Daiwa House Logistics Trust’s (DHLT) distributable income for the first quarter ended March was up 0.6 per cent on the year to S$9.2 million, from S$9.1 million.
This was mainly due to realised gains from hedges, despite net property income (NPI) for the quarter being negated by a weaker yen against the Singapore dollar, said the manager in its Q1 business update on Wednesday (May 8).
NPI for the quarter stood at 1.2 billion yen (S$10.5 million), up 4.6 per cent in yen terms, but down 6.2 per cent in Singapore dollar terms.
Gross rental income (GRI) in yen was also 1.9 per cent higher at 1.4 billion yen.
“GRI and NPI for Q1 FY2024 in yen terms were higher year on year mainly due to higher portfolio occupancy and contribution from DPL Ibaraki Yuki, which was acquired in March 2024, as well as (the) absence of repair expenses relating to damage caused by an earthquake which was incurred in Q1 FY2023,” said the manager.
DPL Ibaraki Yuki is a freehold two-storey warehouse located in Yuki-shi in Ibaraki prefecture in Japan, approximately 100 km from central Tokyo.
GET BT IN YOUR INBOX DAILY
Start and end each day with the latest news stories and analyses delivered straight to your inbox.
As at Mar 31, 2024, the weighted average lease expiry (Wale) of its portfolio by gross rental income remained relatively long at 5.9 years, and portfolio occupancy stayed at 100 per cent.
“Subsequent to that, certain space were vacated following the expiry of the leases, resulting in (a) portfolio occupancy rate of 96.6 per cent. Notwithstanding, the portfolio continues to maintain a high occupancy rate since listing,” said the manager.
Aggregate leverage as at the end of Q1 was higher at 37.3 per cent, due to an additional five-year loan drawn for the acquisition of DPL Ibaraki Yuki in Q1.
The real estate investment trust (Reit) continued to maintain a relatively high interest coverage ratio at 12 times, based on the last 12 months up to Mar 31.
Jun Yamamura, chief executive officer of the manager, highlighted that despite the continual weakening of yen, the Reit maintained steady portfolio performance and hedges that resulted in a stable distributable income for Q1 FY2024.
“We also look forward to the completion of the acquisition of D Project Tan Duc 2, expected in Q2 FY2024,” he added.
Units of DHLT : DHLU 0% closed 1.8 per cent or S$0.01 higher at S$0.58 on Wednesday.
