Macarthurcook Industrial Reit (MI-Reit) yesterday got a first-time Baa3 investment grade rating from Moody’s, boosting its maximum gearing limit from 35 per cent to 60 per cent of gross assets, which translates to over $75 million of additional debt capacity. The Reit, which has a portfolio of 12 industrial real estate assets in Singapore and was listed in April this year at an issue price of $1.20 and distribution yield of 6.2 per cent, traded up to a high of $1.35 at yesterday’s close. ‘With the credit rating, MI-Reit has increased gearing capacity, with available debt capacity of approximately $193 million to fund acquisitions,’ said chief executive Chris Calvert. The trust said it intends to maintain a long-term target gearing of between 40 to 45 per cent, but might on occasion increase this to secure strategic industrial properties around Asia. Debt is an ‘efficient mechanism’ by which to achieve the target of growing the Reit’s assets by at least $500 million in new acquisitions per year, said Mr Calvert.
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