space and a major constituent of the Singapore economy, rose a marginal 0.1% in 2012. Growth in the biomedical manufacturing and transport engineering clusters helped to cushion the further contraction in the electronics cluster.

Compared to the manufacturing sector, the growth of the transportation and storage sector, a key driver of the logistics and warehousing market, was relatively well-sustained in 2012, although the pace of growth has decelerated. Meanwhile, the externally-oriented wholesale and retail trade sector, which also drives warehousing demand, saw a pullback in growth momentum in 2012.

1.3 Inflation

Singapore’s inflation rate was 4.6% in 2012, lower than the 5.2% in 2011. In 2013, given the continued weakness in the global economy, imported inflation is expected to remain benign. On the domestic front, accommodation and private transport costs will continue to drive inflation while the tightness in the labour market will support wage increases in 2013, some of which will continue to feed through to consumer prices. For 2013 as a whole, the Monetary Authority of Singapore (“MAS”) expects inflation to be between 3.5% and 4.5%.

source: mti, DtZ Consulting and research, February 2013

Table 1

Real GDP Growth and Growth of Key economic Sectors

At 2005 Market Prices 2011 yoy % change 2012 yoy % change

Sector Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

overall GDP 9.1 1.2 6.0 3.6 1.5 2.3 0.0 1.5

5.2 1.3

Manufacturing 15.8 -5.9 13.7 9.3 -1.2 4.1 -1.4 -1.1

7.8 0.1

Transportation & Storage

4.0 7.3 5.1 1.7 4.3 1.7 1.7 3.2

3.8 2.7

wholesale & Retail Trade

4.3 0.9 -1.4 2.5 -0.3 -0.7 -0.2 -1.5

1.6 -0.7

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1.4 Investment commitments

Fixed Asset Investments (“FAI”), a key indicator of manufacturing investments, rose by 17.0% from S$13.7 billion in 2011 to a record high1 of S$16.0 billion in 2012, higher than EDB’s previous forecast of between S$13.0-S$15.0 billion. The increase in FAI was due partly to significant investments from the electronics and energy and chemicals industries. Although Total Business Expenditure (“TBE”) fell by 15.0% from S$7.3 billion in 2011 to S$6.2 billion in 2012, this was still within EDB’s forecast range of S$6.0 billion to S$7.5 billion.

According to EDB, Singapore remains an attractive and strategic location for global companies to tap into the growth of Asia. Going into 2013, the EDB expects continued strong investment interest in this region from multinationals and Asian companies even though growth in the developed economies may remain weak. The EDB however expects FAI in 2013 to drop to S$11.0-S$13.0 billion, in line with the level of capital-intensive investments expected over the medium-term in view of Singapore’s land and manpower constraints. TBE is expected to increase slightly to S$6.5-S$8.0 billion, a reflection of the investment prospects ahead for Singapore against the backdrop of Asia’s growth and an increasing focus by global companies on South East Asia.

1.5 outlook

Going into 2013, the outlook for the Singapore economy remains cautiously optimistic against the backdrop of nascent signs of an improvement in the global economy. The US has warded off its “fiscal cliff” even though uncertainties remain over the fiscal debt ceiling, the threat of a break-up of the Eurozone is now smaller and domestic demand in Asia is expected to remain resilient. The MTI also expects that growth in certain clusters, such as transport engineering and construction will support the economy in 2013, backed by a healthy pipeline of projects. Economic growth in Singapore will however be tempered by domestic restructuring policies to reduce dependence on foreign labour and measures to increase productivity which are increasing business costs. The MTI expects that overall real GDP growth for 2013 will be between 1.0% and 3.0%.

2.0 Government Policies and Strategies

2.1 Budget 2012 Budget 2012, announced in February 2012, focused on “building an inclusive society, a stronger Singapore”.

Key highlights of the Budget included one-off and longer-term measures to restructure the economy to sustain growth and raise productivity to achieve the target of 2.0% to 3.0% growth every year as well as measures to build a fair and inclusive society. Some of these measures included:

• Reducing the inflow of foreign workers – with effect from 1 July 2012, the Dependency Ratio

Ceiling (“DRC”) for the manufacturing sector was reduced from 65.0% to 60.0% and the DRC for the services sector was reduced from 50.0% to 45.0%. The DRC for S-pass holders was also cut from 25.0% to 20.0%. In addition, the Man-Year Entitlement quota for the construction sector was further reduced by 5.0%.

• Helping Small and Medium enterprises (“SMes”) make the transition – included a Special

Employment Credit to encourage employers to hire older Singaporean workers, enhancements to the Productivity and Innovation Credit scheme as well as increasing training support and grants to support SME training, upgrading and productivity.

• Measures to build a fair and inclusive society – included measures to help our seniors live long and live well, supporting Singaporeans with disabilities and uplifting lower-income families.

The labour tightening measures and productivity drive to increase wages could see more industrialists moving out of Singapore to reduce operating costs or scale back on expansion due to the difficulties in hiring staff.

1 if spikes due to petrochemical cracker-related investments in 2007 and 2008 were excluded.



Table 2

Selected Sites in the 1H2013 IGlS Programme

location Site area (ha) Zoning Gross Plot Ratio Tenure (years) Agency/estimated Available Date

Confirmed List

Buroh crescent 1.8 Business 2 2.5 30 JTC / Jan-13

Tuas Bay Drive 2.4 Business 2 1.7 30 JTC / Feb-13

loyang way 2.1 Business 2 2.5 30 JTC / Mar-13

Tuas South Avenue 3 3.94 Business 2 1.4 30 JTC / Jun-13

Reserve List

Tai Seng Street 1.2 Business 2 – White Business 2: 2.5White: 1.0

30 JTC / Already available

woodlands Avenue 12 (Parcel 4)

4.03 Business 1 2.5 30 URA / End Dec-12

source: mti, DtZ Consulting and research, February 2013

2.2 Industrial Government land Sales (“IGlS”)

2.2.1 Maximum Tenure Shortened from 60 Years to 30 Years

In addition to the new set of requirements2 for all Business 13 and Business 24 sites in the IGLS programme effective from 1 January 2012, the government shortened the maximum tenure of all IGLS sites from 60 years to 30 years with effect from the 2H2012 IGLS programme to help make industrial properties more affordable for industrialists. The shorter tenure increases the government’s flexibility for land redevelopment and would also help to meet the demand from industrialists who prefer to build their own customised facilities.

2.2.2 1H2013 IGlS Programme To continue to meet potential demand for industrial land, the government released 13 sites in the Confirmed

List and nine sites in the Reserve List in the 1H2013 IGLS programme, with a total site area of 24.8 hectares (“ha”). This is comparable to the land quantum of 23.7 ha in the 2H2012 IGLS programme.

The tenure of the IGLS sites in the 1H2013 programme will continue to be capped at 30 years, but more sites of shorter tenure of 22 years will be released. With the shorter tenure and smaller size, it will be easier and more affordable for industrialists, especially the SMEs, to customise their own facilities. Of the 13 sites in the Confirmed List, there are six sites with a tenure of 22 years. Notably, all the 13 confirmed sites are zoned Business 2.

In addition to the set of requirements for all Business 1 and Business 2 sites in the IGLS programme which took effect from 1 January 2012, successful bidders of selected sites in the 1H2013 IGLS programme will be required to build a minimum number of large factory units to cater to the needs of SMEs who may require larger industrial spaces. The larger sites in the IGLS programme for 1H2013 are highlighted in Table 2.

2 these requirements include: (1) for selective sites near to mass rapid transit (“mrt”) stations or as decided by the government, strata subdivision of the industrial development is not allowed for a period of 10 years from the date of issue of the temporary occupation permit (“top”). if the successful tenderer decides to strata-subdivide the development upon expiry of the 10-year period, the gross Floor area (“gFa”) comprised in single strata unit should not be less than 150 sq m; and (2) for multiple-user developments, the gFa comprised in a single unit should not be less than 150 sq m. if the successful tenderer decides to strata-subdivide the development, the gFa comprised in a single strata unit should also not be less than 150 sq m.

3 areas under business 1 are used or intended to be used mainly for clean industry, light industry, warehouse, public utilities, and telecommunication uses and other public installations for which the relevant authority does not impose a nuisance buffer greater than 50m. Certain general industrial uses that are able to meet the nuisance buffer requirements of not more than 50m imposed by the relevant authority may be allowed in the business 1 zones, subject to evaluation by the relevant authority and the competent authority.

4 areas under business 2 are used or intended to be used for clean industry, light industry, general industry, warehouse, public utilities and telecommunication uses and other public installations. special industries such as manufacture of industrial machinery, shipbuilding and repairing, may be allowed in selected areas subject to evaluation by the competent authority.

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Table 3

Seller’s Stamp Duty on Industrial Properties

Holding Period SSD Payable on Selling Price or Market Value, whichever is Higher

within one year 15%

More than one year and up to two years 10%

More than two years and up to three years 5%

More than three years Nil

source: mas, DtZ Consulting and research, February 2013

While the SSD on industrial properties could reduce transaction volumes for strata-titled industrial properties and impact on capital values of industrial properties, the SSD is likely to have limited impact for developers, REITs and owner-occupiers which take a longer-term view.

2.5 JTc corporation Industrial Strategies

Industrial strategies and initiatives driven by the JTC in 2012 include the following:

• Studies are underway for the development of an underground science city in an area near Kent Ridge. This experimental development of a proposed 30-storey underground project could house research laboratories, data centre and offices.

• Launch of MedTech Hub, a first-of-its-kind, custom-built development for the medtech industry, which will strengthen Singapore’s capabilities in biomedical manufacturing. The first multi-tenanted facility in the cluster, MedTech 1, is scheduled for completion in 2013 and will yield approximately 409,000 square feet (“sq ft”) of space.

• Development of the Surface Engineering Hub at Tanjong Kling to cluster companies across the value chain of the surface finishing industry which is dominated by SMEs.

• Building of 18 Small Footprint standard factories at Buroh Street with floor areas ranging from 700 to 1,400 square metres (“sq m”) to cater to SMEs which require customised ready-built affordable facilities.

2.3 Industrial Space Allowed for Religious Uses The Urban Redevelopment Authority (“URA”) and the Ministry of Community Development, Youth and Sports

(“MCYS”) issued new guidelines in June 2012 to allow religious groups to make use of industrial premises zoned Business 1 on a non-exclusive and limited basis. However, these industrial premises cannot be used exclusively for religious purposes at the expense of industrial activities. Religious use has to be restricted to certain days in a week and occupy only part of the industrial premises within the ancillary use quantum. Religious organisations also have to comply with other restrictions such as no furnishings to assemble a worship hall and no display of religious symbols, icons or any religious paraphernalia at or within the venue when it is not in use by the religious organisation.

2.4 Seller’s Stamp Duty on Industrial Properties To discourage speculative activities in the industrial market which could distort underlying prices and raise

business costs, the government introduced a Seller’s Stamp Duty (“SSD”) on industrial property for the first time. With effect from 12 January 2013, the following SSD rates will be imposed on industrial properties and land bought and sold within three years of the date of purchase (Table 3).

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2.6 Population white Paper and land Use Plan The government released the Population White Paper and Land Use Plan in January 2013. Key highlights include:

• Plans to cater to a possible population of 6.5 to 6.9 million by 2030, with the number of Singaporeans in Professional, Managerial, Executive and Technical (“PMET”) jobs rising from 850,000 in 2011 to 1.25 million in 2030; and

• Creation of new manufacturing areas at Woodlands, Sengkang West, Seletar, Lorong Halus, Pasir Ris and new reclamation areas at Tuas.

• Further development of Singapore’s land transport infrastructure eg:

– Commencement of construction work for Tuas West Extension; – Announcement of rail alignment and station locations for the 30-km Thomson Line as well as

full road alignment of the North South Expressway; and – Unveiling of plans to double Singapore’s rail network from 178 km to 360 km by 2030 via the

addition of two new rail lines (Cross Island Line and Jurong Region Line) and extension of three existing lines (Circle Line, North East Line and Downtown Line).

3.0 overview of Singapore Industrial Property Market

3.1 existing Stock As at 4Q2012, Singapore has 424.4 million sq ft5 of private and public industrial space, an increase of about

2.8% year-on-year (”yoy”). This comprised 231.3 million sq ft of single-user factory space (54.5%), 97.1 million sq ft of multiple-user factory space (22.9%), 79.4 million sq ft of warehouse space (18.7%) and 16.7 million sq ft of business park space (3.9%) (Figure 1).

5 all existing supply is in net lettable area (“nla”).6 Figures in this report may not add up due to rounding off.

Figure 1

Breakdown of existing Industrial Stock (2012)6

Private warehouse78.9 million sq ft19%

Private Multiple-user Factory82.3 million sq ft 19%

Public Multiple-user Factory14.7 million sq ft 3%

Public Business Park3.0 million sq ft1%

Private Business Park13.7 million sq ft3%

Public Single-user Factory36.7 million sq ft9%

Private Single-user Factory194.6 million sq ft46%

source: ura, DtZ Consulting and research, February 2013

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61singapore industrial property market overview

4.0 Private Factory Space

4.1 existing Supply Total private factory stock increased by 8.6 million sq ft (3.0%) from 282.1 million sq ft in 2011 to 290.7

million sq ft in 2012. In absolute terms, this was driven by an increase of 3.8 million sq ft of multiple-user factory space and 3.5 million sq ft of single-user factory space. Private business park stock, however, saw the largest increase of about 9.8% yoy in 2012 to 13.7 million sq ft. The bulk, or 67.0%, of total private factory space is single user factories (Figure 2).

The yoy increase in industrial stock in 2012 was due mainly to an increase in private industrial stock as public industrial stock remained largely unchanged at 54.9 million sq ft, accounting for about 13.0% of industrial space in Singapore. Private industrial stock continued to increase at a steady rate of 3.0%7 in 2012 to 369.5 million sq ft. The bulk of this private industrial stock is located in the West Region, followed by the Central Region (Table 4).

7 the Compounded annual growth rate (“Cagr”) of private industrial stock over the past decade (2003-2012) is about 3%.

Figure 2

Breakdown of Private Factory Space

Private Business Park13.7 million sq ft5%

Private Single-user Factory194.6 million sq ft67%

Private Multiple-user Factory82.3 million sq ft 28%


Table 4

Breakdown of Industrial Stock in Singapore by ownership and Region

Region (million sq ft) Private factory Public factory Private warehouse Public warehouse

central 20.2% 21.4% 16.1% 83.0%

(58.8) (11.6) (12.7) (0.4)

east13.2% 15.4% 14.3% 14.9%

(38.4) (8.4) (11.3) (0.1)

North east 7.8% 9.3% 4.7% 2.1%

(22.6) (5.0) (3.7) (0.0)

North 16.9% 11.5% 5.4% 0.0%

(49.1) (6.3) (4.2) (0.0)

west 41.9% 42.4% 59.6% 0.0%

(121.8) (23.1) (47.0) (0.0)

Total 100% 100% 100% 100%

(290.7) (54.4) (78.9) (0.5)




4.2 Demand and occupancy As the global economic slowdown impacted on the manufacturing and trade-related sectors in 2012, the

demand for private factory space fell by 30.0% from 10.9 million sq ft in 2011 to 7.6 million sq ft in 2012 (Figure 3). The annual demand for private factory space in 2012 was lower than the past 10-year annual average demand of 8.4 million sq ft and also lower than the increase in supply of private factory space (8.6 million sq ft) in 2012.

4.0 Private Factory Space (cont’d)

4.1 existing Supply (cont’d)

Approximately 8.6 million sq ft of private factory space was completed in 2012, comprising mainly multiple-user factories (3.8 million sq ft, 44.9%) and single-user factories (3.5 million sq ft, 40.9%). Meanwhile, about 1.2 million sq ft of private business park space was completed (UE BizHub East, ONE@Changi City and Infinite Studios), making up about 14.2% of private factory space completed in 2012. This was significantly more than the 0.2 million sq ft of business park space that was completed in 2011. Major private factory developments completed in 2012 are highlighted in Table 5.

Table 5

Major Private Factory Developments completed in 2012

Developer/Development Type location Planning Region NlA (sq ft)

woodlands 11 Multiple-user factory Woodlands Close North 745,000

oNe@changi city Business park Changi Business Park Central 1 East 651,000

Harvest @ woodlands Multiple-user factory Woodlands Industrial Park E5 North 626,000

Halliburton completion Tools Pte ltd Single-user factory Tuas South Avenue 12 West 489,000

Foodaxis @ Senoko Multiple-user factory Senoko Avenue North 423,000

Ue BizHub east Business park Changi Business Park Avenue 1 East 408,000

T5 @ Tampines Multiple-user factory Tampines Industrial Avenue 5 East 397,000

North Point Bizhub Multiple-user factory Yishun Industrial Street 1 North 366,000

The Splendour Multiple-user factory Bukit Batok Crescent West 334,000

A’Posh Bizhub Multiple-user factory Yishun Industrial Street 1 North 290,000

YHI corporation (Singapore) Pte ltd Single-user factory Pandan Road West 198,000

Tiong Seng Prefab Hub Single-user factory Tuas South Avenue 1 West 187,000

Infinite Studios Business park Media Circle Central 184,000

The Gemesis company (S) Pte ltd Single-user factory Tukang Innovation Drive West 182,000

FMc Technologies Singapore Pte ltd Single-user factory Benoi Sector West 121,000

T&c Manufacturing company Pte ltd Single-user factory Tuas Bay Walk West 107,000


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Overall occupancy rate for private factory space therefore fell slightly from 92.4% in 2011 to 92.3% in 2012. The occupancy of business parks saw the largest fall of 1.8 percentage-points from 80.0% in 2011 to 78.2% in 2012 which could be due to the significant increase in business park space in 2012 (1.2 million sq ft) compared to 2011 (0.2 million sq ft) (Figure 4). Occupancy of multiple-user factories also fell from 89.4% in 2011 to 89.1% in 2012, while the occupancy of single-user factories increased marginally by 0.2 percentage-point from 94.5% in 2011 to 94.7% in 2012.

Figure 3

Annual Supply, Demand and occupancy of Island-wide Private Factory Space


‘000 sq ft (NlA) Annual supply (LHS) Annual demand (LHS) Occupancy (RHS)

25,000 93%

89%

92%

88%

91%

87%

90%

86%

85%

15,000

20,000

10,000

5,000

02003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Average annual demand between 2003 and 2012: 8.4 million sq ftAverage annual supply between 2003 and 2012: 8.0 million sq ft

Figure 4

Private Factory occupancy Rates


Business ParkSingle-user factoryMultiple-user factory

100%

85%

95%

90%

80%

75%

70%2003 2004 2005 2006 2007 2008 2009 2010 2011 2012



64

4.3 Multiple-user Median Rents

Despite the economic slowdown and weak manufacturing performance, monthly median rents for private multiple-user factory space continued to rise in 2012, albeit at a slower pace compared to 2011. Private multiple-user median rents grew by 9.6% in 2012, compared to the rental growth of 16.2% in 2011. The rental increase in 2012 could have been partly contributed by the completion of new multiple-user industrial developments with better specifications or smaller units thus the unit rent could have been higher.

Meanwhile, rental growth could have slowed in 2012 compared to 2011, partly due to increased enforcement activities by the government to ensure that non-qualifying occupiers, who are usually able to pay higher rents than true industrialists, do not take up industrial space.

As at 4Q2012, monthly median rents for private multiple-user factory space reached a new peak of S$2.09 per sq ft per month, 21.1% higher than the previous peak of S$1.73 per sq ft per month in 3Q2008 (Figure 5).

4.4 Multiple-user Median Prices

The median price of private multiple-user factory space continued to increase at a double-digit pace in 2012, rising by close to 24.5%, just below the 27.1% growth in 2011. Median prices of private multiple-user factories reached S$590 per sq ft in 4Q2012, compared to S$474 per sq ft in 4Q2011 (Figure 6). Private multiple-user median prices were driven by a shift of investor interest from the residential to the industrial sector in the current environment of low interest rates and abundant liquidity.

Figure 5

Median Rents for Private Multiple-user Factory Space


S$ per sq ft per month URA Median Rent of Private Multiple-User Factory Space (LHS) yoy % Change (RHS)

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

2.50 40%

1.50

0%

10%

2.00

20%

30%

1.00

-10%0.50

-20%0.00


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65

8 based on the number of caveats lodged. as the lodging of caveats is voluntary, some transactions may not be recorded. as there is no time limit, caveats may not be lodged immediately after an option is exercised.

9 median prices tracked by ura include all sales, both new sales and secondary sales.

Notably, even though prices of private multiple-user factory space increased by 24.5% for the whole of 2012, prices fell on a qoq basis by 2.7% in 4Q2012. This could be a sign of investor caution as prices are already 56.6% above the previous peak of S$377 per sq ft in 3Q2008. The price growth could decelerate further in 2013 after the introduction of the SSD of between 5.0-15.0% for the purchases of industrial properties which are sold within three years with effect from 12 January 2013.

3,403 private strata-titled factory units were transacted in 20128, 24.6% higher than the 2,732 units sold in 2011. About 46.0% of these transactions were for new strata-titled factories, where prices of some projects with better specifications were around S$1,000 per sq ft and above, close to prices of residential units. This contributed to the 24.5% increase in median prices of multiple-user factory space according to URA statistics. The price increase would have been smaller if a basket approach was used instead9. Major private factory investment sales in 2012 are highlighted in Table 6.

Table 6

Major Private Factory Investment Sales in 2012

Development location Tenureestimated NlA

(sq ft)Price

(S$m/S$ per sq ft)

Starhub Green 67 Ubi Avenue 1 60 years w.e.f. March 1997

421,000 210.0/499

cINTecH I, II, III, IV73, 75, 77, 79

Science Park Drive 99 years w.e.f. 1 June 1982

430,000 183.0/425

Techplace IIBlk 5006 Ang Mo Kio

Avenue 540 years remaining 194,000 (GFA) 38.0/196

Tropical Industrial Building

14 Little Road Freehold 62,375 (GFA) 31.8/510

Tat Hong Industrial Building

1, 3, 5, 7, 9, 11 Howard Road

Freehold 46,000 30.3/658



Figure 6

Median Prices for Private Multiple-user Factory Space

S$ per sq ft URA Median Price of Private Multiple-User Factory Space (LHS) YOY % Change (RHS)

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

700 40%

500

0%

10%

600

20%

30%

400

-10%

300

200

100 -20%

-30%0

66



4.5 Potential Supply10

According to the URA, an estimated 46.3 million sq ft of private factory space will be completed between

2013 and 2017 (Figure 7). This is about 15.9% of the private factory stock as at 4Q2012. The bulk, or 82.5%, of the potential supply is expected to be completed in 2013 and 2014. Notwithstanding, a significant proportion (52.1%) of the pipeline supply between 2013 and 2017 that is currently under construction, comprises single-user factories, which are likely to be owner-occupied. In addition, there are pockets of strengths in some manufacturing clusters, eg. biomedical and transport engineering, that will provide some demand support for private factory space.

