Cache Logistics Trust’s (CACHE) 2Q18 results were within expectations. Gross revenue increased 7.7% to S$30.0m while NPI dipped 0.1% YoY to S$21.6m.

2Q18 DPU from operations and capital fell 17.6% YoY to 1.419 S cents or 23.3% of our initial full-year forecast. 2Q’s results include a quarter’s contribution from the nine Australian assets that were acquired earlier in February.

Notably, CWT Commodity Hub maintained a decent 92.7% occupancy after its master lease conversion. Maintain HOLD while we place our fair value estimate of S$0.83 under review pending further details from the briefing.

Source: OCBC Research - 31 Jul 2018