Daiwa House Logistics Trust reported net property income of $22.5 million for its 1HFY2025, up 6.1% y-o-y, along with higher revenue of $29.2 million, up 5.8%, with contributions from new acquisitions.
However, distributable income for the same half year ended June was down 8.2% to $15.7 million due to higher interest costs and lower realised exchange gains.
As such, distribution per unit was down 8.6% to 2.24 cents. As at June 30, aggregate leverage was 40.7%, below the regulatory limit of 50% and interest coverage ratio remained healthy at 6.6 times.
According to the DHLT, the supply of new logistics space in Japan is expected to decline from 2026 due to factors such as rising construction and land costs. Fundamentals of the logistics market in Japan are expected to remain strong with demand from e-commerce.
"As such, a more balanced supply-demand equilibrium is expected in the coming years," says DHLT.
Jun Yamamura, CEO of the manager, says aside from vacated space in DPL Sendai Port, the REIT achieved a "commendable" weighted average rent uplift of 10%.
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"Looking ahead, while the long-term fundamentals of the logistics sector of markets DHLT have presence in are expected to remain healthy, there are likely to be near-term uncertainties brought about by the United States’ trade policy," he warns.
Space equivalent to 6% of the portfolio’s total net lettable area will expire in 2H FY2025, and negotiations with potential tenants are ongoing.
"We remain vigilant of the near-term market uncertainties as we continue to focus on improving the occupancy of the portfolio," says Yamamura.
DHLT units closed at 57 cents on Aug 7 up 0.88% for the day but down 0.86% year to date.
