Daiwa House Logistics Trust · SGX:DHLU
Daiwa House Logistics Trust — Merger or Acquisition (January 2024)
19 slides from Daiwa House Logistics Trust's merger presentation, Jan 31, 2024
Slide 1: Acquisition of DPL Ibaraki Yuki in Japan - Maintaining Growth Momentum
Daiwa House Logistics Trust Acquisition of DPL Ibaraki Yuki in Japan - Maintaining Growth Momentum 31 January 2024
Slide 2: Important Notice
Important Notice This Presentation is for information purposes only and does not constitute or form part of an offer, solicitation or invitation of any offer, to buy or subscribe for any Units in Singapore or any other jurisdiction, nor should it or any part of it form the basis of, or be relied upo
Slide 3: Transaction Overview
Transaction Overview DPL Ibaraki Yuki
Slide 4: Maintaining growth momentum
Maintaining growth momentum • DHLT entered into a conditional agreement with the Sponsor, Daiwa House Industry Co., Ltd., to acquire DPL Ibaraki Yuki (“Property”), a freehold logistics The Acquisition property located in Greater Tokyo, Japan (“Acquisition”) would improve DPU for FP20222 • The purcha
Slide 5: DPL Ibaraki Yuki
Year of Completion Land Area Occupancy January 2023 11,942SQM 100.0% As at 17 January 2024 Land Tenure Net Lettable Area Lease Term1 Freehold 13,421SQM 4.0YEARS From 1 February 2023 Greater Tokyo, Japan MULTI-TENANTED FREEHOLD DPL Ibaraki Yuki PROPERTY1 (1) Entire property leased to one tenant. 4
Slide 6: Growing the DHLT portfolio
Growing the DHLT portfolio1 Portfolio Valuation2 (S$ million) Net Lettable Area3 (sqm) 3.7% 3.0% 827.8 458,149 444,728 798.4 Pre Acquisition Post Acquisition Pre Acquisition Post Acquisition WALE by GRI3,4 (Years) Portfolio Age3,5 (Years) 0.1Y Slight decline in WALE 0.1Y 6.3 but remain relatively 6.
Slide 7: Rationale of Acquisition
DPL Ibaraki Yuki Rationale of Acquisition
Slide 8: Acquisition expected to be DPU-accretive
Acquisition expected to be DPU-accretive1,2 ✓ On a pro forma basis, the Acquisition is expected to be DPU-accretive by 1.2% for FP2022 ✓ Aggregate leverage would increase from 36.2% as at 30 September 2023 to 38.2% (or 40.1%, including the Vietnam Acquisition3), on a pro forma basis but remains at a
Slide 9: Japan logistics sector fundamentals remain sound
Japan logistics sector fundamentals remain sound ✓ The fundamentals of the Japan logistics sector are expected to remain sound in the long term, with demand for logistics properties supported by e-commerce and third-party logistics (“3PL”) sectors. E-commerce Japan B-to-C E-Commerce Market(1) 25.0 8
Slide 10: New and modern freehold logistics property
New and modern freehold logistics property ✓ DPL Ibaraki Yuki is a freehold developed property that is built to modern specifications with a PML of only 2.6%1 ✓ On a pro forma basis and including the Vietnam Acquisition, the proportion of properties in DHLT’s portfolio with freehold land tenure (by
Slide 11: Well positioned in strategic location
Well positioned in strategic location Location connected a wide region covering the Tohoku and Tokyo areas Easily accessible via roads and highways Located at a strategic location that is approximately 100 kilometres from central Tokyo 10
Slide 12: Green property occupied by blue-chip Tenant
Green property occupied by blue-chip Tenant Blue-chip Tenant ✓ The entire property is leased to Mitsubishi Shokuhin Co., Ltd. (“Mitsubishi Shokuhin” or "Tenant"), an existing tenant in DHLT’s portfolio ✓ On a pro forma basis and including the Vietnam Acquisition1, the contribution from Mitsubishi Sh
Slide 13: The Sponsor reinforces its support to grow DHLT
The Sponsor reinforces its support to grow DHLT ✓ The Sponsor continues to show commitments to support DHLT’s growth ✓ Providing a high-quality property to enhance portfolio quality ✓ Offering the Property at an attractive discount to valuation NPI Yield JPY3,225.0m Discount of 18.1% 5.4% 2 JPY2,640
Slide 14: Summary
DPL Ibaraki Yuki /- Summary
Slide 15: Key takeaways
Key takeaways DPU-accretive acquisition1 Strengthen foothold in Japan logistics market Modern freehold property anchored by blue-chip tenant Sponsor continues to demonstrate strong support DPL Ibaraki Yuki (1) On a pro forma basis basis. 14
Slide 16: Appendix
Lil aE AT nil anit iii N Appendix
Slide 17: Pro forma including Vietnam Acquisition
Pro forma including Vietnam Acquisition1 Portfolio Valuation2 (S$ million) Net Lettable Area3 (sqm) 7.1% 7.2% 3.0% 476,614 3.7% 855.1 458,149 827.8 444,728 798.4 Pre Pre Acquisition Post Post Acquisition Post Acquisition Pre Pre Acquisition Post Post Acquisition Post Acquisition Acquisition Acquisit
Slide 18: 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 Completed Residential Units(1) Completed Commercial Facilities(1) 1,959,000UNITS 57,700UNITS Global Presence Market Capita
Slide 19: www.daiwahouse-logisticstrust.com
www.daiwahouse-logisticstrust.com
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