Daiwa House Logistics Trust Secures First Sustainability-Linked Loan Facility

Key Highlights

• First Sustainability-Linked Loan: Daiwa House Logistics Trust (DHLT) has entered into its inaugural sustainability-linked loan (SLL) facility with a S\$30 million committed unsecured revolving credit line.
• Sustainability-Linked Loan Framework Established: DHLT has created a new SLL framework aligned with international standards and received a Second-Party Opinion from an independent reviewer.
• No Current Drawdown: As of 22 December 2025, DHLT has not drawn down on the SLL facility.
• Validation of Creditworthiness: The ability to secure a committed facility demonstrates DHLT’s financial strength, further validated by the restructuring of its Japan onshore borrowings in 2024.

In-Depth Details

On 22 December 2025, Daiwa House Asset Management Asia Pte. Ltd., the manager of DHLT, announced a significant milestone in the REIT’s sustainability journey: the successful establishment of a S\$30 million sustainability-linked loan facility. This revolving credit facility is unsecured and currently remains undrawn, providing DHLT with flexible capital management options.

The SLL is underpinned by a newly established sustainability-linked loan framework. This framework aligns with the standards of the Loan Market Association, Asia Pacific Loan Market Association, and Loan Syndicates and Trading Association. DHLT has also secured a Second-Party Opinion from a reputable, independent third-party reviewer, further bolstering the credibility of its sustainability initiatives.

Management Commentary

Mr Jun Yamamura, Chief Executive Officer of the Manager, commented: “Entering into the SLL facility is an important milestone in DHLT’s sustainability journey and demonstrates DHLT’s continual efforts to embed ESG considerations into its operations and business strategies. By integrating measurable sustainability performance targets into the SLL, we are able to align our capital management strategies with sustainability efforts. The establishment of the SLL Framework and the SLL are part of DHLT’s broader sustainability strategy and reinforce DHLT’s commitment to ESG aspects of the business.”

Implications for Shareholders & Price-Sensitive Information

• Enhanced Access to Sustainable Financing: The establishment of a sustainability-linked revolving credit facility allows DHLT to access capital under favorable terms if it meets specific sustainability performance targets. This can lead to reduced borrowing costs and improved financial flexibility.
• Demonstrated Credit Strength: Securing a committed unsecured facility signals to investors and lenders that DHLT maintains a robust credit profile. This is further evidenced by the successful restructuring of its Japan onshore borrowings in 2024, which could positively influence perceptions of financial stability and risk.
• ESG Integration: DHLT’s growing focus on ESG (Environmental, Social, and Governance) will likely enhance its attractiveness to institutional investors who prioritize sustainability. This could potentially increase demand for DHLT units and support share price appreciation.
• Potential for Future Growth: The ability to draw on the facility as needed provides DHLT with operational agility to pursue new investments or manage existing assets, supporting its long-term growth strategy.

About Daiwa House Logistics Trust

DHLT is a Singapore-based REIT focused on investing in income-producing logistics and industrial properties across Asia. Its current portfolio consists of 18 logistics properties in Japan and one in Vietnam, totaling over 499,000 sqm of net lettable area. The REIT is managed by Daiwa House Asset Management Asia Pte. Ltd., a subsidiary of Daiwa House Industry Co., Ltd.

About the Sponsor: Daiwa House Industry Co., Ltd.

Daiwa House Industry is one of Japan’s largest construction and real estate developers, listed on the Tokyo Stock Exchange with a market capitalization of JPY3,509 billion (S\$30.6 billion) as of 30 September 2025. The company has extensive experience in logistics asset development and fund management, managing both listed and unlisted REITs as well as private funds.

Contact Information

• Mr. Chee Kum Tin, Head of Investor Relations
• Tel: +65 6202 0486
• Email: [email protected]

Investor Advisory

Disclaimer: This article is for informational purposes only and does not constitute an offer or solicitation to purchase or subscribe for units in Daiwa House Logistics Trust. The value of the units and income derived from them may fluctuate and are subject to investment risks, including the possible loss of principal. Past performance is not indicative of future performance. Investors should be aware that forward-looking statements in this article are subject to risks and uncertainties that could cause actual results to differ materially. Please consult your financial adviser before making any investment decisions.

View Daiwa Hse Log Tr Historical chart here