Daiwa : DHLU 0% House Logistics Trust : DHLU 0%’s distribution per unit (DPU) edged up 0.4 per cent to S$0.0261 for its first half ended Jun 30, from S$0.026 in the same period last year.

Jun Yamamura, chief executive of the manager, said that while the strong performance was hit by a weaker yen, “realised exchange gains, as well as lower finance cost and other yen-denominated expenses after conversion to Singapore dollar mitigated the impact”. 

Gross revenue was down 4.3 per cent to S$30.9 million for H1, from S$32.3 million the previous year.

On a yen basis, gross revenue was 7.4 per cent higher at 3.1 billion yen (S$29.2 million).

This was mainly due to higher utilities recoverable income, higher rental income and contributions from acquisitions completed in December.

Net property income (NPI) was down 6.6 per cent to S$23.1 million from S$24.8 million, but NPI was 5.2 per cent higher on a yen basis.

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The manager attributed the improved performance of NPI and gross rental income (GRI) to contributions from DPL Iwakuni 1 & 2 and D Project Matsuyama S, acquired in December 2022, and full-period contributions from renting space in DPL Sapporo Higashi Kariki, which was leased in March 2022.

Distributable income stood at S$18.1 million for the six months, up 3.2 per cent from S$17.6 million. The distribution will be paid out on Sep 26, after the record date on Aug 14.

In H1, the manager renewed a lease at the existing monthly rent, maintaining occupancy levels at 98.6 per cent as at end-June. It attained full occupancy as at end-July, after the remaining space in DPL Koriyama was leased.

Portfolio weighted average lease expiry by GRI for H1 was 6.6 years, and gearing was maintained at 35.7 per cent.

Its borrowings were denominated in yen, “providing a natural hedge” against the value of the properties, the manager said. Its all-in weighted average borrowing costs stood at 0.99 per cent per annum, including upfront fees, and all borrowings were made on a fixed-rate basis.

Units of Daiwa House Logistics Trust closed 0.8 per cent or S$0.005 lower at S$0.61 on Thursday.