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From DBSV 3 April.
A pre-emptive cash call.
Being one of the lower geared SREITs, we see Cache Logistics Trust’s (Cache) recent placement exercise as a pre-emptive move to leverage on potential growth opportunities. The placement was well received by investors, netting proceeds of S$57.1m (after related expenses), which will be utilized towards funding a previously announced acquisition and repayment of debt. Gearing post placement is expected to head down towards c.27% (from 29% previously).Slight initial dilution due to negative funding gap
. With new funds raised at an estimated 8.5%, but being deployed to (i) purchase a lower yielding asset (21 Changi North Way is estimated to generate an initial yield of 7.7%) and (ii) repayment of debt costing 4.3%, we forecast that this negative funding gap could lead to a dilution of c.3% in FY12-13F earnings/DPU. However, investors appear to focus on Cache’s lower gearing of 27% and potential acquisitions that Cache could execute given a larger implied debt-funded headroom of close to S$120m (till 35%).Acquisitions may be on the cards.
An update with management reiterates our view that Cache is poised to continue its growth trajectory in the medium term, with the manager sourcing regionally for acquisitions. Near term, the manager is keen to grow its Singapore based portfolio. Apart from third party assets, we believe that Cache could tap sponsors, CWT and C& P’s available pipeline of warehouses to grow its AUM. As such, we have raised our acquisition assumptions to S$60m (nil previously), resulting in slight adjustments to our FY12-13F.Maintain BUY, TP adjusted slightly to S$1.11
. We believe that timely execution of acquisitions is key to limit unitholder dilution due to an enlarged share base. Maintain BUY, stock continues to offer attractive prospective yields of 8.6-8.8%.Y, now challenge on how tiny is the character !
This 1, when IPO, promised a yield of 8.8%. So now, cannot reached is it ?
Cache Logistics Trust announced that two unrelated transactions were signed with APC Distributors Pte Ltd for the acquisition of 6 Changi North Way for a purchase price of S$30.9 million and with Kim Heng Tubulars Pte Ltd for the acquisition of 4 Penjuru Lane for S$8.9 million. The combined NPI yield is 8.0% based on the aggregate NPI expected from the two properties. With the addition of these acquisitions, Cache’s total assets under management will increase to S$783.9 million.
/sgx
hear what CIMB says....
Cache Logistic Trust. 4Q10 results expectations. Annualised DPU and yield of 7.73cts and 7.8%, above the average S-Reit yield (5.9%) and average industrial REITs (7.5%). We raise NPI margin assumptions. Our DPU estimates rises by 1.7%. Target price is increased to S$1.32 from S$1.30. Remains sector top pick. Outperform. |
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ARA-CWT Trust Management (Cache) Ltd (the “Manager”), the manager of Cache Logistics Trust (“Cache”), announced another significant leasing accomplishment with CWT Limited (“CWT”). A highly regarded multinational corporation has committed to occupy approximately 280,000 sq ft, representing over 12% of the gross floor area, at CWT Commodity Hub for approximately nine years. The commitment means certainty of occupancy for the specific premises for four years beyond the present master lease. The agreement to lease from April 2015 to April 2019 has a rental value of S$20.0 million and is inclusive of additional rent for end-user specific asset enhancement works to be funded by Cache.
/sgxmasnet/
Do you have a link to the report? CIMB published a report on 29 Oct 2010, rating Cache as Outperform with target price of $1.30. Did they change their position so soon?
enghou ( Date: 19-Nov-2010 16:19) Posted:
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Cache Logistics Trust (CACHE SP; S$0.95; Sell) – The stock appears to be stuck within a range of S$0.915 to S$1.02.
Source: CIMB
Make love more, don't make more enemies
DATE OF RELEASE OF FINANCIAL RESULTS FOR THE PERIOD FROM 11 FEBRUARY 2010 TO 30 JUNE 2010 FINANCIAL STATEMENT AND RELATED ANNOUNCEMENT
http://info.sgx.com/webcorannc.nsf/AnnouncementToday/C371C98CD2FF8A4F48257761002FEB84?opendocument#
Thanks!
jchong71 ( Date: 06-Jul-2010 11:53) Posted:
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Go read this DBS coverage:
Quarterly payouts is based on 3-6-9-12; yield at current price ($0.95-0.99) should be about 7-8% based om IPO prospectus forecast.
Blastoff ( Date: 06-Jul-2010 11:14) Posted:
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Already have done that but not much information...
jchong71 ( Date: 06-Jul-2010 10:55) Posted:
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You should go to their website and read the information just like everyone else.
Seem like Oct will publish some result...
Noone has information on this?
Blastoff ( Date: 05-Jul-2010 22:26) Posted:
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Hi, does anyone of you know whether this trust give out quarterly dividend? If yes, what;s the projected estimated dividends? Thanks!