Daiwa House Logistics Trust's 1H FY24 Result Review

Basic Profile & Key Statistics

Key Indicators

Performance Highlight

Gross revenue and NPI declined YoY, primarily due to the weakening JPY against SGD. However, the impact on distributable income was less severe, thanks to lower finance expenses and higher realized exchange gains.

Rental Reversion

In 1H, DHLT achieved a weighted average rent reversion of approximately 6%.

Acquisition

DHLT completed the acquisitions of DPL Ibaraki Yuki on 15 March and D Project Tan Duc 2 on 5 July.

Related Parties Shareholding

The REIT manager holds a relatively high proportion of shares while the REIT sponsor and directors of the REIT manager hold a relatively low proportion.

Lease Profile

Overall, the lease profile falls within the median range, with a long WALE.

Debt Profile

The debt profile shows a mix of positive and negative aspects: high adjusted interest coverage ratio, low cost of debt, and 100% fixed-rate debt are positives, while a short WADM, 0% unsecured debt, and a high proportion of perpetual securities are less favorable.

Diversification Profile

The portfolio is geographically diversified but concentrated in properties and tenants.

Key Financial Metrics

Operating distributable income on capital and operating distributable income margin are high. Additionally, the management fee is low compared to operating distributable income. However, property yield is low.

DPU Breakdown

• TTM Distributable Income Breakdown:
• 96.1%from Operation
• 3.7% from Management Fees Paid in Units
• 0.2% being Retained

Trends (Up to 10 Years)

• Uptrend: Adjusted Interest Coverage Ratio, Operating Distributable Income on Capital, Operating Distributable Income Margin
• Flat: DPU from Operation, Committed Occupancy, Operating Distributable Income over Manager's Fees, Operating Distribution Proportion
• Downtrend: NAV per Unit, Property Yield

Price Range & Relative Valuation Metrics

• Dividend Yield - Average for 1y & 3y
• P/NAV - Average for 1y & 3y

Author's Opinion

Compared to the previous half-year, gross revenue and DPU have declined mainly due to the depreciation of JPY against SGD and lower realized exchange gains. Regarding debt, approximately 27.4% of debt requires refinancing this year.

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*Disclaimer: The information presented on this blog is for educational and informational purposes only. The materials, including research and opinions, are based solely on my findings and should not be considered professional financial advice or a definitive statement of fact. I cannot guarantee the accuracy, completeness, or reliability of the information provided. I shall not be held liable for any errors, omissions, or losses that may occur as a result of using the information presented on this blog. It should be noted that the information presented on this blog does not constitute a buy, sell, or hold recommendation for any security. It is crucial to conduct your own thorough research and due diligence before making any investment decisions.