Stock Name: CACHE
Company Name: CACHE LOGISTICS TRUST
DBS Vickers Securities in a May 8 research report says: "Cache Logistics Trust (Cache) is proposing to acquire Pandan Logistics Hub from sponsor CWT for a total consideration of $66.0 million.
"The purchase consideration implies a net property income yield of 7.6%, which is higher than its current implied yield of close to 7.0%, meaning that that the acquisition is expected to be accretive to the trust. The manager intends to fund the acquisition fully by debt, at an estimated interest cost of c4.0% (in line with its current debt facilities).
"Gearing is projected to head towards 31% post completion of this acquisition (assuming 100% debt). Minimal impact on our numbers as we have factored in $60 million acquisitions in our forward estimates. Target price of $1.11. Stock continues to offer an attractive FY12-FY13F distribution yields 8.3%-8.5%. MAINTAIN BUY."
Company Name: CACHE LOGISTICS TRUST
| Research House: DBS Vickers | Price Call: BUY | Target Price: 1.11 |
DBS Vickers Securities in a May 8 research report says: "Cache Logistics Trust (Cache) is proposing to acquire Pandan Logistics Hub from sponsor CWT for a total consideration of $66.0 million.
"The purchase consideration implies a net property income yield of 7.6%, which is higher than its current implied yield of close to 7.0%, meaning that that the acquisition is expected to be accretive to the trust. The manager intends to fund the acquisition fully by debt, at an estimated interest cost of c4.0% (in line with its current debt facilities).
"Gearing is projected to head towards 31% post completion of this acquisition (assuming 100% debt). Minimal impact on our numbers as we have factored in $60 million acquisitions in our forward estimates. Target price of $1.11. Stock continues to offer an attractive FY12-FY13F distribution yields 8.3%-8.5%. MAINTAIN BUY."
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