ARA LOGOS Logistics Trust

[Shrivathsa]

On a slightly tangential note, I am not sure if any value buddies have noticed this.

Among the REITs paying dividends, there are three different payments per unit every quarter.

Using Cache as an example, for the latest quarter, there is

.00286 per unit, which is tax exempt
.00013 per unit and
.01501 which is taxable.

Now, interestingly, if you have 1000 units, then the dividend is 18 SGD and you will get exactly 18 SGD in your CDP, CPF or SRS account, depending on which you hold the units.

However, if you have 900 units, or any number of units, which is not a multiple exactly of 1000 units, you will get less than your entitlement.

For example, if you have 900 units, your actual dividend is SGD 16.2, but you will actually receive only 16.18.

Looking at the cash amounts paid out by the REITs, they are debited the exact amount i.e. SGD 16.2

That means that your holding bank is actually benefiting to the tune of SGD 0.02 per SGD 16.2.

This does seem small i.e. 0.12% and is probably not really a major factor for most investors.

However, if you aggregate it across the REIT base and total distribution, it means the holding entity (SRS Bank, CPF Bank, CDP Bank) will benefit, if you hold a REIT in multiples which are not exact 1,000 unit multiples.

[travmufc]

On a slightly tangential note, I am not sure if any value buddies have noticed this.

Among the REITs paying dividends, there are three different payments per unit every quarter.

Using Cache as an example, for the latest quarter, there is

.00286 per unit, which is tax exempt
.00013 per unit and
.01501 which is taxable.

Now, interestingly, if you have 1000 units, then the dividend is 18 SGD and you will get exactly 18 SGD in your CDP, CPF or SRS account, depending on which you hold the units.

However, if you have 900 units, or any number of units, which is not a multiple exactly of 1000 units, you will get less than your entitlement.

For example, if you have 900 units, your actual dividend is SGD 16.2, but you will actually receive only 16.18.

Looking at the cash amounts paid out by the REITs, they are debited the exact amount i.e. SGD 16.2

That means that your holding bank is actually benefiting to the tune of SGD 0.02 per SGD 16.2.

This does seem small i.e. 0.12% and is probably not really a major factor for most investors.

However, if you aggregate it across the REIT base and total distribution, it means the holding entity (SRS Bank, CPF Bank, CDP Bank) will benefit, if you hold a REIT in multiples which are not exact 1,000 unit multiples.

How is 16.18 calculated? Isn't it just (900 x 0.018) for 900 units?

[specuvestor]

That means that your holding bank is actually benefiting to the tune of SGD 0.02 per SGD 16.2.

This does seem small i.e. 0.12% and is probably not really a major factor for most investors.

However, if you aggregate it across the REIT base and total distribution, it means the holding entity (SRS Bank, CPF Bank, CDP Bank) will benefit, if you hold a REIT in multiples which are not exact 1,000 unit multiples.

There are 11,057 unitholders as of 1 Mar 2017. Assuming all are not rounded to 1000 shares, the gain by holding entity is $0.02 X 11,057= $221.14

Be careful of extrapolation of 0.12% 

[lonewolf]

Leases with CWT Pte. Limited

The Manager sets out below Cache Logistics Trust’s current exposure to CWT Pte. Limited.
• as at 16 April 2019, CWT Pte. Limited contributes to approximately 16.5% to the gross rental income (“GRI”) of Cache, down from 20.6% as at 31 December 2018; 
• the weighted average lease to expiry of the CWT Pte. Limited leases is less than one year by GRI;
• CWT Pte. Limited has not defaulted in its rental payments under the various lease agreements and there are no arrears due as at the date of this announcement; 
• there are underlying end-users in relation to each of CWT Pte Limited’s leases which Cache is fully aware of and has engaged with over time. In light of the expiry of CWT Pte. Limited’s leases, the Manager is in a position to negotiate with the end-users as well as other prospective tenants to maintain occupancy and preserve the continuity of rental income from the property by way of directly contracting with Cache; and 
• Cache holds an average of approximately three months security deposit in relation to the leases with CWT Pte. Limited.

SOURCE: SGX Announcement

[lonewolf]

The timing of this announcement cannot be any better.

UPDATES ON 51 ALPS AVENUE, SINGAPORE 

Cache has received confirmation from the Inland Revenue Authority of Singapore that out of the approximately S$8.2 million which Cache received as part of the resolution of the dispute in relation to the Property, approximately S$7.4 million qualifies for tax transparency with the balance (associated with legal fees and trial-related costs) being subject to tax.

The Rental Shortfall Amount is attributable to the rental period from 1 September 2016 to 31 August 2021. It is estimated that approximately S$2.9 million of the Rental Shortfall Amount attributable to the rental period from 1 September 2016 to 31 March 2019, net of relevant expenses, will be distributed to Unitholders together with the 2Q 2019 distributions. It should be noted that the S$2.9 million amount is an estimate and may be subject to adjustments. The balance, net of relevant expenses, will be distributed over the remaining rental period from 1 April 2019 to 31 August 2021.

SOURCE:  SGX Announcement

Extra $2.9 million means about $0.002711 extra DPU for the next distribution.

[cyclone]

Cache Logistics Trust Secures Major Tenant for Commodity Hub
* The present committed portfolio occupancy is 93.2%.

ARA Trust Management (Cache) Limited, the manager of Cache Logistics Trust (“Cache”), today announced that it has successfully completed documentation with a new major tenant to lease over 300,000 square feet (“sq ft”) of space in Commodity Hub located at 24 Penjuru Road, Singapore.

The new tenant is an established global technology, defence and engineering company headquartered in Singapore who now enters the list of Cache’s top ten tenants by portfolio gross rental income.

More details in https://links.sgx.com/FileOpen/PR_Cache%...eID=577236

[lonewolf]

Cache Logistics Trust is rebranding and changing its name to ARA LOGOS Logistics Trust .

SOURCE: Cache Logistics Trust Announces Name Change to ARA LOGOS Logistics Trust

Q1 DPU is 0.997c  (34% down from 1Q19 and 27.5% down from 4Q19)

Press Release: HERE
Presentation Slides: HERE

[UPDTAE] I realised that I was the one who started the thread and was able to update the title to reflect the name change. I guess I will PM the moderator to move it to the 'A' listing.