Today, I will be looking at the latest results of Cache Logistics Trust. This is my top holding. Sad to say, I will still be suffering a loss if I liquidate this REIT after factoring in the dividends that I have collected over the years.
Yah. Right. I have been enduring my paper loss.
On the positive side, 9 Australian properties have been added to it's portfolio in Jan 2018. The acquisition is funded with a combination of a new S$110 million five year unsecured term loan facility and the remainder via proceeds from the recent issuance of Cache’s subordinated perpetual securities. The gearing will increase from 36.3% to 39.3% post acquisition.
The results that I am looking at today covers 4QFY17/FY17. Without further ado, let's get on with it.
There was a rights issue at $0.632 in Oct 2017. I blogged about it in a previous post. The rights issue has been very dilutive as could be seen from the screenshot below. This is due to the enlarged pool of units after this issue. Fortunately, I participated in that exercise or else my shares would also be diluted. Hopefully with the acquisition of the nine warehouses, DPU would improve y-o-y moving forward.
On the positive side, DPU grows by 3.6% q-o-q.
Full year results doesn't look good
As could be seen below, the NAV has dropped compared to previous quarter. Even without rights issue, it would still drop.
Drop! Drop! Drop!
This screenshot is outdated as there are now 9 more Australian properties as shown below.
Freehold land tenure. Good! Total 16 Australia Properties.
Increase foothold in Australia. This slide is also outdated as it does not factor in the 9 new properties.
Lease dispute resolved
Divestment of 1 local Property
Local warehouse supply reducing next few years
To Be Continued ...
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