Daiwa House Logistics Trust FY2025: DPU 4.33¢ (-9.6%), Portfolio S$835M, Occupancy Eases to 87.8%

Daiwa House Logistics Trust (DHLT) FY2025 (year ended 31 December 2025) delivered higher revenue and NPI driven by portfolio growth, but distributable income and DPU declined due to lower FX gains and higher interest expenses from new acquisitions.

Gross Revenue S$57.8M (+1.2% YoY). NPI S$44.2M (+0.7% YoY). Distributable Income S$30.4M (-9.4%). DPU 4.33¢ (-9.6%). Portfolio Valuation S$835.2M (-0.1% in S$; Japan JPY98,759M +6.1%, Vietnam VND524.2B +2.2% in local currency — FX headwinds from weaker JPY/VND). Total Assets S$1,060.4M. NAV/unit S$0.65. Aggregate Leverage 40.2%. ICR 5.5x. Borrowing Cost 2.04% all-in. 99.3% fixed rate debt. 100% unencumbered.

Portfolio occupancy eased to 87.8% (FY2024: 97.6%), with the main drag from three properties: DPL Sendai Port (31.9% — significant vacancy), DPL Koriyama (74.6%), and DPL Kawasaki Yako (90.0%). 16 of 19 properties remain fully occupied. On the positive side, all 9 renewed or new leases achieved higher rents (weighted avg +11.1%), demonstrating rental reversion potential. WALE remained long at 6.6 years.

DPL Gunma Fujioka (Greater Tokyo): Acquired Mar 2025 for JPY3,990M — a 23.4% discount to the then-independent valuation of JPY5,210M. DHLT's 19th property, a freehold logistics facility completed Jan 2022, NLA 22,514sqm. Tenant: Japanese group company of one of the world's largest multinational consumer goods corporations. BELS 5-star green certified, 2.6 MWp solar. As at Dec 2025, valued at JPY5,230M — already +31.1% above purchase price.

Established sustainability-linked loan framework (Dec 2025). Entered first SLL for S$30M revolving credit facility. 17/19 properties green-certified (BELS), representing 96.0% of portfolio by val. 9 properties at highest 6-star BELS rating. Solar capacity 18.8 MWp across 13 properties.

DHLT's FY2025 result is a tale of two stories: solid fundamentals (rent reversion +11%, long WALE, near-zero borrowing cost at 2.04%, 16/19 properties fully occupied, DPL Gunma Fujioka acquired at 23% discount) vs near-term headwinds (occupancy softness at Sendai Port and Koriyama, FX translation drag, DPU down 9.6%). The Japan logistics market remains well-supported by e-commerce growth and moderating new supply. The key watch item is filling vacancies at DPL Sendai Port (31.9% occ), which at 63,117sqm is the second largest property in the portfolio. Resolution of Sendai Port vacancy would materially improve DPU.