Cache Logistics Trust

Cache Logistics Trust: 3Q14 results were broadly in line. DPU rose 0.7% to 2.14¢ taking 9M14 DPU to 6.43¢ (-1.2%). Gross revenue for the quarter was up 0.4% to $20.9m, although properly expenses rose 15.9% to $1.3m due to higher property maintenance expenses and lease commissions, netting a slightly lower NPI of $19.5m (-0.5%). Fundamentals remain sound with portfolio occupancy at 99.5% and leverage ratio at 28.8%, and a weighted average lease to expiry of 3.6 years. Going forward, Cache guides that it is making good progress on negotiating new leases and forward renewals for lease expiries in 2015, and will work closely with its sponsor in a bid to maintain high portfolio occupancy by securing existing and potential new end-users as direct tenants. On its investment pursuits, the group seeks to grow Cache via accretive acquisitions in Singapore and in the Asia- Pacific region, particularly in China, Australia, Malaysia and Korea. Cache trades at a P/B of 1.22x and offers an annualised 3Q14 yield of 7.2%. Latest broker ratings OCBC places Hold rating and TP of $1.25 under review OSKDMG resumes coverage with Neutral and TP of $1.21