Singapore-listed industrial landlord Cache Logistics Trust (Cache) (SGX:K2LU) has announced a 7.1 percent increase in Distribution Per Unit (DPU) of 2.234 cents for the first quarter ended 31 March 2013. This is as compared to the same period a year ago. Based on an annualised DPU of 9.06 cents and a closing price of S$1.305 as at 28 March 2013, Cache’s distribution yield was approximately 6.9 percent.

Cache Logistics Trust Portfolio currently comprises of 12 industrial properties  across Singapore and China with  an overall occupancy of 100 percent. 

Cache has stated that it remains optimistic especially after starting the year with an acquisition of an industrial property in Singapore.

Mr. Daniel Cerf, CEO of the Manager said, “We entered into an agreement to acquire Precise Two, a newly completed three-storey fully ramp-up warehouse located in Gul Way and completed the transaction 1st April using the funds raised in the private placement exercise carried out in March. Having successfully raised capital and disclosed a credit rating, our aggregate leverage reduced to 29.2% - providing greater debt headroom and financial flexibility."

"We were also able to secure a new tenant for our APC Distrihub to address our lease expiry in 2013. We continue to be fully occupied with no renewals due for the remainder of the year".

As at 31 March 2013, Cache’s portfolio consists of 12 industrial properties located in Singapore and China, with a gross floor area (GFA) of approximately 4.83 million square feet. Overall portfolio occupancy was maintained at 100 percent, with a Weighted Average Lease to Expiry (WALE) of 3.7 years.

During the quarter, Cache signed on a new lease within APC Distrihub with Agility Logistics. With this letting, Cache has no remaining space due to expire in 2013.

Units of Cache Logistics Trust are currently trading at S$1.38 on the SGX.

By Ridzwan Rahmat

Ridzwan has been analysing REITs and business trusts since 2008, and personally manages a portfolio comprising mainly of SGX-listed REITs. He founded REITsWeek in 2013.