Cache Logistics Trust: Higher Gross Revenue But Lower Distribution Per Unit

Cache Logistics Trust (SGX: K2LU) is a Singapore REIT. The REIT invests in income-producing real estate used for logistics purposes in Asia-Pacific, as well as real estate-related assets.

Last week, Cache Logistics Trust (SGX: K2LU) latest result shows its 2018 third-quarter earnings update. This Singapore undervalued stock currently has 27 logistics warehouse properties in its portfolio which are located in Singapore, Australia, and China.

Here Multi Management Future Solutions presenting some stats which investors should know about Cache Logistics Trust’s latest results- 

1. The Gross revenue of Cache Logistics for the reporting quarter grew 14.8% to S$31.5 million while net property income grew by 8.1% to S$23.1 million. 

2. The REIT’s distribution per unit (DPU) was down by 4.3% YOY to 1.475 cents, mainly due to lower income for distribution and issue of new units.

3. The REIT has a trailing distribution yield of 8.4% based on it’s annualized DPU of 5.868 Singapore cents and its unit price of S$0.70 (as of the time of writing).

4. As of 30 September 2018, the REIT’s gearing stood at 35.6%, which is a wide distance from the regulatory ceiling of 45%.

5. The REIT’s portfolio had a committed occupancy rate of 96.9% at the end of the quarter.

6. The weighted average lease expiry (by gross rental income) was at 3.1 years, as of 30 September 2018. 46.5% of Cache Logistics Trust’s leases will expire between 2018 and 2020, 27.3% will expire in 2021 and 2022, and the rest will expire from 2023 onward.

7. Singapore accounted for 76% of Cache Logistics Trust’s revenue in the quarter. Australia was in second place with 23%, and China accounted for the remaining 1%.

8. Cache Logistics has the right of first refusal (ROFR) on acquiring 14  properties. These properties belong to the REIT’s sponsor, CWT Limited, which was acquired by the Hong Kong-listed CWT International Limited in late 2017.

9. Cache Logistics Trust proposed the divestment of Jinshan Chemical Warehouse in Shanghai for RMB87.0 million.

Mapletree Industrial Trust’s Latest Earnings: Slight Raise In DPU

Mapletree Industrial Trust (SGX: ME8U) reported higher distribution per unit (DPU) on last week of October, lifted by growth from its new properties and acquisitions. The acquisitions and developments supported the 1.5% growth in its H1 DPU.
The latest report was for the second-quarter earnings results for the budgetary year ending on 31 March 2019.
Mapletree Industrial Trust is an industrial-based real estate investment trust (REIT) in Singapore undervalued stock division with 86 industrial properties and 14 data centers. Geographically, its properties are located in Singapore and United States and have a book value of S$4.4 billion.

According to DBS Group research, Mapletree Industrial Trust (MINT) could attract investors to accord the REIT with strong valuations through its overseas ventures given its ability to offer strong certainty of growth.

Here Multi Management Future Solutions present the financial report of Mapletree Industrial Trust, Let’ take a look-

The Gross revenue Mapletree for the reporting quarter decreased by 0.4% year-on-year to S$92.5 million while net property income declined by 0.1% to S$70.68 million.

The revenue for the Q2 a year ago rose up by an early termination by a key occupant.
If its termination was excluded then the revenue would have risen 3.1% YOY.

The distributable income of Mapletree rose 4.9% to S$56.3 million over the same period, resulting in a 0.3% accrual in DPU which came in at 3.01 cents. The hike in distributable income was due to profit contribution from the 14 data centers in the United States in which Mapletree Industrial Trust has a 40% interest.

As of 30 September 2018, the REIT’s gearing stood at 35.1% remaining stable at the previous quarter and the annualized interest rate stood at 3.0% with an average debt duration of 2.9 years. Around 78% of the REIT’s debt was on fixed-rate loans.

According to Mapletree operational statistic data, the REIT’s portfolio had a committed occupancy rate of 86.7% at the end of the quarter, which is a slight decline from the occupancy of 88.3% recorded at the end of June.

As of 30 September 2018, the REIT’s weighted average lease expiry (by gross rental income) came in at 3.7 years with only 7.7% of the leases expiring in FY18/19. And its net asset value (NAV) remained stable compared to the last quarter coming in at S$1.48.