Cache Logistics Trust

[Drizzt]

mapletree log trust recently got 1 at 9% yield in korea. thats why i brought it up.

[Pelhamh]

Fair point, drzzt. Unless the Chinese asset was in a prime location (sounds like it was) and the Korean asset was in a B grade location (not sure about that). Then we need to understand their FX hedging strategy...

[Nick]

mapletree log trust recently got 1 at 9% yield in korea. thats why i brought it up.

Which one will Cache spend its money on - asset from parents or third party asset ?

CWT earned $6.86 million in the latest China sale and leaseback deal with Cache valued at approx $14.5 million. There is a quite a number of properties in the ROFR and development assets coming online in the next 2 years. Would it make better sense to purchase CWT for the potential boost in earnings and book value going forward or Cache for its stable income backed by master leases from CWT ?

[Pelhamh]

Nick - where did you get the $6.86 million profit for CWT from in this deal with Cache?

[Nick]

Nick - where did you get the $6.86 million profit for CWT from in this deal with Cache?

"Based on the aggregate net assets of the Group Companies of S$6.65 million and the relevant costs of the sale, the Company will realise a total gain of approximately S$6.86 million, of which S$5.15 million will be accounted for as a one-time gain and the balance of S$1.71 million will be accounted for as deferred gain, to match off against the leaseback commitment, in accordance with Financial Reporting Standard FRS 17."

For more info, read the SGX Announcement below:

http://info.sgx.com/webcoranncatth.nsf/V...penelement [SGX Announcement]

[lonewolf]

There is a quite a number of properties in the ROFR and development assets coming online in the next 2 years. Would it make better sense to purchase CWT for the potential boost in earnings and book value going forward or Cache for its stable income backed by master leases from CWT ?

Personally my thinking would be more bias towards CLT though I'm vested in both at the moment. In fact, I'm thinking of partially divesting my CWT stake to put into CLT; but your point about potential boost to CWT's book values from divesting more properties is well noted.

When in doubt, buy both!

[Nick]

http://www.remisiers.org/cms_images/Sunn...011_ke.pdf - Interesting take on CWT as a developer going forward.

[Dividend Warrior]

Result is out.

http://infopub.sgx.com/FileOpen/Cache_2Q...eID=248965

[Pelhamh]

Result is out.

http://infopub.sgx.com/FileOpen/Cache_2Q...eID=248965

Thank you

[mkmk]

Financial Statement: http://infopub.sgx.com/FileOpen/Cache_3Q...eID=260721

Press Announcement: http://infopub.sgx.com/FileOpen/Cache_3Q...eID=260722

Presentation Slides: http://infopub.sgx.com/FileOpen/Cache_3Q...eID=260723

CACHE LOGISTICS TRUST’S 3Q 2013 DISTRIBUTABLE INCOME INCREASED 9.6% YEAR-ON-YEAR TO S$16.5 MILLION
- Year-to-date Distributable Income grew 15.7% year-on-year (“y-o-y”) to S$48.9 million
- Portfolio is 100% occupied with no renewal risk for 2013 and only 3% of the leased area up for renewal in 2014
- Strong balance sheet with lower-than-industry average aggregate leverage at 29.2%

(not vested)