Cache Logistics eyes hitting S$18.5m 4Q gains

All thanks to contributions from new acquisitions.

According to OCBC, Cache Logistics Trust (CACHE) announced that it will release its 4Q12 results after the market close on 21 Jan 2013.

Here's more from OCBC:

We expect CACHE to meet our 4Q NPI forecast of S$18.5m (+11.1% YoY) and distributable income projection of S$14.7m (+9.5%) comfortably, thanks to the contribution from
its newly-acquired Pan Asia Logistics Centre and Pandan Logistics Hub.

On the DPU level, we anticipate CACHE to maintain its distribution at ~2.1 S cents, not withstanding an enlarged unit base from the private placement in Mar 2012.

This translates to robust 10.9% growth in its full-year NPI to S$68.7m and 0.9% growth in DPU to 8.29 S cents.

In the coming year, we believe CACHE’s financial performance will remain sturdy, as it continues to benefit from upward rental adjustments and full-year contribution from its past acquisitions.

A few industrial properties from its sponsor’s pipeline assets are also ready for acquisition and may boost its income if CACHE injects any of these properties into its portfolio.

Based on its last reported financial position, we estimate that CACHE has ~S$42.9m additional debt headroom before it reaches the regulatory aggregate leverage ceiling of 35% (currently at 32.6%).

Hence, we believe CACHE may finance any upcoming acquisition using a combination of debt and equity if the transaction size is considerable.