Friday, October 29, 2010

Cache Logistics

Cache Logistics: Grp reported strong set of earnings which was in line with forecast. Net Property Income at $14.4m brought YTD (12April - 30Sept) NPI to $27m, with DPU at 3.65c, translating to an annualized DPU of 7.75c and yield of 7.8%, on track to beat FY10 average consensus estimates of 7.2c...

Going forward, Grp upbeat on sustaining distributions backed by strong predictable cash flows and resilient earnings, will focus on growing DPU through quality acquisitions in SG and Asia, while maintaining a conservative capital structure....

We note at current price grp trades at 1.07xP/B, with a forecasted yield for FY10-FY11 at 7.7% & 7.8% respectively, with weighted average lease to expiry of 5.8yrs and portfolio 100% leased on long-term, triple-net master lease, with a diversified tenant mix. Net Gearing remains comfortable at 23.4% with Interest coverage at 9.2x.

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