Wednesday, May 25, 2011

Cache Logistics Trust rated 'buy' by OCBC

Stock Name: CACHE
Company Name: CACHE LOGISTICS TRUST
Research House: OCBC

OCBC Investment Research in a May 23 research report says: "Cache Logistics Trust (CACHE) announced that it has completed the acquisition of 4 Penjuru Lane for $8.9 million. We applaud CACHE's efforts to diversify away from its sponsor with yet another third-party acquisition.

"We look forward to more property additions ahead not only to diversify CACHE's tenant base, but also to reduce its concentration risk on a single asset (CWT Hub which still account for 46.8% of FY2011 gross revenue following the acquisition).

"Concentration and inflation risks remain our top concerns for the trust and we expect management to consciously address these as the REIT grows in asset size. Increased fair value of $1.05 (previous: $1.04). MAINTAIN BUY."

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