Cache Logistics Trust: Announced good set of 1Q12 results which was in-line. NPI at 16.1m, +11.6% yoy and flat qoq, while DPU at 2.09c, +6.9% yoy and flat qoq, translating to a yield of 8.4%.
Strong performance was attributed to higher rev and higher net property income mainly from the additional rental income from upward rental adjustments and acquisitions of investment properties in 2011.
Going forward, grp remains upbeat on prospects, noting that outlook for the warehousing sector is slightly more positive due to the continued demand from third-party logistics players involved in regional trade.
We note that overall, grp’s fundamentals remain strong, with gearing at a comfortable 27.7% vs Industrial REITs with a WALE of 4.4 yrs, and portfolio occupancy at 100%. At current price, grp trades at 1.08x P/B vs peers average of 1.5x, and with a yield of 8.4% vs peers average of 8%.