2 Things That Investors Should Know About Cache Logistics Trust Now
- Original Post from The Motley Fool Sg

Cache Logistics Trust (SGX: K2LU) is a REIT that focuses on logistics properties. It currently has 27 logistics warehouse properties in its portfolio, which are located in Singapore, Australia, and China.There are two things to know about the REIT right now: its latest financial performance and valuation.


Financial performance


Here is a table showing important items from Cache Logistic Trust’s financial performance for the third quarter of financial year ending 31 December 2018 (FY18).



Source: Cache Logistic Trust Result Presentation


The year-on-year improvement in gross revenue and net property income (NPI) were due higher contributions from the 9-property Australian portfolio acquired in February 2018, as well as higher revenue from 51 Alps Ave. On the other hand, the decline in distribution per unit (DPU) was due to lower income available for distribution and an increase in the number of units issued.


As at 30 September 2018, the logistics REIT clocked in a gearing ratio of 35.6% while its committed occupancy rate stood at 96.9%.


Valuation


There are two useful valuation metrics for assessing REITs. They are the price-to-book (PB) ratio, and the distribution yield.


The table below shows Cache Logistic Trust’s PB ratio and distribution yield. It also shows the respective averages for the two valuation metrics for the 41 REITs that are in Singapore’s stock market.



Source: SGX StockFacts


We can see that Cache Logistic Trust’s valuation is lower than the market average due to its high distribution yield and low PB ratio.


$Cache Log Trust(K2LU.SI)

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The Weekly Nibble: A Focus on Singapore Blue-Chip Shares
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3 REITS That Have More Than 8% Yield Right Now


Lawrence Nga explores three real estate investment trusts (REITs) that have distribution yields of above 8%. They are not excessively valued in terms of their book values as well.


REITs discussed in the article are Cache Logistics Trust (SGX: K2LU), First Real Estate Investment Trust (SGX: AW9U) and EC World Real Estate Investment Trust (SGX: BWCU).


Which Blue-Chip Property Developer Is The Cheapest Now?


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$STI(^STI.IN) $First Reit(AW9U.SI) $EC World Reit(BWCU.SI) $CityDev(C09.SI) $CapitaLand(C31.SI) $DBS(D05.SI) $Cache Log Trust(K2LU.SI) $SATS(S58.SI) $SGX(S68.SI) $UOL(U14.SI)

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3 REITS That Have More Than 8% Yield Right Now
- Original Post from The Motley Fool Sg

Real estate investment trusts, or REITs, are popular investment choices on the Singapore stock market. That’s because REITs tend to have high distribution yields due to their need to distribute at least 90% of their taxable income to unitholders in order to enjoy tax transparency.


In this article, I will share with you three REITs that are trading at high distribution yields of more than 8%.



Source: SGX StockFacts


We will start with Cache Logistics Trust (SGX: K2LU).As a quick background, Cache Logistics Trust is a real estate investment trust that focuses on logistics properties. It currently has 27 logistics warehouse properties in its portfolio which are located in Singapore, Australia, and China.


In the quarter ended 30 September 2018, Cache Logistics Trust reported that gross revenue grew 14.8% to S$31.5 million while net property income increased by 8.1% to S$23.1 million. The improvement was driven by higher contribution from existing properties and latest acquisitions. Yet, the REIT’s distribution per unit (DPU) was down by 4.3% year-on-year to 1.475 cents, mainly due to lower income for distribution and issue of new units.


As of 30 September 2018, the REIT’s gearing stood at 35.6% and its committed occupancy rate was 96.9%.


Next, we have First Real Estate Investment Trust (SGX: AW9U).As a quick introduction, First REIT is a healthcare-focused REIT with a portfolio of 20 properties (16 in Indonesia, three in Singapore, and one in South Korea). The REIT’s sponsor is Indonesia’s largest listed property company, PT Lippo Karawaci Tbk.


For the quarter ended 30 September 2018, First REIT reported that gross revenue climbed 5.1% while NPI improved 5.4%, respectively, as compared to the same period last year. The improvement was primarily due to contributions from the newly-acquired Siloam Hospitals Buton & Lippo Plaza Buton, and Siloam Hospitals Yogyakarta, as well as increased rental income from existing properties. Consequently, the REIT’s DPU came in at 2.15 cents, 0.5% higher than the same period last year.


