Cache Logistics Trust (CACHE) reported 9M13 DPU of 6.507 S cents, up 4.8%. This forms 76.2% and 74.8% of our and consensus FY13 DPU projections, respectively. Based on the last closing price, annualised DPU yield was ~7.3%. As at 30 Sep, the portfolio assets remained fully leased with only 3% of the leases due to expire in 2014. Financial position also remains solid, with aggregate leverage holding steady QoQ at 29.2% and all-in financing costs improving to 3.45% from 3.48% in 2Q. Looking ahead, CACHE reiterated that it will continue pursuing yield-accretive acquisitions as well as organic growth opportunities in both asset enhancement initiatives and built-to-suit projects. Maintain BUY with unchanged fair value of S$1.30 on CACHE.
In-line 3Q13 results
Cache Logistics Trust (CACHE) reported 3Q13 NPI of S$19.6m and distributable income of S$16.5m, up 8.5% and 9.6% YoY respectively. The stronger performance was mainly attributable to additional rental income from upward rental adjustments and acquisitions of investment properties over the year. DPU for the quarter came in at 2.126 S cents, down marginally by 0.8% YoY as a result of enlarged unit base. For 9M13, NPI grew by 12.5% to S$50.9m, while distributable income rose by 15.7% to S$48.9m. 9M13 DPU amounted to 6.507 S cents, up 4.8%. This forms 76.2% and 74.8% of our and consensus FY13 DPU projections, respectively. Based on the last closing price, annualised DPU yield was ~7.3%.
Strong financial standing
As at 30 Sep, the portfolio assets remained fully leased with only 3% of the leases due to expire in 2014. Weighted average lease to expiry stood at 3.4 years, largely stable from 3.6 years seen a quarter ago. Financial position also remains solid, with aggregate leverage holding steady QoQ at 29.2% and all-in financing costs improving to 3.45% from 3.48% in 2Q. We note that management has been prudent on the capital management front, guiding a comfortable gearing level of 30%-40%. No debt refinancing is required until 2015, while 70.0% of its total borrowings are hedged into fixed rates. This would give CACHE considerable certainty over its financing costs, in our view.
Maintain BUY
Looking ahead, CACHE reiterated that it will continue to pursue yield-accretive acquisitions as well as organic growth opportunities in both asset enhancement initiatives and built-to-suit projects. Management pointed out three key markets, namely Singapore, China and Malaysia, for acquisitions. While nothing has materialized so far, this seems to gel well with our view as per our Aug report that CACHE may possibly looking to acquire a warehouse facility in Shanghai, China. Maintain BUY with unchanged fair value of S$1.30 on CACHE.
Cache Logistics Trust (CACHE) reported 3Q13 NPI of S$19.6m and distributable income of S$16.5m, up 8.5% and 9.6% YoY respectively. The stronger performance was mainly attributable to additional rental income from upward rental adjustments and acquisitions of investment properties over the year. DPU for the quarter came in at 2.126 S cents, down marginally by 0.8% YoY as a result of enlarged unit base. For 9M13, NPI grew by 12.5% to S$50.9m, while distributable income rose by 15.7% to S$48.9m. 9M13 DPU amounted to 6.507 S cents, up 4.8%. This forms 76.2% and 74.8% of our and consensus FY13 DPU projections, respectively. Based on the last closing price, annualised DPU yield was ~7.3%.
Strong financial standing
As at 30 Sep, the portfolio assets remained fully leased with only 3% of the leases due to expire in 2014. Weighted average lease to expiry stood at 3.4 years, largely stable from 3.6 years seen a quarter ago. Financial position also remains solid, with aggregate leverage holding steady QoQ at 29.2% and all-in financing costs improving to 3.45% from 3.48% in 2Q. We note that management has been prudent on the capital management front, guiding a comfortable gearing level of 30%-40%. No debt refinancing is required until 2015, while 70.0% of its total borrowings are hedged into fixed rates. This would give CACHE considerable certainty over its financing costs, in our view.
Maintain BUY
Looking ahead, CACHE reiterated that it will continue to pursue yield-accretive acquisitions as well as organic growth opportunities in both asset enhancement initiatives and built-to-suit projects. Management pointed out three key markets, namely Singapore, China and Malaysia, for acquisitions. While nothing has materialized so far, this seems to gel well with our view as per our Aug report that CACHE may possibly looking to acquire a warehouse facility in Shanghai, China. Maintain BUY with unchanged fair value of S$1.30 on CACHE.
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