Cache Logistics Trust

Cache Logistics Trust: Results in line as 4Q13 DPU was 2.137₵ (-0.8% y/y) , while distributable income rose 9.6% to $16.6. NPI was 7.1% higher at $15.2m , attributable to upward rental reversions and acquisitions of properties completed in 2012-13. Portfolio occupancy 100%, vs warehouse occupancy average of 93.3%, while WALE is 3.1 years as at end Dec. Portfolio was revalued upwards by 6.5% by Jones Lang Lasalle. Aggregate leverage is low at 29.1%, with all in financing cost at 3.48% and weighted average debt duration of 1.9 years StanChart highlights potential upside when leases expire in 2014-16, as warehousing signing rents have risen ~20% since 2010, vs 5-10% rental growth over the past 5-6 years. A 5% positive rental reversion is ~3% accretive according to StanChart’s valuations. StanChart also highlights acquisitions from sponsors unlikely unless sponsors require capital. Potential acquisitions could be fringe of China Tier 1 cities or Klang Valley in Malaysia. NAV as at end Dec was $0.98, which translates to P/B of 1.15x .4Q13 annualized yield is 7.7% StanChart rates Cache Logistics Trust In-Line with TP of $1.07