27-04-2015, 04:19 PM
Cache Logistics Trust: Mood still cautious
Cache Logistics Trust (CACHE) reported its 1Q15 results which came in within our expectations. Gross revenue climbed 1.6% YoY to S$21.0m while inched up 0.3% to 2.146 S cents. CACHE has placed strong focus on securing new leases for its assets which have been converted from master-leased properties to multi-tenanted properties in Apr this year. Approximately 70% of its leases expiring in FY15 have been pre-committed. Nevertheless, we believe the leasing environment will remain challenging due to supply concerns and uncertain macroeconomic outlook. Given headwinds facing the Singapore industrial sector, CACHE has sought to diversify its operations by completing the acquisition of three distribution warehouses in Australia on 27 Feb this year for a total acquisition cost of A$75.6m. We raise our FY15 and FY16 DPU forecasts by 1.6% and 1.8%, respectively, to account for this development. Our fair value estimate thus increases from S$1.15 to S$1.17. Maintain HOLD. (Wong Teck Ching Andy)
Cache Logistics Trust (CACHE) reported its 1Q15 results which came in within our expectations. Gross revenue climbed 1.6% YoY to S$21.0m while inched up 0.3% to 2.146 S cents. CACHE has placed strong focus on securing new leases for its assets which have been converted from master-leased properties to multi-tenanted properties in Apr this year. Approximately 70% of its leases expiring in FY15 have been pre-committed. Nevertheless, we believe the leasing environment will remain challenging due to supply concerns and uncertain macroeconomic outlook. Given headwinds facing the Singapore industrial sector, CACHE has sought to diversify its operations by completing the acquisition of three distribution warehouses in Australia on 27 Feb this year for a total acquisition cost of A$75.6m. We raise our FY15 and FY16 DPU forecasts by 1.6% and 1.8%, respectively, to account for this development. Our fair value estimate thus increases from S$1.15 to S$1.17. Maintain HOLD. (Wong Teck Ching Andy)