Daiwa House Logistics Trust FY2025 Results: S$835.2M Portfolio, 4.33 Cents Dividend, Sustainability Initiatives & Portfolio Growth 3, 4, 15

Daiwa House Logistics Trust (DHLT) FY2025 Financial Results: Comprehensive Analysis

Daiwa House Logistics Trust (DHLT), an Asia-focused logistics REIT, released its financial results for the year ended 31 December 2025. The report provides a detailed overview of financial performance, portfolio developments, sustainability initiatives, and market outlook. Below is an in-depth analysis tailored for investors seeking clarity and actionable insights.

Key Financial Metrics and Performance Comparison

Metric	2H FY2025	2H FY2024	FY2025	FY2024	YoY Change	QoQ Change
Gross Revenue (S\$’000)	28,620	29,519	57,794	57,100	+1.2%	-3.0%
Net Property Income (S\$’000)	21,680	22,657	44,199	43,890	+0.7%	-4.3%
Distributable Income (S\$’000)	14,682	16,412	30,378	33,518	-9.4%	-10.5%
Distribution Per Unit (DPU, cents)	2.09	2.34	4.33	4.79	-9.6%	-10.7%
NAV per Unit (S\$)	0.65 (Year-end)	0.69 (Year-end)	0.65	0.69	-5.8%	N/A
Aggregate Leverage (%)	40.2	N/A	40.2	N/A	N/A	N/A

Dividend Distribution

DHLT declared a Distribution Per Unit (DPU) of 2.09 cents for the period 1 July 2025 to 31 December 2025, with a full-year DPU of 4.33 cents, down 9.6% year-on-year. The ex-date is 6 March 2026, and payment is scheduled for 26 March 2026.

Portfolio Updates and Asset Valuation

Portfolio Valuation: S\$835.2 million (slightly down 0.1% YoY in SGD terms due to weaker foreign currencies).
Japan Portfolio: Value increased 6.1% YoY in JPY terms, mainly due to the acquisition of DPL Gunma Fujioka.
Vietnam Portfolio: Value increased 2.2% YoY in VND terms.
Occupancy Rate: 87.8% overall, with Vietnam at 100% and Japan at 87.3%.
WALE: 6.6 years, providing income stability with over half of leases expiring in 2030 or later.

Operational Highlights

Weighted average rent uplift of ~11% for renewed and new leases in FY2025.
16 out of 19 properties at full occupancy.
Portfolio tenant base strengthened by new acquisitions and diversification, with 79.6% of GRI from 3PL sector.

Sustainability Initiatives

Established sustainability-linked loan framework; entered S\$30 million revolving credit facility in December 2025.
17 out of 19 properties certified green, representing 95.2% of NLA and 96.0% of valuation.
13 properties with solar panels (18.8 MWp total capacity).

Balance Sheet and Debt Profile

Total assets: S\$1,060.4 million; Net assets attributable to unitholders: S\$457.3 million.
NAV per unit declined to S\$0.65 due to weaker JPY against SGD.
Aggregate leverage at 40.2%, well within regulatory limits.
99.3% of borrowings on fixed rates; weighted average borrowing cost 2.04%.
Interest Coverage Ratio (ICR): 5.5x (well above minimum threshold).

Market & Economic Outlook

Japan: E-commerce market growth continues, with penetration rate below mature markets, suggesting room for expansion. Supply is expected to moderate due to rising land and construction costs. The Bank of Japan forecasts sustained inflation and gradual interest rate increases.
Vietnam: GDP grew 8.02% in 2025. Logistics sector in the South Economic Zone remains robust, supported by FDI, infrastructure upgrades, and growing e-commerce market.

Historical Performance Trends

Since listing in November 2021 with 14 properties, DHLT has expanded to 19 properties, including its first asset in Vietnam. Acquisition prices have consistently been at a discount to independent valuations, demonstrating disciplined capital deployment and value creation for unitholders.

Errors, Inconsistencies, and Exceptional Items

No material errors or inconsistencies were noted in the financial statements. The decline in distributable income and DPU was primarily attributed to higher vacancies, weaker foreign currencies, and increased interest expenses (from rate hikes and new acquisitions).

Corporate Actions and Fundraising

Multiple acquisitions in the year, with asset purchases at discounts to valuation.
First sustainability-linked loan obtained.

Forecasted Events & Outlook

The manager maintains a cautiously positive outlook for both Japan and Vietnam, noting healthy demand drivers and moderating supply risks. Interest rate risks are acknowledged but expected to be gradual.

Conclusion & Investor Recommendations

Overall, DHLT’s performance in FY2025 is neutral with a slight negative bias. While portfolio expansion and asset value creation are positive, distributable income and DPU declined due to macroeconomic headwinds, vacancies, and forex weakness. Debt metrics remain solid, and sustainability efforts are commendable.

If currently holding DHLT: Investors may consider holding their position, given the REIT’s portfolio growth, stable debt profile, and long lease expiries. However, monitor for further declines in DPU or NAV and potential macroeconomic headwinds.
If not currently holding DHLT: Cautious investors may wait for signs of distributable income stabilization or improvement before entering. Those seeking exposure to Asian logistics with strong sustainability credentials may consider DHLT as a long-term play, especially if currency risks abate.

Disclaimer: This analysis is based strictly on information disclosed in the FY2025 financial report and does not constitute investment advice. Investors should conduct their own due diligence and consider their risk tolerance before making investment decisions.