As at end 4Q2012, about 73.0%, or 33.8 million sq ft, of this potential supply is under construction while the remaining 27.0%, or 12.5 million sq ft, is planned. Of the 33.8 million sq ft of private factory space under construction, about 52.1% (17.6 million sq ft) are single-user factories, 37.9% (12.8 million sq ft are multiple-user factories while the remaining 10.1% is business park space.

The majority of the private factory space (13.7 million sq ft, 40.6%) under construction is located in the West Region, followed by 21.9% in the Central Region (7.4 million sq ft) and 18.9% (6.4 million sq ft) in the North East Region. The remainder is located in the North Region (3.3 million sq ft, 9.8%) and the East Region (3.0 million sq ft, 8.8%). Major private factory developments expected to be completed in 2013 are summarised in Table 7.

10 all potential supply is in terms of gFa.11 includes the supply from new development and redevelopment projects with provisional and written permission as well as from other categories of supply e.g. (i) projects with outline

provisional permission, (ii) developments submitted for planning approval and which are under consideration, (iii) projects on awarded gls sites for which plans have not been submitted for approval, (iv) planned projects in the gls programme (sites on the Confirmed list and triggered sites on the reserve list, (v) planned public developments for which plans have not been submitted to ura for planning approval.


Figure 7

Potential Supply11 of Private Factory Space by Development Status and Year of completion

‘000 per sq ft Under Construction Planned

20172013 2014 2015

25,000

15,000

20,000

10,000

5,000

02016

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Table 8

Private Multiple-user Factory Rent and Price change Forecast for 2013

Median Rents Median Prices

0.0% 10.0%


4.6 outlook Despite the tepid manufacturing performance in 2012, private multiple-user factory rents continued to

increase even though the rental growth was lower than in 2010 and 2011. Going forward, multiple-user factory space will make up about 37.9% of the total pipeline supply of private factory space between 2013 and 2017.

Meanwhile, on the demand side, the industrial sector will continue to feel the impact of the government’s labour tightening policies and more industrialists could relocate their businesses outside Singapore to reduce their operating costs or cut back on their expansion due to difficulties in recruiting staff. Notwithstanding, the government has also reiterated their commitment to keep industrial space affordable for industrialists and so could increase their enforcement activities to ensure that non-qualifying occupiers are not taking up industrial space at the expense of industrialists. Taking the above factors into account, median rentals for private multiple-user factory space are expected to remain relatively flat in 2013 (Table 8).

Partly driven by investor demand and low interest rates, median prices of private multiple-user factories continued to rise significantly more than rentals in 2012. However, in 4Q2012, median prices of private multiple-user factories declined on a qoq basis, indicating that there could be some weakness in prices going forward. While the implementation of the SSD on industrial properties in January 2013 could dampen investment demand, the impact is likely to be limited for developers, REITs and owner-occupiers who hold a longer-term view.

Although investment volume for industrial properties could fall, the lower quantum of industrial properties compared to commercial properties will continue to attract investors. The holding period of three years to avoid paying the SSD is also shorter than the holding period of four years in the residential sector. This will see more investors preferring to buy uncompleted industrial properties to hold for three years so that they do not have to pay the SSD. In view of these factors, the price growth of private multiple-user factory space is expected to decelerate as they are already more than 50.0% above the previous peak. Median prices of private multiple-user factory space are therefore expected to increase by about 10.0% in 2013.

Table 7

Major Private Factory Developments expected to be completed in 2013

Development / Developer Type location Planning Region GFA (sq ft)

North Spring Bizhub Multiple-user factoryYishun Industrial Street 1/

Yishun Street 23North 1,253,000

Plc 8 Development Pte ltd Multiple-user factory Lavender Street Central 788,000

ST electronics (Info-Software Systems) Pte ltd

Single-user factory Ang Mo Kio Street 65 North East 538,000

Ascendas Venture Pte ltd Business park Biopolis Road Central 490,000

Google Asia Pacific Pte ltd Single-user factory Jurong West Street 23 West 425,000

cT Hub Multiple-user factory Kallang Avenue Central 308,000

Mapletree Industrial Trust Management ltd

Multiple-user factorySerangoon North

Avenue 5North East 293,000

Sinopec lubricant (S) Pte ltd Single-user factory Tuas South Avenue 5 West 255,000

Takasago International (S) Pte ltd

Single-user factory Pioneer Road West 231,000

Boustead Projects Pte ltd Multiple-user factory Ubi Avenue 1 Central 148,000

Rohde & Schwarz Property Singapore Pte ltd

Business parkChangi Business

Park Vista East 137,000




5.0 Private warehouse Space

5.1 existing Supply Total private warehouse stock increased by 3.7% (2.8 million sq ft) from 76.1 million sq ft in 2011 to 78.9

million sq ft in 2012. Some of the warehouse space completed in 2012 is part of multiple-user factories, eg. Westlink One, while most of the completed warehouses were single-user warehouse developments. Major new warehouse developments completed in 2012 included (Table 9):

5.2 Demand and occupancy Annual demand for private warehouse space over the last 10 years (2003-2012) averaged 2.3 million sq

ft, which was higher than the average increase in supply of 2.1 million sq ft over the same period. In 2012, however, the slowdown in the pace of growth of the transportation and storage sector and the pullback in wholesale trade saw the annual demand for private warehouse space fall 58.0% to 1.6 million sq ft, which was lower than the past 10-year annual average (Figure 8). This was also lower than the annual supply of 2.8 million sq ft in 2012.


Table 9

Major Private warehouse Developments completed in 2012

Developer / Development location Planning Region NlA (sq ft)

BP-SDV Pte ltd Pioneer Turn West 415,000

Second Development Pte ltd Sunview Way West 377,000

Yang Kee Holdings Pte ltd Jurong Pier Road West 370,000

Kerry logistics Hub Pte ltd Greenwich Drive East 343,000

Precise Development Pte ltd Gul Way West 256,000

Hafary logistic centre Changi North Street 1 East 132,000

westlink one Tuas View Place West 101,000

K.c. Dat (S) Pte ltd Lok Yang Way West 93,000

lee King Hwa Building Tai Seng Link North East 54,000

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Figure 8

Annual Supply, Demand and occupancy Rate of Private warehouse Space

Correspondingly, overall occupancy rate for private warehouse space fell 1.4 percentage-points from 94.3% in 2011 to 92.9% in 2012. Even though there was a yoy fall in the occupancy rate, the occupancy rate of 92.9% in 2012 was still higher than the past 10-year average occupancy of 90.0%.

5.3 Median Rents

Similar to private multiple-user factory rents, median private warehouse rents continued to increase in 2012 but at a slower pace. However, the slowdown in rental growth was more moderate for warehouse rents compared to multiple-user factory rents. Median rents for private warehouse space grew by 10.3% from S$1.85 per sq ft per month in 2011 to a new peak of S$2.03 per sq per month in 2012. This was slower than the rental growth of 13.4% in 2011 (Figure 9).

Notwithstanding, the pick-up in exports and manufacturing in China towards the end of 2012 could have provided some impetus for private warehouse rents. After contracting by 2.0% qoq in 2Q2012, private warehouse rents gained momentum, increasing by 3.5% qoq in 3Q2012 and 6.8% qoq in 4Q2012.


6,000

4,000

5,000

2,000

1,000

3,000

0

96%

88%

94%

86%

92%

84%

90%

82%

80%

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Average annual demand between 2003 and 2012: 2.3 million sq ft

Average annual supply between 2003 and 2012: 2.1 million sq ft

‘000 sq ft (NlA) Annual supply (LHS) Annual demand (LHS) Occupancy (RHS)


Figure 9

Median Rents of Private warehouse Space

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

2.50 35%

30%

20%

10%

0%

1.50

-5%

5%

2.00

15%

25%

1.00

-10%0.50

-15%

-20%0.00

S$ per sq ft per month URA Median Rent of Private Warehouse Space (LHS) YOY % Change (RHS)

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Besides the shift in investor interest from the residential to the industrial market, the nascent signs of an economic recovery in the regional economies, especially China, could have increased confidence amongst investors and end-users of warehouse space. The number of private warehouse units that were transacted, based on caveats lodged, increased by more than 50.0% from 190 units in 2011 to 289 units in 2012. Some of the private warehouse and logistics investment sales in 2012 are shown in Table 10.

5.4 Median Prices

Bucking the trend, private warehouse median prices increased at a faster pace in 2012 compared to that in 2011. Median prices of private warehouse space rose by 32.2% in 2012, which was higher than the price growth of 28.0% in 2011 and also higher than increase in prices of private multiple-user factory space (24.5%) in 2012. As at 4Q2012, private warehouse prices reached S$840 per sq ft, which is about 66.7% above the previous peak of S$504 per sq ft in 3Q2008 (Figure 10).


Figure 10

Median Prices of Private warehouse Space

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

900

800

40%

30%

10%

-10%

500

600

700

0%

20%

300

400

200

-20%0

100

S$ per sq ft per URA Median Rent of Private Warehouse Space (LHS) YOY % Change (RHS)

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Table 10

Selected Private warehouse and logistics Investment Sales in 2012

Development location Tenureestimated NlA

(sq ft)Price

(S$m/S$per sq ft)

Pandan logistics Hub 49 Pandan Road 90 years w.e.f.

1 October 2009329,000 (GFA) 66.0/200

Pan Asia logistics centre 21 Changi North Way99 years w.e.f.

1 September 1981197,000 (GFA) 35.2/179

5.5 Potential Supply Based on URA statistics, about 14.0 million sq ft of private warehouse space will be completed between 2013 and

2015. This represents about 17.7% of private warehouse stock as at 4Q2012. Of this, about 86.7% (12.2 million sq ft) is under construction as at 4Q2012 while the remaining 13.3% (1.9 million sq ft) is planned. Almost all of the potential supply (88.9%, 12.5 million sq ft) is expected to be completed in 2013 and 2014 while the remainder will be completed in 2015 (Figure 11). As at 4Q2012, there is no pipeline supply of private warehouse space after 2015. Singapore’s position as a regional logistics hub will help to support demand for private warehouse space. In terms of investment commitments, the logistics industry saw one of the highest increases in fixed asset investments in 2012, signalling the strong growth potential of the industry.

About 83.6% (11.7 million sq ft) of the potential supply of private warehouse space is located in the West Region, followed by 7.5% (1.1 million sq ft) in the East Region and 5.3% (0.7 million sq ft) in the Central Region. Major private warehouses expected to be completed in 2013 are highlighted in Table 11.

12 includes the supply from new development and redevelopment projects with provisional and written permission as well from other categories of supply e.g. (i) projects with outline provisional permission, (ii) developments submitted for planning approval and which are under consideration, (iii) projects on awarded gls sites for which plans have not been submitted for approval, (iv) planned projects in the gls programme (sites on the Confirmed list and triggered sites on the reserve list, (v) planned public developments for which plans have not been submitted to ura for planning approval.


Figure 11

Potential Supply12 of Private warehouse Space by Development Status and Year of completion

‘000 sq ft (GFA)

2017

8,000

2013 2014 2015

5,000

7,000

3,000

4,000

2,000

1,000

02016

6,000

Under Construction Planned

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5.6 outlook

Despite the pullback in wholesale and trading activities in 2012, Singapore remains an important logistics hub for the region, due to its strategic location in the heart of South East Asia and along major shipping lanes. The World Bank ranked Singapore as the top logistics hub in May 2012, ahead of Hong Kong, amongst 155 countries globally in the 2012 Logistics Performance Index (“LPI”)13.

The expected improved performance of trade and manufacturing sectors in the regional economies will also help to support the warehousing and logistics sectors in Singapore in spite of the higher-than-average pipeline supply of private warehouse space coming on-stream in 2013 and 2014. Consequently, private warehouse rents are expected to increase moderately by 3.0% (Table 12).

Meanwhile, compared to private multiple-user factory space, prices of private warehouse space are higher than their previous peak levels. Therefore, even though rental growth of private warehouse developments is higher than that of private multiple-user factory space, prices of private warehouse space are expected to decelerate in 2013 and increase at the same pace of 10.0% as private multiple-user factory space.

Table 12

Private warehouse Rent and Price change Forecast for 2013

Median Rents Median Prices

3.0% 10.0%


Table 11

Major Private warehouse Developments expected to be completed in 2013

Developer/Development location Planning region GFA (sq ft)

Tech-link Storage engineering Pte ltd Pioneer Turn West 415,000

lTH logistics Singapore Pte ltd Sunview Way West 377,000

Pan Asia logistics Singapore Pte ltd Jurong Pier Road West 370,000

Tee Hai chem Pte ltd Greenwich Drive East 343,000

w.Atelier Industries Pte ltd Gul Way West 256,000

I.Biz centre Changi North Street 1 East 132,000



13 the lpi is based on a worldwide survey of operators on the ground (global freight forwarders and express carriers), providing feedback on the logistics “friendliness” of the countries in which they operate and those with which they trade. Countries are ranked according to six indicators: (1) efficiency of the clearance process; (2) quality of trade and transport-related infrastructure; (3) ease of arranging competitively priced shipments; (4) competence and quality of logistics services; (5) ability to track and trace consignments; and (6) timeliness of shipments in reaching destination within the scheduled or expected delivery time.

limiting conditions

Where it is stated in the report that information has been supplied to us in the preparation of this report by the sources listed, this information is believed to be reliable and we will accept no responsibility if this should be otherwise. all other information stated without being attributed directly to another party is obtained from our searches of records, examination of documents or enquiries with relevant government authorities.

the forward statements in this report are based on our expectations and forecasts for the future. these statements should be regarded as our assessment of the future, based on certain assumptions on variables which are subject to changing conditions. Changes in any of these variables may significantly affect our forecasts.

utmost care and due diligence has been taken in the preparation of this report. We believe that the contents are accurate and our professional opinion and advice are based on prevailing market conditions as at the date of the report. as market conditions do change, we reserve the right to update our opinion and forecasts based on the latest market conditions.

DtZ gives no assurance that the forecasts and forward statements in this report will be achieved and undue reliance should not be placed on them.

DtZ Debenham tie leung (sea) pte ltd or persons involved in the preparation of this report disclaims all responsibility and will accept no liability to any other party. neither the whole nor any part, nor reference thereto may be published in any document, statement or circular, nor in any communications with third parties, without our prior written consent of the form or context in which it will appear.

72

FinancialContents

74 Report of The Trustee 75 Statement by The Manager 76 Auditors’ Report

77 Statement of Financial Position 78 Statement of Total Return 79 Distribution Statement

81 Statement of Movements in Unitholders’ Funds 82 Investment Properties Portfolio Statement

96 Consolidated Statement of Cash Flows 98 Notes to the Financial Statements

138 Additional Information 140 Statistics of Unitholders 142 Notice of AGM Proxy Form

74


report of thetrustee

RBC Investor Services Trust Singapore Limited (the “Trustee”) is under a duty to take into custody and hold the assets of Cambridge Industrial Trust (“CIT”) and its subsidiary (the “Group”) in trust for the holders (“Unitholders”) of units in CIT (the “Units”). In accordance with the Securities and Futures Act (Cap. 289), its subsidiary legislation and the Code on Collective Investment Schemes issued by the Monetary Authority of Singapore (“MAS”) and the Listing Manual (collectively referred to as the “laws and regulations”), the Trustee shall monitor the activities of Cambridge Industrial Trust Management Limited (the “Manager”) for compliance with the limitations imposed on the investment and borrowing powers as set out in the trust deed dated 31 March 2006 (as amended) between the Trustee and the Manager (the “Trust Deed”) in each annual accounting year and report thereon to Unitholders in an annual report which shall contain the matters prescribed by the laws and regulations as well as the recommendations of Statement of Recommended Accounting Practice 7 (Reporting Framework for Unit Trusts) issued by the Institute of Certified Public Accountants of Singapore and the provisions of the Trust Deed.

To the best knowledge of the Trustee, the Manager has, in all material respects, managed CIT during the year covered by these financial statements, set out on pages 77 to 137 comprising the Statement of Financial Position, Statement of Total Return, Distribution Statement, Statement of Movements in Unitholders’ Funds, Portfolio Statement and Statement of Cash Flows of CIT for the year then ended in accordance with the limitations imposed on the investment and borrowing powers set out in the Trust Deed, laws and regulations and otherwise in accordance with the provisions of the Trust Deed.

For and on behalf of the Trustee,RBC Investor Services Trust Singapore Limited

Diana SenanayakeManaging Director

Singapore12 March 2013

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statement by themanager

In the opinion of the directors of Cambridge Industrial Trust Management Limited, the accompanying financial statements set out on pages 77 to 137 comprising the Statement of Financial Position, Statement of Total Return, Distribution Statement, Statement of Movements in Unitholders’ Funds, Portfolio Statement, Statement of Cash Flows and a Summary of Significant Accounting Policies and other explanatory notes, are drawn up so as to present fairly, in all material respects, the financial position and the portfolio of Cambridge Industrial Trust (“CIT”) and its subsidiary (the “Group”) as at 31 December 2012, the total return, distributable amount, changes in Unitholders’ funds and cash flows of the Group for the year then ended in accordance with the recommendations of Statement of Recommended Accounting Practice 7 (Reporting Framework for Unit Trusts) issued by the Institute of Certified Public Accountants of Singapore and the provisions of the Trust Deed. At the date of this statement, there are reasonable grounds to believe that the Group will be able to meet its financial obligations as and when they materialise.

For and on behalf of the Manager,Cambridge Industrial Trust Management Limited

Dr Chua Yong HaiChairman


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We have audited the accompanying financial statements of Cambridge Industrial Trust (the “Trust”) and its subsidiary (the “Group”), which comprise the Statement of Financial Position and Portfolio Statement of the Group and the Trust as at 31 December 2012, and the Statement of Total Return, Distribution Statement, Statement of Movements in Unitholders’ Funds and Statement of Cash Flows of the Group for the year then ended, and a summary of significant accounting policies and other explanatory information, as set out on pages 77 to 137.

Manager’s Responsibility for the Financial Statements

The Manager of the Trust is responsible for the preparation of financial statements that give a true and fair view in accordance with the recommendations of Statement of Recommended Accounting Practice 7 “Reporting Framework for Unit Trusts” issued by the Institute of Certified Public Accountants of Singapore, and for such internal controls as the Manager of the Trust determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

Auditors’ Responsibility

Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with Singapore Standards on Auditing. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the Trust’s preparation of financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Trust’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by the Manager of the Trust, as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Opinion

In our opinion, the consolidated financial statements of the Group and the financial statements of the Trust present fairly, in all material respects, the financial position of the Group and of the Trust as at 31 December 2012 and the total return, distributable income, movements in Unitholders’ funds of the Group and the Trust and cash flows of the Group for the year then ended in accordance with the recommendations of Statement of Recommended Accounting Practice 7 “Reporting Framework for Unit Trusts” issued by the Institute of Certified Public Accountants of Singapore.

KPMG LLPPublic Accountants andCertified Public Accountants


auditors’report

t o t h e U n i t h o l d e r s o f C a m b r i d g e I n d u s t r i a l Tr u s t ( “ C I T ” ){ Constituted under a Trust Deed in the Republic of Singapore }

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statement ofFinancial position

A s a t 3 1 D e c e m b e r 2 0 1 2

Group TrustNote 2012 2011 2012 2011

$’000 $’000 $’000 $’000

Assets

Non-current assetsInvestment properties 4 994,600 1,005,300 994,600 1,005,300Investment properties under development 5 19,000 3,579 19,000 3,579Investment in subsidiary 6 – – – –

1,013,600 1,008,879 1,013,600 1,008,879

Current assetsInvestment properties held for divestment 4 200,400 18,300 200,400 18,300Trade and other receivables 8 1,590 1,435 1,590 1,435Cash and cash equivalents 89,757 78,763 89,744 78,763

291,747 98,498 291,734 98,498

Total assets 1,305,347 1,107,377 1,305,334 1,107,377

Liabilities

Current liabilitiesTrade and other payables 9 19,550 9,307 19,538 9,307Interest-bearing borrowings 10 70,906 – 70,906 –

90,456 9,307 90,444 9,307

Non-current liabilitiesTrade and other payables 9 1,989 – 1,989 –Interest-bearing borrowings 10 422,768 356,608 422,768 356,608Derivative financial instruments 11 3,441 3,578 3,441 3,578

428,198 360,186 428,198 360,186

Total liabilities 518,654 369,493 518,642 369,493

Net assets 786,693 737,884 786,692 737,884

Represented by: Unitholders’ funds 786,693 737,884 786,692 737,884

Units in issue (’000) 12 1,216,015 1,189,198 1,216,015 1,189,198

Net asset value per unit (cents) 64.7 62.0 64.7 62.0

The accompanying notes form an integral part of these financial statements.

