Daiwa House Logistics Trust (DHLT) has reported a net property income (NPI) of JPY1.2 billion ($10.5 million) for the 1QFY2024 ended March 31, 4.6% higher y-o-y. The higher NPI comes as the underlying performance of the portfolio remains healthy, says the REIT manager in its business update.
Gross rental income (GRI) rose by 1.9% y-o-y to JPY1.39 billion.
Distributable income for the quarter inched up by 0.6% y-o-y to $9.2 million upon a steady operational performance and realised gain from hedges. The REIT’s distributions are made every six months; the next distribution will be made for the period from Jan 1 to June 30 this year.
As at March 31, DHLT’s occupancy rate stood at 100% although it’s now at 96.6% after two spaces vacated after their expiry on the same day.
Portfolio weighted average lease expiry (WALE) stood at 5.9 years. In April, the REIT manager renewed the lease for D Project Kuki, a built-to-suit property, for a further 10 years from August this year, which extended the portfolio WALE.
Aggregate leverage as at March 31 stood at 37.3%, up from 35.2% as at Dec 31, 2023, due to an additional five-year loan drawn from the acquisition of DPL Ibaraki Yuki. As at March 31, the REIT has an interest coverage ratio of 12.0 times. All of the REIT’s loans are on fixed rate borrowings as at the same period.
See also: Marco Polo Marine reports lower 2HFY2024 earnings of $10.7 mil, down 42% y-o-y
DHLT’s net asset value (NAV) stood at 69 cents as at March 31, down from 74 cents as at Dec 31, 2023.
“We are pleased to add DPL Ibaraki Yuki to DHLT’s portfolio, and we are confident that it will contribute positively to the portfolio. Despite the continual weakening of JPY, steady portfolio performance and hedges that were executed resulted in a stable distributable income for 1QFY2024,” says Jun Yamamura, CEO of the manager.
“We are proud to continue delivering stable results to unitholders and will continue to exercise prudence in management of capital while driving the performance of the portfolio. We also look forward to the completion of the acquisition of D Project Tan Duc 2, expected in 2QFY2024,” he adds.
Units in DHLT closed flat at 57 cents on May 7.
