Cache Logistics Trust: although it is one of the lower geared SREITs, Cache recently raised proceeds of $57.1m in a placement exercise, as a pre-emptive move to leverage on potential growth opportunities. DBSV expects gearing post placement to head down towards ~27% (from 29% previously). Says, the placement resulted in a slight dilution initially of ~3% in FY12- 13F earnings/DPU, but acquisitions may be on the cards. Near term, the manager is keen to grow its Singapore based portfolio. Apart from third party assets, DBSV believes that Cache could tap sponsors, CWT and C&P’s available pipeline of warehouses to grow its assets under mgt.
The house keeps at Buy for attractive 8.5-8.7% yield, but adjusts TP marginally to $1.11 (Prev $ 1.13).
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