Cache Logistics Trust’s DPU Falls 8.4%

Key Highlights:

  • Cache Logistics Trust (SGX: K2LU)'s 4Q19 DPU dropped 8.4%

  • The annualised yield and price to book ratio are 7.5% and 1.29 respectively

1. Dividends

Net property income fell 12.4% to $20.5m. The poor performance was mainly due to:

  • The conversion of Cache Gul LogisCentre master lease into multi-tenancies

  • Downtime at Commodity Hub due to the transition period

  • Lower signing rents

  • Divestment of Jishan Chemical Warehouse

  • Weaker AUD

The annualised yield is 7.5%. Both the stock price and DPUs of the REIT has been declining since 2012. In the last quarter, we mentioned that Cache Logistics Trust's DPU is not sustainable, the REIT suffers negative rental reversion of 11.9%. The good news this quarter is that the REIT managed to fetch positive 9.1% rental reversion.

Source: reitscompass's REITs Insider ratings

2. Portfolio

Portfolio occupancy grew slightly to 95.3%, with 20.2% of net lettable area is up for renewal this year! The portfolio leverage also went up to 40.1%. The interest cost is 3.84%.

It is currently trading at a price to book ratio of 1.29.

3. Growth Catalyst