The manager of Daiwa House Logistics Trust (DHLT) has reported a distribution per unit (DPU) of 3.09 cents for the 1HFY2022 ended June, in line with its pro-rated forecast.
This was despite the lower-than-expected gross revenue of $38.9 million, which was down by 3.6% due to the weaker JPY against the SGD.
Net property income (NPI) for the period also stood 4.5% lower than forecasted at $30.0 million.
Distributable income, however, stood in line with its forecast at $20.9 million as DHLT’s finance and trust expenses were lower than forecasted.
During the period, the REIT’s portfolio occupancy stood at 98.6% as at June 30, with a weighted average lease expiry (WALE) of 6.8 years by occupied net lettable area (NLA).
There are no leases expiring in 2022 for built-to-suit properties.
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Aggregate leverage stood at 34.0%. The consumption tax that was paid in relation to the acquisition of the portfolio has been refunded in April 2022 and the loan taken for consumption tax has also been repaid.
The remaining borrowings are all denominated in JPY, thereby providing a natural hedge as the value of the properties is denominated in JPY, says the REIT manager.
“We are pleased to inform that the operational performance remained stable and the DPU from the period from Nov 26, 2021 to June 30, was in line with the forecast, amidst the recent challenges faced by various economies and financial markets,” says Takeshi Fujita CEO of the manager.
“During the 1HFY2022, DHLT entered into a new lease and all leases that were to expire during the period were renewed. The average rent increase for the leases entered into or renewed duringthe 1HFY2022 was 3.1%, which demonstrated the quality of the properties and reflected the healthy demand amidst new supply in the market,” he adds.
Looking ahead, the manager believes that demand is expected to remain buoyant even if a large supply of logistics space is expected in 2022 and 2023.
The DPU will be paid on or around Sept 6.
Units in DHLT closed at 74 cents on Aug 2.