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statement oftotal return

Ye a r E n d e d 3 1 D e c e m b e r 2 0 1 2


$’000 $’000 $’000 $’000

Gross revenue 13 88,976 80,373 88,976 80,373Property expenses 14 (12,746) (11,261) (12,746) (11,261)Net property income 76,230 69,112 76,230 69,112Manager’s management fees 15 (5,921) (5,332) (5,921) (5,332)Performance fees 15 (3,583) – (3,583) –Trust expenses 16 (1,706) (1,824) (1,707) (1,824)Interest income 68 110 68 110Borrowing costs 17 (19,656) (26,221) (19,656) (26,221)Net income 45,432 35,845 45,431 35,845Gain on disposal of investment

properties 18 2,241 2,194 2,241 2,194Change in fair value of financial

derivatives 141 (3,372) 141 (3,372)Change in fair value of investment

properties and investment properties under development 4 41,647 50,506 41,647 50,506

Total return before income tax 89,461 85,173 89,460 85,173Income tax expense 19 – – – –Total return for the year 89,461 85,173 89,460 85,173

Earnings per unit (cents)Basic and diluted 20 7.469 7.273 7.469 7.273

Distribution per unit (cents) 20 4.784 4.237 4.784 4.237


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distributionstatement


Group Trust2012 2011 2012 2011

$’000 $’000 $’000 $’000

Total return after income tax, before distribution for the year 89,461 85,173 89,460 85,173

Less: Distribution adjustments (Note A) (37,610) (34,776) (37,609) (34,776)Net income available for distribution

to Unitholders 51,851 50,397 51,851 50,397Distribution from capital (Note B) 5,724 – 5,724 –Total amount available for distribution 57,575 50,397 57,575 50,397Less: Distributions (Note C) (42,624) (37,091) (42,624) (37,091)Net amount available for distribution to

Unitholders as at 31 December 14,951 13,306 14,951 13,306

Note A – Distribution Adjustments

Group Trust2012 2011 2012 2011

$’000 $’000 $’000 $’000

Non-tax deductible items and other adjustments:Trustee’s fees 273 233 273 233Transaction costs relating to debt facilities 5,748 9,722 5,748 9,722Break cost on loan refinancing/prepayment – 4,138 – 4,138Change in fair value of investment properties and

investment properties under development (41,647) (50,506) (41,647) (50,506)Change in fair value of financial derivatives (141) 3,372 (141) 3,372Legal and professional fees 296 379 296 379Miscellaneous expenses 102 80 103 80

(35,369) (32,582) (35,368) (32,582)Income not subject to tax:Gain on disposal of investment properties (2,241) (2,194) (2,241) (2,194)Net effect of distribution adjustments (37,610) (34,776) (37,609) (34,776)


80


Note B – Distribution from Capital

Distribution from capital includes:

• anaggregateof$2.1millionfromcapitalandcapitalgainsrealisedfromthesaleofinvestmentpropertiesto fund the reduction in income contribution for the year from properties undergoing asset enhancement initiatives including asset repositioning; and

• $3.6millionfromcapital (1) to fund the reduction in net income from the payment of the performance fees in cash.

Note:

(1) Under the Trust Deed, the Manager has the discretion to receive performance fees in cash, or Units, or a combination of both. However, the Trust Deed requires that any units issued to the Manager in payment of a performance fee are to be priced based on the per unit value of the Trust’sDepositedProperty,whichwasapproximately$1.073asat31December2012.Giventhatthismethodologydoesnotprovideafairreflectionofthemarketpriceoftheunits,whichhadaclosingpriceof$0.675asat31December2012,theManagerhaselectedtoreceivethe fee in cash. To ensure that Unitholders’ distributable amount for the year ended 31 December 2012 is not affected, the Manager has determined that a capital distribution, equivalent to the amount of the performance fees, will be made out of CIT’s existing cash.

Note C – Distributions

Group and Trust2012 2011$’000 $’000

Distributions to Unitholders during the financial year comprise:

Distribution of 1.204 cents per unit for the period from 1/7/2012 to 30/9/2012 14,546 –Distribution of 1.180 cents per unit for the period from 1/4/2012 to 30/6/2012 14,149 –Distribution of 1.171 cents per unit for the period from 1/1/2012 to 31/3/2012 13,929 –Distribution of 1.082 cents per unit for the period from 1/7/2011 to 30/9/2011 – 12,867Distribution of 1.036 cents per unit for the period from 1/4/2011 to 30/6/2011 – 12,320Distribution of 1.001 cents per unit for the period from 1/1/2011 to 31/3/2011 – 11,904

42,624 37,091Distribution of 1.118 cents per unit for the period from 01/10/2011 to 31/12/2011 13,295 –Distribution of 0.566 cents per unit for the period from 18/11/2010 to 31/12/2010 (1) – 5,983

55,919 (2) 43,074

Note:

(1) Represents the balance of the 4Q2010 distribution which was paid on 24 March 2011. An advance distribution was paid on 6 December 2010.(2) Distributionpartlypaidbytheissuanceofanaggregateof26,531,742newCITunitsamountingto$15.3million,pursuanttoitsdistribution

reinvestment plan.

distributionstatement



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$’000 $’000 $’000 $’000

Unitholders’ funds at beginning of year 737,884 642,155 737,884 642,155

OperationsTotal return for the year after tax 89,461 85,173 89,460 85,173

Unitholders’ transactionsIssue of new units:- Distribution Reinvestment Plan 15,337 – 15,337 –- Acquisition fees paid in units 153 – 153 –- Rights issue – 56,685 – 56,685Equity issue costs 21 (223) (3,055) (223) (3,055)Distributions to Unitholders (55,919) (43,074) (55,919) (43,074)Net increase in Unitholders’ funds resulting

from Unitholders’ transactions (40,652) 10,556 (40,652) 10,556

Unitholders’ funds at end of year 786,693 737,884 786,692 737,884

statement of movementsin unitholders’ Funds



82


Remaining Percentage ofGroup and Trust Tenure Term of term of Existing Occupancy rate at At Independent Valuation Unitholders’ Funds

of land lease lease Location use 31/12/2012 31/12/2011 31/12/2012 31/12/2011 31/12/2012 31/12/2011 (years) (years) % % $’000 $’000 % %

Logistics Properties (1)

@ 24 JURONG PORT ROAD Leasehold 30+12 24 (6) 24 Jurong Port Road Singapore 619097

Logistics 100 100 95,000 103,000 12.08 13.96

@ 3 PIONEER SECTOR 3 Leasehold 30+30 38 (7) 3 Pioneer Sector 3Singapore 628342

Logistics 100 100 54,000 54,000 6.86 7.32

@ ^ * 30 TUAS ROAD Leasehold 30+30 26 (8) 30 Tuas RoadSingapore 638492

Logistics 100 100 72,400 72,400 9.20 9.81

@ 1 THIRD LOK YANG ROAD AND 4 FOURTH LOK YANG ROAD

Leasehold 30 19 (9) 1 Third Lok Yang Road Singapore 627996 and 4 Fourth Lok Yang RoadSingapore 629701

Logistics 100 100 15,000 12,000 1.91 1.63

^ 1 TUAS AVENUE 3 Leasehold 30+23 20 1 Tuas Avenue 3 Singapore 639402

Logistics – 100 – 29,200 – 3.96

236,400 270,600 30.05 36.68

Warehousing Properties (2)

@ 31 TUAS AVENUE 11 Leasehold 30+30 41 (10) 31 Tuas Avenue 11Singapore 639105

Warehousing 100 100 10,500 10,200 1.34 1.38

@ 25 CHANGI SOUTH AVENUE 2 Leasehold 30+30 42 (11) 25 Changi South Ave 2Singapore 486594

Warehousing 100 100 12,000 10,600 1.53 1.44


Warehousing 100 100 13,600 11,100 1.73 1.50

@ 160 KALLANG WAY Leasehold 60 20 (13) 160 Kallang WaySingapore 349246

Warehousing 100 100 27,400 26,000 3.48 3.52

63,500 57,900 8.08 7.84

investment propertiesportfolio statement

A s a t 3 1 D e c e m b e r 2 0 1 2


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A s a t 3 1 D e c e m b e r 2 0 1 2




Logistics Properties (1)

@ 24 JURONG PORT ROAD Leasehold 30+12 24 (6) 24 Jurong Port Road Singapore 619097

Logistics 100 100 95,000 103,000 12.08 13.96

@ 3 PIONEER SECTOR 3 Leasehold 30+30 38 (7) 3 Pioneer Sector 3Singapore 628342

Logistics 100 100 54,000 54,000 6.86 7.32

@ ^ * 30 TUAS ROAD Leasehold 30+30 26 (8) 30 Tuas RoadSingapore 638492

Logistics 100 100 72,400 72,400 9.20 9.81

@ 1 THIRD LOK YANG ROAD AND 4 FOURTH LOK YANG ROAD

Leasehold 30 19 (9) 1 Third Lok Yang Road Singapore 627996 and 4 Fourth Lok Yang RoadSingapore 629701

Logistics 100 100 15,000 12,000 1.91 1.63

^ 1 TUAS AVENUE 3 Leasehold 30+23 20 1 Tuas Avenue 3 Singapore 639402

Logistics – 100 – 29,200 – 3.96

236,400 270,600 30.05 36.68



Warehousing 100 100 10,500 10,200 1.34 1.38

@ 25 CHANGI SOUTH AVENUE 2 Leasehold 30+30 42 (11) 25 Changi South Ave 2Singapore 486594

Warehousing 100 100 12,000 10,600 1.53 1.44


Warehousing 100 100 13,600 11,100 1.73 1.50

@ 160 KALLANG WAY Leasehold 60 20 (13) 160 Kallang WaySingapore 349246

Warehousing 100 100 27,400 26,000 3.48 3.52

63,500 57,900 8.08 7.84


84





Balance brought forward 63,500 57,900 8.08 7.84

@ 120 PIONEER ROAD Leasehold 30+28 42 (14) 120 Pioneer RoadSingapore 639597

Warehousing 100 100 30,000 32,000 3.81 4.34

@ 9 BUKIT BATOK STREET 22 Leasehold 30+30 40 (15) 9 Bukit Batok Street 22 Singapore 659585

Warehousing 100 100 21,000 22,900 2.67 3.10

@ 81 DEFU LANE 10 Leasehold 30+30 37 (16) 81 Defu Lane 10Singapore 539217

Warehousing 100 100 6,100 5,300 0.78 0.72

@ 79 TUAS SOUTH STREET 5 Leasehold 30+30 47 (17) 79 Tuas South Street 5 Singapore 637604

Warehousing 100 100 10,500 10,000 1.33 1.36

# 4/6 CLEMENTI LOOP Leasehold 30+30 41 (18) 4/6 Clementi Loop Singapore 129810 and 129814

Warehousing 100 100 40,000 40,000 5.08 5.42

# 3C TOH GUAN EAST Leasehold 30+30 38 (19) 3C Toh Guan East Singapore 608832

Warehousing 100 – 35,500 – 4.51 –

@ 30 TOH GUAN ROAD Leasehold 30+30 43 (20) 30 Toh Guan RoadSingapore 608840

Warehousing 96 88 56,200 48,300 7.14 6.55

262,800 216,400 33.40 29.33

Light Industrial Properties (3)

@ 21/23 UBI ROAD 1 Leasehold 30+30 44 (21) 21/23 Ubi Road 1Singapore 408724/408725

Light Industrial 100 100 30,600 34,500 3.89 4.68

@ 136 JOO SENG ROAD Leasehold 30+30 38 (22) 136 Joo Seng RoadSingapore 368360


@ 2 UBI VIEW Leasehold 60 46 (23) 2 Ubi ViewSingapore 408556


@ 11 SERANGOON NORTH AVENUE 5

Leasehold 30+30 44 (24) 11 Serangoon NorthAvenue 5Singapore 554809


71,750 73,300 9.12 9.93


A s a t 3 1 D e c e m b e r 2 0 1 2


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@ 120 PIONEER ROAD Leasehold 30+28 42 (14) 120 Pioneer RoadSingapore 639597

Warehousing 100 100 30,000 32,000 3.81 4.34

@ 9 BUKIT BATOK STREET 22 Leasehold 30+30 40 (15) 9 Bukit Batok Street 22 Singapore 659585

Warehousing 100 100 21,000 22,900 2.67 3.10


Warehousing 100 100 6,100 5,300 0.78 0.72

@ 79 TUAS SOUTH STREET 5 Leasehold 30+30 47 (17) 79 Tuas South Street 5 Singapore 637604

Warehousing 100 100 10,500 10,000 1.33 1.36

# 4/6 CLEMENTI LOOP Leasehold 30+30 41 (18) 4/6 Clementi Loop Singapore 129810 and 129814

Warehousing 100 100 40,000 40,000 5.08 5.42

# 3C TOH GUAN EAST Leasehold 30+30 38 (19) 3C Toh Guan East Singapore 608832

Warehousing 100 – 35,500 – 4.51 –

@ 30 TOH GUAN ROAD Leasehold 30+30 43 (20) 30 Toh Guan RoadSingapore 608840

Warehousing 96 88 56,200 48,300 7.14 6.55

262,800 216,400 33.40 29.33


@ 21/23 UBI ROAD 1 Leasehold 30+30 44 (21) 21/23 Ubi Road 1Singapore 408724/408725




@ 2 UBI VIEW Leasehold 60 46 (23) 2 Ubi ViewSingapore 408556


@ 11 SERANGOON NORTH AVENUE 5

Leasehold 30+30 44 (24) 11 Serangoon NorthAvenue 5Singapore 554809


71,750 73,300 9.12 9.93


A s a t 3 1 D e c e m b e r 2 0 1 2


86








@ * 361 UBI ROAD 3 Leasehold 30+30 44 (26) 361 Ubi Road 3Singapore 408664


@ 128 JOO SENG ROAD Leasehold 30+30 39 (27) 128 Joo Seng Road Singapore 368356

Light industrial 100 100 12,400 12,000 1.58 1.63

# 1/2 CHANGI NORTH STREET 2 Leasehold 30+30/30+30 48/53 (28) 1/2 Changi North Street 2 Singapore 498808/498775


16 TAI SENG STREET Leasehold 30+30 55 (29) 16 Tai Seng StreetSingapore 534138

Light Industrial 100 – 59,250 – 7.53 –

70 SELETAR AEROSPACE VIEW Leasehold 30 29 (30) 70 Seletar Aerospace View Singapore 797564


@ 55 UBI AVENUE 3 Leasehold 30+30 44 (31) 55 Ubi Avenue 3 Singapore 408864




+ * 63 HILLVIEW AVENUE Freehold Freehold – (33) 63 Hillview Avenue Singapore 669569


@ 2 JALAN KILANG BARAT Leasehold 99 49 (34) 2 Jalan Kilang BaratSingapore 159346


377,900 290,100 48.04 39.31


A s a t 3 1 D e c e m b e r 2 0 1 2


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@ * 361 UBI ROAD 3 Leasehold 30+30 44 (26) 361 Ubi Road 3Singapore 408664


@ 128 JOO SENG ROAD Leasehold 30+30 39 (27) 128 Joo Seng Road Singapore 368356

Light industrial 100 100 12,400 12,000 1.58 1.63

# 1/2 CHANGI NORTH STREET 2 Leasehold 30+30/30+30 48/53 (28) 1/2 Changi North Street 2 Singapore 498808/498775


16 TAI SENG STREET Leasehold 30+30 55 (29) 16 Tai Seng StreetSingapore 534138


70 SELETAR AEROSPACE VIEW Leasehold 30 29 (30) 70 Seletar Aerospace View Singapore 797564


@ 55 UBI AVENUE 3 Leasehold 30+30 44 (31) 55 Ubi Avenue 3 Singapore 408864




+ * 63 HILLVIEW AVENUE Freehold Freehold – (33) 63 Hillview Avenue Singapore 669569


@ 2 JALAN KILANG BARAT Leasehold 99 49 (34) 2 Jalan Kilang BaratSingapore 159346


377,900 290,100 48.04 39.31


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General Industrial Properties (4)

@ 86 INTERNATIONAL ROAD Leasehold 30+30 42 (35) 86 International RoadSingapore 629176

GeneralIndustrial

100 100 11,700 17,500 1.49 2.37

@ 9 TUAS VIEW CRESCENT Leasehold 30+30 46 (36) 9 Tuas View CrescentSingapore 637612

GeneralIndustrial

100 100 9,200 7,300 1.17 0.99

@ 28 SENOKO DRIVE Leasehold 30+30 27 (37) 28 Senoko Drive Singapore 758214

GeneralIndustrial

100 100 13,400 12,500 1.70 1.69

@ 31 CHANGI SOUTH AVENUE 2 Leasehold 30+30 42 (38) 31 Changi South Avenue 2Singapore 486478

GeneralIndustrial

100 100 8,100 6,800 1.03 0.92

@ 21B SENOKO LOOP Leasehold 30+30 40 (39) 21B Senoko LoopSingapore 758171

GeneralIndustrial

100 100 15,500 14,500 1.97 1.96

@ 23 WOODLANDS TERRACE Leasehold 30+30 44 (40) 23 Woodlands Terrace Singapore 738472

GeneralIndustrial

100 100 16,600 16,300 2.11 2.21

# 22 CHIN BEE DRIVE Leasehold 30 23 (41) 22 Chin Bee Drive Singapore 619870

GeneralIndustrial

100 100 15,500 15,500 1.97 2.10

@ 7 GUL LANE Leasehold 30+30 28 (42) 7 Gul LaneSingapore 629406

GeneralIndustrial

100 100 5,800 4,300 0.74 0.58

@ 31 KIAN TECK WAY Leasehold 30+19 30 (43) 31 Kian Teck WaySingapore 628751

GeneralIndustrial

100 100 4,100 3,700 0.52 0.50


GeneralIndustrial

100 100 12,600 10,300 1.60 1.40

@ 2 TUAS SOUTH AVENUE 2 Leasehold 60 46 (45) 2 Tuas South Ave 2Singapore 637601

GeneralIndustrial

100 100 31,600 30,000 4.02 4.07

144,100 138,700 18.32 18.79


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@ 86 INTERNATIONAL ROAD Leasehold 30+30 42 (35) 86 International RoadSingapore 629176

GeneralIndustrial

100 100 11,700 17,500 1.49 2.37

@ 9 TUAS VIEW CRESCENT Leasehold 30+30 46 (36) 9 Tuas View CrescentSingapore 637612

GeneralIndustrial

100 100 9,200 7,300 1.17 0.99

@ 28 SENOKO DRIVE Leasehold 30+30 27 (37) 28 Senoko Drive Singapore 758214

GeneralIndustrial

100 100 13,400 12,500 1.70 1.69


GeneralIndustrial

100 100 8,100 6,800 1.03 0.92

@ 21B SENOKO LOOP Leasehold 30+30 40 (39) 21B Senoko LoopSingapore 758171

GeneralIndustrial

100 100 15,500 14,500 1.97 1.96

@ 23 WOODLANDS TERRACE Leasehold 30+30 44 (40) 23 Woodlands Terrace Singapore 738472

GeneralIndustrial

100 100 16,600 16,300 2.11 2.21

# 22 CHIN BEE DRIVE Leasehold 30 23 (41) 22 Chin Bee Drive Singapore 619870

GeneralIndustrial

100 100 15,500 15,500 1.97 2.10

@ 7 GUL LANE Leasehold 30+30 28 (42) 7 Gul LaneSingapore 629406

GeneralIndustrial

100 100 5,800 4,300 0.74 0.58

@ 31 KIAN TECK WAY Leasehold 30+19 30 (43) 31 Kian Teck WaySingapore 628751

GeneralIndustrial

100 100 4,100 3,700 0.52 0.50


GeneralIndustrial

100 100 12,600 10,300 1.60 1.40

@ 2 TUAS SOUTH AVENUE 2 Leasehold 60 46 (45) 2 Tuas South Ave 2Singapore 637601

GeneralIndustrial

100 100 31,600 30,000 4.02 4.07

144,100 138,700 18.32 18.79


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# 511/513 YISHUN INDUSTRIAL PARK A

Leasehold 30+29/30+30 41/41 (46) 511/513 Yishun Industrial Park A Singapore 768768/768736

GeneralIndustrial

100 100 33,200 33,200 4.22 4.50

# 60 TUAS SOUTH STREET 1 Leasehold 30+30 52 (47) 60 Tuas South Street 1 Singapore 639925

GeneralIndustrial

100 100 6,400 6,400 0.81 0.87

# 5/7 GUL STREET 1 Leasehold 29.5 25 (48) 5/7 Gul Street 1 Singapore 629318/629320

GeneralIndustrial

100 100 14,500 14,500 1.84 1.96

@ 28 WOODLANDS LOOP Leasehold 30+30 43 (49) 28 Woodlands LoopSingapore 738308

GeneralIndustrial

100 100 16,900 15,500 2.15 2.10

@ 25 PIONEER CRESCENT Leasehold 30+28 54 (50) 25 Pioneer Crescent Singapore 628554

GeneralIndustrial

100 – 15,800 – 2.01 –

43 TUAS VIEW CIRCUIT Leasehold 30+30 55 (51) 43 Tuas View CircuitSingapore 637360

GeneralIndustrial

–^^ – 14,700 – 1.87 –

@ 30 MARSILING INDUSTRIAL ESTATE ROAD 8

Leasehold 30+30 37 (52) 30 Marsiling Industrial Estate Road 8Singapore 739193

GeneralIndustrial

100 – 39,000 – 4.96 –

@ 11 WOODLANDS WALK Leasehold 30+30 43 (53) 11 Woodlands WalkSingapore 738265

GeneralIndustrial

100 – 17,300 – 2.20 –

~ 6 TUAS BAY WALK Leasehold 30+30 44 6 Tuas Bay Walk Singapore 637752

GeneralIndustrial

– 54 – 6,500 – 0.88

301,900 214,800 38.38 29.10


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# 511/513 YISHUN INDUSTRIAL PARK A

Leasehold 30+29/30+30 41/41 (46) 511/513 Yishun Industrial Park A Singapore 768768/768736

GeneralIndustrial

100 100 33,200 33,200 4.22 4.50

# 60 TUAS SOUTH STREET 1 Leasehold 30+30 52 (47) 60 Tuas South Street 1 Singapore 639925

GeneralIndustrial

100 100 6,400 6,400 0.81 0.87

# 5/7 GUL STREET 1 Leasehold 29.5 25 (48) 5/7 Gul Street 1 Singapore 629318/629320

GeneralIndustrial

100 100 14,500 14,500 1.84 1.96

@ 28 WOODLANDS LOOP Leasehold 30+30 43 (49) 28 Woodlands LoopSingapore 738308

GeneralIndustrial

100 100 16,900 15,500 2.15 2.10

@ 25 PIONEER CRESCENT Leasehold 30+28 54 (50) 25 Pioneer Crescent Singapore 628554

GeneralIndustrial

100 – 15,800 – 2.01 –

43 TUAS VIEW CIRCUIT Leasehold 30+30 55 (51) 43 Tuas View CircuitSingapore 637360

GeneralIndustrial

–^^ – 14,700 – 1.87 –

@ 30 MARSILING INDUSTRIAL ESTATE ROAD 8

Leasehold 30+30 37 (52) 30 Marsiling Industrial Estate Road 8Singapore 739193

GeneralIndustrial

100 – 39,000 – 4.96 –

@ 11 WOODLANDS WALK Leasehold 30+30 43 (53) 11 Woodlands WalkSingapore 738265

GeneralIndustrial

100 – 17,300 – 2.20 –

~ 6 TUAS BAY WALK Leasehold 30+30 44 6 Tuas Bay Walk Singapore 637752

GeneralIndustrial

– 54 – 6,500 – 0.88

301,900 214,800 38.38 29.10


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Car Showroom and Workshop Properties (5)

@ 23 LORONG 8 TOA PAYOH Leasehold 30+30 39 (54) 23 Lorong 8 Toa PayohSingapore 319257

Car Showroom and Workshop

100 100 16,000 13,400 2.03 1.82

~ 7 UBI CLOSE Leasehold 30 12 7 Ubi Close Singapore 408604


– 100 – 18,300 – 2.48

16,000 31,700 2.03 4.30

GroupInvestment properties, at valuationOther assets and liabilities (net) 1,195,000 1,023,600 151.90 138.72Unitholders’ funds (408,307) (285,716) (51.90) (38.72)

786,693 737,884 100.00 100.00

TrustInvestment properties, at valuationOther assets and liabilities (net) 1,195,000 1,023,600 151.90 138.72Unitholders’ funds (408,308) (285,716) (51.90) (38.72)

786,692 737,884 100.00 100.00


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Car Showroom and Workshop Properties (5)

@ 23 LORONG 8 TOA PAYOH Leasehold 30+30 39 (54) 23 Lorong 8 Toa PayohSingapore 319257


100 100 16,000 13,400 2.03 1.82

~ 7 UBI CLOSE Leasehold 30 12 7 Ubi Close Singapore 408604


– 100 – 18,300 – 2.48

16,000 31,700 2.03 4.30

GroupInvestment properties, at valuationOther assets and liabilities (net) 1,195,000 1,023,600 151.90 138.72Unitholders’ funds (408,307) (285,716) (51.90) (38.72)

786,693 737,884 100.00 100.00

TrustInvestment properties, at valuationOther assets and liabilities (net) 1,195,000 1,023,600 151.90 138.72Unitholders’ funds (408,308) (285,716) (51.90) (38.72)

786,692 737,884 100.00 100.00


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2012 2011At

Independent Valuation

At Independent

Valuation$’000 $’000

As disclosed in the Statement of Financial Position:

Investment properties – non current 994,600 1,005,300Investment properties held for divestment – current (denoted as (*) in

the Portfolio Statement) 200,400 18,300Total investment properties 1,195,000 1,023,600

Notes

(1) These Properties are single or multi-storey distribution and logistics facilities catering for tenants that are 3rd party logistics and supply chain management providers or trading companies.

