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hyruga ( Date: 06-Jul-2013 11:32) Posted:
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Cache Logistics Trust: Posts a DPU of 2.234 S cents in 1Q13, up 7.1% yoy. Distributable income rose 18.3% to S$15.8m, on the back of a 13.3% rise in gross revenue to S$19.1m and a 12.4% increase in net property income to S$18.1m. As at 31 Mar 13, Cache's portfolio included 12 logistics warehouse properties in Singapore and China, with a total gross floor area of approximately 4.83m square feet. Overall portfolio occupancy was maintained at 100%, with a weighted average lease to expiry (WALE) of 3.7 years.
Results in line with expectations. The 1Q13 DPU is in line with our expectations, accounting for 26.3% of our full year estimates. Acquisition of Precise Two completed on 1 April, for total cost of S$57m at an NPI yield of 8.7% on a six-year master-lease. With this acquisition, total investment properties will exceed S$1b. Maintain BUY with a target price of S$1.52 (from S$1.45) based on DDM (required rate of return: 6.5%, terminal growth: 2.0%) to value Cache (UOBKH)
$1.37 today !
dividends coming next week , Target = $1.40 !
From Business Times. Cache Logistics Trust’s private placement to raise S$84.2m has been oversubscribed overnight and it has since closed its orderbook. The issue price has been fixed at S$1.24 per new Unit, at the bottom end of its earlier provided range. Proceeds will be used to fund the proposed acquisition of the Precise Two property at
Short term hit for longer term gain.
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Singapore, 19 March 2013 – ARA-CWT Trust Management (Cache) Ltd., the manager (" Manager" ) of Cache Logistics Trust (" Cache" ), is pleased to announce that Cache has exercised the call option as provided for in the call option agreement signed and announced on 6 February 2013, and has entered into a sale and purchase agreement with Precise Development Pte. Ltd. (" Precise Development" ) to acquire the property known as Precise Two, located at 15 Gul Way, Singapore 629193 on 18 March 2013.
In addition, the Manager raised S$86.8 million overnight from a placement at an issue price of S$1.24 per New Unit, drawing strong demand from new and existing Unitholders. The net proceeds raised will primarily be used to fund the acquisition of Precise Two, potential acquisitions and/or pare down debt and general corporate and working capital.
Flying! Flying!
1.34 now!!!!!
UOBKH on Cache
Cache Logistics Trust (Cache) has announced the proposed acquisition of Precise Two, a newly completed three-storey ramp-up logistics warehouse, for S$55.2m. The valuation of the property by Knight Frank is at S$55.15m. Total estimated cost of the transaction is S$57.3m, including 1% acquisition fees and other professional fees and expenses. Gearing to rise to 35.3%, from 31.7%, if the acquisition is fully funded by debt. This is still within the comfortable gearing level of 30-35%. However, management has indicated that it will explore funding options closer to April when Cache is due to exercise the call option to purchase the property. Maintain BUY with a target price of $1.52 (from S$1.47), based on DDM (required rate of return: 6.5%, terminal growth: 2.0%).
DBS Vickers upgrades Cache Logistics Trust to ‘Buy’ target raised to $1.40
Analyst: Derek Tan
Cache Logistics Trust offers one of the strongest earnings visibility over the coming 2 years with potential upside if management undertakes a more aggressive acquisition stance against our forecasted S$200m. We estimate that an additional S$25m in acquisitions can raise our DPU estimates and target price further by c0.4% and 1 Singapore ct respectively. Upgrade to BUY, with target price at S$1.40. Strong visibility of acquisition pipeline Given the strong visibility of available acquisitions we have now doubled our acquisition forecasts to S$200m (vs S$100m previously) @ 7.25% initial yield. Pandan Logistics Hub is one of Cache's strategically located industrial property.These are projected to be completed over 2013 to 14. Gearing level of 31% is comfortable and management is open to obtaining a credit rating (more gearing flexibility) if a large acquisition opportunity arises. Portfolio with minimal earnings risks 4Q12 results was in line with estimates, with a higher DPU of 2.139 Singapore cts (+2.5%) owing due to an expanded portfolio. Looking ahead, Cache has minimal lease expiries (8% of income) over 2013-2014, which will shield the trust from any releasing risks given the large completing supply in the warehouse space over the same period. Moreover, given that underlying end-users are largely 3PLs, demand for its warehouse should remain firm.
From UOBKH Oct 5th 2012.
Cache Logistics Trust – Lower Financing Costs To Boost Dividends From (CACHE SP/BUY/S$1.23/Target: S$1.32) FY12F PE (x): 21.2 FY13F PE (x): 15.8 Lower financing costs. IFR Asia reported that Cache Logistics Trust (Cache) has closed the syndication of a S$375m loan with 19 banks, comprising a S$187.5m three-year loan paying a 2.3% margin, a S$125.5m four-year loan paying a 2.45% margin and a S$62m three year revolving line with a 2.3% margin. The strong demand could see all-in financing costs drop below the earlier guidance of 3.44% for Jul 12, which includes fee amortisation and the costs of swapping the loan to fixed rates. We tweak our 2012-2014 DPU forecasts to factor in the earlier announced refinancing. Maintain BUY with a higher target price of S$1.32 (from S$1.25), based on DDM (required rate of return: 6.9%, terminal growth: 1.5%).