Cache Logistic Trust - My CNAV Analysis

As per my earlier post (click here to see more), Cache Logistic Trust (K2LU) is one of the REITs that I am digging in further this month. Potentially, this is my last buy of the year (2015) for my Income Portfolio.

 

As usual, I've done a quick CNAV (Conservative Net Asset Value) Analysis on Cache and here is my findings :

 

The Key Quantitative Indicators of CNAV Strategy (Basing on the mixture of 3rd Q 2015 Report and the 2014 Annual Report):

Net Asset Value (NAV) = $0.969

Conservative Net Asset Value (CNAV2) = $0.963

Current Price = $0.90

Discount For CNAV2 = 7%

Conclusion : From the price's perspective, it is traded at a discount of 7% against the CNAV2 which is a positive sign. 

The P.O.F Scores of CNAV Strategy:

Profitability Score = 1 (With the PE ratio of 10.7. Basing on the Diluted EPS in 2014 Annual Report)

Operational Efficiency = 1 (with three consecutive years of positive operating cashflow)

Financial Efficiency = 1 (Debt To Equity Ratio of 69%)

Conclusion : A perfect POF indicators.

 

Of course, there are other factors we need to consider when investing in REITs, here are some key ones that I've obtained for Cache:

 

1. Dividend Yield : 9.52 % (basing on the 2014 Dividend Distribution Per Unit of 8.573 cents and current price of $0.90)

 

2. Gearing Ratio : 38% (slightly higher than the average 35% but not alarming)

 

3. Weighted Average Lease To Expire (WALE) : 4.3 years (which is very decent to me)

 

In short, Cache Logistics Trust is an attractive candidate from the CNAV2 Analysis perspective. However, as reminded by a friend (B) via a group chat, those who are interested in the REITS should wait till after 15/12/2015 in view of the upcoming announcement of the potential Fed Rate hike. So, I will hold my horse and KIV my decision until then to take potential advantage of the temporary knee jerk reaction from the market ;-)  

Cheers!