(2) These Properties are single or multi-storey warehouse facilities with low content of office space that are used by both MNCs and local SMEs predominantly as storage space for raw material, semi-finished or finished goods; coupled with light industrial activities such as assembly and packing. This also includes self-storage business.

(3) These Properties are Single or multi-storey of manufacturing/production space with low content of office space used by both MNCs and local SMEs for light industrial activities such as light manufacturing, assembly, non-pollutive industrial and businesses that engage in high technology, R&D or type 1 e-business kind of activities.

(4) These Properties are Single or multi-storey of manufacturing/factory facilities with low content of office space catering to both MNCs and SMEs for industrial purposes which includes but not limited to manufacturing, altering, repairing, finishing, precision engineering.

(5) These Properties are multi-storey industrial facility used by tenants for car showroom and service workshop. Such facility comes with low office content combined with warehouse space mainly for spare parts.

(6) CIT holds the remainder of a 30+12 year lease commencing from 1 March 1995.(7) CIT holds the remainder of a 30+30 year lease commencing from 16 December 1990.(8) CIT holds the remainder of a 30+30 year lease commencing from 1 July 1979.(9) CIT holds the remainder of a 30 year lease commencing from 16 December 2001.(10) CIT holds the remainder of a 30+30 year lease commencing from 1 April 1994.(11) CIT holds the remainder of a 30+30 year lease commencing from 16 October 1994.(12) CIT holds the remainder of a 30+29 year lease commencing from 1 November 1997.(13) CIT holds the remainder of a 60 year lease commencing from 16 February 1973.(14) CIT holds the remainder of a 30+28 year lease commencing from 16 February 1997.(15) CIT holds the remainder of a 30+30 year lease commencing from 1 February 1993.(16) CIT holds the remainder of a 30+30 year lease commencing from 1 December 1990.(17) CIT holds the remainder of a 30+30 year lease commencing from 1 February 2000.(18) CIT holds the remainder of a 30+30 year lease commencing from 1 October 1993.(19) CIT holds the remainder of a 30+30 year lease commencing from 16 February 1991.(20) CIT holds the remainder of a 30+30 year lease commencing from 16 August 1995.(21) CIT holds the remainder of a 30+30 year lease commencing from 1 February 1997.(22) CIT holds the remainder of a 30+30 year lease commencing from 1 October 1990.(23) CIT holds the remainder of a 60 year lease commencing from 4 January 1999.(24) CIT holds the remainder of a 30+30 year lease commencing from 16 April 1997.(25) CIT holds the remainder of a 30+30 year lease commencing from 1 November 1990.(26) CIT holds the remainder of a 30+30 year lease commencing from 1 February 1997.(27) CIT holds the remainder of a 30+30 year lease commencing from 1 May 1992.(28) CIT holds the remainder of a 30+30 year lease commencing from 1 March 2001 for 1 Changi North and 30+30 year lease commencing from

23 November 2005 for 2 Changi North.(29) CIT holds the remainder of a 30+30 year lease commencing from 4 July 2007.(30) CIT holds the remainder of a 30 year lease commencing from 16 October 2011.(31) CIT holds the remainder of a 30+30 year lease commencing from 1 July 1996.(32) CIT holds the remainder of a 30+30 year lease commencing from 1 December 1991.(33) CIT acquired freehold title to 97 out of 154 strata units, representing 69.4% of the total share value of the strata units comprised in the property.(34) CIT holds the remainder of a 99 year lease commencing from 1 July 1963.(35) CIT holds the remainder of a 30+30 year lease commencing from 16 December 1994.(36) CIT holds the remainder of a 30+30 year lease commencing from 16 July 1998.(37) CIT holds the remainder of a 30+30 year lease commencing from 16 December 1979.(38) CIT holds the remainder of a 30+30 year lease commencing from 1 March 1995.(39) CIT holds the remainder of a 30+30 year lease commencing from 1 February 1993.(40) CIT holds the remainder of a 30+30 year lease commencing from 16 November 1996.


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(41) CIT holds the remainder of a 30 year lease commencing from 16 September 2005.(42) CIT holds the remainder of a 30+30 year lease commencing from 16 May 1981.(43) CIT holds the remainder of a 30+19 year lease commencing from 1 September 1993.(44) CIT holds the remainder of a 30+30 year lease commencing from 1 September 1995.(45) CIT holds the remainder of a 60 year lease commencing from 4 January 1999.(46) CIT holds the remainder of a 30+29 year lease commencing from 1 June 1995 for 511 Yishun and 30+30 lease commencing from 1 December 1993

for 513 Yishun.(47) CIT holds the remainder of a 30+30 year lease commencing from 16 March 2005.(48) CIT holds the remainder of a 29.5 year lease commencing from 1 April 2008.(49) CIT holds the remainder of a 30+30 year lease commencing from 16 October 1995.(50) CIT holds the remainder of a 30+28 year lease commencing from 1February 2009.(51) CIT holds the remainder of a 30+30 year lease commencing from 1 February 2008.(52) CIT holds the remainder of a 30+30 year lease commencing from 1 December 1989.(53) CIT holds the remainder of a 30+30 year lease commencing from 16 October 1995.(54) CIT holds the remainder of a 30+30 year lease commencing from 1 February 1992.@ PropertiespledgedassecuritytosecuretheClubLoanFacilityof$470million(seeNote10).# PropertiespledgedassecuritytosecuretheAcquisitionTermLoanFacilityof$120million(seeNote10).+ PropertypledgedassecuritytosecuretheRevolvingCreditFacilityof$40million(seeNote10).^ Property at 1 Tuas Avenue 3 was possessed by Government on 31 December 2012 and property at 30 Tuas Road will be possessed by

Government in 1Q 2013 (see Note 4). ~ These properties were disposed of during the financial year.^^ Occupancy is subject to prospective tenant satisfying certain criteria required by JTC. No revenue has been recognised for this property in FY 2012.

Investment properties comprise a diverse portfolio of industrial properties that are leased to external tenants. All of the leases are structured under single-tenancy or multiple-tenancy and the tenancies range from three to thirty years for single tenancy and six months to ten years for multiple-tenancy. No contingent rents were recognised in the Statement of Total Return.

In determining the fair value, the valuers have used valuation methods which involve certain estimates. The Manager has exercised its judgment and is satisfied that the valuation methods and estimates are reflective of the current market conditions.

The independent professional valuers have considered valuation techniques including direct comparison method, capitalisation approach and/or discounted cash flow analysis in arriving at the open market value as at the reporting date. The key assumptions used to determine the fair value of investment properties include market-corroborated capitalisation yield, terminal yield, discount rate and average growth rate.

Asatthereportingdate,investmentpropertieswithacarryingvalueof$1,112.3million(2011:$933.6million)havebeen mortgaged as security for loan facilities granted by a syndicate of four financial institutions, National Australia Bank Limited and Standard Chartered Bank respectively to the Group (see Note 10).


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Consolidated statementof Cash Flows

Group2012 2011

$’000 $’000

Cash flows from operating activitiesTotal return before income tax for the year 89,461 85,173Adjustments for:Interest income (68) (110)Borrowing costs 19,656 26,221Gain on disposal of investment properties (2,241) (2,194)Change in fair value of financial derivatives (141) 3,372Change in fair value of investment properties and investment properties

under development (41,647) (50,506)Operating income before working capital changes 65,020 61,956Changes in working capital:Trade and other receivables (159) (459)Trade and other payables 1,464 (3,766)Income tax paid – (21)Net cash generated from operating activities 66,325 57,710

Cash flows from investing activitiesNet cash outflow on purchase of investment properties

(including acquisition related costs) (Note A) (174,104) (66,437)Payment for investment properties under development (19,807) (3,447)Proceeds from disposal of investment properties 60,712 24,429Interest received 68 110Net cash used in investing activities (133,131) (45,345)

Cash flows from financing activitiesProceeds from issuance of new units – 56,685Equity issue costs paid (104) (3,083)Proceeds from borrowings 139,167 342,131Borrowing costs paid (18,681) (34,230)Repayment of borrowings (2,000) (323,100)Distributions paid to Unitholders (Note B) (40,582) (43,074)Net cash generated from/(used) in financing activities 77,800 (4,671)

Net increase in cash and cash equivalents 10,994 7,694Cash and cash equivalents at 1 January 78,763 71,069Cash and cash equivalents at 31 December 89,757 78,763



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Notes:

(A) Net Cash Outflow on Purchase of Investment Properties (including acquisition related costs)

Net cash outflow on purchase of investment properties (including acquisition related costs) is set out below:

Group2012 2011

$’000 $’000

Investment properties 166,350 60,900Acquisition related costs 2,209 939Capital expenditure incurred 6,454 4,391Investment properties acquired (including acquisition

related costs and capital expenditure incurred) 175,013 66,230Retention sums (909) 207 (*)

Net cash outflow 174,104 66,437

(*) includes retention sum released during the previous year for properties 5/7 Gul Street 1 and 511/513 Yishun Industrial Park A

(B) Significant Non-cash Transactions

Distributions for the year ended 31 December 2012 were partly paid by CIT issuing an aggregate of 26,531,742unitsamountingto$15.3million,pursuanttoitsdistributionreinvestmentplan.

Consolidated statementof Cash Flows



98 notes to the Financialstatements


These notes form an integral part of the financial statements.

The financial statements were authorised for issue by the Manager and the Trustee on 12 March 2013.

1 General

Cambridge Industrial Trust (“CIT” or the “Trust”) is a Singapore-domiciled unit trust constituted pursuant to the trust deed dated 31 March 2006 (as amended) entered into between Cambridge Industrial Trust Management Limited (the “Manager”) and RBC Investor Services Trust Singapore Limited (the “Trustee”), and is governed by the laws of the Republic of Singapore (“Trust Deed”). On 31 March 2006, CIT was declared as an authorised unit trust scheme under the Trustees Act, Chapter 337. The Trustee is under a duty to take into custody and hold the assets of the Trust and its subsidiary (the “Group”) held by it in trust for the holders (“Unitholders”) of units in the Trust (the “Units”).

On 25 July 2006, CIT was admitted to the Official List of the Singapore Exchange Securities Trading Limited (“SGX-ST”). On 3 April 2006, CIT was included under the Central Provident Fund (“CPF”) Investment Scheme.

The financial statements of the Group as at and for the year ended 31 December 2012 comprise the Trust and its subsidiary (together referred to as the “Group”).

The principal activity of CIT is to invest in a diverse portfolio of properties with the primary objective of achieving an attractive level of return from rental income and long-term capital growth. The principal activity of the subsidiary is set out in Note 6 to the financial statements.

CIT has entered into several service agreements in relation to the management of CIT and its property operations. The fee structures of these services are as follows:

(A) Trustee’s Fees

Pursuant to the Trust Deed, the Trustee’s fees shall not exceed 0.1% per annum of the value of all the gross assets of CIT (“Deposited Property”), excluding out-of-pocket expenses and GST. The actual fee payable will be determined between the Manager and the Trustee from time to time. The Trustee’s fee is presently charged on a scaled basis of up to 0.03% per annum of the value of the Deposited Property.

(B) Manager’s Management Fees

Under the Trust Deed, the Manager is entitled to receive the base fee and performance fee as follows:

(i) A base fee (“Base Fee”) of 0.5% per annum of the value of the Deposited Property or such higher percentage as may be fixed by an Extraordinary Resolution of Meeting of Unitholders.

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notes to the Financialstatements

1 General (Cont’d)

(B) Manager’s Management Fees (Cont’d)

(ii) A performance fee (“Performance Fee”), where the total return (comprising capital gains and accumulated distributions and assuming all distributions are reinvested in CIT) of the Units (expressed as the Trust Index) in any six-month period ending 30 June or 31 December (“Half-Year”) exceeds the total return of a benchmark index (the “Cambridge Benchmark Index”). The Cambridge Benchmark Index, compiled and calculated independently by FTSE, currently comprises eight of the largest Singapore Real Estate Investment Trusts. The Performance Fee is calculated in two tiers as follows:

• aTier1PerformanceFeeequalto5.0%oftheamountbywhichthetotalreturnoftheTrust Index exceeds the total return of the Cambridge Benchmark Index, multiplied by the equity market capitalisation of CIT; and

• aTier2PerformanceFeewhichisapplicableonlywherethetotalreturnoftheTrustIndex is in excess of 2.0% per annum (1.0% for each Half Year) above the total return of the Cambridge Benchmark Index. This tier of the fee is calculated at 15.0% of the amount by which the total return of the Trust Index is in excess of 2.0% per annum above the total return of the Cambridge Benchmark Index, multiplied by the equity market capitalisation of CIT.

For the purposes of the Tier 1 Performance Fee and the Tier 2 Performance Fee, the amount by which the total return of the Trust Index exceeds the total return of the Cambridge Benchmark Index shall be referred to as “outperformance”.

The outperformance of the Trust Index is assessed on a cumulative basis and any prior underperformance of CIT will need to be recovered before the Manager is entitled to any Performance Fee.

The Performance Fee, whether payable in any combination of cash and Units or solely in cash or Units will be payable six monthly in arrears. If a trigger event occurs in any Half-Year, resulting in the Manager being removed, the Manager is entitled to payment of any Performance Fee (whether in cash or in the form of Units) to which it might otherwise have been entitled for that Half-Year in cash, which shall be calculated, as if the end of the Half-Year was the date of occurrence of the trigger event, in accordance with the Trust Deed. If a trigger event occurs at a time when any accrued Performance Fee has not been paid, resulting in the Manager being removed, the Manager is entitled to payment of such accrued Performance Fee in cash.

Management fees (Base Fee and Performance Fee, including any accrued Performance Fee which have been carried forward from previous financial years but excluding any acquisition fee or disposal fee) to be paid to the Manager in respect of a financial year, whether in cash or in Units or a combination of cash and Units, are capped at an amount equivalent to 0.8% per annum of the value of Deposited Property as at the end of the financial year (referred to as the “annual fee cap”).

If the amount of such fees for a financial year exceeds the annual fee cap, the Base Fee of the financial year shall be paid to the Manager and only that portion of the Performance Fee equal to the balance of an amount up to the annual fee cap will be paid to the Manager. The remaining portion of the Performance Fee, which will not be paid, shall be accrued and carried forward for payment to the Manager in future Half-Years. If, at the end of a Half-Year, there is any accrued Performance Fee which has been accrued for a period of at least three years prior to the end of that Half-Year, such accrued Performance Fee shall be paid to the Manager if the accumulated return of the Trust Index in that three-year period exceeds the accumulated return of the Cambridge Benchmark Index over the same period. The payment of such accrued Performance Fee shall not be subject to the annual fee cap.




(B) Manager’s Management Fees (Cont’d)

In the current and previous financial year, the Manager elected to receive the entire base fee in cash.

In the current year, the Manager elected to receive the entire performance fee in cash.

(C) Manager’s Acquisition and Disposal Fees

The Manager is also entitled to receive the following fees:

(i) An acquisition fee of 1.0% of each of the following as is applicable, subject to there being no double-counting:

(a) the purchase price, excluding GST, of any real estate acquired, whether directly by CIT or indirectly through a special purpose vehicle;

(b) the value of any underlying real estate (pro-rata, if applicable, to the proportion of CIT’s interest in such real estate) where CIT invests in any class of real estate related assets, including any class of equity, equity-linked securities and/or securities issued in real estate securitisation, of any entity directly or indirectly owning or acquiring such real estate, provided that:

• CITshallholdorinvestinatleast50.0%oftheequityofsuchentity;or

• ifCITholdsorinvestsin30.0%ormorebutlessthan50.0%oftheequityofsuch entity, CIT shall have management control of the underlying real estate and/or such entity;

(c) the value of any shareholder’s loan extended by CIT to the entity referred to in paragraph (b) above, provided that the proviso in paragraph (b) is complied with; and

(d) the value of any investment by CIT in any loan extended to, or in debt securities of, any property corporation or other special purpose vehicle owning or acquiring real estate, (where such investment does not fall within the ambit of paragraph (b) made with the prior consent of the Unitholders passed by ordinary resolution at a meeting of Unitholders duly convened and held in accordance with the provisions of the Trust Deed.

(ii) A disposal fee of 0.5% of each of the following as is applicable, subject to there being no double-counting:

(a) the sale price, excluding GST, of any investment of the type referred to in paragraph (C)(i)(a) above for the acquisition fee;

(b) in relation to an investment of the type referred to in paragraph (C)(i)(b) above for the acquisition fee, the value of any underlying real estate (pro-rata, if applicable, to the proportion of CIT’s interest in such real estate);

(c) the proceeds of sale, repayment or (as the case may be) redemption of an investment in a loan referred to in paragraph (C)(i)(c) above for the acquisition fee; and

(d) the value of an investment referred to in paragraph (C)(i)(d) above for the acquisition fee.

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(C) Manager’s Acquisition and Disposal Fees (Cont’d)

The Manager can opt to receive acquisition and disposal fees in the form of cash or Units or a combination as it may determine.

(D) Property Manager’s Fees

Cambridge Industrial Property Management Pte. Ltd. (the “Property Manager”) as property manager of CIT is entitled to receive the following fees:

(i) A property management fee of 2.0% per annum of the gross revenue of the relevant property;

(ii) A lease management fee of 1.0% per annum of the gross revenue of the relevant property;

(iii) A marketing services commission equivalent to:

(a) one month’s gross rent, inclusive of service charge, for securing a tenancy of three years or less;

(b) two month’s gross rent, inclusive of service charge, for securing a tenancy of more than three years;

(c) half month’s gross rent, inclusive of service charge, for securing a renewal of tenancy of three years or less; and

(d) one month’s gross rent, inclusive of service charge, for securing a renewal of tenancy of more than three years.

(iv) A project management fee in relation to development or redevelopment (if not prohibited by the Property Funds Guidelines or if otherwise permitted by the MAS), the refurbishment, retrofitting and renovation works on a property, as follows:

(a) wheretheconstructioncostsare$2.0millionorless,afeeof3.0%oftheconstructioncosts;

(b) wheretheconstructioncostsexceed$2.0millionbutdonotexceed$20.0million, a fee of 2.0% of the construction costs;

(c) wheretheconstructioncostsexceed$20.0millionbutdonotexceed$50.0million, a fee of 1.5% of the construction costs; and

(d) wheretheconstructioncostsexceed$50.0million,afeetobemutuallyagreedbytheManager, the Property Manager and the Trustee.




(D) Property Manager’s Fees (Cont’d)

(v) A property tax services fee in respect of property tax objections submitted to the tax authority on any proposed annual value of a property if, as a result of such objections, the proposed annual value is reduced resulting in property tax savings for the relevant property:

(a) wheretheproposedannualvalueis$1.0millionorless,afeeof7.5%ofthepropertytax savings;

(b) wheretheproposedannualvalueismorethan$1.0millionbutdoesnotexceed$5.0million, a fee of 5.5% of the property tax savings; and

(c) wheretheproposedannualvalueismorethan$5.0million,afeeof5.0%ofthepropertytax savings.

The above-mentioned fee is a lump sum fixed fee based on the property tax savings calculated over a 12-month period.

2 Basis of preparation

2.1 Statement of Compliance

The financial statements are prepared in accordance with the recommendations of Statement of Recommended Accounting Practice (“RAP”) 7 “Reporting Framework for Unit Trusts” issued by the Institute of Certified Public Accountants of Singapore and the applicable requirements of the Code on Collective Investment Schemes (“CIS Code”) issued by the MAS and the provisions of the Trust Deed. RAP 7 requires that accounting policies adopted should generally comply with the recognition and measurement principles of Singapore Financial Reporting Standards (“FRS”).

