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

Fundamentals

Second-rate dividend payer and slightly overvalued.


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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0.7%

K2LU

-2.3%

SG REITs

-1.4%

SG Market


1 Year Return

6.7%

K2LU

16.5%

SG REITs

4.2%

SG Market

Return vs Industry: K2LU underperformed the SG REITs industry which returned 16.5% over the past year.

Return vs Market: K2LU exceeded the SG Market which returned 4.2% over the past year.


Shareholder returns

K2LUIndustryMarket
7 Day0.7%-2.3%-1.4%
30 Day-2.7%-2.9%3.1%
90 Day-2.7%0.04%2.7%
1 Year15.2%6.7%23.9%16.5%8.4%4.2%
3 Year18.8%-9.5%47.3%21.5%20.3%7.5%
5 Year-4.8%-38.6%55.3%11.8%11.9%-6.7%

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 (SGD0.72) is trading below our estimate of fair value (SGD1.49)

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


Price To Earnings Ratio

PE vs Industry: K2LU is poor value based on its PE Ratio (47.5x) compared to the REITs industry average (14.1x).

PE vs Market: K2LU is poor value based on its PE Ratio (47.5x) compared to the SG market (13.1x).


Price to Earnings Growth Ratio

PEG Ratio: K2LU is poor value based on its PEG Ratio (3.4x)


Price to Book Ratio

PB vs Industry: K2LU is overvalued based on its PB Ratio (1x) compared to the SG REITs industry average (1x).


Next Steps

Future Growth

How is Cache Logistics Trust forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

13.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: K2LU's forecast earnings growth (13.9% per year) is above the savings rate (2.3%).

Earnings vs Market: K2LU's earnings (13.9% per year) are forecast to grow faster than the SG market (5.6% per year).

High Growth Earnings: K2LU's earnings are forecast to grow, but not significantly.

Revenue vs Market: K2LU's revenue (3.6% per year) is forecast to grow slower than the SG market (5.3% per year).

High Growth Revenue: K2LU's revenue (3.6% 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 (8.6%).


Next Steps

Past Performance

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

-20.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: K2LU has large one-off items impacting its financial results.

Growing Profit Margin: K2LU's current net profit margins (13.8%) are lower than last year (17.3%).


Past Earnings Growth Analysis

Earnings Trend: K2LU's earnings have declined by -20% per year over the past 5 years.

Accelerating Growth: K2LU's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: K2LU had negative earnings growth (-21.9%) over the past year, making it difficult to compare to the REITs industry average (4.6%).


Return on Equity

High ROE: K2LU's Return on Equity (2.7%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Cache Logistics Trust's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: K2LU has a high level of physical assets or inventory.

Debt Coverage by Assets: K2LU's debt is not covered by short term assets (assets are 0x debt).


Financial Institutions Analysis

Asset Level: K2LU's level of assets compared to its equity is low.

Allowance for Bad Loans: Insufficient data to determine if K2LU has a sufficient allowance for bad loans.

Low Risk Liabilities: K2LU reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if K2LU has an acceptable proportion of non-loan assets held.

Low Risk Deposits: K2LU has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if K2LU has an appropriate level of bad loans.


Next Steps

Dividend

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

8.25%

Current Dividend Yield


Dividend Yield vs Market

company8.3%marketbottom25%2.5%markettop25%5.5%industryaverage5.4%forecastin3Years8.3%

Current dividend yield vs market & industry

Notable Dividend: K2LU's dividend (8.26%) is higher than the bottom 25% of dividend payers in the SG market (2.54%).

High Dividend: K2LU's dividend (8.26%) is in the top 25% of dividend payers in the SG market (5.52%)


Stability and Growth of Payments

Stable Dividend: K2LU has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: K2LU has only been paying a dividend for 9 years, and since then payments have fallen.


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (84%), 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 (105.3% payout ratio).


Next Steps

Management

What is the CEO of Cache Logistics Trust's salary, the management and board of directors tenure and is there insider trading?

2.4yrs

Average management tenure


CEO

Daniel Cerf 0

0yrs

Tenure

0

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  ...


Management Age and Tenure

2.4yrs

Average Tenure

Experienced Management: K2LU's management team is considered experienced (2.4 years average tenure).


Board Age and Tenure

1.3yrs

Average Tenure

63yo

Average Age

Experienced Board: K2LU's board of directors are not considered experienced ( 1.3 years average tenure), which suggests a new board.


