Daiwa House Logistics Trust (DHLU) AI Stock Analysis

• Market Cap: S$391.40M
• Dividend Yield: 8.55%
• Average Volume (3M): 319.00K
• Price to Earnings (P/E): 11.5
• Beta (1Y): 0.25
• Revenue Growth: -7.68%
• EPS Growth: -20.20%
• Country: SG
• Employees: 13
• Sector: Real Estate
• Sector Strength: 70
• Industry: REIT - Industrial
• EPS (TTM): 0.05
• Shares Outstanding: 698,920,200
• 10 Day Avg. Volume: 209,580
• 30 Day Avg. Volume: 319,000
• PEG Ratio: -0.69
• Price to Book (P/B): 0.76
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 9.45
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: S$0.65
• Price Target Upside: 16.07% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

Daiwa House Logistics Trust's overall score reflects solid financial performance with strong profitability and balanced debt management. However, declining revenue and cash flow present risks that need to be addressed. The valuation is attractive due to a reasonable P/E ratio and a high dividend yield. Technically, the stock lacks significant momentum and is close to overbought territory, warranting caution.

Positive Factors

Acquisitions

Recently completed Japan and Vietnam acquisitions to partially offset weaker JPY and higher financing costs.

Occupancy Rates

Portfolio of modern logistics properties spread across Japan with a very healthy occupancy rate of 98.6%.

Property Quality

The recently built modern logistics properties have been built to high specifications and have a weighted average age of only about 3.7 years by NLA.

Negative Factors

Currency Fluctuations

Depreciation of the JPY against SGD offset increases in revenues and NPI.

Currency Risks

Key risks would be a further weakening of the JPY, leading to further impact to earnings and inching up of its gearing.

Interest Rates

Recent BOJ rate hikes to lead to JPY appreciation, but also higher financing costs.

Daiwa House Logistics Trust Business Overview & Revenue Model

Company Description

Daiwa House Logistics Trust (DHLU) is a real estate investment trust (REIT) focused on investing in high-quality logistics and warehouse properties. The company primarily operates within the logistics sector, providing strategically located facilities that support efficient supply chain management for various industries. DHLU's core assets are predominantly located in key markets, such as Japan, which provide a stable and growing demand for logistics infrastructure.

How the Company Makes Money

Daiwa House Logistics Trust generates revenue primarily through the leasing of its logistics and warehouse properties to a diverse range of tenants. The company earns rental income from long-term lease agreements with businesses that require logistics space, such as e-commerce companies and third-party logistics providers. DHLU's revenue model is augmented by strategic property management that maximizes occupancy rates and rental yields. Additionally, the trust benefits from its partnership with Daiwa House Industry Co., Ltd., which provides access to a robust pipeline of potential acquisition opportunities and development projects, further enhancing its income potential.

Daiwa House Logistics Trust Financial Statement Overview

Summary

Daiwa House Logistics Trust shows solid profitability and leverage management, although declining revenue and free cash flow pose potential concerns. The company maintains a balanced approach to debt and equity, ensuring stability, but needs to address the downward trend in revenue to sustain long-term financial health.

Income Statement

The company's income statement shows a declining trend in revenue with a 1.23% decrease from 2023 to 2024, following a previous decrease from 2022. Despite this, the net profit margin remains robust at 57.38% in 2024, supported by a high EBIT margin of 66.79%. However, the consistent decline in revenue poses a risk to future profitability.

Balance Sheet

Daiwa House Logistics Trust maintains a stable financial position with a debt-to-equity ratio of 1.00, indicating balanced leverage. The equity ratio stands at 47.82%, reflecting a solid equity base. However, the decreasing trend in stockholders' equity from 2022 to 2024 could signal potential future risks if the trend continues.

