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Full year distributable income improved 9.5% while full year net property income improved 11.7%.
However, full year DPU improved by a very much smaller 1.6%.
Why do investors like Cache Logistics Trust? Some reasons could be:
1. 100% occupancy rate.
2. Only 2% of lettable space is up for lease renewal this year.
3. Weighted average lease to expiry: 3.9 years.
At $1.27 per unit, annualised, distribution yield is 6.78%. This is much lower than Sabana REIT's but Cache Logistics Trust offers greater certainty and that alone would command a premium.
A more interesting question is whether the size of the premium is justifiable. That is another exercise in subjectivity.
Gearing is higher now at 31.7% which, however, is still comfortable.
Related post:
Cache Logistics Trust: DPU down 5%.
Bloggy Award
4 comments:
Cache Logistics Trust (CACHE) has exercised the call option and entered into the S&P agreement with Precise Development Pte Ltd to acquire the fully ramp-up warehouse known as Precise Two last evening.
Separately, CACHE is proposing to carry out a private placement of 70m new units to institutional and other investors at an issue price of S$1.24-S$1.265 apiece.
About S$86.8m in gross proceeds are expected to be raised (based on S$1.24 issue price), of which 66.0% (~S$57.3m) will be used to wholly fund the proposed acquisition of Precise Two, while the balance will be deployed to fund future investments or pare down debt.
We understand that the issue price will be determined by today. An advanced distribution of ~2.12 S cents per unit is also expected to be paid to entitled unitholders around 26 Apr 2013.
OCBC Research, 19 March 2013.
Hi AK,
Based on your many posts, I'm very curious to know why Cache isn't one of your top holdings for S Reits since its numbers are doing very well and its management is doing very well too.
Just curious :)
Hi Solidcore,
I remember having it on my watchlist in late 2010. I liked its numbers a lot but it was about getting in at a price with a yield I wanted. I finally initiated a position in March 2011 at under $92.5c, iirc.
At around the same time, I was also aggressively adding to my long position in AIMS AMP Capital Industrial REIT.
I was also adding to my position in First REIT, iirc. So, as my resources were limited, Cache Logistics had to play a second... er... maybe third or fourth fiddle. ;p
CACHE Logistics Trust on Wednesday reported a 0.3 per cent increase in distribution per unit (DPU) to 2.146 Singapore cents for its first quarter ended March 31, 2015.
Gross revenue rose 1.6 per cent to S$21 million, while net property income rose 0.6 per cent to S$19.7 million.
Source:
http://www.businesstimes.com.sg//companies-markets/cache-logistics-trust-q1-dpu-up-03-revenue-rises-16
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