2.2 Basis of Measurement

The financial statements have been prepared on the historical cost basis, except for investment properties, investment properties under development and certain financial liabilities, which are stated at fair value.

2.3 Functional and Presentation Currency

The financial statements are presented in Singapore dollars, which is the Trust’s functional currency. All financial information presented in Singapore dollars has been rounded to the nearest thousand, unless otherwise stated.

2.4 Use of Estimates and Judgments

The preparation of financial statements in conformity with RAP 7 requires the Manager to make judgments, estimates and assumptions that affect the application of policies and reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates.

Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised and in any future periods.

In particular, information about assumptions and estimation uncertainties that have a significant risk of resulting in a material adjustment within the next financial year are included in the following notes:

- Note 4 – fair value determination of investment properties- Note 24 – valuation of financial instruments

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3 Significant Accounting Policies

There has been no significant change in the accounting policies from the previous financial year.

3.1 Basis of Consolidation

Subsidiary

The subsidiary is an entity controlled by the Group. The financial statements of the subsidiary are included in the consolidated financial statements from the date that control commences until the date that control ceases.

The accounting policies of the subsidiary have been aligned with the policies adopted by the Group.

Transactions Eliminated on Consolidation

Intra-group balances and transactions, and any unrealised income and expenses arising from intra-group transactions, are eliminated in preparing the consolidated financial statements.

Subsidiary in the Separate Financial Statements

Investment in subsidiary is stated in the Trust’s statement of financial position at cost less accumulated impairment losses.

Investment in Jointly Controlled Entity (Equity-Accounted Investee)

A Jointly controlled entity is an entity over whose activities the Group has joint control, established by contractual agreement and requiring unanimous consent for strategic financial and operating decisions.

Investment in jointly controlled entity is accounted for using equity method (equity-accounted investees) and is recognised initially at cost. The cost of the investment includes transaction costs.

The consolidated financial statements include the Group’s share of the profit or loss and other comprehensive income of the equity-accounted investee with those of the Group, from the date that significant influence or joint control commences until the date that joint control ceases.

When the Group’s share of losses exceeds its interest in an equity-accounted investee, the carrying amount of the investment, together with any long-term interests that form part thereof, is reduced to zero, and the recognition of further losses is discontinued except to the extent that the Group has an obligation to fund the investee’s operations or has made payments on behalf of the investee.

3.2 Investment Properties

Investment properties are accounted for as non-current assets, except if they meet the conditions to be classified as held for divestment (see Note 3.4 below). These properties are stated at initial cost on acquisition, and at valuation thereafter. The cost of a purchased property comprises its purchase price and any directly attributable expenditure. Transaction costs shall be included in the initial measurements. Valuations are determined in accordance with the Trust Deed, which requires the investment properties to be valued by independent registered valuers in the following manner:

(i) in such manner and frequency required under the CIS code issued by MAS; and

(ii) at least once in each period of 12 months following the acquisition of each investment property



3 Significant Accounting Policies (Cont’d)

3.2 Investment Properties (Cont’d)

Any increase or decrease on revaluation is credited or charged directly to the Statement of Total Return as a net change in fair value of investment properties.

Subsequent expenditure relating to investment properties that have already been recognised is added to the carrying amount of the asset when it is probable that future economic benefits, in excess of originally assessed standard of performance of the existing asset, will flow to CIT. All other subsequent expenditure is recognised as an expense in the period in which it is incurred.

When an investment property is disposed of, the resulting gain or loss recognised in the Statement of Total Return is the difference between net disposal proceeds and the carrying amount of the property.

Investment properties are not depreciated. The properties are subject to continued maintenance and regularly revalued on the basis set out above.

3.3 Investment Properties Under Development

Investment properties under development are properties constructed or developed for future use as investment property. Investment properties under development are measured at fair value. The difference between the fair value and cost (including acquisition costs, development expenditure, borrowing costs and other related expenditures) is credited or charged to the Statement of Total Return as a change in fair value of investment properties under development. Upon completion, the carrying amounts are reclassified to investment properties.

3.4 Investment Properties Held for Divestment

Investment properties that are expected to be recovered primarily through divestment rather than through continuing use, are classified as held for divestment and accounted for as current assets. These investment properties are measured at fair value and any increase or decrease on revaluation is credited or charged directly to the Statement of Total Return as a net change in fair value of investment properties.

Upon disposal, the resulting gain or loss recognised in the Statement of Total Return is the difference between net disposal proceeds and the carrying amount of the property.

3.5 Financial Instruments

Non-derivative Financial Assets

The Group initially recognises loans and receivables and deposits on the date that they are originated. All other financial assets are recognised initially on the trade date at which the Group becomes a party to the contractual provisions of the instrument.

The Group derecognises a financial asset when the contractual rights to the cash flows from the asset expire, or it transfers the rights to receive the contractual cash flows on the financial asset in a transaction in which substantially all the risks and rewards of ownership of the financial asset are transferred. Any interest in transferred financial assets that is created or retained by the Trust is recognised as a separate asset or liability.

Financial assets and liabilities are offset and the net amount presented in the statement of financial position when, and only when, the Group has a legal right to offset the amounts and intends either to settle on a net basis or to realise the asset and settle the liability simultaneously.

Non-derivative financial assets comprise loans and receivables.

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3.5 Financial Instruments (Cont’d)

Non-derivative Financial Assets (Cont’d)

Loans and Receivables

Loans and receivables are financial assets with fixed or determinable payments that are not quoted in an active market. Such assets are recognised initially at fair value plus any directly attributable transaction costs. Subsequent to initial recognition, loans and receivables are measured at amortised cost using the effective interest method, less any impairment losses.

Loans and receivables comprise cash and cash equivalents and trade and other receivables.

Cash and cash equivalents consists of cash balances.

Non-derivative Financial Liabilities

Financial liabilities are recognised initially on the trade date at which the Group becomes a party to the contractual provisions of the instrument.

The Group derecognises a financial liability when its contractual obligations are discharged or cancelled or when they expire.

The Group has the following non-derivative financial liabilities: loans and borrowings and trade and other payables.

Such financial liabilities are recognised initially at fair value plus any directly attributable transaction costs. Subsequent to initial recognition, these financial liabilities are measured at amortised cost using the effective interest method.

Unitholders’ Funds

Unitholders’ funds are classified as equity. Incremental costs directly attributable to the issue of units are recognised as a deduction from equity, net of any tax effects.

Derivative Financial Instruments and Hedging Activities

The Group held derivative financial instruments to hedge its interest rate risk exposure. Embedded derivatives are separated from the host contract and accounted for separately if the economic characteristics and risks of the host contract and the embedded derivative are not closely related, a separate instrument with the same terms as the embedded derivative would meet the definition of a derivative, and the combined instrument is not measured at fair value through Statement of Total Return. Derivatives are not used for trading purposes.

Derivatives are recognised initially at fair value; attributable transaction costs are recognised in the Statement of Total Return when incurred. Subsequent to initial recognition, derivatives are measured at fair value, and changes therein are recognised immediately in the Statement of Total Return.

Other Non-trading Derivatives

When a derivative financial instrument is not held for trading, and is not designated in a qualifying hedge relationship, all changes in its fair value are recognised immediately in the Statement of Total Return.




3.5 Financial Instruments (Cont’d)

Impairment of Financial Assets

A financial asset is assessed at each reporting date to determine whether there is any objective evidence that it is impaired. A financial asset is considered to be impaired if objective evidence indicates that one or more events have had a negative effect on the estimated future cash flows of that asset.

Objective evidence that financial assets (including equity securities) are impaired can include default or delinquency by a debtor, restructuring of an amount due to the Group on terms that the Group would not consider otherwise, indications that a debtor or issuer will enter bankruptcy, the disappearance of an active market for a security.

An impairment loss in respect of a financial asset measured at amortised cost is calculated as the difference between its carrying amount, and the present value of the estimated future cash flows discounted at the original effective interest rate.

Individually significant financial assets are tested for impairment on an individual basis. The remaining financial assets are assessed collectively in groups that share similar credit risk characteristics.

All impairment losses are recognised in the Statement of Total Return.

Impairment losses in respect of financial assets measured at amortised cost are reversed to the Statement of Total Return, if the subsequent increase in fair value can be related objectively to an event occurring after the impairment loss was recognised.

3.6 Impairment – Non-financial Assets

The carrying amounts of the Group’s non-financial assets, other than investment properties and investment properties under development, are reviewed at each reporting date to determine whether there is any indication of impairment. If any such indication exists, the assets’ recoverable amounts are estimated at each reporting date.

An impairment loss is recognised if the carrying amount of an asset or its cash-generating unit exceeds its estimated recoverable amount. A cash-generating unit is the smallest identifiable asset group that generates cash flows that largely are independent from other assets and groups. Impairment losses are recognised in the Statement of Total Return unless it reverses a previous revaluation, credited to Unitholders’ funds, in which case it is charged to Unitholders’ funds.

The recoverable amount of an asset or cash-generating unit is the greater of its value in use and its fair value less costs to sell. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset or cash-generating unit.

Impairment losses recognised in prior periods are assessed at each reporting date for any indications that the loss has decreased or no longer exists. An impairment loss is reversed if there has been a change in the estimates used to determine the recoverable amount. An impairment loss is reversed only to the extent that the asset’s carrying amount does not exceed the carrying amount that would have been determined, net of depreciation or amortisation, if no impairment loss had been recognised.

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3.7 Revenue Recognition

(i) Rental Income from Operating Leases

Rental income receivable under operating leases is recognised on a straight-line basis over the term of the lease, except when an alternative basis is more representative of the pattern of benefits to be derived from the leased assets. Lease incentives granted are recognised as an integral part of the total rental to be received. Contingent rentals, which include gross turnover rental, are recognised as income in the accounting period on a receipt basis. No contingent rental is recognised if there are uncertainties due to the possible return of the amounts received.

(ii) Interest Income

Interest income is accrued using the effective interest method.

3.8 Expenses

(i) Property Expenses

Property expenses are recognised on an accrual basis. Included in property expenses is Property Manager’s fee which is based on the applicable formula stipulated in Note 1.

(ii) Manager’s Management Fees

Manager’s management fees are recognised on an accrual basis based on the applicable formula stipulated in Note 1. Manager’s management fee paid and payable in Units is recognised as an expense in the Statement of Total Return and a corresponding increase in Unitholders’ funds.

(iii) Trust Expenses

Trust expenses are recognised on an accrual basis. Included in trust expenses is the trustee’s fees which are based on the applicable formula stipulated in Note 1.

(iv) Borrowing Costs

Finance costs comprise interest expense on borrowings, amortisation of borrowings and related transaction costs which are recognised in the Statement of Total Return using the effective interest method over the period of borrowings.

3.9 Taxation

Taxation for the year comprises current and deferred tax. Income tax is recognised in the Statement of Total Return except to the extent that it relates to items directly related to Unitholders’ funds, in which case it is recognised in Unitholders’ funds.

Current tax is the expected tax payable on the taxable income for the year, using tax rates enacted or substantively enacted at the reporting date.




3.9 Taxation (Cont’d)

Deferred tax is recognised in respect of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation purposes. Deferred tax is not recognised for:

- temporary differences on the initial recognition of assets or liabilities in a transaction that is not a business combination and that affects neither accounting nor taxable profit or loss;

- temporary differences related to investment in subsidiary to the extent that the Group is able to control the timing of the reversal of the temporary difference and it is probable that they will not reverse in the foreseeable future; and

- taxable temporary differences arising on the initial recognition of goodwill.

The measurement of deferred tax reflects the tax consequences that would follow the manner in which the Group expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities. Deferred tax is measured at the tax rates that are expected to be applied to the temporary differences when they reverse, based on the laws that have been enacted or substantively enacted by the reporting date.

Deferred tax assets and liabilities are offset if there is a legally enforceable right to offset current tax liabilities and assets and they relate to income taxes levied by the same tax authority on the same entity, or on different tax entities, but they intend to settle current tax liabilities and assets on a net basis or their tax assets and liabilities will be realised simultaneously.

A deferred tax asset is recognised only to the extent that it is probable that future taxable profits will be available against which the unused tax losses and credits can be utilised. Deferred tax assets are reviewed at each reporting date and are reduced to the extent that it is no longer probable that the related tax benefit will be realised.

In determining the amount of current and deferred tax, the Group takes into account the impact of uncertain tax positions and whether additional taxes and interest may be due. The Group believes that its accruals for tax liabilities are adequate for all open tax years based on its assessment of many factors, including interpretations of tax laws and prior experience. This assessment relies on estimates and assumptions and may involve a series of judgements about future events. New information may become available that causes the Group to change its judgement regarding the adequacy of existing tax liabilities; such changes to tax liabilities will impact tax expense in the period that such a determination is made.

The Inland Revenue Authority of Singapore (“IRAS”) has issued a tax ruling on the taxation of CIT and its Unitholders. Subject to meeting the terms and conditions of the tax ruling issued by IRAS, the Trustee will not be assessed to tax on the taxable income of CIT on certain types of income. Instead, the Trustee and the Manager will deduct income tax at the prevailing corporate tax rate (currently 17.0%) from the distributions made to Unitholders that are made out of the taxable income of CIT, except:

(i) where the beneficial owners are individuals or Qualifying Unitholders, the Trustee and the Manager will make the distributions to such Unitholders without deducting any income tax; or

(ii) where the beneficial owners are foreign non-individual Unitholders, the Trustee and the Manager will deduct Singapore income tax at the reduced tax rate of 10.0% for distributions made during the period from 18 February 2010 to 31 March 2015 (both dates inclusive).

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3.9 Taxation (Cont’d)

A “Qualifying Unitholder” is a Unitholder who is:

• ASingapore-incorporatedcompanywhichisataxresidentinSingapore;

• Abodyofpersonsotherthanacompanyorapartnership,registeredorconstitutedinSingapore(e.g.a town council, a statutory board, a registered charity, a registered cooperative society, a registered trade union, a management corporation, a club and a trade industry association); or

• ASingaporebranchofaforeigncompanywhichhasbeenpresentedaletterofapprovalfromIRASgranting waiver from tax deducted at source in respect of distributions from CIT.

A “foreign non-individual Unitholder” is one which is not a resident of Singapore for income tax purposes and;

• whodoesnothaveapermanentestablishmentinSingapore;or

• whocarriesonanyoperationinSingaporethroughapermanentestablishmentinSingapore,wherethe funds used to acquire the Units are not obtained from that operation in Singapore.

The above tax transparency ruling does not apply to gains from sale of real estate properties, if considered to be trading gains derived from a trade or business carried on by CIT or distribution income received or receivable from its quoted investments. Tax on such gains or profits will be assessed, in accordance to section 10(1)(a) of the Income Tax Act, Chapter 134 and collected from the Trustee. Where the gains are capital gains, it will not be assessed to tax and the Trustee and the Manager may distribute the capital gains without tax being deducted at source.

3.10 Distribution Policy

The Group’s distribution policy is to distribute 100% of its taxable income available for distribution to Unitholders. Distributions are made on a quarterly basis at the discretion of the Manager.

3.11 Earnings Per Unit

The Group presents basic earnings per unit (“EPU”) data for its units. Basic EPU is calculated by dividing the total return for the period after tax by the weighted average number of units outstanding during the year, adjusted for own units held. Diluted EPU is determined by adjusting the total return for the period after tax and the weighted average number of units outstanding, adjusted for own units held and for the effects of all dilutive potential units.

3.12 Segment Reporting

An operating segment is a component of the Group that engages in business activities from which it may earn revenues and incur expenses, including revenues and expenses that relate to transactions with any of the Group’s other components. All operating segments’ operating results are reviewed regularly by CIT’s Chief Operating Decision Makers (“CODM”s) which comprise mainly the Board of Directors and the Chief Executive Officer of the Manager, to make decisions about resources to be allocated to the segments and assess its performance and for which discrete financial information is available.




3.13 New Standards, Interpretations and Revised Recommended Accounting Practice Not Yet Adopted

A number of new standards, amendments to standards and interpretations are effective for annual periods beginning after 1 January 2012, and have not been applied in preparing these financial statements. Those new standards, amendments to standards and interpretations that are expected to have a significant effect on the financial statements of the Group and the Trust in future financial periods, and which the Group does not plan to early adopt except as otherwise indicated below, are set out below.

Applicable for the Group’s 2013 Financial Statements

• On29June2012,ICPASissuedarevisedversionofRAP7.RAP7(2012)willbecomeeffectiveforthe Group's financial statements for the year ending 31 December 2013, and has not been applied in preparing these financial statements. The Manager does not expect the application of RAP 7 (2012) to have significant impact on the financial statements of the Group.

• FRS113Fair Value Measurement, which replaces the existing guidance on fair value measurement in different FRSs with a single definition of fair value. The standard also establishes a framework for measuring fair values and sets out the disclosure requirements for fair value measurements.

The adoption of this standard will require the Group to re-assess the bases used for determining the fair values computed for both measurement and disclosure purposes and would result in more extensive disclosures on fair value measurements. On initial application of the standard, the Group does not expect substantial changes to the bases used for determining fair values.

In accordance with the transitional provisions, the Group will apply FRS 113 prospectively as of 1 January 2013. As a result, prior periods in the Group’s 2013 financial statements will not be restated for any adjustments arising from the changes in valuation bases as set out above; any such adjustments will be recorded in the Statement of Total Return in 2013.

Applicable for the Group’s 2014 Financial Statements

• FRS110Consolidated Financial Statements, which changes the definition of control such that an investor controls an investee when it is exposed, or has rights, to variable returns from its involvement with the investee and has the ability to affect those returns through its power with the investee. FRS 110 introduces a single control model with a series of indicators to assess control. FRS 110 also adds additional context, explanation and application guidance based on the principle of control.

As the subsidiary is wholly held by the Trust, there will be no impact to the Group’s financial statements.

• FRS111Joint Arrangements, which establishes the principles for classification and accounting of joint arrangements. The adoption of this standard would require the Group to re-assess and classify its joint arrangements as either joint operations or joint ventures based on its rights and obligations arising from the joint arrangements. Under this standard, interests in joint ventures will be accounted for using the equity method whilst interests in joint operations will be accounted for using the applicable FRSs relating to the underlying assets, liabilities, revenue and expense items arising from the joint operations.

The Group has one investment in a joint arrangement. It holds a 60% interest in a limited liability partnership (“LLP”) which was formed and registered during the financial year. The other 40% interest is held by Oxley Opportunity #9 Pte. Ltd. (“Oxley”). The Group has evaluated the rights and obligations of the parties to this joint arrangement and has determined that the parties in this joint arrangement have joint control rights of the net assets of the arrangement. Accordingly, this joint arrangement will be classified as a joint venture under FRS 111 and will be accounted for using the equity method. The LLP is yet to be capitalised by either partner.

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3.13 New Standards, Interpretations and Revised Recommended Accounting Practice Not Yet Adopted (Cont’d)

Applicable for the Group’s 2014 Financial Statements (Cont’d)

• FRS112Disclosure of Interests in Other Entities, which sets out the disclosures required to be made in respect of all forms of an entity’s interest in other entities, including subsidiaries, joint arrangements, associates and unconsolidated structured entities. The adoption of this standard would result in more extensive disclosure being made in the Group’s financial statements in respect of its interests in other entities, as FRS 112 is primarily a disclosure standard, there will be no financial impact on the results and financial position of the Group and the Trust upon adoption.

The Group is currently collating the information of the additional disclosures required.

• AmendmentstoFRS32Financial Instruments: Presentation – Offsetting Financial Assets and Financial Liabilities, which clarifies the existing criteria for net presentation on the face of the statement of financial position.

Under the amendment, to qualify for offsetting, the right to set off a financial asset and a financial liability must not be contingent on a future event and must be enforceable both in the normal course of business and in the event of default, insolvency or bankruptcy of the entity and all counterparties.

The Group currently offsets receivables and payables due from/to the same counterparty if the Group has the legal right to set off the amounts when it is due and payable based on the contractual terms of the arrangement with the counterparty, and the Group intends to settle the amounts on a net basis. Based on the local laws and regulations in certain jurisdictions in which the counterparties are located, the set-off rights are set aside in the event of bankruptcy of the counterparties. On adoption of the amendments, the Group will have to present the respective receivables and payables on a gross basis as the right to set-off is not enforceable in the event of bankruptcy of the counterparty.

The amendments will be applied retrospectively and prior periods in the Group’s 2014 financial statements will be restated. As at 31 December 2012, there were no such arrangements.

4 Investment Properties

Group and Trust2012 2011$’000 $’000

At 1 January 1,023,600 928,450Acquisition of investment properties 166,350 60,900Disposal of investment properties (54,000) (22,000)Acquisition related costs 2,443 932Capital expenditure incurred 10,091 4,812Transfer to investment properties under development (6,100) –Transfer from investment properties under development 23,937 –

1,166,321 973,094Change in fair value during the year 28,679 50,506At 31 December 1,195,000 1,023,600

Investment properties (non-current) 994,600 1,005,300Investment properties held for divestment (current) 200,400 18,300

1,195,000 1,023,600



4 Investment Properties (Cont’d)

Valuation

Investment properties are stated at fair value based on valuations performed by independent professional valuers as at 31 December 2012, except for the investment property at 30 Tuas Road, which is subject to compulsory acquisition by the Singapore Land Authority (“SLA”). The fair value of this property approximates its carrying amount at the reporting date.

In determining the fair value, the valuers have used valuation methods which involve certain estimates. The Manager has exercised its judgment and is satisfied that the valuation methods and estimates are reflective of the current market conditions.

The independent professional valuers have considered valuation techniques including direct comparison method, capitalisation approach and/or discounted cash flow analysis in arriving at the open market value as at the reporting date. The key assumptions used to determine the fair value of investment properties include market-corroborated capitalisation yield, terminal yield, discount rate and average growth rate.

The direct comparison method involves the analysis of comparable sales of similar properties and adjusting the sale prices to that reflective of the investment properties.

The capitalisation approach capitalises an income stream into a present value using revenue multipliers or single-year capitalisation rates. The discounted cash flows method involves the estimation and projection of an income stream over a period and discounting the income stream with an expected internal rate of return.

