Daiwa House Logistics Trust · SGX:DHLU
Daiwa House Logistics Trust — H1 2023 Earnings Presentation
27 slides from Daiwa House Logistics Trust's earnings presentation, Aug 3, 2023
Slide 1: Results Presentation for the half year ended 30 June 2023
Daiwa House Logistics Trust Results Presentation for the half year ended 30 June 2023 (“1H FY2023”) 3 August 2023
Slide 2: Important Notice
Important Notice This announcement is for information only and does not constitute an invitation or offer to acquire, purchase or subscribe for units in Daiwa House Logistics Trust (“DHLT”, and the units in DHLT, the “Units”). The past performance of DHLT is not necessarily indicative of the future
Slide 3: Key Highlights
Key Highlights Financials 1H FY2023 Distribution per Unit Aggregate Leverage(2) 2.61CENTS 35.7% +0.4% y-o-y(1) Proportion of Fixed Interest Coverage Rate Loans(2) 11.7TIMES 100.0% Operations Weighted Average Lease Portfolio Occupancy(2) Expiry by GRI(2,3) 98.6% 6.6YEARS 100% as of end July 2023 DPL
Slide 4: Details of distribution
Details of distribution August 2023 S M T W T F S Distribution per Unit 1 2 3 4 5 For the period 1 January 2023 2.61 cents 6 7 8 9 10 11 12 to 30 June 2023 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 Ex-Date 11 August 2023, 9.00 a.m. September 2023 S M T W T F S 1 2 Record Date 14 Augus
Slide 5: Operations Performance
DPL Kawasaki Yako Operations Performance
Slide 6: Portfolio 100% occupied
Portfolio 100% occupied Portfolio Occupancy Rate 100.0% • Secured tenant for remaining vacant space in 98.6% 98.6% 98.6% July 2023 96.3% 96.3% • As at end July 2023, portfolio is 100% occupied At Listing (26 Nov As at 31 Dec 2021 As at 31 Dec 2022 As at 31 Mar 2023 As at 30 Jun 2023 2021) • As at 30
Slide 7: Well spread lease expiry profile
Well spread lease expiry profile Portfolio Lease Expiry >40% of expiries by Gross Rental Income(1) in 2028 and beyond Portfolio WALE (by GRI)(1): 6.6 Years Multi- Tenanted WALE (by GRI)(1) 22.4% 5.7 Years No expiry for built-to-suit 3.7% Built-to- properties Suit until 2024 WALE (by 25.1% GRI)(1) 18
Slide 8: Proactive lease management
Proactive lease management • 1 lease renewed in March 2023 at existing monthly rent Leases (approx. 17,500 sqm or 4% of total net lettable area renewed in “NLA”) FY2023 • Retention of high-quality tenant, a leading 3PL company in Japan • 3 leases expiring in 4Q FY2023 (approx. 45,000 sqm in Remainin
Slide 9: High quality tenants strengthens portfolio resilience
High quality tenants strengthens portfolio resilience Breakdown by Tenant Trade Sector Top 10 Tenants(2) E-Commerce Retail % of Tenant Sector 7.1% 12.9% NPI (2) Manufacturing 1 Mitsubishi Shokuhin 3PL 18.9 4.0% 2 Nippon Express 3PL 8.7 3 Suntory Logistics 3PL 7.7 4 Nitori Retail 5.4 By Gross Rental
Slide 10: Financials Performance
D Project Kakegawa S Financials Performance
Slide 11: DPU remained stable with 0.4% growth y-o-y
DPU remained stable with 0.4% growth y-o-y 1 January to 30 June FY2022(1) FY2023 Variance(1) (unaudited) (unaudited) Gross Revenue (S$ '000) 32,303 30,900 -4.3% Net Property Income (S$ '000) 24,774 23,132 -6.6% Distributable Income to 17,563 18,130 +3.2% Unitholders (S$ '000) Distribution per Unit (
Slide 12: Steady underlying portfolio performance
Steady underlying portfolio performance Gross Rental Income Net Property Income (JPY million)(1) (JPY million)(1) +4.8% +5.2% 2,726.8 2,601.0 2,332.8 2,217.4 1H FY2022 1H FY2023 1H FY2022 1H FY2023 (unaudited) (unaudited) (unaudited) (unaudited) • GRI and NPI in JPY term for 1H FY2023 were higher y-
Slide 13: Healthy financial position
Healthy financial position As at As at 31 December 2022 30 June 2023 (audited) (unaudited) Total Assets (S$ million) 1,177.0 1,094.5 Total Liabilities (S$ million) 588.0 548.8 Net Assets Attributable to Unitholders (S$ million)(1) 553.2 509.9 NAV per Unit attributable to Unitholders (S$)(1) 0.80 0.7
Slide 14: Prudent capital management
