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REITs investing & personal finance

Wednesday, November 16, 2022

Daiwa House Logistics Trust Review @ 16 November 2022

Basic Profile & Key Statistics
  • Main Sector(s): Logistics & Retail
  • Country(s) with Assets: Japan
  • No. of Properties (exclude development/associate/fund): 14

Key Indicators

Performance Highlight

Despite gross revenue and NPI are lower than forecast due to weaker JPY/SGD forex, the distributable income is able to meet the IPO forecast.

Rental Reversion

YTD rent reversion is at 2.9%.


DHLT has proposed to acquire 2 new properties and an underlying land of existing property. The acquisition is expected to be DPU accretive and would be funded by a combination of sponsor subscription and external borrowing. EGM would be held in December to seek unitholders' approval for this.

Related Parties Shareholding

  • REIT sponsor's shareholding: Below median for more than 20%
  • REIT manager's shareholding: 0%
  • Directors of REIT manager's shareholding: Below median for more than 20%

Lease Profile

  • Occupancy: ± 5% from median
  • WALE: Above median for more than 20%
  • Highest lease expiry within 5 years: Below median for more than 20%; Falls in 2024
  • Weighted average land lease expiry: ± 10% from median

Debt Profile

  • Gearing ratio: ± 10% from median 
  • Gearing ratio including perps: ± 10% from median
  • Cost of debt: Below median for more than 20%
  • Fixed rate debt %: 100%
  • Unsecured debt %: 0%
  • WADM: ± 10% from median 
  • Highest debt maturity within 5 years: ± 10% from median; Equally divided into 2024,2025 and 2026.
  • Interest coverage ratio: Above median for more than 20%

Diversification Profile

  • Top geographical contribution: Below median for more than 10%
  • Top property contribution: Above median for more than 20%
  • Top 5 properties' contribution: ± 10% from median
  • Top tenant contribution: Above median for more than 20%
  • Top 10 tenants' contribution: Above median for more than 20%

Key Financial Metrics

  • Property yield: ± 10% from median
  • Management fees over distribution: Below median for more than 20%; $9.71 distribution for every dollar paid 
  • Distribution on capital: ± 10% from median
  • Distribution margin: Above median for more than 10%


* DPU in 4Q 2021 is annualized to 3 months DPU.
  • Uptrend: Distribution on Capital, Distribution Margin
  • Slight Uptrend: DPU, Occupancy
  • Downtrend: NAV per Unit, Interest Coverage Ratio, Property Yield

Relative Valuation

  • Current 52 Weeks Range: 30%
  • P/NAV: Below -1SD for 1y 
  • Dividend Yield: Above +1SD for 1y

Author's Opinion

 Favorable Less Favorable
Diversified SectorLow REIT Sponsor's Shareholding
High OccupancyLow REIT Manager's Shareholding
Long WALELow Directors of REIT Manager's Shareholding
Well Spread Lease Expiry0% Unsecured Debt
Low Cost of DebtHigh Top Property Contribution
100% Fixed Rate DebtHigh Top Tenant & Top 10 Tenants Contributions
High Interest Coverage RatioNAV per Unit Downtrend
Low Top Geographical ContributionInterest Coverage Ratio Downtrend
Competitive Management FeesProperty Yield Downtrend
High Distribution Margin 
Distribution on Capital Uptrend 
Distribution Margin Uptrend

Compared to the previous quarter, gross revenue has declined slightly, however, NPI and distributable income have improved slightly. With a 100% fixed rate and no maturity in 2023, DHLT has mitigated the impact of further interest rate hikes, at least until 2024. 

You could also refer below for more information:

SREITs Dashboard - Detailed information on individual Singapore REIT

SREITs Data - Overview and Detail of Singapore REIT

REIT Analysis - List of previous REIT analysis posts

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*Disclaimer: Materials in this blog are based on my research and opinion which I don't guarantee accuracy, completeness, and reliability. It should not be taken as financial advice or a statement of fact. I shall not be held liable for errors, omissions and loss or damage due to the use of the material in this blog. Under no circumstances does the information presented on this blog represent a buy, sell, or hold recommendation on any security, please always do your own due diligence before any decision is made.

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