Cash Flow

The company demonstrates strong cash flow management with a free cash flow of 40.42 million in 2024 and a healthy operating cash flow to net income ratio of 1.18. However, the free cash flow decreased by 9.10% from 2023, suggesting potential challenges in maintaining cash flow levels.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2020	Dec 2019
Income Statement		Total Revenue
57.10M	59.85M	69.86M	71.02M	58.70M
	Gross Profit
43.89M	45.32M	49.56M	54.78M	44.42M
	EBIT
40.51M	39.48M	43.41M	41.74M	32.62M
	EBITDA
39.49M	44.53M	47.03M	0.00	0.00
	Net Income Common Stockholders
33.92M	43.32M	49.04M	27.10M	19.59M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
41.60M	45.80M	48.94M	15.39M	0.00
	Total Assets
1.08B	1.10B	1.18B	1.21B	0.00
	Total Debt
517.42M	471.70M	511.97M	615.64M	0.00
	Net Debt
435.61M	425.90M	463.03M	600.26M	0.00
	Total Liabilities
565.39M	548.26M	588.04M	665.65M	0.00
	Stockholders Equity
518.13M	517.70M	589.00M	549.25M	0.00
Cash Flow		Free Cash Flow
40.42M	44.47M	45.45M	-31.69M	0.00
	Operating Cash Flow
40.85M	44.47M	45.45M	-31.69M	0.00
	Investing Cash Flow
-49.09M	-300.00K	-885.72M	-861.46M	0.00
	Financing Cash Flow
2.63M	-44.09M	947.97M	899.68M	0.00

Daiwa House Logistics Trust Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.56
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SG:DHLU, the sentiment is Negative. The current price of 0.56 is below the 20-day moving average (MA) of 0.56, below the 50-day MA of 0.56, and below the 200-day MA of 0.56, indicating a bearish trend. The MACD of <0.01 indicates Positive momentum. The RSI at 48.25 is Neutral, neither overbought nor oversold. The STOCH value of 38.89 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SG:DHLU.

Daiwa House Logistics Trust Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DHLU	67 Neutral	S$391.40M	11.50	6.78%	8.55%	-7.68%	-20.20%
M44U	61 Neutral	$5.62B	30.41	2.74%	6.64%	-0.97%	-40.20%
Sector *	60 Neutral	$2.77B	10.47	0.42%	8531.49%	6.23%	-16.09%
BUOU	58 Neutral	$3.16B	23.53	3.21%	6.59%	11.98%	―
9A4U	53 Neutral	S$1.77B	―	-6.38%	16.04%	-4.01%	-66.90%

Daiwa House Logistics Trust Corporate Events

Daiwa House Logistics Trust to Release Q1 2025 Business Update

Daiwa House Asset Management Asia Pte. Ltd. announced the release of Daiwa House Logistics Trust’s business update for the first quarter ending March 31, 2025, scheduled for May 9, 2025. This update will provide stakeholders with insights into the trust’s performance and its strategic positioning in the logistics real estate market.

Daiwa House Logistics Trust Announces AGM to Address Unitholder Queries

Daiwa House Asset Management Asia Pte. Ltd. has announced the upcoming Annual General Meeting for Daiwa House Logistics Trust, scheduled for April 24, 2025. The meeting will address substantial questions from unitholders, reflecting the company’s commitment to transparency and stakeholder engagement. This event is significant for maintaining investor confidence and aligning the trust’s strategies with market expectations.

Daiwa House Logistics Trust Announces Perpetual Security Distribution

Daiwa House Logistics Trust announced a distribution payment of 2.95% per annum for its JPY 3.0 billion subordinated perpetual securities issued to Daiwa House Industry Co., Ltd. This distribution, amounting to JPY 44,128,767, will be paid on 31 March 2025, reflecting the trust’s commitment to providing returns to its stakeholders and maintaining its financial obligations.

Daiwa House Logistics Trust Issues New Units for Management Fee

Daiwa House Logistics Trust has issued 489,791 new units at S$0.5794 per unit to Daiwa House Asset Management Asia Pte. Ltd. as part of the base management fee for the last quarter of 2024. This issuance increases the total number of units to 698,920,216, with Daiwa House Industry Co., Ltd. holding a 13.26% stake, reflecting a strategic move to manage operational costs and maintain stakeholder interests.