10 Quick Things That Investors Should Know About Cache Logistics Trust’s Latest Results

On 31 July 2018, Cache Logistics Trust (SGX: K2LU) released its 2018 second-quarter earnings update. As a quick introduction, Cache Logistics Trust is a REIT that focuses on logistics properties. It currently has 27 logistics warehouse properties in its portfolio which are located in Singapore, Australia, and China.

Here are 10 things investors should know about Cache Logistics Trust’s latest results:

1. Gross revenue for the reporting quarter grew 7.7% to S$30.0 million while net property income declined by 0.1% to S$21.6 million.

2. The REIT’s distribution per unit (DPU) was down by 17.6% year-on-year to 1.419 cents, mainly due to lower income for distribution and an increase in the unit count from a rights issue.

3. Based on Cache Logistics Trust’s annualised DPU of 5.852 Singapore cents and its closing unit price of S$0.795 as of 1 August 2018, the REIT has a trailing distribution yield of 7.4%.

4. As of 30 June 2018, the REIT’s gearing stood at 35.3%, which is a safe distance from the regulatory ceiling of 45%.

5. Cache Logistics Trust’s portfolio had a committed occupancy rate of 96.8% at the end of the quarter.

6. The weighted average lease expiry (by gross rental income) was at 3.3 years as of 30 June 2018. 47.4% of Cache Logistics Trust’s leases will expire between 2018 and 2020, 26.8% will expire in 2021 and 2022, and the rest will expire from 2023 onwards.

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

8. There are a total of 14 properties that Cache Logistics Trust has the right of first refusal (ROFR) on. These properties belong to the REIT’s sponsor, CWT Limited, which was acquired by the Hong Kong-listed CWT International Limited (previously, HNA Holding Group) in late 2017.

9. In May 2018, Cache Logistic Trust divested Hi-Speed Logistics Centre in Singapore.

10. Here are the comments from the REIT on its outlook:

“The Manager is of the view that the market sentiment has improved on the back of a recent increase in tenant enquiries. Management remains focused on its proactive asset management strategy to maintain high occupancy and optimise overall returns as well as continue its pursuit of strategic acquisitions and asset enhancement initiatives to grow its portfolio and earnings over time”

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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. Motley Fool Singapore contributor Lawrence Nga doesn’t own shares in any companies mentioned.