Current Price on 28th Jan 2011 = $0.995
- Current Yield = 7.79%
- Price-to-book Ratio = 1.146
- Assets per unit = $1.168
- Debt per unit = $0.300
- Gearing = 25.7%
Cache Logistics Trust is one of the smaller industrial REIT in Singapore. Smaller REITs in Singapore generally command higher yield and lower price-to-book ratio. Cache has an advantage over the rest which is its low gearing. This gives them opportunities to explore and build their portfolio using debt only. This is positive.
There is a potential to grow and I believe it has been priced in. Moreover, its price-to-book ratio is quite higher. (You will be buying the properties at a 14% premium which I am not in favour). I will wait for news to come, the price to drop to at least NAV level before I think about investing in this REIT.