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.
