Cache Logistisc Trust

Cache Logistisc Trust: Good set of 3Q12 results which was in-line. NPI at $18.1m, +12.9% yoy and +8.4% qoq, while DPU at 8.53c, +2.6% yoy and +7.0% yoy. Annualized DPU translates to a 6.8% yield. Performance mainly driven by additional rental income from upward rental adjustments and acquisitions of investment properties, namely the Pan Asia Logistics Centre and Pandan Logistics Hub. Going forward, grp remains optimistic, citing Colliers, who expects industrial rents to grow, albeit at a slower pace, of up to 1.5% in 4Q12. This growth will be supported by lease renewals, and to a lesser degree, co’s relocating or expanding their premises. We note that overall grp’ fundamentals remains strong, with an aggregate leverage of 27.5% and interest coverage of 7.5x. Wale stands at 4.4 yrs and at current price, grp trades at appox. 1.3x P/B.