Daiwa House Logistics Trust (DHLU) AI Stock Analysis

• Market Cap: S$399.19M
• Dividend Yield: 8.04%
• Average Volume (3M): 311.73K
• Price to Earnings (P/E): 13.3
• Beta (1Y): 0.27
• Revenue Growth: -5.80%
• EPS Growth: -27.16%
• Country: SG
• Employees: 13
• Sector: Real Estate
• Sector Strength: 53
• Industry: REIT - Industrial
• EPS (TTM): N/A
• Shares Outstanding: 700,334,000
• 10 Day Avg. Volume: 295,920
• 30 Day Avg. Volume: 311,730
• PEG Ratio: -0.58
• Price to Book (P/B): 0.78
• Price to Sales (P/S): 7.08
• P/FCF Ratio: 10.00
• 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$0.63
• Price Target Upside: 12.50% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 73 Outperform
• Price Target: S$0.50 ▼(-10.71% Downside)

Daiwa House Logistics Trust scores well due to its strong valuation with an attractive dividend yield and reasonable P/E ratio. The financial performance is solid, with efficient operations and positive cash flow growth, though challenges exist with declining revenue and increased leverage. Technical analysis supports a stable outlook with slight bullish momentum.

Positive Factors

Cash Generation Ability

Positive free cash flow growth indicates strong cash generation capabilities, supporting operational needs and potential for reinvestment.

Margin Sustainability

High and consistent profit margins reflect efficient operations and pricing power, contributing to long-term profitability.

Strategic Property Portfolio

Strategic focus on logistics properties in high-demand regions positions the trust to benefit from e-commerce growth and supply chain needs.

Negative Factors

Declining Revenue

Declining revenue trends may indicate challenges in market demand or competitive pressures, impacting future growth prospects.

Increased Leverage

Increased leverage could strain financial flexibility and risk profile, necessitating careful debt management to maintain stability.

Decreased Profitability from Equity

Reduced return on equity suggests less efficient use of shareholder funds, potentially impacting investor returns and trust valuation.

Daiwa House Logistics Trust Business Overview & Revenue Model

Company Description

Daiwa House Logistics Trust (DHLU) is a real estate investment trust (REIT) focused on the logistics and industrial property sector in Asia, particularly in Japan. The trust primarily invests in high-quality logistics facilities, warehouses, and distribution centers that cater to the growing demand for e-commerce and efficient supply chain solutions. By leveraging its extensive portfolio of strategically located properties, DHLU aims to provide stable income and capital appreciation for its unitholders.

How the Company Makes Money

Daiwa House Logistics Trust generates revenue primarily through rental income from its portfolio of logistics and industrial properties. The trust leases its facilities to a diverse range of tenants, including e-commerce companies, manufacturers, and third-party logistics providers, ensuring a steady stream of rental payments. In addition to base rent, DHLU may also benefit from revenue enhancements such as service charges, maintenance fees, and lease escalations. Key factors contributing to its earnings include the growing demand for logistics space driven by e-commerce trends, long-term lease agreements with creditworthy tenants, and strategic property acquisitions that enhance the trust's portfolio and operational efficiency.

Daiwa House Logistics Trust Financial Statement Overview

Summary

Daiwa House Logistics Trust demonstrates strong profitability and efficient operations, with healthy margins and positive cash flow growth. However, declining revenue and increased leverage could pose challenges. The company maintains a solid capital structure, but careful management of debt levels and revenue growth is crucial for sustained financial health.

Income Statement

Daiwa House Logistics Trust shows strong profitability with a consistent gross profit margin above 70% and a net profit margin that has remained robust, although it decreased from 72% in 2023 to 59% in 2024. Revenue has declined slightly over the past two years, indicating potential challenges in growth. However, EBIT and EBITDA margins remain healthy, reflecting efficient operations.

