Cache Logistics

Cache Logistics: OCBC maintains Buy with $1.11 TP. Note that CACHE appears to be on track to deliver a sturdy set of results for FY12. In addition to strong and predictable income streams from its existing portfolio properties, the REIT had announced two new acquisitions YTD that are expected to contributive positively to its financial performance. House also observe that CACHE had announced the redemption of its S$35m 3.5% fixed rate notes due 2016 on 31 May. This is somewhat unexpected in view, as the date of maturity is still four years away and as CACHE clearly need the capital for growth. This leads house to believe that CACHE may be in the process of injecting new capital via borrowings at more favourable terms. Should this turn out to be true, expect CACHE to benefit from interest savings.