General S-REITs Discussion Thread

[akwl88]

OMG! $2.40 now.....

52 week high $2.46

 

[cubana]

52 week high $2.46

most overbot since apr 2014... i wont chase this as the last it was this overbot, it fell the next trade day

 

[Average]

C38U Capitaland Mall T... 2.16 +0.05 2.37%

Sell at 2.20?

 

[akwl88]

C38U Capitaland Mall T... 2.16 +0.05 2.37%

Sell at 2.20?

sell at 2.20 make how much?

 

[Average]

sell at 2.20 make how much?

15.x%.
plus 10 char

 

[Average]

Hi SSI-ers, can I gather more views on Cache Logistic Trust : K2LU?

1. Does it have upside potential? Or is $1.00 attainable in 2years from now?

2. Is it risky? Or how willing are u to park your cash in this counter?

3. Is it high yield? => this one i know, at least 8% right?

4. Is it undervalued now? I see it is still very near its 52-wk low of 81cents...



https://www.google.com/finance?q=SGX%3AK2LU&ei=lQfQVvCiBMiYuASuiaqICQ

 

[Average]

I thot last time you sold liao

i sold half...

 

[akwl88]

Hi SSI-ers, can I gather more views on Cache Logistic Trust : K2LU?

1. Does it have upside potential? Or is $1.00 attainable in 2years from now?

2. Is it risky? Or how willing are u to park your cash in this counter?

3. Is it high yield? => this one i know, at least 8% right?

4. Is it undervalued now? I see it is still very near its 52-wk low of 81cents...



https://www.google.com/finance?q=SGX%3AK2LU&ei=lQfQVvCiBMiYuASuiaqICQ

Cache Logistics Trust (SGX: K2LU) has announced its results for the year, as well as the quarter ending 31 December 2015.

As of the reporting period, the real estate investment trust (REIT) owns a total of 19 properties in three countries, namely, Singapore (12), Australia (six), and China (one). The properties have a carrying value and gross floor area of approximately S$1.3 billion and 7.51 million square feet.

The REIT saw its gross revenue for the year come in at S$89.7 million, up 8.3% from 2014. For the quarter, the REIT reported revenue of S$24 million, which was 16.6% higher than the same period a year ago.

But, net property income (NPI) for the REIT in 2015 had declined by 2.4% to S$76 million. It was a similar story for the quarter, as NPI had slipped by 1% year-on-year to S$19.2 million.

Cache Logistics Trust had seen a decrease in its NPI (for both the year and quarter) due mainly to a decline in occupancy rates and an increase in expenses as a result of the conversion of some master leases to multi-tenanted leases. These were partially offset by contributions from the REIT’s six Australian properties, which had been acquired only during the reporting year.

The lower NPI led to a decrease in the REIT’s distribution per unit (DPU) for 2015, which came in at 8.5 Singapore cents, down 0.9% from the 8.573 cents seen in 2014. For the reporting quarter, the REIT reported a DPU of 2.074 cents, a year-on-year decline of 3.4%.

Higher finance costs for the year (a 14.4% increase to S$14.1 million) had also played a role in the lower DPU.

The increase in finance costs could perhaps be attributed to the REIT’s aforementioned purchase of its Australian properties and financing expenses for a newly completed property in Singapore (the DHL Supply Chain Advances Regional Centre).

Changing gears to the balance sheet, Cache Logistic Trust’s aggregate leverage ratio at end-2015 was 39.8%, an increase from the 31.2% seen a year ago. Meanwhile, the interest cover ratio had also taken a step backward, from 6.8 times at end-2014 to 4.8 times.

But, there are still some bright spots. Cache Logistics Trust has approximately 62% of its debt hedged for the next 2.5 years, which should provide some stability in terms of finance costs. The all-in interest rate on its debt also came in at 3.25%, a slight improvement from the 3.3% seen at end-2014.

Cache Logistics Trust’s net asset value (NAV) per unit had decreased significantly from S$0.98 in 2014 to S$0.88 in 2015. The decline in the NAV was largely due to dilution, as a result of a private placement exercise carried out by the REIT towards the end of 2015.

The REIT warned that “the Singapore industrial property market condition will remain challenging over the next 12 months.” It added that an “imbalance of supply and demand of industrial space, slowing global growth and government regulations” continues to have a negative impact on its market.

Australia appears to provide a better picture for Cache Logistics Trust. The REIT commented:

The Australian economy is improving, with growth currently at around 2.5%. The lower Australian dollar is positive for the non-mining sectors of the economy, particularly tourism and education. The economic outlook remains cautious due to, amongst others, uncertainty in commodity prices and the slowing Chinese economy. Nevertheless, the WALE for Cache’s Australian warehouses average 6.8 years, which enables Cache to ride on the long term growth in Australia.”

At its closing price of S$0.87 yesterday, Cache Logistics Trust trades at a price-to-book ratio of 1 and offers a trailing distribution yield of 9.8%.

 

[Average]

Hi SSI-ers, can I gather more views on Cache Logistic Trust : K2LU?

