Tuesday, December 10, 2013

Cache Logistics Trust : As stable as it gets (CIMB)

Cache Logistics Trust
Current S$1.14
Target S$1.33
As stable as it gets

Boasting 100% occupancy, low gearing, no debts to refinance until 2015, hardly any leases due to be renewed in 2014 and built-in rental escalation, CLT is viewed as one of the most defensive REITs in Singapore.

Given the support of its sponsor and its ROFR list of potential acquisition targets, we believe CLT is well positioned to grow through acquisitions and AEIs. Under our revised rating structure, our call has changed from Outperform to Add. Our DDM-based target price (discount rate: 7.8%) remains unchanged at S$1.33.


Resilient portfolio
During the 9M13, Cache registered increases of 12.5% yoy in NPI and 15.7% yoy in distributable income. This was mainly attributed to rental contributions from acquisitions made in 2012 and Two Precise, acquired earlier this year, as well as built-in rental escalation within the portfolio. Occupancy for the portfolio remains at an impressive 100%, with only 3% of portfolio lease (as a percentage of GFA) due to be renewed in 2014, before 34% of GFA comes up for renewal the following year. Apart from its defensiveness, CLT‟s portfolio enjoys built-in rental escalation of 1.3-2.5% p.a.

Strong balance sheet
Asset leverage as at September 13 was unchanged from a quarter ago at 29%. This is slightly below the industrial average of 34%, leaving debt headroom for future
AEIs/acquisitions. Although third-party acquisitions are likely to remain a challenge, Cache will still be able to engage in acquisitions from the ROFR list, which consists of 14 quality warehouses from its sponsor. Concurrently, management is exploring the possibility of enhancing its current assets through AEIs.

Add
We continue to favour Cache for its resilient portfolio with built-in rental growth and a strong balance sheet. CLT is an Add with an unchanged DDM-based target price of S$1.33 as we see room for Cache to grow through future accretive acquisitions/AEIs.




Source/Extract/Excerpts/来源/转贴/摘录: CIMB-Research,
Publish date: 29/11/13

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Warren E. Buffett(沃伦•巴菲特)
Be fearful when others are greedy, and be greedy when others are fearful
别人贪婪时我恐惧, 别人恐惧时我贪婪
投资只需学好两门课: 一,是如何给企业估值,二,是如何看待股市波动
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做自己熟悉的事,等到发现大好机会才投钱下去

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“犯错误并没有什么好羞耻的,只有知错不改才是耻辱。”

如果操作过量,即使对市场判断正确,仍会一败涂地。

李驰(中国巴菲特)
高估期间, 卖对, 不卖也对, 买是错的。
低估期间, 买对, 不买也是对, 卖是错的。

Tan Teng Boo


There’s no such thing as defensive stocks.Every stock can be defensive depending on what price you pay for it and what value you get,
冷眼(冯时能)投资概念
“买股票就是买公司的股份,买股份就是与陌生人合股做生意”。
合股做生意,则公司股份的业绩高于一切,而股票的价值决定于盈利。
价值是本,价格是末,故公司比股市重要百倍。
曹仁超-香港股神/港股明灯
1.有智慧,不如趁势
2.止损不止盈
成功者所以成功,是因为不怕失败!失败者所以失败,是失败后不再尝试!
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每逢灾难就是机会,而是在灾难发生时贱价买股票,然后放在一边,耐性地等灾难结束
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