Daiwa House Logistics Trust: Disclosure on S\$30 Million Revolving Credit Facility and Potential Impact on Shareholders

Key Points from the Latest Disclosure

• New Credit Facility: Daiwa House Asset Management Asia Pte. Ltd. (DHAMA), as the Manager of Daiwa House Logistics Trust (DHLT), has announced that HSBC Institutional Trust Services (Singapore) Limited, acting as trustee of DHLT, has entered into a S\$30 million revolving credit facility.
• Significant Loan Conditions: The facility agreement contains specific conditions which could trigger a mandatory prepayment of the facility, potentially affecting DHLT’s financial position and operations. The conditions include:
  • If DHAMA ceases to be the manager of DHLT without prior written lender consent.
  • If Daiwa House Industry Co., Ltd. ceases to hold, directly or indirectly, at least 50.1% of the issued share capital of DHAMA without lender consent.
• Exposure Across Facilities: The total level of DHLT borrowings and undrawn facilities potentially affected by these conditions is approximately S\$85.1 million (excluding interest and fees) as at the date of the announcement.
• Current Utilisation: As of 22 December 2025, there has been no drawdown on the S\$30 million facility.

Matters of Importance for Shareholders

• Potentially Price-Sensitive Triggers: The mandatory prepayment clauses tied to changes in management control or shareholding are significant. If triggered, these could lead to immediate repayment obligations for all or part of the S\$85.1 million in affected facilities. Such an event may impact DHLT’s liquidity position, ability to fund operations or acquisitions, and could have a material effect on share price.
• Management and Ownership Stability: The facility terms reinforce the importance of stable management and continued control by Daiwa House Industry Co., Ltd. Any changes in these could be interpreted by the market as increasing risk, possibly resulting in share price volatility.
• No Immediate Trigger: As of the report date, none of the conditions have been breached, and no drawdown has occurred. However, investors should monitor corporate announcements for any potential management or shareholding changes.
• Currency Considerations: Some borrowings are denominated in JPY and translated at prevailing exchange rates, introducing currency risk into DHLT’s financing structure.

Investor Takeaways

• The establishment of this facility provides DHLT with additional financial flexibility, but the attached conditions mean that strategic and ownership stability is crucial.
• Any material change in management or controlling shareholder could trigger repayment clauses, potentially affecting DHLT’s financial health and share price.
• Investors should remain attentive to future disclosures regarding management changes or shareholding structure in DHLT or DHAMA.

Disclaimer

This article is for informational purposes only and does not constitute an offer or solicitation to buy or sell any securities. The information is based on public disclosures as of the announcement date and may not reflect subsequent developments. Past performance is not indicative of future results. Investment in Daiwa House Logistics Trust units carries risks, including the potential loss of principal. Investors should consult with their financial advisors before making any investment decisions.

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