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 Operation3.7% 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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