OCBC downgrades to “sell”
OCBC has downgraded its call on the trust to “sell” from “hold” previously as the REIT is currently trading at 7.6% FY16F yield, which its lead analyst Deborah Ong considers to be unattractively low.
SINGAPORE (July 24): RHB, Religare and OCBC have issued reports with differing views on Cache Logistics Trust after its manager last Friday reported a 9.5% fall in 2Q distribution per unit (DPU) to 1.8 cent, which is in line with all three research houses’ expectations.
In their respective reports on Monday, both OCBC and RHB have highlighted the absence of progress made on the ongoing lease disputes with Cache’s tenant Schenker over Schenker Megahub at 51AA, while adding that the trust’s high portfolio gearing of 42.4% remain a key concern.