Investment Properties held for Divestment

Threeinvestmentproperties,whichhaveacombinedbookvalueof$200.4millionasat31December2012and including a property subject to compulsory acquisition, have been reclassified as investment properties held for divestment. This reclassification is required by FRS 105 – Non-current Assets held for Sale and Discontinued Operations as the compulsory acquisitions and divestments are planned within the next 12 months from the reporting date.

Compulsory Land Acquisition

On 11 January 2011 and 6 February 2012, CIT received notices of compulsory land acquisition from the SLA, advising that the land on which the properties at 1 Tuas Avenue 3 and 30 Tuas Road are located would becompulsorilyacquired.CIThasbeenawardedcompensationof$29.2millionforthe1TuasAvenue3propertyand$72.4millionfor30TuasRoadpropertybytheCollectorofLandRevenue(“Collector”),whichequate to the market value of these properties as at the respective dates of publication of the notices. Inaddition,CIThasreceivedex-gratiapaymentstotalling$6.3million,tomitigatethefinancialimpactofthelandacquisition.Anex-gratiapaymentof$2.0millionreceivedfromthecompulsoryacquisitionof 1 Tuas Avenue 3 property was included in the gain on disposal of investment properties (refer to Note 18) asthepropertywasdivestedon31December2012.Anex-gratiapaymentof$4.3millionreceivedfromthe compulsory acquisition of 30 Tuas Road property was included in the change in fair value of investment properties and investment properties under development as the property was divested subsequent to the year end on 28 February 2013.

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4 Investment Properties (Cont’d)

Security

As at the reporting date, certain investment properties have been mortgaged as security for loan facilities granted by a syndicate of four financial institutions, National Australia Bank Limited and Standard Chartered Bank respectively to the Group (see Note 10). The value of the security per facility is as follows:

Group and Trust2012 2011

$’000 $’000

Club Loan Facility 834,100 801,300Acquisition Term Loan Facility 168,200 132,300Revolving Credit Facility 110,000 –

1,112,300 933,600

5 Investment Properties Under Development

Group and Trust2012 2011$’000 $’000

At 1 January 3,579 –Development cost incurred 24,566 3,579Transfer from investment properties 6,100 –Transfer to investment properties (23,937) –

10,308 3,579Change in fair value during the year 8,692 –At 31 December 19,000 3,579

Investment properties under development are stated at fair value based on the valuation performed by an independent professional valuer as at 31 December 2012. In determining the fair value, the valuer has considered valuation techniques including direct comparison method, capitalisation approach and/or discounted cash flow analysis in arriving at the open market value as at the reporting date. The key assumptions used to determine the fair value of investment properties include market-corroborated capitalisation yield, terminal yield, discount rate and average growth rate.

The capitalisation approach capitalises an income stream into a present value using revenue multipliers or single-year capitalisation rates. The discounted cash flows method involves the estimation and projection of an income stream over a period and discounting the income stream with an expected internal rate of return.

In the previous year, the Group did not recognise any fair value gain or loss on the basis that actual cost approximated the fair value as at 31 December 2011.



6 Investment in Subsidiary

Trust2012 2011

$’000 $’000

Unquoted equity investment, at cost – (1) –

(1) Investmentinsubsidiarybeing$1,establishedinFebruary2012

Details of the subsidiary are as follows:

Effective equityCountry of interest held by the Group

Name of subsidiary Principal activities incorporation 2012 2011% %

# Cambridge-MTN Pte. Ltd. Provision of financial and treasury services

Singapore 100 –

# Audited by KPMG Singapore

7 Investment in Jointly-controlled Entity

On 20 July 2012, CIT and Oxley Opportunity #9 Pte. Ltd. (“Oxley”), a related party, formed and registered a limited liability partnership (“LLP”). The LLP is yet to be capitalised by either partner.

The LLP entered into a conditional put and call option for the acquisition of a property at 3 Tuas South Avenue 4 on 18 December 2012.

Details of the jointly-controlled entity are as follows:

Effective equityCountry of interest held by the Group

Name of subsidiary Principal activities incorporation 2012 2011% %

^ Cambridge SPV1 LLP Real estate activities Singapore 60 –

^ KPMG Singapore has been appointed.

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8 Trade and Other Receivables


$’000 $’000

Trade receivables 33 516Deposits 210 193Amount due from Property Manager (trade) – 54Other receivables 391 12Loans and receivables 634 775Prepayments 666 620Option fees paid 290 40

1,590 1,435

In the previous year, the amounts due from the Property Manager were unsecured, interest-free and repayable on demand.

Option fees paid in the current financial year are in respect of the proposed acquisitions of properties as disclosed in Note 22(c).

Concentration of credit risk relating to trade receivables is limited due to the Group’s large number and diverse range of tenants. The Manager believes that no significant credit risk is inherent in the Group’s trade receivables based on the Group’s historical experience in the collection of trade receivables. The maximum exposure to credit risk for trade and other receivables is represented by the carrying amount at the reporting date.

Impairment losses

The ageing of trade receivables at the reporting date is as follows:

Impairment ImpairmentGross losses Gross losses2012 2012 2011 2011$’000 $’000 $’000 $’000

Group and TrustPast due 0 – 30 days 1 – 238 –Past due 31 – 120 days 32 – 234 –More than 120 days past due – – 44 –

33 – 516 –

The Manager believes that no allowance is necessary in respect of the trade receivables during the financial year as these receivables mainly arise from tenants that have good records and have sufficient security in the form of bankers’ guarantees, insurance bonds or cash security deposits as collaterals.



9 Trade and Other Payables

Group Trust2012 2011 2012 2011$’000 $’000 $’000 $’000

Current liabilitiesTrade payables and accrued operating

expenses 8,359 3,058 8,327 3,058Amounts due to related parties (trade):- the Manager 3,890 496 3,890 496- the Property Manager – 218 – 218- the Trustee 88 126 88 126Amount due to subsidiary (non-trade) – – 735 –Interest and loan commitment fee payable 1,854 985 1,139 985Security deposits 999 2,849 999 2,849Rent received in advance 165 15 165 15Deposits and option fees received 357 189 357 189Other payables 3,838 1,371 3,838 1,371

19,550 9,307 19,538 9,307

Non-current liabilitySecurity deposits 1,989 – 1,989 –

Total trade and other payables 21,539 9,307 21,527 9,307

The amounts due to related parties and subsidiary are unsecured. Transactions with related parties and subsidiary are priced on terms agreed between the parties.

Includedinotherpayables(current)areretentionsumsofapproximately$3.3million(2011:$1.2million)relating to certain investment properties acquired and investment properties under development during the year.

The contractual undiscounted cash flows for trade and other payables are included in Note 10.

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10 Interest-bearing Borrowings

Group Trust2012 2011 2012 2011$’000 $’000 $’000 $’000

Current liabilitiesSecured loans 72,967 – 72,967 –Unamortised loan transaction costs (2,061) – (2,061) –

70,906 – 70,906 –

Non-current liabilitiesSecured loans 380,729 366,530 380,729 366,530Fixed rate notes (unsecured) 50,000 – – –Loan from subsidiary (unsecured) – – 50,000 –Unamortised loan transaction costs (7,961) (9,922) (7,961) (9,922)

422,768 356,608 422,768 356,608

Total interest-bearing borrowings 493,674 356,608 493,674 356,608

Thecurrentportionofthesecuredloanscomprises$52.9milliondrawnontheShortTermFacility(“STF”),whichwillberepaidusingcompensationproceedsfromtheSLA(refertoNote4)and$20.0milliondrawnon the revolving credit facility.

Terms and debt repayment schedule

Terms and conditions of outstanding loans and borrowings are as follows:

‹------------2012------------› ‹-------------2011-------------›

Nominalinterest rate

Year ofmaturity Face value

Grosscarryingamount Face value

Grosscarryingamount

% $’000 $’000 $’000 $’000

Group

SecuredClub loan facility- S$floatingrateloan SOR* + margin 2014-2016 320,000 320,000 320,000 320,000 (Facility A & B)- S$floatingrateloan SOR* + margin 2013 52,967 52,967 – – (Facility C)Acquisition term loan

facility- S$floatingrateloan SOR* + margin 2014 60,729 60,729 46,530 46,530Revolving credit facility- S$floatingrateloan SOR* + margin 2013 20,000 20,000 – –

UnsecuredMedium Term Note- S$fixedratenote 4.75% 2015 50,000 50,000 – –

503,696 503,696 366,530 366,530



10 Interest-bearing Borrowings (Cont’d)

‹------------2012------------› ‹-------------2011-------------›

Nominalinterest rate

Year ofmaturity Face value

Grosscarryingamount Face value

Grosscarryingamount

% $’000 $’000 $’000 $’000

Trust

SecuredClub loan facility- S$floatingrateloan SOR* + margin 2014-2016 320,000 320,000 320,000 320,000 (Facility A & B)- S$floatingrateloan SOR* + margin 2013 52,967 52,967 – – (Facility C)Acquisition term loan

facility- S$floatingrateloan SOR* + margin 2014 60,729 60,729 46,530 46,530Revolving credit facility- S$floatingrateloan SOR* + margin 2013 20,000 20,000 – –

UnsecuredLoan from subsidiary- S$fixedrateloan 4.75% 2015 50,000 50,000 – –

503,696 503,696 366,530 366,530 * Swap Offer Rate.

ThenominalinterestratefortheS$floatingrateloansisdeterminedbyamarginplusSORperannum.

The following are the expected contractual undiscounted cash inflows/(outflows) of interest-bearing borrowings including interest payments and other borrowing costs, and trade and other payables:

‹----------------Cash flow----------------›Gross

carryingamount

Contractualcash flows

Within1 year

Within1 to 5 years

More than5 years

$’000 $’000 $’000 $’000 $’000

Group

2012Non-derivative financial liabilitiesClub loan facility- S$floatingrateloan(FacilityA&B) 320,000 (338,184) (7,930) (330,254) –- S$floatingrateloan(FacilityC) 52,967 (53,107) (53,107) – –Acquisition term loan facility- S$floatingrateloan 60,729 (62,137) (966) (61,171) –Revolving credit facility- S$floatingrateloan 20,000 (20,100) (20,100) – –Medium Term Note- S$fixedratenote 50,000 (55,179) (1,646) (53,533) –Trade and other payables* 21,374 (21,374) (19,385) (1,989) –

525,070 (550,081) (103,134) (446,947) –

Derivative financial liabilityInterest rate swaps 3,441 (3,763) (2,652) (1,111) –

528,511 (553,844) (105,786) (448,058) –

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‹----------------Cash flow----------------›Gross

carryingamount

Contractualcash flows

Within1 year

Within1 to 5 years

More than5 years

$’000 $’000 $’000 $’000 $’000

Group

2011Non-derivative financial liabilitiesClub loan facility- S$floatingrateloan(FacilityA&B) 320,000 (349,705) (9,356) (340,349) –Acquisition term loan facility- S$floatingrateloan 46,530 (48,956) (1,028) (47,928) –Trade and other payables* 9,292 (9,292) (9,292) – –

375,822 (407,953) (19,676) (388,277) –


379,400 (413,828) (22,108) (391,720) –

Trust

2012Non-derivative financial liabilitiesClub loan facility- S$floatingrateloan(FacilityA&B) 320,000 (338,184) (7,930) (330,254) –- S$floatingrateloan(FacilityC) 52,967 (53,107) (53,107) – –Acquisition term loan facility- S$floatingrateloan 60,729 (62,137) (966) (61,171) –Revolving credit facility- S$floatingrateloan 20,000 (20,100) (20,100) – –Loan from subsidiary- S$fixedratenote 50,000 (55,179) (1,646) (53,533) –Trade and other payables* 21,362 (21,362) (19,373) (1,989) –

525,058 (550,069) (103,122) (446,947) –


528,499 (553,832) (105,774) (448,058) –

2011Non-derivative financial liabilitiesClub loan facility- S$floatingrateloan(FacilityA&B) 320,000 (349,705) (9,356) (340,349) –Acquisition term loan facility - S$floatingrateloan 46,530 (48,956) (1,028) (47,928) –Trade and other payables* 9,292 (9,292) (9,292) – –

375,822 (407,953) (19,676) (388,277) –


379,400 (413,828) (22,108) (391,720) –

* Trade and other payables exclude rent received in advance.




Details of the outstanding borrowings and collaterals are as follows:

(A) Club Loan Facility

InNovember2012,theexisting$320millionclubloanfacilitywasincreasedtoincludea$100millionshorttermloanfacility(FacilityC)and$50millionrevolvingcreditfacility(FacilityD).

The expanded Facility Agreement (“Club Loan Facility”) now comprises:

• FacilityA:3-yeartranchetermloanof$220million,maturinginJune2014; • FacilityB:5-yeartranchetermloanof$100million,maturinginJune2016; • FacilityC:$100millionshorttermloan,maturinginMarch2013;and • FacilityD:$50millionrevolvingcreditfacility,maturinginJune2014

All of the facilities have been provided by a syndicate of four financial institutes and bear an interest rate comprising a margin plus swap offer rate per annum.

The Club Loan Facility is secured by way of the following:

• mortgagesovera singlepoolof38 investmentproperties (“PortfolioProperties1”)withanaggregatecarryingvalueamountedto$834.1millionasat31December2012 (2011:$801.3million);

• debenturescreatingfixedandfloatingchargeonallpresentandfutureassetsinrelationtothe Portfolio Properties 1;

• anassignmentofall tenancyagreements, salesagreements, insurancepolicies, rentalassignments, bankers’ guarantees and property management agreement in relation to the Portfolio Properties 1; and

• anassignmentofallrental,saleandinsuranceproceedsandallsumsfromtimetotimewhichthe Trust is entitled to receive from Portfolio Properties 1.

Asat31December2012,atotalof$372.9millionhadbeendrawnontheClubLoanFacility (2011:$320.0million).

(B) Acquisition Term Loan Facility

On 12 August 2010, the Trustee in its capacity as trustee of CIT, entered into a facility agreement withNationalAustraliaBankLimitedtoobtainfinancingof$70million(“AcquisitionTermLoanFacility”) for the purpose of financing the acquisition growth of CIT.

TheAcquisitionTermLoanFacility,whichcomprisesatermloanfacilityof$50millionandarevolvingcreditfacilityof$20million(“RevolvingCreditFacility”),hasatenorofthreeyearsfromthedateof drawdown.

On 2 March 2011, the Trust entered into a supplemental agreement with National Australia Bank Limited to amend and restate the Acquisition Term Loan Facility and Revolving Credit Facility to increasefrom$50millionto$120million,includingthe$20millionRevolvingCreditFacilitybeingconverted and incorporated into the Acquisition Term Loan Facility. The revised Acquisition Term Loan Facility will mature in March 2014.

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(B) Acquisition Term Loan Facility (Cont’d)

Interest payable on the Acquisition Term Loan Facility is calculated based on a margin plus SOR per annum.

The Acquisition Term Loan Facility is secured by way of the following:

• amortgageoverseveninvestmentproperties(“PortfolioProperties2”)withanaggregatecarryingvalueamountedto$168.2million(2011:$132.3million);

• adebenturecreatingfixedandfloatingchargesonallpresentandfutureassetsinrelationto the Portfolio Properties 2;

• anassignmentofall tenancyagreements, salesagreements, insurancepolicies, rentalassignments, bankers’ guarantees and property management agreement in relation to the Portfolio Properties 2; and

• anassignmentofallrental,saleandinsuranceproceedsandallsumsfromtimetotimewhichthe Trust is entitled to receive from Portfolio Properties 2.

As at 31 December 2012, the total amount outstanding under the Acquisition Term Loan Facility was$60.7million(2011:$46.5million).

(C) Revolving Credit Facility

On31July2012,theGroupestablishedasecured$40millionrevolvingcreditfacility,whichbearsan interest rate comprising a margin plus swap offer rate per annum. The revolving credit facility has a tenor of 3 years and matures in July 2015.

The facility was secured by the following:

• amortgageofoneinvestmentproperty(“PortfolioProperty3“)withanaggregatecarryingvalueamountedto$110.0millionasat31December2012;

• adebenturecreatingfixedandfloatingchargeonallpresentandfutureassetsinrelationtothe Portfolio Property 3;

• anassignmentofall tenancyagreements, salesagreements, insurancepolicies, rentalassignments, bankers’ guarantees and property management agreement in relation to the Portfolio Property 3; and

• anassignmentofallrental,saleandinsuranceproceedsandallsumsfromtimetotimewhichthe Trust is entitled to receive from Portfolio Property 3.

Asat31December2012,$20.0millionwasdrawdownonthefacility.TheloanwasfullyrepaidinJanuary 2013.

(D) Unsecured Medium Term Note

On 2 February 2012, Cambridge Industrial Trust, through its wholly owned subsidiary, Cambridge-MTNPte.Ltd.(the“Issuer”),establisheda$500millionMulticurrencyMediumTermNoteProgramme(the “MTN Programme”). Under the MTN Programme, the Issuer may, subject to compliance with all relevant laws, regulations, and directives, from time to time issue notes (the “Notes”) denominated in Singapore dollars and/or any other currencies.




(D) Unsecured Medium Term Note (Cont’d)

The payment of all amounts payable in respect of the Notes will be unconditionally and irrevocably guaranteed by RBC Investor Services Trust Singapore Limited (in its capacity as trustee of CIT) (the “Guarantor”).

The Notes may be issued in series having one or more issue dates and the same maturity date, and on identical terms.

On14March2012,theIssuerissued$50million3-yearFixedRateNotesundertheMTNProgramme,bearing a fixed interest rate of 4.75% per annum payable semi-annually in arrears which will mature on 13 March 2015. The Issuer has on-lent the proceeds from the issuance of the Note to the Trust, which in turn, has used such proceeds to finance the acquisition of a property located at 16 Tai Seng Street.

11 Derivative Financial Instruments (Non-current Liability)

Group and Trust2012 2011$’000 $’000

Interest rate swaps 3,441 3,578

Derivative financial instruments as a percentage of net assets 0.44% 0.48%

Interest rate swaps

The Group manages its exposure to interest rate movements on its floating rate loans and borrowings by entering into interest rate swaps. As at reporting date, the Group has interest rate swaps with a total notionalamountof$320million(2011:$320million)toprovidefixedratefundingforapproximately1.5years at a weighted average effective interest rate of 1.15% (2011: 1.15%) per annum.

12 Units in Issue

Trust2012 2011

Numberof units

Numberof units

’000 ’000

Units in issue:At 1 January 1,189,198 1,057,065Units created:- Distribution Reinvestment Plan 26,532 –- Acquisition fees paid in units 285 –- Rights Issue – 132,133At 31 December 1,216,015 1,189,198

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12 Units in Issue (Cont’d)

During the financial year, the Trust issued the following new units:

i. a total of 26,531,742 new units in lieu of distribution payments pursuant to a Distribution Reinvestment Plan, whereby the Unitholders have the option to receive their distribution payment in units instead of cash or a combination of units and cash as follows:

Date of IssueNumber of

units issuedIssue price per unit ($) Period relating to

8 June 2012 9,564,597 0.5281 1 January to 31 March 2012

6 July 2012 916 0.5281 1 January to 31 March 2012

12 September 2012 9,124,115 0.5776 1 April to 30 June 2012

20 December 2012 7,842,114 0.6395 1 July to 30 September 2012

ii. atotalof285,341newunitswereissuedon30March2012atanissuepriceof$0.5362aspayment of the acquisition fee to the Manager in relation to the acquisition of a property located at 25 Pioneer Crescent from a related party, Oxley Opportunity #9 Pte. Ltd.

In April 2011, the Trust issued 132,133,152 new units pursuant to a fully underwritten and renounceable 1-for-8rightsissue(“RightsUnits”)atanissuepriceof$0.429perRightsUnit.

These Rights Units, upon issue, ranked pari passu in all respects with the existing units including the right to the Trust’s distributable income for the period beginning from 1 January 2011.

Each unit in the Trust represents an undivided interest in the Trust. The rights and interests of Unitholders are contained in the Trust Deed and include the right to:

• receiveincomeandotherdistributionsattributabletotheunitsheld;

• participateintheterminationoftheTrustbyreceivingashareofallnetcashproceedsderivedfromthe realisation of the assets of the Trust less any liabilities, in accordance with their proportionate interests in the Trust. However, a Unitholder has no equitable or proprietary interest in the underlying assets of the Trust and is not entitled to the transfer to it of any assets (or part thereof) or any estate or interest in any asset (or part thereof) of the Trust;

• attendallUnitholders’meetings.TheTrusteeortheManagermay(andtheManagershallattherequest in writing of not less than 50 Unitholders or one-tenth in number of Unitholders, whichever is lesser) at any time convene a meeting of Unitholders in accordance with the provisions of the Trust Deed; and

• onevoteperunit.

The limitations on a Unitholder’s rights include the following:

• aUnitholder’srightislimitedtotherighttorequiredueadministrationoftheTrustinaccordancewith the provisions of the Trust Deed; and

• aUnitholderhasnorighttorequesttheManagertoredeemhisunitswhiletheunitsarelistedonthe SGX-ST.



12 Units in Issue (Cont’d)

A Unitholder’s liability is limited to the amount paid or payable for any unit in the Trust. The provisions of the Trust Deed provide that no Unitholder will be personally liable to indemnify the Trustee or any creditor of the Trustee in the event that the liabilities of the Trust exceed its assets.

13 Gross Revenue


$’000 $’000

Property rental income 88,376 80,310Other income 600 63

88,976 80,373

14 Property Expenses


$’000 $’000

Land rental 3,690 3,375Property and lease management fees 2,867 2,552Property tax 3,461 3,148Repair and maintenance expenses 1,770 1,264Other property operating expenses 958 922

12,746 11,261

15 Manager’s Management Fees and Performance Fees


$’000 $’000

Base fees paid and payable in cash 5,921 5,332Performance fees paid and payable in cash 3,583 –

9,504 5,332

For both six month periods ending 30 June 2012 and 31 December 2012, CIT’s Trust Index exceeded the totalreturnoftheCambridgeBenchmarkIndex,resultinginperformancefeestotalling$3.6million.

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16 Trust Expenses

Group Trust2012 2011 2012 2011$’000 $’000 $’000 $’000

Trustee’s fees 273 233 273 233Professional fees 923 992 895 992Other expenses 510 599 539 599

1,706 1,824 1,707 1,824

IncludedintheprofessionalfeesareauditfeespaidtotheauditorsoftheGroupamountingto$153,000(2011:$140,000)andnon-auditfeespaid/payabletotheauditorsoftheGroupamountingto$110,000(2011:$45,000).

