Stock Name: CACHE
Company Name: CACHE LOGISTICS TRUST
Research House: OCBC
OCBC analyst Ong Kian Lin says “the combined NPI yield is 8.0% based on the aggregate NPI expected from the two properties, which compares favourably to the NPI yield of 7.7%” for Cache’s existing portfolio as at December 31.
The house notes with the addition of these acquisitions, Cache’s total assets under management will increase to $783.9 million; both acquisitions will be fully funded by debt, and the aggregate leverage of Cache will increase from 23.7% (as at Dec. 31) to 27.6% as a result of the buys.
Company Name: CACHE LOGISTICS TRUST
Research House: OCBC
Cache Logistics Trust (K2LU.SG) is flat at $0.935, outperforming a weak broader market, after it announces Monday evening that it has entered into sale and purchase agreements of two Singapore properties for an aggregate price of approximately $39.8 million (6 Changi North Way for $30.9 million and 4 Penjuru Lane for $8.9 million).
OCBC analyst Ong Kian Lin says “the combined NPI yield is 8.0% based on the aggregate NPI expected from the two properties, which compares favourably to the NPI yield of 7.7%” for Cache’s existing portfolio as at December 31.
The house notes with the addition of these acquisitions, Cache’s total assets under management will increase to $783.9 million; both acquisitions will be fully funded by debt, and the aggregate leverage of Cache will increase from 23.7% (as at Dec. 31) to 27.6% as a result of the buys.
The transactions are expected to be completed within 1H11. “We presently have a Buy rating on Cache and are likely to review our fair value of $1.03”.
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