What is a Real Estate Investment Trust (REIT)?
A real estate investment trust is a listed vehicle that invests in a portfolio of income-generating properties. Rents collected from tenants, less expenses are distributed on a regular basis to provide stable yields to Unitholders.
What are the benefits of investing in REIT?
- REITs offer stable returns from the rentals collected from the tenants.
- REITs offer tax advantages. For qualifying Unitholders, distributions from REITs are free of tax at source. For the period of 18 February 2005 to 17 February 2010, the withholding tax rate for foreign non-individual investors has also been reduced from 10% to 20%.
- REITs as a portfolio diversification tool - REITs have a risk profile slightly higher than that of bonds and a return profile slightly lower than that of stocks. REITs offer competitive returns for the risk assumed.
- REITs provide a hedge against inflation. When inflation rises, the value of real estate and real estate securities can be expected to increase as well. REITs thus can be considered as a substitute for a fixed income portfolio during periods of expected and high inflation.
What is Cache Logistics Trust ("Cache" or the "Trust")?
Cache is a Singapore-based REIT which principally invests in income-producing real estate used for logistics purposes in Asia-Pacific, and real estate-related assets.
The Trust's initial portfolio comprises six high quality logistics properties ("Initial Portfolio") located in Singapore, with an aggregate gross floor area ("GFA") of approximately 3.9 million sq ft and an average independent valuation of S$729.9 million. Over 97% of the Initial Portfolio's GFA consist of modern ramp-up logistics warehouses, representing approximately 25% market share of ramp-up warehouses in Singapore.
For more information, please go to http://www.cache-reit.com.
How can I invest in Cache?
To invest in Cache which is listed on the Singapore Exchange (SGX), an individual must first have a securities account with the Singapore Central Depository (Pte) Ltd.
You can open only one direct securities account with CDP and any number of sub-accounts with any of the Singapore Exchange-Securities Trading (SGX-ST) Member Companies. If you hold an NRIC issued by Singapore (either pink or blue), you may also approach an Authorised Trading Centre (ATC) personally to apply for a securities account.
You must be at least 21 years old and must not be an undischarged bankrupt. You need to bring along your NRIC / Passport / Re-entry Permit and other relevant supporting documents. There will be a CDP Securities Account Opening Form that you are required to complete and sign in the presence of an authorised personnel.
Overseas applicants may submit their applications via post. However, application forms and supporting documents must be certified by one of the following:
- Advocate and Solicitor
- Singapore Embassy
- Justice of Peace
- Company Registrar or Company Secretary of companies seeking listing on SGX for original shareholders and employees of the companies
- Member of an exchange which has established an information sharing agreement with SGX-ST
- Authorised officer of banks
Where there is any reason to doubt the authenticity of an application, CDP reserves the right to reject the application.
The Central Depository (Pte) Limited
4 Shenton Way #02-01
SGX Centre 2
8.30 am to 5.00 pm (Monday to Friday)
9.00 am to 12.30 pm (Saturday)
Closed on Sundays and Public Holidays
Can I use my Central Provident Funds (CPF) to invest in Cache?
Yes, up to 35% of a member's investible savings in his/her CPF ordinary account.
In addition, CPF members who purchase the units in Cache within CPF Investment Scheme (CPFIS) and returned the distribution to their CPFIS, will receive distributions in gross amount (without any tax deducted at source).
How and when will income distribution be made available to Unitholders?
The Trust's policy is to distribute 100% of its income from the Listing Date to 31 December 2011 and thereafter to distribute at least 90% of its distributable income, if any.
Cache will make distributions to Unitholders on a quarterly basis, with the amount calculated as at 31 March, 30 June, 30 September and 31 December in each year for the three-month period ending on each of those dates. The Trust's first distribution after the Listing Date, however, will be for the period from the Listing Date to 30 September 2010 and will be paid by the Manager on or before 29 November 2010. Subsequent distributions will be made on a quarterly basis. Under the Trust Deed, the Manager is required to pay distributions no later than 60 days after the end of each distribution period.
Are the distributions/earnings in Cache guaranteed?
The Trust's earnings or distributions are not guaranteed.
When is the Trust's financial year end?
The Trust's financial year end is 31 December.