Brokers' take

Cache Logistics Trust | Hold (downgrade)

Target price: S$0.85

Oct 24 close: S$0.865

OCBC Research, Oct 24

Cache Logistics Trust (CACHE) reported its 3Q16 results which fell short of our expectations. Gross revenue rose 21.2 per cent y-o-y to S$28.0 million, but DPU slipped 13.7 per cent 1.847 Singapore cents. Even if we exclude a one-off capital distribution in 3Q15, CACHE's adjusted DPU still fell 5.2 per cent y-o-y.

Given the ongoing legal dispute relating to its 51 Alps Avenue property, management took a downward fair value adjustment of S$36.1 million to S$80.7 million after an independent valuation exercise, as at Sep 30, 2016. As a result of this asset write-down, CACHE'…