Cache Logistics Trust

Cache Logistics Trust: Grp announced that it will release its 4Q12 results after the market close on 21 Jan 2013. OCBC expect CACHE to meet 4Q NPI forecast of S$18.5m (+11.1% YoY) and distributable income projection of S$14.7m (+9.5%) comfortably, thanks to the contribution from its newly-acquired Pan Asia Logistics Centre and Pandan Logistics Hub. In the coming year, believe CACHE’s financial performance will remain sturdy, as it continues to benefit from upward rental adjustments and full-year contribution from its past acquisitions. A few industrial properties from its sponsor’s pipeline assets are also ready for acquisition and may boost its income if CACHE injects any of these properties into its portfolio. House also continue to favour CACHE for its resilient portfolio. While the PMI indicated that the manufacturing sector contracted for the fifth month in Nov, we expect CACHE’s portfolio occupancy to maintain at 100% as the bulk of its leases are based on triple-net master lease structures. Maintain BUY and $1.30 fair value on CACHE.