- Main Sector(s): Logistics & Retail
- Country(s) with Assets: Japan
- No. of Properties (exclude development/associate/fund): 14
Key Indicators
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.
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.
- 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%
Trends
- 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 Sector | Low REIT Sponsor's Shareholding |
| High Occupancy | Low REIT Manager's Shareholding |
| Long WALE | Low Directors of REIT Manager's Shareholding |
| Well Spread Lease Expiry | 0% Unsecured Debt |
| Low Cost of Debt | High Top Property Contribution |
| 100% Fixed Rate Debt | High Top Tenant & Top 10 Tenants Contributions |
| High Interest Coverage Ratio | NAV per Unit Downtrend |
| Low Top Geographical Contribution | Interest Coverage Ratio Downtrend |
| Competitive Management Fees | Property 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
Singapore REITs Post Telegram Channel - Join to receive posts for Singapore REITs
REIT-TIREMENT Patreon - Support my work and get exclusive content
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REIT Investing Community - Facebook Group where members share and discuss REIT topic
*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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