OCBC ups Cache Logistics' TP to $1.18, maintains buy rating

Stock Name: CACHE
Company Name: CACHE LOGISTICS TRUST

Research House: OCBC

Price Call: BUY

Target Price: 1.18

OCBC Investment Research raised its target price for Cache Logistics Trust to $1.18 from $1.11 and kept its buy rating, to reflect its acquisition of a logistics property in Singapore.

By 9:08 a.m., Cache units were 0.5 per cent higher at $1.055, and have gained about 11 per cent since the start of the year, outperforming the Straits Times Index’s 10 per cent rise.

Cache has received approval from unitholders to acquire Pandan Logistics Hub, which OCBC expects to contribute $5.2 million in rental income to the real estate investment trust in the first year.

This translates to an initial net property income yield of 7.6 per cent and is expected to add 0.28 cents to its distribution per unit (DPU) on an annualised basis.