Daiwa House Logistics Trust (DHLT) posted distributable income of S$12.79 million for the six months ended Jun 30, 2026, down 18.5 per cent year-on-year after higher portfolio vacancies and a weaker yen weighed on rental takings.
Gross revenue slipped 11.8 per cent to S$25.73 million, while net property income fell 13.4 per cent to S$19.51 million. The Singapore-listed real estate investment trust declared a distribution of 1.82 Singapore cents per unit for the half-year, 18.8 per cent lower than the 2.24 cents paid a year ago. The payout date was not disclosed.
By metric, the portfolio’s weighted average lease expiry stood at 6.1 years and overall occupancy was 87.8 per cent as at Jun 30. Two lease renewals during the period secured an average rental uplift of 5.6 per cent. A subsequent backfilling at DPL Koriyama lifted that asset’s occupancy to 92.3 per cent in July, nudging the portfolio rate to 88.5 per cent at end-July.
Despite the contribution from the March-2025 acquisition of DPL Gunma Fujioka, topline performance was curbed by vacant space and a 9.6 per cent year-on-year depreciation of the Japanese yen against the Singapore dollar. Financing costs also rose after debt taken for the Gunma purchase and the November 2025 refinancing. Aggregate leverage was little changed at 40.1 per cent, with an interest-coverage ratio of 4.8 times; 99.3 per cent of borrowings are on fixed rates and none of the 19 assets are mortgaged.
Management is targeting higher occupancy, with negotiations under way for the empty unit at DPL Kawasaki Yako and options, including potential asset recycling, being assessed for DPL Sendai Port. About ¥12 billion of loans mature late-2026; the manager intends to stagger tenors to cushion the impact of Japan’s rising interest rates. Currency hedging of yen income will also continue.
The trust sees structural tailwinds for logistics space in Japan, citing moderating new supply, growth in e-commerce and possible demand from third-party logistics providers following recent regulatory changes. In Vietnam, logistics demand is expected to stay firm on the back of solid economic expansion and increasing manufacturing and e-commerce activity. Nevertheless, management cautioned that sub-market variances and macroeconomic headwinds, including further Bank of Japan rate increases and yen volatility, could influence near-term performance.
Chief executive officer Jun Yamamura said the weaker interim showing reflected elevated vacancy, but noted that recent leasing wins at DPL Koriyama and progress in marketing DPL Kawasaki Yako should underpin an occupancy recovery. He indicated the trust will balance refinancing needs against higher domestic interest rates and continue disciplined foreign-exchange hedging to manage earnings volatility.