CLT – BT

Cache Logistics’ Q3 DPU up 8% at 2.095 cents

CACHE Logistics Trust has achieved a third-quarter distribution per unit (DPU) of 2.095 cents, up 8 per cent from 1.94 cents a year ago.

This translates to an annualised DPU of 8.312 cents, which implies a yield of 8.3 per cent based on yesterday’s closing price of $1.00.

Distributable income for the three months ended Sept 30 came in 8.6 per cent higher at $13.4 million, compared with $12.3 million a year back and exceeded forecasts by 8 per cent.

Boosted by additional rental income from the acquisition of investment properties during the period, the logistics real estate investment trust’s (Reit’s) net property income (NPI) registered a gain of 11.4 per cent at $16 million compared with $14.4 million in 3Q10.

For the first nine months of the year, the NPI and distributable income have risen 69.8 per cent and 68.8 per cent year-on-year, with numbers coming in at $45.9 million and $39.1 million respectively.

As at end-September, all of the warehouses in Cache’s portfolio continue to be fully occupied with a weighted average lease to expiry of 4.9 years – one of the highest in the local Reit universe.

Gearing came in slightly higher at 30.4 per cent for the period, up from 2Q11’s 29.1 per cent, but remains at healthy levels leaving adequate debt headroom.

Recent acquisitions by the Reit include the Air Market Logistics Centre at 22 Loyang Lane, which brings the Cache’s total portfolio to a total of 10 properties located in both Singapore and China.

The CEO of the Reit’s manager, Daniel Cerf, remains optimistic on Cache’s outlook, saying: ‘We will continue to track the positive fundamentals of the market in our pursuit of enhancing the portfolio organically and with value- add acquisitions.’

Yesterday, Cache closed two cents higher at $1.00.