Cache Logistics Trust: Announced good set of 3Q11 results which was in-line. Net property income at $15.99m, +11.4% yoy and +3.2% qoq, while distributable income at $13.4m, +8.9%yoy and +1.5% qoq. DPU at 2.095 cents represents an annualized yield of 8.6% vs 8% yoy.
Strong results was due to the quality acquisitions completed this yr and the considerable prudence placed in managing costs, with grp’s portfolio 100% occupied with a weighted average lease to expiry of 4.9 yrs, while the average island-wide monthly gross rent for warehouses rose by 2.9% on a quarter-on-quarter basis. Going forward, grp remains positive on outlook and will continue to pursuit the enhancement of its portfolio organically and with value-add acquisitions.
We note that grp’s balance sheet remains strong, with aggregate leverage stood at 30.4%, giving room for grp to gear up for potential acquisitions, while grp trades at 1.1x P/B with an annuzlied 8.6% distribution yield. SCB maintains O/p with $1.10 TP.