SINGAPORE (April 21): Maybank Kim Eng Research is keeping its “hold” recommendation on Cache Logistics Trust with an unchanged price target of 95 cents.
“Looking ahead, we see no change to both drivers and risks,” says Maybank analyst Chua Su Tye in a Friday report.
Cache Logistics Trust in 1Q saw income available for distribution fall 11.0% to $16.2 million, from $18.2 million a year ago.
Gross revenue fell 2.9% to $27.1 million, while net property income fell 5.8% to $20.8 million.
(See: Cache Logistics Trust 1Q DPU down 11.7% to 1.8 cents)
Chua says the brokerage is maintaining its forecasts on Cache due to “share overhang from the unresolved rent dispute at 51 Alps Ave”.
In addition, Chua notes that Cache has a “stretched balance sheet limiting upside from further inorganic growth opportunities”.
Among the Industrial REITs, Chua says he prefers Ascendas REIT for its Singapore business parks exposure.
Maybank has a “buy” call on Ascendas REIT with a target price of $2.85.
As at 4.52pm, units of Cache Logistics Trust are trading 1.5 cents higher at 88.5 cents. Units of Ascendas REIT are trading flat at $2.56.
