July 2, 2012 / 1:28 AM / 5 years ago

STOCKS NEWS SINGAPORE-OCBC ups Cache Logistics' target price

OCBC Investment Research raised its target price for Cache Logistics Trust to S$1.18 from S$1.11 and kept its buy rating, to reflect its acquisition of a logistics property in Singapore.

By 0108 GMT, Cache units were 0.5 percent higher at S$1.055, and have gained about 11 percent since the start of the year, outperforming the Straits Times Index's 10 percent rise.

Cache has received approval from unitholders to acquire Pandan Logistics Hub, which OCBC expects to contribute S$5.2 million in rental income to the real estate investment trust in the first year.

This translates to an initial net property income yield of 7.6 percent and is expected to add 0.28 Singapore cents to its distribution per unit (DPU) on an annualised basis.

"We continue to like Cache for its resilient portfolio, healthy financial position and attractive fiscal 2012 DPU yield of 7.9 percent," said OCBC in a report.

0910 (0110 GMT)

Reporting by Charmian Kok in Singapore; charmian.kok@thomsonreuters.com

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