Balance Sheet

The company's debt-to-equity ratio has increased slightly to 0.99 in 2024, indicating a balanced leverage position. Return on equity has decreased to 6.5% in 2024, suggesting reduced profitability from equity. The equity ratio remains stable, showing a solid capital structure, but the increasing debt levels could pose future risks.

Cash Flow

Free cash flow has shown positive growth of 6.9% in 2024, indicating strong cash generation capabilities. The operating cash flow to net income ratio is below 1, suggesting that cash flow generation is not fully covering net income, which could be a concern. However, the free cash flow to net income ratio is close to 1, indicating efficient cash management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2020	Dec 2019
Income Statement
Total Revenue	58.89M	57.10M	59.85M	69.86M	71.02M	58.70M
Gross Profit	42.77M	43.89M	45.32M	49.56M	54.78M	44.42M
EBITDA	18.85M	39.49M	44.53M	47.03M	45.81M	0.00
Net Income	30.25M	33.92M	43.32M	140.29M	27.10M	19.59M
Balance Sheet
Total Assets	1.13B	1.08B	1.10B	1.18B	1.21B	0.00
Cash, Cash Equivalents and Short-Term Investments	35.62M	41.60M	45.80M	48.94M	15.39M	0.00
Total Debt	524.59M	517.42M	471.70M	511.97M	615.64M	0.00
Total Liabilities	610.64M	565.39M	548.26M	588.04M	665.65M	0.00
Stockholders Equity	519.85M	518.13M	517.70M	589.00M	549.25M	0.00
Cash Flow
Free Cash Flow	38.38M	40.42M	44.47M	45.45M	-31.69M	0.00
Operating Cash Flow	38.67M	40.85M	44.47M	45.45M	-31.69M	0.00
Investing Cash Flow	-60.66M	-49.09M	-300.00K	-885.72M	-861.46M	0.00
Financing Cash Flow	26.12M	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: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Positive

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 0.57, and above the 200-day MA of 0.56, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 45.28 is Neutral, neither overbought nor oversold. The STOCH value of -33.33 is Positive, 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	73 Outperform	S$399.19M	13.29	5.87%	8.04%	-5.80%	-27.16%
BTE	66 Neutral	S$314.89M	23.18	―	8.67%	0.62%	22.60%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
UD1U	65 Neutral	S$390.00M	29.59	1.69%	8.37%	-11.29%	―
XZL	53 Neutral	$145.03M	-6.36	-5.62%	5.06%	-6.01%	-36.46%
CMOU	51 Neutral	$250.67M	-16.11	-2.12%	―	-1.55%	78.22%
BWCU	38 Underperform	S$226.75M	-1.88	―	―	-55.98%	76.02%

Daiwa House Logistics Trust Corporate Events

Daiwa House Logistics Trust Issues New Units for Management Fee

Daiwa House Logistics Trust has issued 452,540 new units at a price of S$0.5807 per unit to pay part of the base management fee for the period from July to September 2025. This issuance increases the total number of units to 700,333,978, with Daiwa House Industry Co., Ltd. holding a 13.43% stake, reflecting its strategic interest and influence in the trust.

Daiwa House Logistics Trust to Release Q3 2025 Business Update

Daiwa House Logistics Trust announced that its business update for the third quarter ending on September 30, 2025, will be released on November 12, 2025, before trading hours. This update is significant for stakeholders as it provides insights into the trust’s operational performance and market positioning, potentially impacting investor decisions and the trust’s standing in the logistics real estate market.

Daiwa House Logistics Trust Announces Perpetual Security Distribution

Daiwa House Logistics Trust has announced a distribution payment of 2.95% per annum for its JPY 3.0 billion subordinated perpetual securities issued to its sponsor, Daiwa House Industry Co., Ltd. This distribution, amounting to JPY 44,371,233, will be paid on 30 September 2025. The announcement underscores DHLT’s commitment to providing consistent returns to its stakeholders, reflecting its stable financial strategy and reinforcing its position in the logistics real estate sector.