Cache Logistics Trust (CACHE) reported a stable set of 3Q14 results which were in-line with our expectations. Revenue and DPU climbed 0.4% and 0.7% YoY to S$20.8m and 2.14 S cents, respectively. For 9M14, revenue growth of 3.3% to S$62.2m formed 72.7% of our FY14 forecast, while DPU of 6.427 S cents (-1.2%) constituted 74.0% of our full-year projection. CACHE’s portfolio occupancy was steady at 99.5% (2Q14: 99.6%), while balance sheet remains healthy with a gearing ratio of 28.8%, as at 30 Sep 2014.

CACHE also completed the refinancing of its existing S$375m loan facilities, which increased its weighted average debt maturity from 1.6 years to 4.2 years. It no longer has any debt due until Oct 2017. Following our downgrade on CACHE to a ‘Hold’ on 22 Jul 2014, its share price has declined 4.4%. Pending a meeting with management, we place our HOLD rating and S$1.25 fair value estimate under review.

Source: OCBC Research - 24 Oct 2014