Daiwa House Logistics Trust 9M distributable income drops 8.4% to S$23.4 million

[SINGAPORE] The manager of Daiwa House Logistics Trust (DHLT) on Wednesday (Nov 12) posted a distributable income of S$23.4 million forthe nine months ended September, a 8.4 per cent drop from S$25.5 million a year prior.

This was mainly on the back of greater interest expenses with higher interest rate from borrowings refinanced in November 2024, additional borrowings to finance acquisitions, as well as lower realised foreign exchange gains.

Overall net property income (NPI) rose 3.3 per cent year on year, due to the full nine-month contribution from D Project Tan Duc 2 – acquired in July 2024.

For its Japan portfolio, rental income for the nine-month period edged up 1.1 per cent to 4.2 billion yen (S$35.6 million), while NPI dropped 0.3 per cent to 3.61 billion yen, from 3.62 billion in the same period a year before.

As at end-September, portfolio occupancy stood at 92 per cent, a slight decline from the 93 per cent as at end-June. The weighted average lease expiry of the portfolio was also at 6.5 years.

Aggregate leverage was 41.2 per cent as at Sep 30, with an interest coverage ratio of six times.

Jun Yamamura, CEO of the manager of DHLT, said that the acquisitions of the Reit – D Project Tan Duc 2 in July 2024, and DPL Gunma Fujioka in March – have contributed positively.

“Each of these acquisitions have also added new blue-chip tenants to DHLT, strengthening its tenant base. While there are vacancies in certain properties, there are ongoing discussions with potential new tenants,” he said.

The manager noted that it will also continue to work closely with the property manager and leverage on sponsor’s network to improve overall portfolio occupancy.

Units of DHLT closed flat at S$0.575 on Tuesday.