ARA LOGOS Logistics Trust

[kayhian]

Cache Logistics Trust: Mood still cautious

Cache Logistics Trust (CACHE) reported its 1Q15 results which came in within our expectations. Gross revenue climbed 1.6% YoY to S$21.0m while inched up 0.3% to 2.146 S cents. CACHE has placed strong focus on securing new leases for its assets which have been converted from master-leased properties to multi-tenanted properties in Apr this year. Approximately 70% of its leases expiring in FY15 have been pre-committed. Nevertheless, we believe the leasing environment will remain challenging due to supply concerns and uncertain macroeconomic outlook. Given headwinds facing the Singapore industrial sector, CACHE has sought to diversify its operations by completing the acquisition of three distribution warehouses in Australia on 27 Feb this year for a total acquisition cost of A$75.6m. We raise our FY15 and FY16 DPU forecasts by 1.6% and 1.8%, respectively, to account for this development. Our fair value estimate thus increases from S$1.15 to S$1.17. Maintain HOLD. (Wong Teck Ching Andy)

[Shrivathsa]

Trading halt pending announcement.

Another Saizen like announcement in the offing?

[MINX]

Trading halt pending announcement.

Another Saizen like announcement in the offing?

Don't give me heart attack, I think unlikely 

[Dividend Knight]

Trading halt pending announcement.

Another Saizen like announcement in the offing?

I dun think so.....

CACHE's sponsor is CWT.

CWT will still want a vehicle for it to inject assets into. Similar to CMT as CapitaLand need a REIT to inject its assets into.

Saizen's case is different.

[greengiraffe]

Trading halt pending announcement.

Another Saizen like announcement in the offing?

I dun think so.....

CACHE's sponsor is CWT.

CWT will still want a vehicle for it to inject assets into. Similar to CMT as CapitaLand need a REIT to inject its assets into.

Saizen's case is different.

PLACEMENT OF NEW UNITS TO RAISE GROSS PROCEEDS OF APPROXIMATELY S$100M IN CACHE LOGISTICS TRUST ON 3 NOVEMBER 2015
 
ISSUER : Cache Logistics Trust (“CLT”)(Bloomberg: CACHE SP | Reuters: CALT.SI)
 
LISTING : Main board of the Singapore Exchange Securities Trading Limited
 
EQUITY OFFERING SIZE : Offer and placement of up to 106,270,000 new units (representing an increase of 13.5% of the total number of Units currently in issue)
 
PLACEMENT PRICE RANGE : S$0.941 to S$0.96
 
GROSS PROCEEDS : Approximately S$100M
 
VWAP on 2 and 3 Nov 2015 : S$0.9989
 
ADJUSTED VWAP (AFTER ADVANCED DISTRIBUTION OF S$0.0086) : S$0.9903
Note: Adjusted VWAP is the VWAP less advanced distribution from 1 Oct to the date prior to the issue of the new units of approximately S$0.0086.  Units issued under the private placement will not be entitled to the advanced distribution.
 
DISCOUNT : 4.5% - 6.4% to last close on 3 Nov 2015; 3.9% - 5.8% to VWAP; 3.1% - 5.0% to Adjusted VWAP
 
FORECAST YIELD CY2015: 8.9% - 9.0%  based on bloomberg consensus
  
GEARING RATIO : ~39.7% (Pre-placement) ; ~35.2% (Post-placement)
 
MARKET CAPITALISATION (PRE-PLACEMENT) : Approx S$789.5 m (as at 3 Nov 2015)
 
USE OF PROCEEDS:
The Manager intends to use the gross proceeds of approximately S$100.0 million from the Private Placement in the following manner:
(i)            approximately S$37.0 million (which is equivalent to 37% of the gross proceeds of the Private Placement) to partially fund potential acquisitions of properties located in Australia, subject to completion of negotiations with the vendors and satisfactory due diligence;
(ii)           approximately S$60.0 million (which is equivalent to 60% of the gross proceeds of the Private Placement) to partially or wholly repay debt; and
(iii)          approximately S$3.0 million (which is equivalent to 3% of the gross proceeds of the Private Placement) to pay the estimated fees and expenses, including professional fees and expenses, incurred or to be incurred by Cache in connection with the Private Placement, 
with the balance of the net proceeds, if any, to be used for general corporate and working capital purposes. 
 
ROLE OF DBS BANK: Joint Lead Manager and Underwriter
 
BOOKBUILDING
·        Book Closes : 3 Nov 2015 , timing to be advised. DBS reserves the right to close earlier
·        Allocation (T):  Before market opens on 4 Nov, in Singapore
·        Listing of new units (T+6): 13 Nov 2015
 
END PLACEE BROKERAGE: 0.50%
 
SELLING RESTRICTION : Reg S & 4(2); No distribution to UK and Europe.
Placement Exemption under Section 304 (Offer made to institutional investors) and 305 (Offer made to accredited investors and certain other persons) of the Securities and Futures Act, Chapter 289 of Singapore

[Shrivathsa]

Trading halt pending announcement.

Another Saizen like announcement in the offing?

I dun think so.....

CACHE's sponsor is CWT.

CWT will still want a vehicle for it to inject assets into. Similar to CMT as CapitaLand need a REIT to inject its assets into.

Saizen's case is different.

You are right, private placement, why cannot they just one to 10 rights and be done with it, at least we can decide to participate, ah, sigh, one should learn from this

[MINX]

Trading halt pending announcement.

Another Saizen like announcement in the offing?

I dun think so.....

CACHE's sponsor is CWT.

CWT will still want a vehicle for it to inject assets into. Similar to CMT as CapitaLand need a REIT to inject its assets into.

Saizen's case is different.

You are right, private placement, why cannot they just one to 10 rights and be done with it, at least we can decide to participate, ah, sigh, one should learn from this

No need for regrets, if you own Reits, there will be abundant opportunities for you to participate in rights issue 

[Nick]

Trading halt pending announcement.

Another Saizen like announcement in the offing?

I dun think so.....

CACHE's sponsor is CWT.

CWT will still want a vehicle for it to inject assets into. Similar to CMT as CapitaLand need a REIT to inject its assets into.

Saizen's case is different.

You are right, private placement, why cannot they just one to 10 rights and be done with it, at least we can decide to participate, ah, sigh, one should learn from this

Rights issue are expensive for the Company unlike placements. Nothing new here - REITs aim to grow AUM so equity fund raising is the norm.

Wonder does this mean they are close to a large Aussie deal ?

(Not Vested)

[snapsnap]

Maybank keeps it 'hold' call on them. however it trimmed the target price following its replacement of new units to raise $100 million.

http://www.theedgemarkets.com/sg/article...-placement

[greengiraffe]

http://infopub.sgx.com/Apps?A=COW_CorpAn...tralia.pdf

Cache acquisition can potentially be high risks... the seller is a high risk co Metcash... it is famous for Independent Grocer (IGA) branding that is under severe competitive pressures as a result of supermarket war Down Under... The changed in competitive landscape is due to the successful arrival of German low cost retailer Aldi and another chain Costco... that has inflicated serious damage to IGA's mkt share and also eroded incumbents Woolworths and Coles. So far Coles has stayed ahead due to its ability to match Aldi and Costco's emergence... Hence Cache's ability to secure 8.9% yield on the acquisition. Anyway, SA is not exactly a hot spot for such logistics acquisitions... VIC/NSW/QLD are and that is where recent acquisitions have taken place. FCL-ALZ's industrial platform will stand to benefit from continued interests and the pending listing of this division Down Under