Daiwa House Logistics Trust (SGX:DHLU
) (DHLT) has reported distribution per unit of 4.33 cents for FY2025, ended Dec 31, 2025, down 9.6% y-o-y
Net property income (NPI) was at $44.2 million, up 0.7% y-o-y. The slightly higher NPI was due to contribution from DPL Gunma Fujioka and full year contribution from D Project Tan Duc 2, partially offset by vacancies and weaker foreign currencies.
Distribution income, however, was lower by 9.4% y-o-y to $30.4 million due to higher interest costs and additional loans drawn for acquisitions, as well as the lower realised exchange gain.
As at Dec 31, 2025, aggregate leverage was at 40.2% while interest coverage ratio remained stable at 5.5 times.
Meanwhile, 99.3% of DHLT borrowings are on fixed rate and weighted average debt tenor was extended to 2.9 years following recent refinancing activity.
Portfolio occupancy rate was at 87.8% as Dec 31, 2025 and 16 of the 19 properties remained at full occupancy despite certain spaces were vacated during the period.
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Weighted average lease expiry (WALE) of the portfolio remained relatively long at 6.6 years, backed by strong tenant base.
Portfolio valuation was $835.2 million as at Dec 31, 2025, 0.1% lower y-o-y. The valuation of the properties in Japan grew by 6.1% y-o-y to JPY 98.8 billion mainly due to the addition of DPL Gunma Fujioka.
“Given the sustained inflation in Japan in recent quarters and BOJ raising its growth and inflation forecast, we expect upwards pressure on the interest rates to persist, albeit any increase is expected to be at a measured pace. The Manager will continue to mitigate interest rate risk and will take a balanced approach in terms of tenor of borrowings,” says Jun Yamamura, CEO of the manager.
Units in DHLT was traded down by 0.5 cents, or 0.89% lower at 55.5 cents on Feb 26.