1. Does it have upside potential? Or is $1.00 attainable in 2years from now?

2. Is it risky? Or how willing are u to park your cash in this counter?

3. Is it high yield? => this one i know, at least 8% right?

4. Is it undervalued now? I see it is still very near its 52-wk low of 81cents...



https://www.google.com/finance?q=SGX%3AK2LU&ei=lQfQVvCiBMiYuASuiaqICQ

Upz for more views.

 

[JW2015]

Upz for more views.

last qtr, dpu dropped. the market very unforgiving.. pushed down the price to 0.80.. was waiting for it to hit my tp - then boat left during the 4 days rally...

i still not sure how the 7 industrial reit going to fight it out, so i went over to overseas reits.

end of day P/B is important. just that different sector reit, different P/B is acceptable.

no all P/B is the same:
- not all property same "value" (Warehousing vs Industrial vs Retail vs Hospital)
- not all P/B = 100% tangible asset (when you buy over a property at premium, you can park some value into "goodwill" - is this goodwill considered P/B?)

 

[JustTrade]

short term cache should be ok

however longer term say 5 years down, industrial reits will gg

singapore moving away from industrial liao... business is moving to lower cost areas like malaysia iskandar, vietname, myanmar

that's why industrial reits the yield is price so high now like 8-10%... short term is ok if u like high yield assets

but for longer term I would prefer solid assets in areas such as Retail/Commercial/Healthcare with 99 year leases

I would think otherwise, Singapore is still very focused in manufacturing and logistics sector with all the incentives in place to attract FDI, I believe industrial properties are here to stay. One possibility would be consolidation within the industry.

 

[Average]

do u know at iskandar how much cheaper is it for industrial property and labour mah?

already a few singapore listed small caps have moved or moving their operations to malaysia..... industrial landlords... when renewing contracts have little bargaining power.. very tough times

But no airport.

 

[Average]

need air port for?

most goods travel by land or sea leh

I thot all the fedex dhl ups at changi got big biz one...

 

[Jazzbie]

I feel that in future singapore will not have low end manufacturing liao

high end one maybe still have

industrial property will be more towards logisitics and data centers ba

Can also convert into business space to cater for back end offices.

There are more diversified industrial reits like Ascendas, Aims Amp and Soilbuild. They seem to cope better than the rest of their peers currently.

Cache could be a good bet too as a pure logistics distribution and warehousing provider. May not make sense to use SG as a transit point but have to drive over to Msia to store the goods.

 

[Average]

I feel that in future singapore will not have low end manufacturing liao

high end one maybe still have

industrial property will be more towards logisitics and data centers ba

Btw Apple got internship postings for nus engineering liao. I think Sg gonna be their asian base.

 

[Jazzbie]

need air port for?

most goods travel by land or sea leh

I don't know for sure, but I think with e-commerce, shipping should be more popular by air? Anyway, as long as SG remains a preferred transit point for distribution in SEA, warehousing should still be able to retain its relevancy.

 

[Darkzi0n]

On the demand side:
low value add manufacturers will shift to lower cost countries
factoryless manufacturers will become more common
At the same time, servitization will be more prevalent

On the supply side:
vacancy rate has been inching up
tons of space are in the pipe line.

Still cant see any upside to cache (and industrial reit in general) since the day I sold my cache at 1.26

 

[Genosis]

Errrmm guys..... u all do know the difference between 'industrial' and 'logistics' right?

That's why MLT and MINT are listed separately. One is pure 'logistics', the other is 'industrial'.

Mapletree Industrial Trust invests in five different types of industrial properties in Singapore and these categories are flatted factories, hi-tech buildings, business parks, stack-up/ramp-up buildings, and light industrial buildings.

As a logistics trust, Mapletree Logistics Trust’s portfolio consists only of logistics centres; its business would thus depend solely on the demand and supply dynamics of warehouses in the geographical markets it is in. Nothing to do with 'manufacturing'.

The same goes for CACHE. Pure logistics player. And CACHE has the largest portfolio of modern ramp-up facilities in Singapore.

 

[thegodfather]

OMG! $2.40 now.....

that was my reaction too. Not sure if it can maintain but i believe during times like these, alot people prefer safe heaven with healthcare reits. Was tempted to sell some for a profit hmmm

 

[Average]

Errrmm guys..... u all do know the difference between 'industrial' and 'logistics' right?

That's why MLT and MINT are listed separately. One is pure 'logistics', the other is 'industrial'.

Mapletree Industrial Trust invests in five different types of industrial properties in Singapore and these categories are flatted factories, hi-tech buildings, business parks, stack-up/ramp-up buildings, and light industrial buildings.

As a logistics trust, Mapletree Logistics Trust’s portfolio consists only of logistics centres; its business would thus depend solely on the demand and supply dynamics of warehouses in the geographical markets it is in. Nothing to do with 'manufacturing'.

The same goes for CACHE. Pure logistics player. And CACHE has the largest portfolio of modern ramp-up facilities in Singapore.

Timely Reminder, thanks. So u see cache got future?