Daiwa House Logistics Trust 9M distributable income drops 8.4% to S$23.4 million
Overall net property income rises 3.3% year on year
[SINGAPORE] The manager of Daiwa House Logistics Trust (DHLT) on Wednesday (Nov 12) posted a distributable income of S$23.4 million for the nine months ended September, an 8.4 per cent drop from S$25.5 million in the prior year.
This was mainly on the back of greater interest expenses with higher interest rates 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 9M contribution from D Project Tan Duc 2 – acquired in July 2024.
For its Japan portfolio, rental income for the 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 yen in the same period the year before.
Net asset value per unit attributable to unitholders was S$0.67 as at Sep 30. This was down from S$0.69 as at Dec 31, 2024.
The total borrowings recorded were S$379.2 million 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 stood 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 trust – D Project Tan Duc 2 in July 2024, and DPL Gunma Fujioka in March – have contributed positively.
“Each of these acquisitions has 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 continue to work closely with the property manager and leverage the sponsor’s network to improve overall portfolio occupancy.
Units of DHLT closed flat at S$0.575 on Tuesday.
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