Thursday 22 November 2018

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.

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