Cache Logistics Trust rose 8.5% on trading debut

Cache Logistics Trust (CLT), the first pure logistics real estate investment trust (Reit) to be launched in 2.5 years, had a bright debut in the Singapore Exchange (SGX) on Monday.

The counter ended its first trading day at 95.5 cents up 8.5 per cent from its offer price of 88 cents.

The stock also hit as high as 99.5 cents during intra-day trading before some profit taking activity pared off part of its gains.

It was also the most actively traded counter in SGX with 149.4 million units changing hands valued at S$144.8 million.

The Reit is jointly managed by CWT-ARA Asset Management and currently has six properties with a total gross floor area of 3.9 million square feet in its portfolio.

Brokerage firms CIMB and DMG have issued upbeat reports on the Reit as well.

CIMB has an “outperform” rating with a target price of S$1.23 supported by potential acquisitions worth S$220 million.

Meanwhile, DMG has a “buy” rating with a target price of between 96 cents and S$1.09.

Citing the properties proximity to established logistics clusters such as Changi Airport, PSA Terminal and Jurong Port, the DMG analysts reiterated that the assets currently enjoy a higher than average occupancy rate of 94.1 per cent compared to the industrial average of 90 per cent.

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