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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.
Bloggy Award
21 comments:
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?
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
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. ;)
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
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)
Hi FoodieFC,
Haha.. I was just playing the devil's advocate. ;)
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?
Thanks,
NewInvestor
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. :)
Cache has better performance for almost all index, but AK favor Sabana and AIMS, because higher dividend yield?
Hi AK, what stock broker are you using? I am now using DBSV, but don't like the token, and not cheap too.
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. :)
Hi Ah John,
I have two brokerage accounts: one with Lim&Tan and one with KimEng.
Thanks AK, good explain for my question, remind me again for value investment!
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
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?
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.
Hi AK,
It might have been my mistake or reading too fast into it. No worries about it. Cheers!
Really liked your informative blog.
Hi r,
I am happy you like my blog. I hope you wouldn't mind visiting my sponsors when you visit. Thanks. ;)
yes I have contributed to your sponsors :) thanks AK. I follow your blog now, very informative!
yes I've contributed to your sponsors :) thanks for your blog, very informative!
Hi Ling,
Thanks for visiting my sponsors. Much appreciated. :)
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