Cache Logistics Trust's net property income jumped 17% to S$19.6m

Strong contributions from Precise Two.

According to OCBC Investment Research, Cache Logistics Trust (CACHE) turned in a firm set of 2Q13 results last evening. NPI grew 17.0% YoY to S$19.6m and distributable income increased 19.8% to S$16.6m. 

OCBC noted that the better performance was chiefly driven by rental escalations from its existing portfolio assets and full-quarter contribution from Precise Two following the completion of acquisition on 1 Apr.

Here's more:

DPU for the quarter came in at 2.147 S cents, representing a rise of 8.4% YoY. This brings the 1H13 DPU to 4.381 S cents (+7.7% YoY), meeting 52.0%/50.9% of our/consensus FY13 DPU projections. Based on the last closing price, annualised current yield stands at 7.1% – attractive in our view.

Portfolio maintained its resilience
As at 30 Jun, the overall portfolio occupancy was maintained at 100%, with a weighted average lease to expiry of 3.6 years. Notably, CACHE’s lease expiry in 2013 has already been fully addressed, while only 6% of total portfolio GFA is due for renewal in 2014.

Hence, we believe that there should be limited leasing risk over the period, and that income stream would remain stable and predictable.