17 Borrowing Costs


$’000 $’000

Borrowing costs paid and payable:- bank loans 10,717 11,050- financial derivatives 2,373 1,827- fixed rate note 1,913 –Amortisation of transaction costs relating to debt facilities 4,369 9,206Other loan transaction cost 284 4,138

19,656 26,221

Other loan transaction cost relates to legal and professional fees in relation to the establishment of MTN Programme, during the financial year and break costs incurred during the previous financial year from prepayment of the Syndicated Term Loan Facility.

18 Gain on Disposal of Investment Properties

In the current year, the gain includes the ex-gratia compensation received from the SLA in relation to the compulsoryacquisitionof1TuasAvenue3amountingto$2.0million(2011:Nil).Theex-gratiaamountwillbe distributed (wholly or partly) to Unitholders at the discretion of the Manager in future periods.



19 Income Tax Expense

Group Trust2012 2011 2012 2011

$’000 $’000 $’000 $’000

Reconciliation of effective tax rate

Total return for the year before income tax 89,461 85,173 89,460 85,173

Income tax using Singapore tax rate of 17% (2011: 17%) 15,208 14,479 15,208 14,479

Income not subject to tax (381) (373) (381) (373)Non-tax deductible items (6,013) (5,539) (6,013) (5,539)Tax transparency (8,814) (8,567) (8,814) (8,567)

– – – –

20 Earnings and Distribution Per Unit

Earnings Per Unit

The calculation of basic earnings per unit is based on weighted average number of units in issue during the year and total return after tax for the year.

Group Trust2012 2011 2012 2011$’000 $’000 $’000 $’000

Total return before income tax 89,461 85,173 89,460 85,173Less: Income tax attributable

to total return – – – –Total return after income tax 89,461 85,173 89,460 85,173


Numberof Units

Numberof Units

’000 ’000

Weighted average number of units:- Outstanding during the period 1,189,198 1,057,065Effect of issue of new units:- Distribution Reinvestment Plan 8,525 –- Rights Issue – 94,484- Adjustment for effects of rights issue – 19,583

1,197,723 1,171,132Basic earnings per unit (cents) 7.47 7.27

Diluted earnings per unit is the same as the basic earnings per unit as there were no dilutive instruments in issue during the financial year and in the previous financial year.

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20 Earnings and Distribution Per Unit (Cont’d)


The calculation of distribution per unit is based on the total income available for distribution for the year and the applicable number of units which is either the number of units on issue at the end of each period or the applicable number of units on issue during the period.


$’000 $’000

Total amount available for distribution 57,575 50,397

Numberof Units

Numberof Units

’000 ’000

Applicable number of units for the calculation of DPU 1,203,229 1,189,198

Distribution per unit (cents) 4.78 4.24

21 Equity Issue Costs


$’000 $’000

Professional fees – 290Underwriting and selling commissions – 2,356Miscellaneous issue costs 223 409

223 3,055

These expenses incurred are deducted directly against Unitholders’ funds. Included in the professional fees arenon-auditfeespaid/payabletotheauditorsamountingto$Nil(2011:$60,000).

22 Commitments

(a) Lease Commitments

CIT leases out its investment properties. Non-cancellable operating lease rentals are receivable as follows:


$’000 $’000

Receivable:- Within 1 year 80,983 80,596- After 1 year but within 5 years 152,807 180,583- After 5 years 39,430 10,326

273,220 271,505



22 Commitments (Cont’d)

(b) Operating Lease Commitments

CIT is required to pay annual land rent to Jurong Town Corporation (“JTC”) and Housing & Development Board (“HDB”) for 20 (2011: 22) properties. Land rents for the remaining properties are either not applicable as the upfront land premium has already been paid by the vendors or borne by the tenants of these properties based on the contractual lease agreements.

The annual land rent is based on market rent for the relevant year and any increase in annual land rent from year to year shall not exceed 5.5% of the annual land rent for the respective properties for the immediate preceding year. The land rent paid based on prevailing rental rates during the financial yearwas$3,690,000inrelationto20properties(2011:$3,693,000inrelationto22properties).

(c) Capital Commitments

As at the reporting date, the Trustee had entered into conditional put and call options for the acquisition of the following properties:

Property Vendor Acquisition value2012 2011

$’000 $’000

16 Tai Seng Street Singapore 368359

Nobel Design Holdings Ltd 13,080 –

15 Jurong Port Road Singapore 619119

HG Metal Manufacturing Limited

43,000 –

54 Serangoon North Avenue 4 Singapore 555854

CyberHub North Pte Ltd 21,000 –

30 Teban Gardens Crescent Singapore 608927

Eurosports Auto Pte Ltd 41,000 –

25 Pioneer Crescent Singapore 628554

Oxley Opportunity#9 Pte. Ltd.

– 15,000

3C Toh Guan Road East Singapore 608832

Tye Soon Limited – 35,500

118,080 50,500

Option fees paid for the proposed acquisition of these properties are disclosed in Note 8.

(d) Asat reportingdate, theGrouphad$9.8million (2011:$42.1million)ofcapitalexpenditurecommitments that had been authorised and contracted for but not provided in the financial statements.

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23 Related Parties

For the purposes of these financial statements, parties are considered to be related to the Group if CITM or the Group has the ability, directly or indirectly, to control the party or exercise significant influence over the party in making financial and operating decisions, or vice versa, or where CITM and the party are subject to common significant influence. Related parties may be individuals or other entities.

Other than as disclosed elsewhere in the financial statements, there were the following significant related party transactions carried out in the normal course of business on terms agreed between the parties:

Group and Trust2012 2011$’000 $’000

Cambridge Industrial Trust Management Limited (the Manager)

Management fees paid and payable 5,921 5,332

Performance fees paid and payable 3,583 –

Acquisition fee paid relating to the purchase of investment properties 1,664 609

Disposal fee paid relating to the divestment of investment properties 126 122

Issue of units from Rights Issue/Preferential Offering – 440

Cambridge Industrial Property Management Pte. Ltd. (Subsidiary of immediate holding company of the Manager)

Property Manager’s fees paid and payable 2,651 2,409

Lease marketing services commission paid and payable 202 547

Project management fees paid and payable 777 29

RBC Investor Services Trust Singapore Limited (the Trustee)

Trustee fees paid and payable 273 233

Oxley Opportunity #9 Pte. Ltd. (Related company of the Manager) (Note 1)

Acquisition of 25 Pioneer Crescent Singapore 628554 15,300 –

Oxley Securities (S) Pte Ltd (Related company of the Manager) (Note 2)

Advisory fee on loan refinancing – 90



23 Related Parties (Cont’d)

Group and Trust2012 2011$’000 $’000

National Australia Bank Limited (Related company of the Manager) (Note 3)

Loan disbursed 34,062 142,131

Loan transaction costs paid and payable 956 5,239

Commitment fee paid and payable 439 620

Interest paid and payable 5,282 3,070

Note 1: Oxley Opportunity #9 Pte. Ltd. and Oxley Corporate Pte Ltd, which are subsidiaries of the Oxley Global Limited (“Oxley Global”), is related to the Manager by virtue of Oxley Global’s indirect equity interest in the Manager of 24%.

Note 2: Oxley Securities (S) Pte Ltd (“Oxley Securities”), which is a subsidiary of the Oxley Global, is related to the Manager by virtue of Oxley Global’s indirect equity interest in the Manager of 24%.

Note 3: National Australia Bank Limited (“NAB”) is the ultimate holding company of nabInvest Capital Partners Pty Limited in Australia, is related to the Manager by virtue of nabInvest Capital Partners Pty Limited’s indirect equity interest of 56% in the Manager.

24 Financial Instruments

Financial Risk Management

Capital Management

As part of its finance policy, the Board of the Manager (the “Board”) proactively reviews the Trust’s capital and debt management regularly so as to optimise the Trust’s funding structure. The Board also monitors the Group’s exposure to various risk elements and externally imposed requirements by closely adhering to clearly established management policies and procedures.

The Group is subject to the Aggregate Leverage limit as defined in the Property Fund Guidelines of the CIS code. The CIS code stipulates that the total borrowings and deferred payments (together the “Aggregate Leverage”) of a property fund should not exceed 35.0% of the fund’s deposited property. The aggregate leverage of a property fund may exceed 35.0% of the fund’s deposited property (up to a maximum of 60.0%) only if a credit rating of the property fund from Fitch Inc., Moody’s or Standard and Poor’s is obtained and disclosed to the public. The property fund should continue to maintain and disclose a credit rating so long as its aggregate leverage exceeds 35.0% of the fund’s deposited property.

The Trust has maintained its corporate rating of “BBB-/Stable/--” with Standard and Poor’s and complied with the Aggregate Leverage limit of 60.0% during the financial year. There were no changes in the Trust’s approach to capital management during the financial year.

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24 Financial Instruments (Cont’d)

Capital Management (Cont’d)

As at the reporting date, the gross amounts of loans and borrowings as a percentage of total assets was 38.6% (2011: 33.1%). Gearing was 36.0% adjusted for the repayment of the bridging loan.

Overview

The Group has a system of controls in place to create an acceptable balance between the cost of risks occurring and the cost of managing the risks. The Manager continually monitors the Group’s risk management process to ensure an appropriate balance between risk and control is achieved. Risk management policies and systems are reviewed regularly to reflect changes in market conditions and the Group’s activities.

The Audit, Risk Management and Compliance Committee (“ARCC”) oversees how management monitors compliance with the Trust’s risk management policies and procedures and reviews the adequacy of the risk management framework in relation to the risks faced by the Trust. The ARCC is assisted in its oversight role by Internal Audit. Internal Audit undertakes both regular and ad hoc reviews of risk management controls and procedures, the results of which are reported to the ARCC.

Credit Risk

Credit risk is the potential financial loss resulting from the failure of a customer or a counterparty to settle its financial and contractual obligations to the Group, as and when they fall due.

The Manager has established credit limits for tenants and monitors their balances on an on-going basis. Credit evaluations are performed by the Manager before lease agreements are entered into with the lessees. In addition, the Group requires the lessees to provide tenancy security deposits or corporate guarantees, or to assign rental proceeds from sub-lessees to CIT. Cash and fixed deposits are placed with financial institutions which are regulated.

At the reporting date, there were no significant concentrations of credit risk. The maximum exposure to credit risk is represented by the carrying value of each financial asset on the Statement of Financial Position.

Interest Rate Risk

The Group’s exposure to changes in interest rates relate primarily to its interest-bearing financial liabilities. Interest rate risk is managed by the Manager on an ongoing basis with the primary objective of limiting the extent to which net interest expense could be affected by adverse movements in interest rates. The Group adopts a policy of ensuring that majority of its exposures to changes in interest rates on borrowings is on a fixed-rate basis. This is achieved by entering into interest rate swaps.

(a) Effective Interest Rates and Repricing Analysis

In respect of interest-earning financial assets and interest-bearing financial liabilities, the following table indicates the effective interest rates as at 31 December 2012 and 31 December 2011 and the periods at which they reprice.




Interest Rate Risk (Cont’d)

(a) Effective Interest Rates and Repricing Analysis (Cont’d)

Effectiveinterest rate

Floatinginterest

Fixed interestrate maturing

within1 to 5 years Total

% $’000 $’000 $’000

Group

2012Financial liabilitiesInterest-bearing borrowings- S$variablerate 2.77 320,000 – 320,000- S$variablerate 1.68 52,967 – 52,967- S$variablerate 1.97 60,729 – 60,729- S$variablerate 2.52 20,000 – 20,000Medium Term Note- S$fixedrate 4.75 – 50,000 50,000Derivative financial instruments 1.15 – 3,441 3,441

453,696 53,441 507,137

2011Financial liabilitiesInterest-bearing borrowings- S$variablerate 1.87 46,530 – 46,530- S$variablerate 2.62 320,000 – 320,000Derivative financial instruments 1.15 – 3,578 3,578

366,530 3,578 370,108Trust

2012Financial liabilitiesInterest-bearing borrowings- S$variablerate 2.77 320,000 – 320,000- S$variablerate 1.68 52,967 – 52,967- S$variablerate 1.97 60,729 – 60,729- S$variablerate 2.52 20,000 – 20,000Loan from subsidiary- S$fixedrate 4.75 – 50,000 50,000Derivative financial instruments 1.15 – 3,441 3,441

453,696 53,441 507,137

2011Financial liabilitiesInterest-bearing borrowings- S$variablerate 1.87 46,530 – 46,530- S$variablerate 2.62 320,000 – 320,000Derivative financial instruments 1.15 – 3,578 3,578

366,530 3,578 370,108

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Interest Rate Risk (Cont’d)

(b) Sensitivity Analysis

In managing the interest rate risk, the Group aims to reduce the impact of short term fluctuations on its earnings.

Fair value sensitivity analysis for fixed rate instruments

The Group does not account for any fixed rate financial assets and liabilities at fair value through profit or loss. Therefore, a change in interest rates at the reporting date would not affect profit or loss.

A change of 100 basis points in interest rates, if accounted for, would have increased or decreased unitholders’fundsbyapproximately$1.2million(2011:Nil)fortheGroupandtheTrustrespectively.

Sensitivity analysis for variable rate instruments

As at 31 December 2012 and 2011, a change of 100 basis points in interest rates would have increased/(decreased) Unitholders’ funds and total return by the amounts shown below:

Statements of Total Return Unitholders’ Funds100 bp

increase100 bp

decrease100 bp

increase100 bp

decrease$’000 $’000 $’000 $’000

Group and Trust

31 December 2012Variable rate instruments- Interest expense (4,537) 1,568 (4,537) 1,568Interest rate swaps- Interest expense 3,200 (1,106) 3,200 (1,106)- Change in fair value of financial

derivatives 4,712 (1,954) 4,712 (1,954)3,375 (1,492) 3,375 (1,492)

31 December 2011Variable rate instruments- Interest expense (3,665) 2,028 (3,665) 2,028Interest rate swaps- Interest expense 3,200 (1,770) 3,200 (1,770)- Change in fair value of financial

derivatives 4,584 (3,565) 4,584 (3,565)4,119 (3,307) 4,119 (3,307)

The Group does not designate interest rate swaps as hedging instruments under a cash flow hedge accounting model. Therefore a change in interest rates at the reporting date would not affect Unitholders’ funds.



24 Financial instruments (Cont’d)

Currency Risk

At present, all transactions involving the Group are denominated in Singapore dollars and the Group faces no currency risk. If this were to change in the future, the Manager would consider currency hedging to the extent appropriate.

Liquidity Risk

The Manager monitors the liquidity risk of the Group and maintains a level of cash and cash equivalents deemed adequate by management to finance the Group’s operations. Typically, the Group ensures that it has sufficient cash on demand to meet expected operational expenses for a reasonable period, including the servicing of financial obligations; this excludes the potential impact of extreme circumstances that cannot be reasonably be predicted, such as natural disasters.

The Manager monitors and observes the Code on Collective Investment Schemes issued by the MAS concerning limits on total borrowings.

Fair Values

The following summarises the significant methods and assumptions used in estimating the fair values.

(a) Financial Derivatives

Fair Value Hierarchy

The table below analyses financial instruments carried at fair value, by valuation method. The different levels have been defined as follows:

• Level1: quotedprices(unadjusted)inactivemarketsforidenticalassetsorliabilities;

• Level2: inputsotherthanquotedpricesincludedwithinLevel1thatareobservablefor the asset or liability, either directly (i.e., as prices) or indirectly (i.e., derived from prices);

• Level3: inputsfortheassetorliabilitythatarenotbasedonobservablemarketdata(unobservable inputs).

Level 1 Level 2 Level 3 Total$’000 $’000 $’000 $’000

Group and Trust

31 December 2012 – 3,441 – 3,441Interest rate swaps

31 December 2011Interest rate swaps – 3,578 – 3,578

The fair values of derivative financial instruments such as interest rate swaps are based on valuation reports from financial institutions.

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Fair Values (Cont’d)

(b) Floating Interest-Bearing Borrowings

Fair value is calculated based on discounted expected future principal and interest cash flows. The carrying amounts of interest-bearing borrowings which are repriced quarterly approximate the corresponding fair values (see Note 10).

(c) Other Financial Assets and Liabilities

The carrying amounts of financial assets and liabilities with a maturity of less than one year (including trade and other receivables, cash and cash equivalents, and trade and other payables) approximate their fair values because of the short period to maturity. All other financial assets and liabilities are discounted to determine their fair values.

25 Classification and Fair Value of Financial Instruments

NoteLoans and

receivables

Fair valuethrough

profit or loss

Otherfinancial

liabilities

Totalcarryingamount Fair value

$’000 $’000 $’000 $’000 $’000

Group

31 December 2012Trade and other

receivables* 8 634 – – 634 634Cash and cash

equivalents 89,757 – – 89,757 89,757Derivative financial

instruments 11 – (3,441) – (3,441) (3,441)Loans and borrowings 10 – – (493,674) (493,674) (494,196)Trade and other

payables^ 9 – – (21,374) (21,374) (21,374)90,391 (3,441) (515,048) (428,098) (428,620)





payables^ 9 – – (9,292) (9,292) (9,292)79,538 (3,578) (365,900) (289,940) (289,940)



25 Classification and Fair Value of Financial Instruments (Cont’d)

NoteLoans and

receivables

Fair valuethrough

profit or loss

Otherfinancial

liabilities

Totalcarryingamount Fair value

$’000 $’000 $’000 $’000 $’000

Trust





payables^ 9 – – (21,362) (21,362) (21,362)90,378 (3,441) (515,036) (428,099) (428,621)





payables^ 9 – – (9,292) (9,292) (9,292)79,538 (3,578) (365,900) (289,940) (289,940)

* Excludes prepayments and option fees paid.^ Excludes rent received in advance.

26 Segment Reporting

Segment information is presented based on the information reviewed by CIT’s CODMs for performance assessment and resource allocation.

As each investment property is mainly used for industrial (including warehousing) purposes, these investment properties are similar in terms of economic characteristics, nature of services and type of customers. The CODMs are of the view that CIT has only one reportable segment – Leasing of investment properties. This forms the basis of identifying the operating segments of CIT under FRS 108 Operating Segments. CIT has only one tenant which contributed more than 10% of its total revenue during the financial year. The revenue contributedbythistenantwasapproximately$8.5million(2011:$8.3million).

Accordingly, no operating segment information has been prepared as CIT has only one reportable segment. CIT operates in Singapore as the investment properties are all located locally. To ensure CIT provides a stable return to its Unitholders, the CODMs have been diligently monitoring major key operating and performance indicators which include, amongst many others, net property income, distribution per unit, gearing, cost of borrowings and cash flows.

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27 Financial Ratios

2012 2011% %

Expenses to weighted average net assets1

- Expense ratio excluding performance-related fee 1.02 1.01- Expense ratio including performance-related fee 1.50 1.01Portfolio turnover rate2 7.29 3.45

1 The annualised ratios are computed in accordance with the guidelines of Investment Management Association of Singapore. The expenses used in the computation relate to expenses of CIT, excluding property related expenses, borrowing costs and income tax expense.

2 The annualised ratio is computed based on the lesser of purchases or sales of underlying investment properties of CIT expressed as a percentage of daily average net asset value.

28 Subsequent Events

Subsequent to the financial year-end:

Acquisition of properties

• On30January2013,CITcompletedtheacquisitionofapropertyat15JurongPortRoadforapurchasepriceof$43.0million(excludingacquisitionrelatedcosts),financedpartiallybyadrawdownon the Club Loan Facility (Facility C) and the divestment proceeds from the disposal of a property.

• On1March2013,CITcompletedtheacquisitionofapropertyat54SerangoonNorthAvenue4forapurchasepriceof$21.0million(excludingacquisitionrelatedcosts),financedbyadrawdownonthe revolving credit facility.

Divestment of property

On 28 February 2013, the property at 30 Tuas Road was divested as a result of compulsory acquisition by SLAandcompensationamountof$72.4millionwasreceived.

Asset enhancement initiative

On 18 January 2013, CIT completed the acquisition of the extension development works to the property at4/6ClementiLoopforapurchasepriceof$23.3million,financedwhollybycash.

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additionalinformation

Interested Person/Party Transactions

The transactions entered into with interested persons/parties (”IPTs”) during the financial year and fall within the Listing Manual of the SGX-ST (IPTs defined as interested person transactions) and the Property Funds Appendix under the Code of Collective Investment Schemes (IPTs defined as interested party transactions) are:

Name of Interested Persons/Parties

Aggregate value of all IPTs during the

financial year under review (excluding transactions less than $100,000 and transactions conducted

under unitholders’ mandate pursuant to Rule 920)

$’000

Aggregate value of all IPTs conducted

under unitholders’ mandate pursuant to Rule 920 (excluding

transactions less than $100,000)

$’000

Cambridge Industrial Trust Management Limited(the Manager)Management fees paid and payable 5,921 –Performance fees paid and payable 3,583 –Acquisition fee paid relating to the purchase

of investment properties 1,664 –Disposal fee paid relating to the divestment

of investment properties 126 –

Cambridge Industrial Property Management Pte. Ltd. (Subsidiary of immediate holding company of the Manager)Property Manager’s fees paid and payable 2,651 –Lease marketing services commission paid and payable 202 –Project management fees paid and payable 777 –

RBC Investor Services Trust Singapore Limited(the Trustee) Trustee fees paid and payable 273 –

Oxley Opportunity #9 Pte. Ltd.(Related company of the Manager) (Note a) Acquisition of 25 Pioneer Crescent Singapore 628554 15,300 –

National Australia Bank Limited(Related company of the Manager) (Note b) Loan disbursed 34,062 –Loan transaction costs paid and payable 956 –Commitment fee paid and payable 439 –Interest expense paid and payable 5,282 –

Note: a. Oxley Opportunity #9 Pte. Ltd., which is a subsidiary of the Oxley Global Limited (“Oxley Global”), is related to the Manager by virtue of

Oxley Global’s indirect equity interest in the Manager of 24%.

b. National Australia Bank Limited (“NAB”) is the ultimate holding company of nabInvest Capital Partners Pty Limited (“nabInvest Capital). NAB is hence related to the Manager by virtue of nabInvest Capital’s indirect equity interest of 56% in the Manager.