Insider Trading

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


Recent Insider Transactions

BuyS$1,251,99401 Nov 19
ARA Asset Management Limited
EntityCompany
Shares1,707,110
Max PriceS$0.73
BuyS$73,00001 Nov 19
How Teck Lim
EntityIndividual
Role
Chairman of the Board
Chairman of the Board at ARA Trust Management (Cache) Limited
Shares100,000
Max PriceS$0.73
BuyS$72,50030 Oct 19
How Teck Lim
EntityIndividual
Role
Chairman of the Board
Chairman of the Board at ARA Trust Management (Cache) Limited
Shares100,000
Max PriceS$0.72
SellS$1,251,99429 Oct 19
ARA Asset Management Limited
EntityCompany
Shares1,707,110
Max PriceS$0.73
BuyS$144,00027 Aug 19
How Teck Lim
EntityIndividual
Role
Chairman of the Board
Chairman of the Board at ARA Trust Management (Cache) Limited
Shares200,000
Max PriceS$0.72
BuyS$1,577,12908 Aug 19
Eastspring Investments (Singapore) Limited
EntityCompany
Shares2,210,100
Max PriceS$0.71
SellS$1,251,52822 Jul 19
PPM America, Inc
EntityCompany
Shares1,594,100
Max PriceS$0.79
SellS$2,312,41415 Jul 19
Eastspring Investments (Singapore) Limited
EntityCompany
Shares2,945,000
Max PriceS$0.79
SellS$1,024,73404 Jul 19
PPM America, Inc
EntityCompany
Shares1,303,400
Max PriceS$0.79
SellS$457,95202 Jul 19
Eastspring Investments (Singapore) Limited
EntityCompany
Shares580,200
Max PriceS$0.79
SellS$1,232,07725 Apr 19
ARA Asset Management Limited
EntityCompany
Shares1,688,008
Max PriceS$0.73
BuyS$1,232,07725 Apr 19
ARA Asset Management Limited
EntityCompany
Shares1,688,008
Max PriceS$0.73
BuyS$972,06211 Apr 19
Eastspring Investments (Singapore) Limited
EntityCompany
Shares1,287,500
Max PriceS$0.75
BuyS$2,208,00010 Apr 19
PPM America, Inc
EntityCompany
Shares2,944,000
Max PriceS$0.75
BuyS$220,89708 Mar 19
PPM America, Inc
EntityCompany
Shares1,781,200
Max PriceS$0.12
SellS$2,260,81825 Jan 19
ARA Asset Management Limited
EntityCompany
Shares3,227,895
Max PriceS$0.70
BuyS$2,260,81825 Jan 19
ARA Asset Management Limited
EntityCompany
Shares3,227,895
Max PriceS$0.70

Ownership Breakdown

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


Management Team

  • Sharon Yeoh (60yo)

    Secretary of ARA Trust Management (Cache) Limited

    • Tenure: 4.1yrs
  • Daniel Cerf

    Chief Executive Officer of ARA Trust Management (Cache) Limited

    • Tenure: 0yrs
  • Jiann Ching Ho

    Director & Head of Investment Management at ARA Trust Management (Cache) Limited

    • Tenure: 0yrs
  • Wai Chiang

    Secretary of ARA Trust Management (Cache) Limited

    • Tenure: 4.1yrs
  • Donovan Ng

    Assistant Director of Finance of ARA-CWT Trust Management (Cache) Limited

    • Tenure: 0.08yrs
  • Cassandra Seet

    Manager of Investor Relations

    • Tenure: 0.7yrs

Board Members

  • Lee Meng Lim (63yo)

    Lead Independent Non-Executive Director of ARA Trust Management (Cache) Limited

    • Tenure: 0.7yrs
    • Compensation: S$65.00k
  • How Teck Lim (68yo)

    Chairman of the Board at ARA Trust Management (Cache) Limited

    • Tenure: 9.7yrs
    • Compensation: S$90.00k
  • Kong Lim

    Independent Non-Executive Director of ARA Trust Management (Cache) Limited

    • Tenure: 3.8yrs
    • Compensation: S$65.00k
  • Nam Chia (59yo)

    Non-Executive Director of ARA Trust Management (Cache) Limited

    • Tenure: 1.3yrs
  • Eng Oh (63yo)

    Independent Non-Executive Director of ARA Trust Management (Cache) Limited

    • Tenure: 0.7yrs

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$763.406m
  • Shares outstanding: 1.08b
  • 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 purpos ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/14 12:49
End of Day Share Price2019/11/14 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


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.