Daiwa House Logistics Trust · SGX:DHLU
Daiwa House Logistics Trust — FP2022 Earnings Presentation
34 slides from Daiwa House Logistics Trust's earnings presentation, Feb 23, 2023
Slide 1: Financial Results for the Financial Year FP2022
Daiwa House Logistics Trust Financial Results for the Financial Year 26 November 2021 to 31 December 2022 (“FP2022”) 23 February 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 for FP2022
Key Highlights for FP2022 DPL Iwakuni 1 & 2 2
Slide 4: Key highlights for FP2022
Key highlights for FP2022 Proactive Asset Management Steady Performance Driving growth • 100% lease renewal with positive • Net property income for FP2022 in JPY terms • Completed maiden acquisition of rent reversion of 3.0%(1) outperformed forecast(3) on “same-store” quality freehold assets which a
Slide 5: Year in review
Year in review April 2022 December 2022 Received refund of September 2022 Received strong consumption tax(1), Announced support from 2 months in February 2022 maiden Unitholders at advance of acquisition in the EGM and Announced valuation expected timeline, 26 November 2021 September 2022, completed
Slide 6: Details of distribution
Details of distribution February 2023 S M T W T F S Distribution per Unit in respect 1 2 3 4 of the period 1 July 2022 to 31 2.61 cents 5 6 7 8 9 10 11 December 2022 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 Ex-Date 2 March 2023, 9.00 a.m. March 2023 S M T W T F S 1 2 3 4 Record Date 3 Marc
Slide 7: Operations Performance
Operations Performance DPL Sapporo Higashi Kariki
Slide 8: Consistent high occupancy rate
Consistent high occupancy rate Portfolio Occupancy Rate 98.6% 98.6% 98.6% 98.6% 96.3% 96.3% At Listing As at 31 Dec 2021 As at 31 Mar 2022 As at 30 Jun 2022 As at 30 Sep 2022 As at 31 Dec 2022 • Including the recently acquired properties, occupancy remained high with all properties fully occupied ex
Slide 9: 100% lease renewals maintained long WALE
100% lease renewals maintained long WALE 6.4 Years(1) Overall Portfolio Aggregate WALE 9.6 Years(1) 5.3 Years(1) WALE of Single-Tenanted Built to Suit (BTS) Properties WALE of Multi-Tenanted Properties Well distributed Portfolio Lease Expiry(1) lease expiry profile with >40%(1) expiry in 2028 and be
Slide 10: Resilient portfolio anchored by quality tenants
Resilient portfolio anchored by quality tenants Breakdown by Tenant Trade Sector Top 10 Tenants(1) % of Retail 14.9% Tenant Sector NPI (1) E-Commerce Manufacturing 4.4% 6.7% 1 Mitsubishi Shokuhin 3PL 19.7 Vacant 1.4% 2 Nippon Express 3PL 8.0 3 Suntory Logistics 3PL 7.8 4 Nitori Retail 5.2 By Total N
Slide 11: Creating value through growth
Creating value through growth • The maiden acquisition by DHLT was completed on 8 December 2022(1) Value creation through valuation uplift from • DPL Iwakuni 1 & 2, D Project Matsuyama S and purchase consideration underlying freehold land of D Project Iruma S were acquired from the Sponsor for JPY4,
Slide 12: Buildings for sustainable future
Buildings for sustainable future Rating Solar Energy Not Rated Rated Green Standard(1) Capacity (MWp) 5.3% 1. DPL Sapporo Higashi Kariki DBJ - 2. DPL Sendai Port DBJ 2.6 3. DPL Koriyama DBJ 3.0 By Total NLA as at 31 4. D Project Maebashi S DBJ 1.4 December 5. D Project Kuki S - - - 2022 6. D Project
Slide 13: Well diversified portfolio across regions in Japan
Well diversified portfolio across regions in Japan Valuation Valuation (JPY million) (S$ million)(1) 15. 16. 13. 1.1% 1.5% Hokkaido & Tohoku 32,870.0 331.9 2.5% 1. DPL Sapporo Higashi Kariki 12,800.0 129.3 14. 2.6% 1. 2. DPL Sendai Port 13,200.0 133.3 12. 14.6% 5.2% 3. DPL Koriyama 6,870.0 69.4 12.8
Slide 14: Valuation stable for quality portfolio
Valuation stable for quality portfolio Portfolio Valuation Portfolio Valuation (JPY million) (S$ million) 87,531 +8.0% 949.7 81,070 884.0 -6.9% 31 December 2021 31 December 2022 31 December 2021 31 December 2022 S$ / JPY: 85.3671 S$ / JPY: 99.0213 • Portfolio valuation in JPY terms grew by 8.0% main
Slide 15: Financials Performance
Financials Performance DPL Sendai Port
Slide 16: NPI outperformed forecast in JPY terms
NPI outperformed forecast in JPY terms Net Property Income Actual vs Pro-rated Forecast(1) (JPY millions) Actual outperform 4,967.4 4,844.5 by 2.5% FP2022 (Pro-rated Forecast) FP2022 (Actual) • NPI for FP2022 in JPY terms outperformed pro-rated forecast NPI by 2.5% • This was mainly due to higher le
Slide 17: Steady performance for 2H2022
