Daiwa House Logistics Trust · SGX:DHLU
Daiwa House Logistics Trust — Merger or Acquisition (December 2023)
18 slides from Daiwa House Logistics Trust's merger presentation, Dec 29, 2023
Slide 1: Acquisition of D Project Tan Duc 2 in Vietnam
Daiwa House Logistics Trust Acquisition of D Project Tan Duc 2 in Vietnam - Daiwa House Logistics Trust’s first foray outside Japan 29 December 2023
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 D Project Tan Duc 2
Slide 4: Accretive acquisition to improve returns
Accretive acquisition to improve returns • DHLT intends to acquire (“Acquisition”) D Project Tan Duc 2 (“Property”) via the acquisition of 100% of the capital in DH Logistics Management Vietnam Co., Ltd (“Target Company”) and the taking over of the existing Shareholder Loans of the Target Company (“
Slide 5: D Project Tan Duc 2
D Project Tan Duc 2 BUILT-TO-SUIT COLD STORAGE Tan Duc Industrial Park, Long An Province, Vietnam FACILITY Year of Completion September 2023 Land Area 41,318SQM Net Lettable Area 18,465SQM Land Sublease Term APPROX. 34.5YEARS Up to June 2058 Occupancy 100.0% Built-to-suit Property Tenancy Lease Term
Slide 6: Growing the DHLT portfolio
Growing the DHLT portfolio Portfolio Valuation1 (S$ million) Net Lettable Area2 (sqm) 847.9 + 3.3% + 4.2% 463,193 820.5 444,728 Pre Acquisition Post Acquisition Pre Acquisition Post Acquisition WALE by GRI2,3 (Years) Portfolio Age2,4 (Years) 6.9 6.0 6.3 + 0.6Y - 0.2Y 5.8 Pre Acquisition Post Acquisi
Slide 7: Rationale of Acquisition
D Project Tan Duc 2 Rationale of Acquisition
Slide 8: Delivering a DPU-accretive acquisition
Delivering a DPU-accretive acquisition2 ✓ The Acquisition is expected to be DPU-accretive by 1.9% for FP2022, on a pro forma basis ✓ Aggregate leverage is expected to increase from 36.2% as at 30 September 2023 but remain at a healthy level of 38.2%, on a pro forma basis DPU for FP2022 Aggregate Lev
Slide 9: Diversification of DHLT portfolio outside of Japan
Diversification of DHLT portfolio outside of Japan ✓ The Acquisition is the first acquisition by DHLT outside Japan and will help to diversify the portfolio in terms of geography ✓ Vietnam is one of the fastest growing economies in Southeast Asia, with a growing middle class Projected GDP Growth by
Slide 10: High quality asset to enhance DHLT Portfolio
High quality asset to enhance DHLT Portfolio ✓ D Project Tan Duc 2 is a built-to-suit property developed as a cold storage facility for storage of frozen and chilled food ✓ Such cold storage facilities are currently experiencing a shortage in Vietnam, where demand is bolstered by: ✓ Demand for high-
Slide 11: Well positioned in key gateway location
Well positioned in key gateway location Good accessibility via roads and highways Accessible to major airport / seaports Gateway between HCM City and Mekong Delta region, and a key cold storage hub in Vietnam 10
Slide 12: Enhancing tenant base and income stability
Enhancing tenant base and income stability ✓ The Property is occupied by a Japanese third-party logistics (“3PL”) company (“Tenant”) which specializes in frozen and chilled food transportation services, and is a group company of a Tokyo Stock Exchange-listed entity ✓ The Property is leased on a 20-y
Slide 13: Demonstrates support from the Sponsor
Demonstrates support from the Sponsor ✓ The Acquisition reinforces the strong support from the Sponsor by providing high quality property to drive DHLT’s growth ✓ The implied NPI yield of the Property is approximately 8.3%1, higher than the overall NPI yield of the existing properties in DHLT’s port
Slide 14: Summary
D Project Tan Duc 2 Summary
Slide 15: Key takeaways
Key takeaways DPU-accretive DPU accretion of 1.9%, while post-acquisition acquisition1 gearing remains healthy at 38.2%1 Entry into a Geography diversification into Vietnam, one of the growth market fastest growing economies in Southeast Asia Newly built cold storage facility that is strategically A
Slide 16: Appendix
Appendix D Project Tan Duc 2
Slide 17: 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 Capit
Slide 18: www.daiwahouse-logisticstrust.com
www.daiwahouse-logisticstrust.com
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