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Cache Logistics Trust: Still on my watchlist.

Thursday, December 16, 2010

I hardly talk about Cache Logistics Trust but regular readers would know that this is on my watchlist. With an annualised DPU of 7.76c, at today's closing price of 94c, the distribution yield would be 8.26%. Still not attractive enough for me but I recognise its strong numbers which would convince me to start a small long position if price would decline to test its historical low of 91.5c for a yield of 8.48%.

Here are the numbers as at 30 Sep 10:
Gearing: 23.4%.
NAV/unit: 88c.
Interest cover: 9.2x.
Portfolio 100% leased.
WALE: 5.8 years.

Substantial institutional shareholders:
JPMorgan Chase   9%
Morgan Stanley     7%
The Capital Group 6%
Amundi                 7%

How likely is it for the Trust to retest 91.5c? Since 22 Sep, the OBV has been in decline, though bumpy. This suggests that there is gradual distribution going on. The MACD has also been on a decline. Volume is, however, very thin. Price could be quite volatile.

Anyway, if I get some units here, it is a move to diversify my portfolio but it is not absolutely necessary. If the price does not decline to the level I feel comfortable with, I would give it a miss.

See 3Q 2010 slides here.

Related post:
Cache Logistics Trust: Low gearing.


financiallyfreenow said...

Hi ak71,

Could u link me to your blog? My blog is now 7 months old and you said previously that you only link blogs more than 6 months old. Thanks.

AK71 said...

Hi financiallyfreenow,

I have added your blog to my blogroll "Investors & Traders". Check it out. ;)

Looking forward to your next update. Thanks for asking for a link exchange. :)

iisterry said...

Am I missing something from CACHE?

Based on last quarter results:

Total gross revenue is $58,992,000
Total expenses is $7,244,000
Total income expenses is $7,888,000

Based on 632,984,801 shares outstanding:

Nett income per unit is $0.06929
Distribution per unit is $0.077
Payout ratio is a whopping 111.13%

AK71 said...

Hi iisterry,

YTD (11/2/10 to 30/9/10):
Gross revenue: S$27.695m
NPI:S$ 27.01m
Distributable income: S$23.135m

3Q2010 (1/7/10 to 30/9/10):
Gross revenue: S$14.748m
NPI: S$14.361m
Distributable income: S$12.303m

DPU for Q3: 1.94c
Annualised DPU: 7.7c

Things seem to be in order.

Of course, we have to remember that Annualised DPU is just an assumption that all things will remain equal and not deviate from Q3's results.:)

For personal reference:
CLT 3Q2010 results.

iisterry said...

Hi AK71

Perhaps it would be clearer if I just used 3Q results alone.

Gross Income = $14,748,000
Financing Costs = $1,811,000
Other expenses (including property, mgmt, etc) = $1,972,000
Nett Income for 3Q = $10,965,000

Nett income per unit = $0.0173
DPU per unit = $0.0194

Something wrong here?

The numbers you used only factor in property expenses while overlooking the others.

AK71 said...

Hi iisterry,

I see what you mean. :)

If we look at page 12 of 3Q10 results, we would see an entry that says "distribution adjustment".

"Distribution adjustment" includes management fees paid in units, amortisation of capitalised debt upfront fees incurred on facilities, gain on revaluation of properties and other expenses which are non-deductible for tax purposes.

So, that would be $880k+$434k (management fees paid in units + amortisation of upfront fees on credit facilities; found on page 8 and page 4 of the report respectively) for a total of $1.314m which is about right.

There is a discrepancy of $7,000 and I spent some time trying to reconcile this but I am throwing in the towel. ;p

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