Cache Logistics Trust

Cache Logistics Trust: Cache will seek unitholders’ approval at an EGM on 19 Dec to renew the master lease for CWT Commodity Hub with CWT for three years. CWT Commodity Hub is Cache’s largest property and contributes c.35% of portfolio income. However, based on current market rents, the proposed master lease for Commodity Hub will provide only a 0.4% increase in rental income in 2015, c.6% below StanChart's estimates, but likely 10-15% below consensus expectations. StanChart believes there could be further downside due to the weak industrial outlook and potentially higher property expenses. House downgraded Cache Logistics Trust to Underperform and TP of $1.05.