Cache Logistics Trust

Cache Logistics Trust: Good set of 4Q12 results which was in-line. NPI at $18.3m, +13.9% yoy and +1.3% qoq, while DPU at 2.154c, +2.5% qoq and +1% qoq. Result brings FY12 DPU to 8.365c, +1.6% yoy, translating to a 6.7% yield & 1.3x P/B. Strong results was on the back of new acquisitions and rental escalations, namely the Pan Asia Logistics Hub and Pandan Logistics Hub. Going forward, grp remains comfortable on outlook, noting that Asia’s expanding consumer base & ECommerce is expected to generate more storage, packing and distribution needs, although highlighted a higher than average increase in warehouse supply which is expected to be available in 2013 and may dampen rental increases. We note that grp's overall fundamentals remain strong with a 100% occupancy, and a WALE of 3.88 yrs, higher than the industry average of 3.4 yrs for SG Industrial REITs. Cache does not have any debt maturing until 2015, and leverage ratio stands at a good 31.5% Ratings as follow: Maybank-KE maintains Hold with $1.27 TP. OCBC maintains Buy with $1.32 TP UOB Kay Hian maintains Buy with $1.47 TP CIMB Maintains O/p with $1.36 TP