Prudent capital management Debt Maturity Profile as at 30 June 2023 As at (S$ million) 30 June 2023 112.4 • JPY34.0 billion Total borrowings (S$318.5 million) 93.7 93.7 Weighted average • 2.6 years debt tenure Weighted average • 0.99% (all-in rates and includes borrowing cost upfront fees) Proportio
Slide 15: Outlook
DPL Koriyama Outlook
Slide 16: Demand for logistics space in Japan to remain robust
Demand for logistics space in Japan to remain robust • In March 2023, CBRE conducted a survey on more than 200 logistics operators and consignor firms in Japan regarding their appetite for expansion of logistics network • Some of the findings of the survey, set out in a report published in June 2023
Slide 17: DHLT's interim Report Card
DHLT’s interim “Report Card” Proactive Asset Management Objective for FY2023 Status Continue to build ties with tenants • Successfully renewed the lease that expired in and target 100% lease renewal 1Q2023 rate • Remaining leases expiring in 4Q2023 • Addressing some of the feedback arising from tena
Slide 18: Appendix
D Project Fukuoka Tobara S Appendix
Slide 19: Asia-focused with strong sponsor support
Asia-focused with strong sponsor support ASIA-FOCUSED LOGISTICS REIT WITH STRONG AND COMMITTED DEVELOPER HIGH QUALITY MODERN PROPERTIES SPONSOR TO SUPPORT FUTURE GROWTH Daiwa House Logistics Trust (DHLT) is established with the investment strategy of principally investing, directly or indirectly, in
Slide 20: Summary of Portfolio
Summary of Portfolio Completion NLA WALE Valuation Year (sq m) Land Tenure Tenancy Type (By GRI)(1) Occupancy(2) (JPY million)(3) Hokkaido / Tohoku DPL Sapporo Higashi Kariki 2018 60,347 Freehold Multi-tenanted 2.7 100.0% 12,800 DPL Sendai Port 2017 63,119 Freehold Multi-tenanted 1.3 100.0% 13,200 D
Slide 21: Well diversified portfolio across regions in Japan
Well diversified portfolio across regions in Japan Valuation (JPY million)(1) 15. 16. 13. 1.1% 1.5% Hokkaido & Tohoku 32,870.0 2.5% 1. DPL Sapporo Higashi Kariki 12,800.0 14. 2.6% 1. 2. DPL Sendai Port 13,200.0 12. 14.6% 5.2% 3. DPL Koriyama 6,870.0 12.8% 11. Greater Tokyo 35,340.0 4.9% 4. D Project
Slide 22: High proportion of green buildings
High proportion of “green” buildings As at 30 June 2023 Solar Energy Not Rated Rating Capacity 5.3% Rated Green Standard(1) (MWp) 1. DPL Sapporo Higashi Kariki DBJ - 2. DPL Sendai Port DBJ 2.6 By 3. DPL Koriyama DBJ 3.0 Total NLA As at 30 4. D Project Maebashi S DBJ 1.4 June 2023 5. D Project Kuki S
Slide 23: ROFR granted by the Sponsor
ROFR granted by the Sponsor • DHLT has been granted a right of first refusal (“ROFR”) by the Daiwa House Industry Co., Ltd (“Sponsor”) over income-producing logistics and industrial real estate assets located in Asia held by the Sponsor or its subsidiaries, on the terms of the ROFR agreement • The f
Slide 24: Examples of pipeline assets – Japan
Examples of pipeline assets – Japan ＃ Name Region Type Land Type GFA / NLA (sq m) Completion Year 1 DPL Hiroshima Itsukaichi Port Chugoku Multi-tenanted Freehold 49,911 2017 2 D Project Kadoma 2 Greater Osaka Single-tenanted Leasehold 24,386 2020 3 DPL Toyama Imizu Greater Nagoya Multi-tenanted Free
Slide 25: Examples of pipeline assets – Southeast Asia
Examples of pipeline assets – Southeast Asia ＃ Project Country Type Land Type GFA / NLA (sq m) Completion Year 1 DPL Loc An - Binh Son 1 Vietnam Multi-tenanted Leasehold 36,860 2019 2 DPL Loc An - Binh Son 2 Vietnam Multi-tenanted Leasehold 31,891 2021 3 DPL Long Duc Vietnam Multi-tenanted Leasehold
Slide 26: Strong and committed developer Sponsor
Strong and committed developer Sponsor • Daiwa House Industry Co., Ltd., was founded in 1955 and is one of the largest construction and real estate development companies in Japan Logistics Facilities Developed / Under Development(1) 365FACILITIES 12.8 FLOOR AREA MILLION SQM Global Presence Market Ca
Slide 27: www.daiwahouse-logisticstrust.com
www.daiwahouse-logisticstrust.com
Daiwa House Logistics Trust — H1 2023 Earnings Presentation on 6ix