Victor Tan, chief executive of First REIT’s manager, made the following comments:


“Contributions from our latest acquisitions and existing properties continued to bolster the Trust’s revenue and NPI in the third quarter. The proposed acquisition of Bowsprit by OUE Lippo Healthcare Limited will be one of our growth drivers. First REIT will then be able to access a more diversified pool of assets via the right of first refusal agreements granted by both OUE Lippo Healthcare Limited and PT Lippo Karawaci Tbk for their portfolios. This will effectively expand First REIT’s geographical catchment within Asia, allowing the Trust to potentially pursue more yield-accretive acquisitions to deliver stable returns to our Unitholders.”


First REIT recently saw its unit price decline by a substantial amount. For those who wish to know more about the development, you can headhere.


Last but not the least, we have EC World Real Estate Investment Trust (SGX: BWCU), or EC World REIT.As a quick introduction, EC World REIT is the first Chinese specialized logistics and e-commerce logistics REIT. It owns properties mainly used for e-commerce, supply-chain management and logistics.


For the quarter ended 30 September 2018, EC World REIT reported that gross revenue came in 0.1% higher year-on-year to S$23.9 million while NPI grew by 0.5% year-on-year to S$ 22.2 million. Similarly, the REIT’s DPU was up by 9.0% as compared to last year to 1.57 cents. EC World REIT’s DPU benefited from lower expenses and the absence of a 5% withholding tax that was charged in 2017’s third quarter. If the impact from the withholding tax is removed, EC World REIT’s year-on-year DPU growth in 2018’s third quarter would be 2.3%.


As of 30 September 2018, the REIT’s gearing was 30.7% and its committed occupancy rate stood at 99.2%.


Goh Toh Sim, CEO of EC World REIT’s manager, shared the following comments on the REIT’s outlook:


“We are delighted to deliver another quarter of healthy distributions for our unitholders despite the macroeconomic headwinds and global uncertainty. EC World REIT’s assets are generally unaffected as the tenants within the portfolio serve primarily the domestic China market focused on domestic consumption. As such, we do not expect the ongoing global uncertainty to have a material negative impact on the operation of our assets.”


Conclusion


So there you go, three REITs that are trading at high yields of 8%. Investors should be reminded, however, that high yields alone are not enough to justify a buy decision. Thus, it is important the investors do their research on the trust’s future income prospects before committing any capital.


$First Reit(AW9U.SI) $EC World Reit(BWCU.SI) $Cache Log Trust(K2LU.SI)

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2 REITs That Have Delivered Mixed Performances Recently
- Original Post from The Motley Fool Sg

It’s earnings season again!


Given many REITs are reporting their results at the same time, it would be useful to group them into three categories: good, bad and mixed. In this article, we will look at two REITs that have recently delivered a mixed bag of financial results.


We will start with Cache Logistics Trust (SGX: K2LU).


As a quick background, Cache Logistics Trust is a real estate investment trust (REIT) that focuses on logistics properties. The REIT currently has 27 logistics warehouse properties in its portfolio which are located in Singapore, Australia, and China.


For the quarter ended 30 September 2018, gross revenue grew 14.8% to S$31.5 million while net property income grew by 8.1% to S$23.1 million. The improvement was driven by higher contribution from existing properties and its new acquisitions. Yet, the REIT’s distribution per unit (DPU) was down by 4.3% year-on-year to 1.475 cents, mainly due to lower income for distribution and issue of new units.


Mr Daniel Cerf, Chief Executive Officer of the REIT, commented:


“3Q FY18 was a stable quarter where we saw an improvement in our DPU compared to the preceding quarter. Through building up the Australia portfolio since 2015, we have been able to reap the benefits of our diversification efforts over time, with Australia now contributing about 23% of our gross revenue.


As we continue to rebalance, optimise and grow the Cache portfolio, we must also maintain a prudent capital management approach. As announced last week, we successfully completed the refinancing of our Singapore-dollar loan facilities which were due in 2018. In the process, we have significantly improved Cache’s capital structure and operational flexibility through achieving a largely unencumbered portfolio and extending our average debt maturity.”


