Cache Logistics

Cache Logistics: 1Q13 results was inline with expectations. 1Q13 DPU at 2.23c, +4% QoQ and +7% YoY, with portfolio occupancy remaining stable at 100% with a weighted average lease expiry of 3.7 yrs and CACHE retaining its pole position in the ramp-up logistics warehouses space (~4.7m sqft) with ~20+% market share in Singapore. During the qtr, Cache signed on a new lease within APC Distrihub with Agility Logistics, and with this letting, Cache has no remaining space due to expire in 2013. Mgt maintains that it will continue to seek accretive acquisitions in Singapore, China and Malaysia. CACHE also notes that it has for the first time since IPO, obtained a corporate rating from Moody's (Baa3 with a stable outlook). This means that CACHE will be able to leverage up to 60% from the current restriction of 35% for REITs without a credit rating, as of 31 Mar 2013, its gearing stands at 29.2%.The grp currently trades at FY13 DPU Yield of 6.1% and P/B of 1.4x. Ratings as follows: Maybank-KE maintains neutral with $1.39 TP UOB Kay Hian maintains Buy with $1.52 TP CIMB maintains O/p with $1.50 TP OCBC maintains Buy with $1.45 TP