Steady performance for 2H2022 Period from 1 July 2022 to 31 December 2022 Actual Pro-rated Variance (unaudited) Forecast(1) (%) Gross Revenue (S$ million) 29.8 33.8 (11.8) Net Property Income (S$ million) 23.0 26.3 (12.8) Distributable Income to 17.7 17.7 0.1 Unitholders (S$ million) Distribution pe
Slide 18: DPU for FP2022 in line with forecast
DPU for FP2022 in line with forecast Period from 26 November 2021 to 31 December 2022 Actual Pro-rated Variance (unaudited) Forecast(1) (%) Gross Revenue (S$ million) 68.7 74.1 (7.3) Net Property Income (S$ million) 53.0 57.8 (8.3) Distributable Income to 38.6 38.6 0.1 Unitholders (S$ million) Distr
Slide 19: Healthy financial position
Healthy financial position As at 31 December 2022 (unaudited) Total Assets (S$ million) 1,177.0 Total Liabilities (S$ million) 588.0 Net Assets Attributable to Unitholders (S$ million)(1) 553.2 NAV per Unit attributable to Unitholders (S$)(1) 0.80 Adjusted NAV per Unit attributable to Unitholders (S
Slide 20: Fully hedged borrowings
Fully hedged borrowings Debt Maturity Profile as at 31 December 2022 As at (S$ million) 31 December 2022 121.2 • JPY34.0 billion Total borrowings • (S$343.4 million) 101.0 101.0 Weighted average • 3.1 years debt tenure • 0.99% Weighted average (all-in rates and includes borrowing cost upfront fees)
Slide 21: Outlook
Outlook D Project Nagano Suzuka S
Slide 22: Market outlook
Market outlook Supply Demand • Substantial supply in Japan in 2022, majority • Demand continue to be supported by sectors such concentrated in Greater Tokyo as 3PL and e-commerce DHLT’s portfolio in • There was new supply ✓ Continued focus by companies to outsource Greater Tokyo of 681,000 tsubo (2.
Slide 23: Appendix
Appendix ~< DPL Sendai Port
Slide 24: 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 25: Portfolio Summary
Portfolio Summary Completion NLA WALE Valuation Year (sq m) Land Tenure Tenancy Type (By NLA)(1) Occupancy(2) (JPY million)(3) Hokkaido / Tohoku DPL Sapporo Higashi Kariki 2018 60,347 Freehold Multi-tenanted 3.3 100.0% 12,800 DPL Sendai Port 2017 63,119 Freehold Multi-tenanted 1.8 100.0% 13,200 DPL
Slide 26: Value created through quality portfolio
Value created through quality portfolio Purchase Consideration(1) vs Valuation as at 31 December 2022 (JPY million) +15.6% 87,531 75,744 Purchase Consideration Valuation as at 31 December 2022 (1) Based aggregate purchase consideration for each property in the portfolio, and the purchase considerati
Slide 27: Good mix of asset type and land tenor
Good mix of asset type and land tenor < 20 Years 4.1% 20 - 40 BTS Years Freehold 24.9% 7.1% 54.0% Breakdown by Breakdown by Type of Assets Land Tenor By Total NLA By Total NLA as at 31 December as at 31 December 2022 2022 > 40 Years Multi- 34.8% tenanted 75.1% 88.8% of portfolio are freehold or >40
Slide 28: Current Structure of DHLT
Current Structure of DHLT Unitholders (including Sponsor which holds c.12.6%)(1) Acts on Provides REIT REIT Trustee behalf of the Management REIT Manager Unitholders Services HSBC Institutional Trust Daiwa House Asset Services (Singapore) Limited Management Asia Pte. Ltd. Through the Singapore SPCs,
Slide 29: Managing challenges
Managing challenges • The Manager continues to adopt prudent capital management and believes that DHLT’s resilient portfolio can help to mitigate the impact challenges faced Foreign currency movement Business environment ✓ Natural hedge with 100% of the borrowings in JPY to ✓ Strong tenant profile w
Slide 30: 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 31: 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 32: Examples of pipeline assets – Southeast Asia
Examples of pipeline assets – Southeast Asia ＃ Project Country Type Land Type GFA / NLA (sq m) Completion Year 1 Long Duc Rental Factory Vietnam Rental Factory Leasehold 27,253 2017 2 DPL Loc An - Binh Son 1 Vietnam Multi-tenanted Leasehold 36,860 2019 3 DPL Loc An - Binh Son 2 Vietnam Multi-tenante
Slide 33: Strong and committed developer Sponsor
Strong and committed developer Sponsor • The Sponsor, Daiwa House Industry Co., Ltd., was founded in 1955 and is one of the largest construction and real estate development companies in Japan • The Sponsor has an extensive track record of asset development across a variety of real estate subsectors,
Slide 34: www.daiwahouse-logisticstrust.com
www.daiwahouse-logisticstrust.com
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