Except as disclosed above, there were no additional interested person/party transactions (excluding transactions oflessthan$100,000each)enteredintouptoandincluding31December2012.

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additionalinformation

Please also see Significant Related Party Transactions in Note 23 to the financial statements.

Rule 905 and 906 of the Listing Manual of the SGX-ST are not applicable if such interested person/party transactions are made on the basis of, and in accordance with, the terms and conditions set out in the IPO prospectus.

Use of Proceeds for FY2012

The Manager undertook a rights issue in FY2011 to part finance the acquisitions of properties.

DuringFY2012,theremainingnetproceedsof$2.5millionhasbeenutilisedtopartfinancetheacquisitionoftheproperty at 30 Marsiling Industrial Estate Road 8. Following this fund deployment, all the net proceeds pertaining to the rights issue have been fully utilised.

Sale of Properties in FY2012

DuringFY2012,CITdivested7UbiClose(withacarryingcostof$18.3million)atasellingpriceofabout$18.7milliontoAlpineMotorsPteLtdand6TuasBayWalkatitscarryingcostof$6.5milliontoIdealFoods(S)Pte.Ltd. In addition, 1 Tuas Avenue 3 property was divested as a result of compulsory acquistion by SLA at its carrying valueof$29.2million.

Acquisition of Properties in FY2012

During FY2012, CIT acquired and completed the acquisition of 3C Toh Guan Road East, 25 Pioneer Crescent, 16 Tai Seng Street, 30 Marsiling Industrial Road 8 and 11 Woodlands Walk, at the purchase consideration (excluding acquisitionrelatedcosts)of$35.5million,$15.3million,$59.3million,$39.0millionand$17.3millionrespectively.These properties were purchased from the respective vendors, Tye Soon Limited, Oxley Opportunity #9 Pte. Ltd., Nobel Design Holdings Ltd, Beyonics International Pte Ltd and Hup Fatt Brothers Engineering Pte Ltd.

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statistics ofunitholdersA s a t 1 M a r c h 2 0 1 3

Issued and Fully Paid-Up Units 1,223,925,784 Ordinary Units (voting rights: one vote per Unit) MarketCapitalisationS$917,944,338(basedonclosingpriceofS$0.75asat1March2013)

No. of % of % of UnitsSize of Unitholdings Unitholders Unitholders No. of Units in Issue

1 - 999 214 2.33 81,584 0.011,000 - 10,000 3,629 39.59 18,577,910 1.5210,001 - 1,000,000 5,269 57.48 308,112,004 25.171,000,001 - and above 55 0.60 897,154,286 73.30Total 9,167 100.00 1,223,925,784 100.00

Twenty Largest Unitholders As shown in the Register of Unitholders

% of UnitsNo. Name No. of Units in Issue

1 DBS NOMINEES PTE LTD 157,614,800 12.882 CITIBANK NOMINEES SINGAPORE PTE LTD 135,021,023 11.033 DBSN SERVICES PTE LTD 133,218,999 10.88

4 HSBC (SINGAPORE) NOMINEES PTE LTD 95,105,635 7.775 RAFFLES NOMINEES (PTE) LTD 55,511,278 4.54

6 UNITED OVERSEAS BANK NOMINEES (PTE) LTD 41,095,205 3.367 CWT LIMITED 24,000,000 1.968 DB NOMINEES (S) PTE LTD 19,594,126 1.60

9 MITSUI & CO LTD 19,118,412 1.5610 DMG & PARTNERS SECURITIES PTE LTD 18,889,455 1.54

11 NOMURA SINGAPORE LIMITED 16,055,864 1.3112 MERRILL LYNCH (SINGAPORE) PTE LTD 15,216,894 1.2413 COSMIC INSURANCE CORPORATION LIMITED - SIF 12,724,798 1.04

14 DBS VICKERS SECURITIES (S) PTE LTD 12,712,280 1.0415 BNP PARIBAS SECURITIES SERVICES 11,026,754 0.90

16 UOB KAY HIAN PTE LTD 10,876,127 0.8917 CAMBRIDGE INDUSTRIAL TRUST MANAGEMENT LIMITED 8,839,295 0.7218 S C MERAH PTE LTD 8,755,222 0.72

19 BANK OF SINGAPORE NOMINEES PTE LTD 8,088,793 0.6620 SNG KAY BOON TERRANCE 7,943,816 0.65

811,408,776 66.29

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statistics ofunitholdersA s a t 1 M a r c h 2 0 1 3

Unitholdings of Substantial Unitholders as at 1 March 2013

Direct Interest Deemed Interest

Name of Substantial Unitholder No. of Units %# No. of Units %#

Franklin Resources, Inc – – 96,076,663(1) 7.90Chan Wai Kheong 56,349,536 4.66 41,770,085(2) 3.46

# using units in issue as at last notification date to compute

(1) Shares are held by funds and managed accounts that are managed by investment advisers directly or indirectly owned by Franklin Resources, Inc.

(2) Chan Wai Kheong is deemed to be interested in an aggregate of 41,770,085 units whereby he held 62,582 units in Oakgrove Pte Ltd, 41,644,921 units in Splendid Asia Macro Fund and 62,582 units is Sym Asia

Unitholdings of Directors as at 21 January 2013

Direct Interest Deemed Interest

Name of Directors No. of Units % No. of Units %

Dr Chua Yong Hai – – – –Prof Ong Seow Eng 63,000 0.01 – –Mr Tan Guong Ching – – – –Mr Ooi Eng Peng – – – –Mr Michael Patrick Dwyer – – 9,256,245(1) 0.76Mr Victor Ong Wei Tak (alternate director to Michael Patrick Dwyer) – – 9,256,245(1) 0.76Mr Lee Stuart Neibart – – – –Mr Ian Andrew Smith – – – –Mr Masaki Kurita – – – –Mr Christopher Dale Calvert 16,435(2) –(3) – –

(1) Michael Patrick Dwyer and Victor Ong Wei Tak are deemed to be interested in the 9,256,245 units held by Cambridge Industrial Trust Management Limited (“The Manager”) by virtue of their interest in Cambridge Real Estate Investment Management Pte. Ltd., which holds 80% interest in the Manager.

(2) 64,125 units as at 1 March 2013

(3) Less than 0.01%

Free float under rule 723 of the listing manual of the sgX-st, a listed issuer must ensure that at least 10.0% of its listed securities are at all times held by the public. based on the information made available to the manager as at 1 march 2013, approximately 96.4% of Cit’s units are held in the hands of the public and therefore, rule 723 of the listing manual of the sgX-st has been complied with.

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notice ofannual general meeting

NOTICE IS HEREBY GIVEN that the 4th Annual General Meeting of Cambridge Industrial Trust (“CIT”) will be held at NTUC Auditorium, Level 7, NTUC Centre, One Marina Boulevard, Singapore 018989 on 19 April 2013 at 2.00 p.m. for the purpose of considering and, if thought fit, passing, with or without modifications, the following resolutions:

AS ORDINARY BUSINESS

1. ORDINARY RESOLUTION

To receive and to adopt the statement by the Manager and the audited financial statements of CIT for the financial year ended 31 December 2012.


To re-appoint KPMG LLP as Auditors of CIT to hold office until the conclusion of the next Annual General Meeting and to authorise the Directors of Cambridge Industrial Trust Management Limited, as manager of CIT (the “Manager”), to fix their remuneration.

SPECIAL BUSINESS

To consider and, if thought fit, to pass the following Resolutions, with or without any modifications:


That approval be and is hereby given to the Manager, to:

(a) (i) issue units in CIT (“Units”) whether by way of rights, bonus or otherwise; and/or

(ii) make or grant offers, agreements or options (collectively, “Instruments”) that might or would require Units to be issued, including but not limited to the creation and issue of (as well as adjustments to) securities, warrants, debentures or other instruments convertible into Units,

at any time and upon such terms and conditions and for such purposes and to such persons as the Manager may in its absolute discretion deem fit; and

(b) issue Units in pursuance of any Instrument made or granted by the Manager while this Resolution was in force (notwithstanding that the authority conferred by this Resolution may have ceased to be in force), provided that:

(i) the aggregate number of Units to be issued pursuant to this Resolution (including Units to be issued in pursuant of instruments made or granted pursuant to this Resolution) shall not exceed ten per cent (10%) of the total number of issued Units excluding treasury Units, if any)(as calculated in accordance with sub-paragraph (2) below), such Units of which may be issued: (a) on a pro rata basis to Unitholders or (b) on a non-pro rata basis to Unitholders; or (c) to such other persons as the Manager shall deem fit (the “General Mandate”);

(ii) subject to such manner of calculation as may be prescribed by the Singapore Exchange Securities Trading Limited (“SGX-ST”) for the purpose of determining the aggregate number of Units that may be issued under sub-paragraph (1) above, the total number of issued Units (excluding treasury Units, if any) shall be based on the number of issued Units (excluding treasury Units, if any) at the time this Resolution is passed, after adjusting for:

(a) any new Units arising from the conversion or exercise of any Instruments which are outstanding at the time this Resolution is passed; and

(b) any subsequent bonus issue, consolidation or subdivision of Units,

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SPECIAL BUSINESS (Cont'd)

3. ORDINARY RESOLUTION (Cont'd)

and that:

(A) in exercising the authority conferred by this Resolution, the Manager shall comply with the provision of the Listing Manual of the SGX-ST for the time being in force (unless such compliance has been waived by the SGX-ST) and the trust deed constituting CIT (as amended) (the “Trust Deed”) for the time being in force (unless otherwise exempted or waived by the Monetary Authority of Singapore (“MAS”));

(B) unless revoked or varied by CIT in a general meeting, the authority conferred by this Resolution shall continue in force until (i) the conclusion of any subsequent Extraordinary General Meeting approving a new General Mandate for CIT; or (ii) the conclusion of the next Annual General Meeting of CIT or (iii) the date by which the next Annual General Meeting of CIT is required by law to be held, whichever is earlier;

(C) where the terms of the issue of the Instruments provide for adjustment to the number of Instruments in the event of rights, bonus or other capitalisation issues or any other events, the Manager may issue additional Instruments notwithstanding that the General Mandate may have ceased to be in force at the time the Instruments are issued; and

(D) the Manager and RBC Investor Services Trust Singapore Limited, as trustee of CIT (the “Trustee”), be and are hereby severally authorised to complete and do all such acts and things (including executing all such documents as may be required) as the Manager or, as the case may be, the Trustee may consider expedient or necessary or in the interest of CIT to give effect to the authority conferred by this Resolution.

OTHER BUSINESS

To transact any other business which may properly be brought forward.

By Order Of The BoardCambridge Industrial Trust Management Limited (Company Registration No. 200512804G, Capital Markets Services licence no.: 100132-2) As manager of Cambridge Industrial Trust

Christopher Calvert Chief Executive Officer & Executive Director

Singapore 25 March 2013


144


Notice:

Unitholder entitled to attend the meeting and vote is entitled to appoint up to two proxies to attend and vote instead of him; a proxy need not be a Unitholder. The instrument appointing the proxy or proxies (a form is enclosed) must be deposited with B.A.C.S. Private Limited, the Unit Registrar, at its office at 63 Cantonment Road, Singapore 089758 not less than 48 hours before the time appointed for holding the meeting.

Explanatory Notes:

Resolution 3

The Manager’s rationale in seeking the Ordinary Resolution 3 is to provide it with the flexibility to transact any potential value adding and yield accretive acquisition opportunities or, any asset enhancement initiatives, without incurring additional expense in having to go back to Unitholders from time to time, for their approval. The competitive real estate landscape may require equity funds to be raised promptly and efficiently for these purposes, otherwise, the Manager may be at a disadvantage to transact ordinary business opportunities relative to its competitors.

For determining the aggregate number of Units that may be issued, the percentage of issued Units will be calculated based on the issue Units at the time the Ordinary Resolution 3 above is passed, after adjusting for new Units arising from the conversion or exercise of any instruments which are outstanding at the time this Resolution is passed and any subsequent bonus issue, consolidated or subdivision of Units.

Fund raising by issuance of new Units may be required in instances of property acquisitions, debt repayments or other similar permitted transactions. If the approval of Unitholders is required under the Listing Manual of the SGX-ST and the Trust Deed or any applicable laws and regulations in any such instances, the Manager will then obtain the approval of Unitholders accordingly.

Important Notice

The value of Units and the income derived from them may fall as well as rise. Units are not investments or deposits in or liabilities or obligations of the Manager, the Trustee, or any of their respective related corporations and affiliates (including but not limited to National Australia Bank Limited, nabInvest Capital Partners Pty Limited, or other members of the National Australia Bank group) and their affiliates (individually and collectively “Affiliates”).

An investment in Units is subject to equity investment risk, including the possible delays in repayment and loss of income or the principal amount invested. Neither CIT, the Manager, the Trustee nor any of the Affiliates guarantees the repayment of any principal amount invested, the performance of CIT, any particular rate of return from investing in CIT, or any taxation consequences of an investment in CIT. Any indication of CIT performance returns is historical and cannot be relied on as an indicator of future performance.

Investors should note that they will have no right to request the Manager to redeem or purchase their Units for so long as the Units are listed on the SGX-ST. It is intended that Unitholders may only deal in their Units through trading on the SGX-ST. Listing of the Units on the SGX-ST does not guarantee a liquid market for the Units.

IMPORTANT: PLEASE READ THE NOTES TO PROXY FORM BELOW

Notes to Proxy Form

1. A unitholder of CIT (“Unitholder”) entitled to attend and vote at the Annual General Meeting is entitled to appoint one or two proxies to attend and vote in his stead.

2. Where a Unitholder appoints more than one proxy, the appointments shall be invalid unless he specifies the proportion of his holding (expressed as a percentage of the whole) to be represented by each proxy.

3. A proxy need not be a Unitholder.


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4. A Unitholder should insert the total number of Units held. If the Unitholder has Units entered against his name in the Depository Register maintained by the Central Depository (Pte) Limited (“CDP”), he should insert that number of Units. If the Unitholder has Units registered in his name in the Register of Unitholders of CIT, he should insert that number of Units. If the Unitholder has Units entered against his name in the said Depository Register and registered in his name in the Register of Unitholders, he should insert the aggregate number of Units. If no number is inserted, this form of proxy will be deemed to relate to all the Units held by the Unitholder.

5. The instrument appointing a proxy or proxies must be deposited at the Unit Registrar’s Office at 63 Cantonment Road, Singapore 089758, not less than 48 hours before the time set for the Annual General Meeting.

6. The instrument appointing a proxy or proxies must be under the hand of the appointor or of his attorney duly authorised in writing. Where the instrument appointing a proxy or proxies is executed by a corporation, it must be executed either under its common seal or under the hand of its attorney or a duly authorised officer.

7. Where an instrument appointing a proxy is signed on behalf of the appointor by an attorney, the power of attorney or a duly certified copy thereof must (failing previous registration with the Manager) be lodged with the instrument of proxy; failing which the instrument may be treated as invalid.

8. Agent Banks acting on the request of CPF investors who wish to attend the meeting as Observers are required to submit in writing, a list with details of the investors’ name, NRIC/Passport numbers, addresses and numbers of shares held. The list, signed by an authorised signatory of the Agent Bank, should reach the Unit Registrar of Cambridge Industrial Trust not later than 48 hours before the time appointed for holding the meeting.

9. The Manager shall be entitled to reject a Proxy Form which is incomplete, improperly completed or illegible or where the true intentions of the appointor are not ascertainable from the instructions of the appointor specified on the Proxy Form. In addition, in the case of Units entered in the Depository Register, the Manager may reject a Proxy Form if the Unitholder, being the appointor, is not shown to have Units entered against his name in the Depository Register as at 48 hours before the time appointed for holding the Annual General Meeting, as certified by CDP to the Manager.

10. All Unitholders will be bound by the outcome of the Annual General Meeting regardless of whether they have attended or voted at the Annual General Meeting.

11. At any meeting, a resolution put to the vote of the meeting shall be decided on a show of hands unless a poll is demanded (before or on the declaration of the result of the show of hands) by the Chairman, or by five or more Unitholders present in person or by proxy, or by Unitholders holding or representing one-tenth in value of the Units represented at the meeting. Unless a poll is so demanded, a declaration by the Chairman that such a resolution has been carried or carried unanimously or by a particular majority or lost shall be conclusive evidence of the fact without proof of the number or proportion of the votes recorded in favour of or against such resolution.

12. On a show of hands, every Unitholder who (being an individual) is present in person or by proxy or (being a corporation) is present by one of its officers as its proxy shall have one vote. On a poll, every Unitholder who is present in person or by proxy shall have one vote for every Unit of which he is the Unitholder. A person entitled to more than one vote need not use all his votes or cast them the same way.


This page is intentionally left blank.

CAMBRIDGE INDUSTRIAL TRUST(a unit trust constituted on 31 March 2006 under the laws of the Republic of Singapore)

PROXY FORMANNUAL GENERAL MEETING

I/We ____________________________________________________ (Name) ________________ (NRIC/Passport Number) of

_______________________________________________________________________________________________ (Address)being a unitholder/unitholders of Cambridge Industrial Trust (“CIT”), hereby appoint:

Name AddressNRIC/Passport

Number Proportion of UnitholdingsNo. of Units %

and/or (delete as appropriate)

Name AddressNRIC/Passport

Number Proportion of UnitholdingsNo. of Units %

or, both of whom failing, the Chairman of the Annual General Meeting as my/our proxy/proxies to attend and to vote for me/us on my/our behalf and if necessary, to demand a poll, at the Annual General Meeting of CIT to be held at 2.00 p.m. on 19 April 2012 at NTUC Auditorium, Level 7, NTUC Centre, One Marina Boulevard, Singapore 018989 and any adjournment thereof. I/We direct my/our proxy/proxies to vote for or against the resolution to be proposed at the Annual General Meeting as indicated hereunder. If no specific direction as to voting is given, the proxy/proxies will vote or abstain from voting at his/their discretion, as he/they will on any other matter arising at the Annual General Meeting.

No. Resolution For* Against*

1. Adoption of Reports and Financial Statements (Ordinary Resolution)

2. Re-appointment of Auditors (Ordinary Resolution)

3 To approve the General Mandate (Ordinary Resolution)

*If you wish to exercise all your votes “For” or “Against”, please tick () within the box provided. Alternatively, if you wish to exercise your votes both “For” and “Against” the relevant resolution, please insert the relevant number of Units in the boxes provided.

Date this ___________________ day of _____________________2013Total Number of Units Held

Signature(s) of Unitholder(s)/Common Seal

IMPORTANT:1. For investors who have used their CPF moneys to buy units in Cambridge

Industrial Trust, this Annual Report is forwarded to them at the request of their CPF Approved Nominees and is sent FOR INFORMATION ONLY.

2. This Proxy Form is not valid for use by CPF Investors and shall be ineffective for all intents and purposes if used or is purported to be used by them.

3. CPF investors who wish to attend the Annual General Meeting as OBSERVERS have to submit their requests through their respective Agent Banks so that their Agent Banks may register, in the required format, with the Unit Registrar of Cambridge Industrial Trust (Agent Banks, please see Note No. 8 on required format).

4. PLEASE READ THE NOTES TO THE PROXY FORM.

#

Fold here

B.A.C.S. Private Limited(as unit registrar of Cambridge Industrial Trust)

63 Cantonment RoadSingapore 089758

Fold here

Fold and seal here

AffixPostageStamp

Singapore Industrial Property Market Overview

CorporateDirectory

The Manager

Cambridge Industrial Trust Management Limited

Company Registration Number: 200512804G

Capital Markets Services Licence Number: 100132- 2

Registered Office:

61 Robinson Road#12- 01 Robinson CentreSingapore 068893T (65) 6222 3339F (65) 6827 9339www.cambridgeindustrialtrust.com

Board of Directors

Dr Chua Yong HaiIndependent Chairman

Professor Ong Seow EngIndependent Director

Mr Tan Guong ChingIndependent Director

Mr Ooi Eng PengIndependent Director

Mr Michael Patrick DwyerNon-Executive Director

Mr Victor Ong Wei Tak(Alternate Director to Mr Michael Patrick Dwyer)Non-Executive Director

Mr Ian Andrew SmithNon-Executive Director

Mr Lee Stuart NeibartNon-Executive Director

Mr Masaki KuritaNon-Executive Director

Mr Christopher CalvertChief Executive Officer & Executive Director

Trustee

RBC Investor Services Trust Singapore Limited

20 Cecil Street#28-01 Equity PlazaSingapore 049705T (65) 6823 5000F (65) 6538 2090www.rbcis.com

Auditors

KPMG LLP

16 Raffles Quay#22-00 Hong Leong BuildingSingapore 048581T (65) 6213 3388F (65) 6220 9387www.kpmg.com.sg

Partner-in-charge:Mr Koh Wei Peng(since financial year ended 31 December 2008)

Company Secretaries

Ms Yvonne Goh, FCISMs Lynn Wan, FCIS

KCS Corporate Services Pte Ltd

36 Robinson Road#17-01 City HouseSingapore 068877T (65) 6311 3233F (65) 6311 3256www.kcs.com

Counter NameCambridge

Stock SymbolJ91U

Audit, Risk Management & Compliance Committee (“ARCC”)

Professor Ong Seow EngChairman

Mr Tan Guong ChingMember

Mr Ooi Eng PengMember

Mr Michael Patrick DwyerMember

Unit Registrar & Unit Transfer Office

B.A.C.S. Private Limited63 Cantonment RoadSingapore 089758T (65) 6593 4848F (65) 6593 4847

The Property Manager

Cambridge Industrial Property Management Pte. Ltd.

Company Registration Number: 200515344N

Registered Office:

61 Robinson Road#12-01 Robinson CentreSingapore 068893T (65) 6222 3339F (65) 6827 9339www.cambridgeindustrialtrust.com

Board of Directors

Mr Victor Ong Wei TakNon-Executive Director

Mr Ian Andrew SmithNon-Executive Director

Mr Nicholas Gregory BasileNon-Executive Director

This annual report has been printed on environmentally friendly paper.

CambridgeIndustrialTrustManagementLimited

61 Robinson Road

#12-01 Robinson Centre

Singapore 068893

T (65) 6222 3339

F (65) 6827 9339

E [email protected]

www.cambridgeindustrialtrust.com

Co. Reg. No. 200512804G

16 Tai Seng STreeT

AnnuAl RepoRt 2012 - listed...

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