Is Cache Logistics Trust Possibly An Undervalued REIT Now? | The Motley Fool Singapore

Is Cache Logistics Trust Possibly An Undervalued REIT Now? | The Motley Fool Singapore: "So what’s the value?

The expected growth rate of (-1.79%) can then be used to compare against our own assessment of what Cache Logistics Trust may be able to achieve. A historical perspective here on the REIT’s growth may help – from FY2011 to FY2014, Cache Logistics Trust has increased its DPU at an annual rate of 1.34% on average.

So, based on all the above assumptions, if you expect Cache Logistics Trust to be able to grow its distributions at a faster clip than (-1.79%) annually, the trust will be undervalued at S$0.99. But, if you’re not confident at all about Cache Logistics Trust’s growth and think that its future distributions will step up at a much slower pace, then S$0.99 might be too high a price to pay."



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