As of 30 September 2018, the REIT’s gearing stood at 35.6% while its committed occupancy rate stood at 96.9%.


The next REIT on the list is CapitaRetail China Trust (SGX: AU8U) or CRCT.


As a quick introduction, CRCT is a Singapore-based real estate investment trust (REIT) which ownsretail-based properties in China. The trust shopping malls are located in China, Hong Kong and Macau.


For the quarter ended 30 September 2018, gross revenue declined 1.1% to S$55.4 million while net property income increased by 2.2% to S$36.7 million. The higher net property income was due to lower property expenses. Similarly, distribution per unit (DPU) grew 1.7% year-on-year to 2.41 cents. As of 30 September 2018, the REIT’s gearing stood at 35.9% while its committed occupancy rate stood at 97.7%.


Mr Tan Tze Wooi, CEO of CRCT commented:


“CRCT’s growth in 3Q 2018 extends the positive momentum from our portfolio reconstitution. Portfolio occupancy as at 30 September 2018 was a healthy 97.7% and rental reversion for the quarter was a robust 12.1%. Our active asset management strategy with a tailored approach for each mall is progressing well. Rock Square registered a strong positive rental reversion above 20% for the third consecutive quarter by bringing in 25 prominent international and domestic brands, many of which are new-to-market in Haizhu District. To differentiate CapitaMall Qibao’s offerings, we increased its exposure to the resilient learning and education sector by more than three times over the last five years. We also expanded the rooftop playground to host more interactive activities that are popular with children, further enhancing CapitaMall Qibao’s attractiveness to young families.”


$CapitaR China Tr(AU8U.SI) $Cache Log Trust(K2LU.SI)

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Cache Logistics Trust Latest Results: Higher Gross Revenue But Lower Distribution Per Unit
- Original Post from The Motley Fool Sg

Last week, Cache Logistics Trust (SGX: K2LU) released its 2018 third-quarter earnings update. As a quick introduction, Cache Logistics Trust is a REIT that focuses on logistics properties. It currently has 27 logistics warehouse properties in its portfolio which are located in Singapore, Australia, and China.


Here are 10 things investors should know about Cache Logistics Trust’s latest results:


1. Gross revenue for the reporting quarter grew 14.8% to S$31.5 million while net property income grew by 8.1% to S$23.1 million.


2. The REIT’s distribution per unit (DPU) was down by 4.3% year-on-year to 1.475 cents, mainly due to lower income for distribution and issue of new unites.


3. Based on Cache Logistics Trust’s annualised DPU of 5.868 Singapore cents and its unit price of S$0.70 (as of the time of writing), the REIT has a trailing distribution yield of 8.4%.


4. As of 30 September 2018, the REIT’s gearing stood at 35.6%, which is a wide distance from the regulatory ceiling of 45%.


5. The REIT’s portfolio had a committed occupancy rate of 96.9% at the end of the quarter.


6. The weighted average lease expiry (by gross rental income) was at 3.1 years, as of 30 September 2018. 46.5% of Cache Logistics Trust’s leases will expire between 2018 and 2020, 27.3% will expire in 2021 and 2022, and the rest will expire from 2023 onward.


7. For the quarter, Singapore accounted for 76% of Cache Logistics Trust’s gross revenue. Australia was in second place with 23%, and China accounted for the remaining 1%.


8. There are a total of 14 properties that Cache Logistics Trust has the right of first refusal (ROFR) on. These properties belong to the REIT’s sponsor, CWT Limited, which was acquired by the Hong Kong-listed CWT International Limited in late 2017.


9. Cache Logistics Trust proposed the divestment of Jinshan Chemical Warehouse in Shanghai for RMB87.0 million.


10. Cache Logistics Trust provided the following outlook:


“The global economy continues to be weighed down by concerns about trade tensions, rising interest rates and geopolitics. Singapore’s economy grew slower at 2.6% on a year-on-year basis in the third quarter of 2018 due to a softening manufacturing sector. With a slowdown in the future supply of industrial space from 2019 onwards, the market expects that rents in Singapore will likely stabilise across all segments from 2019 to 20227.


