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Cache Logistics Trust: 1Q 2012 DPU 2.086c.

Thursday, April 19, 2012

It is no secret that I like industrial S-REITs as passive income generators. I am also vested in Cache Logistics Trust although my long position here is quite a bit smaller compared to my investments in Sabana REIT and AIMS AMP Capital Industrial REIT.

DPU for the quarter came in at 2.086 S cents and represented a 6.9% YoY increase. 

Income distribution is payable 30th of May 2012.

CACHE’s portfolio properties remained 100% occupied.

The weighted average lease expiry (WALE) stood at 4.4 years.

Aggregate leverage improved from 29.6% as at 31 Dec 2011 to 27.7%. This gives the REIT an estimated S$110m of additional debt headroom for future investment opportunities.

Interest cover maintained at a strong 8.0x.

Related post:
Cache Logistics Trust: 4Q and 2011 results.

See OCBC Research, 19 April:
Cache Logistics Trust: Positive start to FY12.

See presentation slides: here.


B said...

Hi AK71

Cache has been paying out 3 times dividends within the 6 months. I thought they will be paying it quarterly.

What do you think?

FoodieFC said...

All the reits have rode along with the STI ride to 3,000. Even sabana which has rose up.

Did not know that cache is 100% occupied! What a achievement

AK71 said...

Hi B,

Yes, the REIT distributes income quarterly. It had a share placement not too long ago and so, it had an additional distribution. This was to exclude the new units placed out from income collected prior to their issue. This is to be seen as an exception and not the norm. ;)

AK71 said...

Hi FoodieFC,

I don't pay attention to all the REITs but those that I track have indeed risen. :)

Being 100% occupied also means that the REIT could not bump up income distribution by leasing out any remaining available space. ;p

FoodieFC said...

Hi AK71,

I would rather have 100% occupied than 99%. As 100% means tts the max possible dividends I can get (assuming rent per sq feet is same)

AK71 said...

Hi FoodieFC,

Haha.. I was just playing the devil's advocate. ;)

Farhat said...

Hi AK71

Wanted to check if as a individual REIT investor do we have to declare the divident amount from the REIT for income tax purpose.

Any comments?

AK71 said...

Hi Farhat,

All dividends declared by Singapore stocks are automatically captured by IRAS for income tax purposes. There is no need for individual investors to declare unless the stocks are held in nominee accounts.

Income distributions from S-REITs are non-taxable for all Singapore residents. This is a big incentive to invest in S-REITs for income. :)

Ah John said...

Cache has better performance for almost all index, but AK favor Sabana and AIMS, because higher dividend yield?

Ah John said...

Hi AK, what stock broker are you using? I am now using DBSV, but don't like the token, and not cheap too.

AK71 said...

Hi Ah John,

Sabana REIT and AIMS AMP Capital Industrial REIT were severely undervalued in the sell down just a few months ago. Sabana REIT went to the low 80s while AIMS AMP Capital Industrial REIT went to the low 90s.

Both REITs have seen their unit prices recovered by a larger percentage than Cache Logistic Trust's unit price has done from its low in the same period.

For sure, distribution yield has a role to play as we are after all investing for income when we invest in REITs.

I remember how a reader said that Mr. Market did not favour Sabana REIT and AIMS AMP Capital Industrial REIT when they were sold down. The reader went on to say that Mr. Market was always right. I am glad to say that Mr. Market agrees with me now. :)

AK71 said...

Hi Ah John,

I have two brokerage accounts: one with Lim&Tan and one with KimEng.

Ah John said...

Thanks AK, good explain for my question, remind me again for value investment!

AK71 said...

Hi Ah John,

I like to be a little bit of a contrarian sometimes.

Just when people throw their hands up and give up, it could be a good time to buy more. ;p

r said...

Hi AK,
Am recently interested in your blog and reading up slightly. Was seeing one of your comments about Innotek and you were saying it could be a picker. At this current price, with the high of innotek at 0.65, do you think its good to buy in at this current price and keep as dividend portfolio?

AK71 said...

Hi r,

You will have to forgive me but I can't remember anything I might have said about Innotek. I vaguely remember that it was a reader who thought it was a good buy.

I will have to pass on this one, begging your pardon.

r said...

Hi AK,

It might have been my mistake or reading too fast into it. No worries about it. Cheers!

Really liked your informative blog.

AK71 said...

Hi r,

I am happy you like my blog. I hope you wouldn't mind visiting my sponsors when you visit. Thanks. ;)

Ling said...

yes I have contributed to your sponsors :) thanks AK. I follow your blog now, very informative!

Ling said...

yes I've contributed to your sponsors :) thanks for your blog, very informative!

AK71 said...

Hi Ling,

Thanks for visiting my sponsors. Much appreciated. :)

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