SGX:K2LU

Stock Analysis Report

Cache Logistics Trust

Executive Summary

Listed on the Singapore Exchange on 12 April 2010, Cache Logistics Trust is a real estate investment trust (“REIT”) that invests in quality income-producing industrial real estate used for logistics purposes, as well as real estate-related assets, in Asia Pacific.


Snowflake Analysis

Reasonable growth potential second-rate dividend payer.


Similar Companies

Share Price & News

How has Cache Logistics Trust's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: K2LU's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

9.7%

K2LU

-3.7%

SG REITs

1.7%

SG Market


1 Year Return

-32.5%

K2LU

-20.9%

SG REITs

-26.9%

SG Market

Return vs Industry: K2LU underperformed the SG REITs industry which returned -20.9% over the past year.

Return vs Market: K2LU underperformed the SG Market which returned -26.9% over the past year.


Shareholder returns

K2LUIndustryMarket
7 Day9.7%-3.7%1.7%
30 Day-26.1%-27.5%-18.4%
90 Day-29.2%-28.0%-25.6%
1 Year-27.2%-32.5%-16.2%-20.9%-23.8%-26.9%
3 Year-23.8%-41.7%5.7%-12.2%-19.3%-27.9%
5 Year-32.9%-56.8%13.0%-18.6%-18.4%-32.3%

Price Volatility Vs. Market

How volatile is Cache Logistics Trust's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Cache Logistics Trust undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: K2LU (SGD0.51) is trading below our estimate of fair value (SGD1.38)

Significantly Below Fair Value: K2LU is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: K2LU is unprofitable, so we can't compare its PE Ratio to the REITs industry average.

PE vs Market: K2LU is unprofitable, so we can't compare its PE Ratio to the SG market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate K2LU's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: K2LU is overvalued based on its PB Ratio (0.7x) compared to the SG REITs industry average (0.7x).


Next Steps

Future Growth

How is Cache Logistics Trust forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

55.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: K2LU is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.8%).

Earnings vs Market: K2LU is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: K2LU's is expected to become profitable in the next 3 years.

Revenue vs Market: K2LU's revenue (4.1% per year) is forecast to grow faster than the SG market (4% per year).

High Growth Revenue: K2LU's revenue (4.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: K2LU's Return on Equity is forecast to be low in 3 years time (9.4%).


Next Steps

Past Performance

How has Cache Logistics Trust performed over the past 5 years?

-17.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: K2LU is currently unprofitable.

Growing Profit Margin: K2LU is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: K2LU is unprofitable, and losses have increased over the past 5 years at a rate of -17.5% per year.

Accelerating Growth: Unable to compare K2LU's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: K2LU is unprofitable, making it difficult to compare its past year earnings growth to the REITs industry (4.4%).


Return on Equity

High ROE: K2LU has a negative Return on Equity (-1.03%), as it is currently unprofitable.


Next Steps

Financial Health

How is Cache Logistics Trust's financial position?


Financial Position Analysis

Short Term Liabilities: K2LU's short term assets (SGD23.7M) do not cover its short term liabilities (SGD135.1M).

Long Term Liabilities: K2LU's short term assets (SGD23.7M) do not cover its long term liabilities (SGD482.6M).


Debt to Equity History and Analysis

Debt Level: K2LU's debt to equity ratio (68.8%) is considered high.

Reducing Debt: K2LU's debt to equity ratio has increased from 45.7% to 68.8% over the past 5 years.

Debt Coverage: K2LU's debt is not well covered by operating cash flow (15.6%).

Interest Coverage: K2LU is unprofitable, therefore interest payments are not well covered by earnings.


Balance Sheet


Next Steps

Dividend

What is Cache Logistics Trust's current dividend yield, its reliability and sustainability?

10.83%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: K2LU's dividend (10.83%) is higher than the bottom 25% of dividend payers in the SG market (3.19%).

High Dividend: K2LU's dividend (10.83%) is in the top 25% of dividend payers in the SG market (7.09%)


Stability and Growth of Payments

Stable Dividend: K2LU's dividend payments have been volatile in the past 10 years.

Growing Dividend: K2LU's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (83.4%), K2LU's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: K2LU's dividends in 3 years are not forecast to be well covered by earnings (103.7% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.8yrs

Average management tenure


CEO

Daniel Cerf

no data

Tenure

Mr. Daniel Cerf serves as the Chief Executive Officer at ARA Trust Management (Cache) Limited (Formerly, ARA-CWT Trust Management (Cache) Limited), the Manager of Cache Logistics Trust. Mr. Cerf served as  ...


Leadership Team

NamePositionTenureCompensationOwnership
Daniel Cerf
Chief Executive Officer of ARA Trust Management (Cache) Limitedno datano datano data
Boon Hua Ng
Assistant Director of Finance of ARA-CWT Trust Management (Cache) Limited0.50yrno datano data
Jiann Ching Ho
Director & Head of Investment Management at ARA Trust Management (Cache) Limitedno datano datano data
Cassandra Seet
Manager of Investor Relations1.08yrsno datano data
Kar Choo Yeoh
Secretary of ARA Trust Management (Cache) Limited4.5yrsno datano data
Wai Chiang
Secretary of ARA Trust Management (Cache) Limited4.5yrsno datano data

2.8yrs

Average Tenure

Experienced Management: K2LU's management team is considered experienced (2.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Lee Meng Lim
Lead Independent Non-Executive Director of ARA Trust Management (Cache) Limited1.08yrsS$65.00kno data
Stephen Hawkins
Non-Executive Director0.083yrno datano data
How Teck Lim
Chairman of the Board at ARA Trust Management (Cache) Limited10.08yrsS$90.00k0.17% SGD846.0k
Kong Lim
Independent Non-Executive Director of ARA Trust Management (Cache) Limited4.25yrsS$65.00kno data
Nam Toon Chia
Non-Executive Director of ARA Trust Management (Cache) Limited1.75yrsno datano data
Eng Oh
Independent Non-Executive Director of ARA Trust Management (Cache) Limited1.08yrsno data0.0022% SGD11.1k

1.4yrs

Average Tenure

63yo

Average Age

Experienced Board: K2LU's board of directors are not considered experienced ( 1.4 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: K2LU insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Cache Logistics Trust's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Cache Logistics Trust
  • Ticker: K2LU
  • Exchange: SGX
  • Founded: 2010
  • Industry: Industrial REITs
  • Sector: Real Estate
  • Market Cap: S$510.335m
  • Shares outstanding: 1.09b
  • Website: https://www.cache-reit.com

Location

  • Cache Logistics Trust
  • 5 Temasek Boulevard #12-01
  • Suntec Tower Five
  • Singapore
  • 38985
  • Singapore

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
K2LUSGX (Singapore Exchange)YesTrust UnitsSGSGDApr 2010
A6CDB (Deutsche Boerse AG)YesTrust UnitsDEEURApr 2010

Biography

Listed on the Singapore Exchange on 12 April 2010, Cache Logistics Trust is a real estate investment trust (“REIT”) that invests in quality income-producing industrial real estate used for logistics purposes, as well as real estate-related assets, in Asia Pacific. Cache is managed by ARA Trust Management (Cache) Limited. As at 30 September 2019, Cache’s portfolio comprised 27 high quality logistics warehouse properties strategically located in established logistics clusters in Singapore and Australia. The portfolio has a total gross floor area of approximately 9.0 million square feet valued at approximately S$1.31 billion. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/07 13:26
End of Day Share Price2020/04/07 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.