The Australian economy has grown strongly over the past year, with GDP increasing by 3.4%. The industrial sector in Australia is in a growth phase with demand greater than supply. Demand is expected to remain solid in the year ahead, given population growth and infrastructure investment which are supporting economic activity.


Along with its focus on proactive capital management and asset management, the Manager will continue to execute on its portfolio rebalancing and growth strategy to rejuvenate, optimise and strengthen its portfolio.”


$Cache Log Trust(K2LU.SI)

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2 REITS That Have Delivered Mixed Performances Recently
- Original Post from The Motley Fool Sg

It’s earnings season again.Given many REITs reported their results at the same time, it would be useful to group them into three categories – good, bad and mixed.In this article, I will look at two REITs that have recently delivered mixed financial results.
Let’s start with Cache Logistics Trust (SGX: K2LU).As a quick background, Cache Logistics Trust is a real estate investment trust (REIT) that focuses on logistics properties. It currently has 27 logistics warehouse properties in its portfolio which are located in Singapore, Australia, and China.
In the latest quarter earnings update, gross revenue grew 7.7% to S$30.0 million. Yet, net property income (NPI) declined by 0.1% to S$21.6 million mainly due to higher expenses and vacancy at CWT Commodity Hub. Moreover, the REIT’s distribution per unit (DPU) was down by 17.6% year-on-year to 1.419 cents, mainly due to lower income for distribution and an increase in the unit count from a rights issue. As of 30 June 2018, the REIT’s gearing stood at 35.3% and its committed occupancy rate stood at 96.8%.
Daniel Cerf, chief executive of the REIT’s manager, commented:
“With our continuing efforts at rebalancing and growing the portfolio, Cache’s operating metrics remained healthy, notwithstanding the weakness in our DPU. During the quarter, we successfully executed 15 new leases and renewals totalling 762,000 square feet, achieving a strong committed portfolio occupancy of close to 97%, with only 3.1% of the portfolio due to expire in the second half of the year.
The acquisition of a full control in the Manager and the Property Manager by ARA is also a significant development for Cache. ARA, which currently manages approximately S$7 billion in gross assets under management by the Group and its Associates in Australia, was a key contributor to the REIT’s successful diversification strategy. We will continue to tap on ARA’s expanded network and resources in the Asia Pacific to further the growth of the REIT and its earnings.”
The next REIT on the list is CapitaLand Retail China Trust (SGX: AU8U) or CRCT.As a quick introduction, CRCT is a Singapore-based REIT that invests in retail real estate in China.
Gross revenue for the reporting quarter declined 4.6% to S$56.3 million while net property income reduced by 5.9% to S$37.6 million. The lower NPI was due to divestment of CapitaMall Anzhen with effect from 1 July 2017 and lower revenue from CapitaMall Grand Canyon. This loss off income was partially offset by Rock Square‘s contribution, which was accounted for under the share of results (net of tax) from joint venture. Despite reporting lower NPI, CRCT’s DPU grew 0.8% year-on-year to 2.64 cents. As of 30 June 2018, the REIT’s gearing stood at 32.1% while its committed occupancy rate stood at 97.4%.
Tan Tze Wooi, chief executive of the REIT’s manager, said:
“We are pleased that our portfolio reconstitution efforts and proactive asset management are showing positive results, delivering a double-digit growth for 2Q 2018’s distributable income. Rental reversions at our core multi-tenanted malls for the quarter averaged a healthy 10.5%, while portfolio occupancy as at 30 June 2018 was resilient at 97.4%.
Since acquiring Rock Square on 31 January 2018, we have focused on extracting the lease renewal upside while enhancing the mall’s tenant mix. This strategy led to strong rental reversions at Rock Square averaging above 20% for the second consecutive quarter. New entrants in the mall include a digital experience store by Xiaomi and popular beverage store Nayuki Tea. To optimise Rock Square’s layout and further expand its offerings, we created over 500 square metres of retail space by converting unutilised space and adding retail kiosks.”
$CapitaR China Tr(AU8U.SI) $Cache Log Trust(K2LU.SI)

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