Daiwa House Logistics Trust's 1H FY25 Result Review

$Daiwa Hse Log Tr(DHLU.SI)$

Basic Profile & Key Statistics

Key Indicators

Performance Highlight

Gross revenue and NPI rose year-on-year, driven by contributions from acquisitions in 2024 and 2025, including D Project Tan Duc 2 and DPL Gunma Fujioka. However, distributable income and DPU declined due to higher interest expenses and lower realized foreign exchange gains.

Rental Reversion

DHLT achieved a weighted average rent reversion of approximately 10% in 1H FY25, with positive reversion across all leases renewed or signed during the period.

Acquisition

In March 2025, DHLT completed the acquisition of DPL Gunma Fujioka in Greater Tokyo at a 23.4% discount to valuation. The property is occupied by a new blue-chip tenant and is expected to be DPU-accretive.

Related Parties Shareholding

• REIT Sponsor's Shareholding: Less Favorable

• REIT Manager's Shareholding: Favorable

• Directors of REIT Manager's Shareholding: Less Favorable

Lease Profile

• Committed Occupancy: Moderate

• Highest Annual Lease Expiry in 4 Years: Favorable

• WALE: Favorable

• Weighted Average Land Lease Expiry: Moderate

Debt Profile

• Adjusted Interest Coverage Ratio: Favorable

• Cost of Debt: Favorable

• Gearing Ratio: Moderate

• Fixed Rate Debt Proportion: Favorable

• Unsecured Debt Proportion: Favorable

• Highest Annual Debt Maturity in 4 Years: Moderate

• WADM: Less Favorable

Diversification Profile

• Top Geographical Weightage: Favorable

• Top Property Weightage: Less Favorable

• Top 5 Properties' Weightage: Moderate

• Top Tenant Weightage: Moderate

• Top 10 Tenants' Weightage: Less Favorable

Key Financial Metrics

• Property Yield: Less Favorable

• Manager's Fees over Operating Distributable Income: Favorable

• Operating Distributable Income on Capital: Favorable

• Operating Distributable Income Margin: Favorable

• Operating Distribution Proportion: Moderate

DPU Breakdown

• TTM Distribution Breakdown:96.3% from Operation3.5% from Management Fees Paid in Units0.2% being Retained 

Trends (Up to 10 Years)

• Uptrend: None

• Slight Uptrend: None

• Flat: Adjusted Interest Coverage Ratio, Operating Distributable Income over Manager's Fees, Operating Distributable Income on Capital, Operating Distributable Income Margin

• Slight Downtrend: Committed Occupancy, Top 10 Tenants' Weightage

• Downtrend: DPU from Operations, NAV per Unit, Top 5 Properties' Weightage, Property Yield, Operating Distribution Proportion

Price Range & Relative Valuation Metrics

• Dividend Yield: Average for 1y & 3y & 5y;  for 10y

• P/NAV: Below -1SD for 1y; Average for 3y & 5y;  for 10y

Author's Opinion

Compared to the previous half-year, gross revenue and NPI remained stable, while distributable income and DPU declined primarily due to higher finance costs. In terms of debt, around 23% of borrowings will mature in 2H 2025, with refinancing discussions already underway.

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