Brokers' take

Cache Logistics Trust | BUY (Maintained) Target price: S$0.84 Oct 29 close: S$0.71 RHB Research Institute, Oct 29

Cache posted a better quarter-on-quarter (q-o-q) performance aided by occupancy improvement and higher net property income (NPI) from several Singapore properties. NPI margin was lower year-on-year due to conversion of master leases but we expect the NPI margin to stabilise.

Overall occupancy increased q-o-q to 96.9 per cent. Occupancy at Cache's key asset - CWT Commodity Hub - rose to 94 per cent, indicating healthy demand, despite a slight oversupply in the market. We expect increased occupancy rates in the coming quarters.