Daiwa House Logistics Trust's 1H FY25 Result Review

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 Operation
• 3.5% from Management Fees Paid in Units
• 0.2% 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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*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.