Cache Logistics Trust

Cache Logistics Trust: 2Q14 results in-line. DPU and distributable income were flat y/y at 2.147¢ and $16.7m respectively. Gross revenue was 1.7% higher at $20.8m on rental escalations while NPI was flat at $19.6m on higher property expenses. Aggregate leverage stood at 28.9% with all-in-financing cost of 3.47%. WALE stood at 3.8 years with 99.6% occupancy. 52% of the leases are due to expire in 2015-16 (including the DHL BTS warehouse in TampinesLogisPark). Cache is working with sponsor to transform portfolio to a more multi-tenanted properties over time. Sponsor, CWT/C&P are expected to gradually wind down their master lease positions. The REIT manager then work with CWT/C&P to secure existing and new end-users to lease premise directly from CACHE. Maybank-KE is cautious on industrial ware house space on impending amount of new supply, which may affect rents and occupancy rates in near term> NAV stood at $0.97, translating to 1.3x P/B. Annualized 2Q14 yield is 6.9%. Latest broker ratings: Maybank-KE maintains Hold with TP of $1.23