Daiwa House Logistics Trust's 2H FY23 Result Review

Basic Profile & Key Statistics

Key Indicators

Performance Highlight

Gross revenue and NPI have declined year-over-year primarily due to the weakening of JPY against SGD. However, distributable income improved over the same period due to realized gains from exchange hedging. DPU, however, remained unchanged due to a slightly larger unitholder base.

Acquisition

The acquisitions of DPL Ibaraki Yuki and D Project Tan Duc 2 are expected to be completed by 1Q and 2Q respectively.

Related Parties Shareholding

The REIT sponsor and REIT manager hold a relatively low proportion.

Lease Profile

Committed occupancy is at 100% and WALE is long.

Debt Profile

The debt profile presents a mixed picture. Positive aspects include a high adjusted interest coverage ratio, low cost of debt, and 100% fixed-rate debt. Less favorable aspects include a short WADM, 0% unsecured debt, and a high proportion of perpetual securities.

Diversification Profile

The portfolio is geographically diversified but concentrated in terms of 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:
• 96.3%from Operation
• 3.7% from Management Fees Paid in Units

Trends

• Uptrend: Adjusted Interest Coverage Ratio, Operating Distributable Income on Capital, Operating Distributable Income Margin
• Slight Uptrend: Committed Occupancy
• Flat: DPU from Operation
• Downtrend: NAV per Unit, Property Yield

Relative Valuation

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

Author's Opinion

Compared to the previous half-year, despite a decline in gross revenue and NPI, DPU remained unchanged mainly due to higher realized gains from exchange hedging and lower finance expenses. Regarding debt, approximately 29.4% of debt requires refinancing in 2024.

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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.