Daiwa House Logistics Trust has released responses to substantial shareholder questions submitted by the Securities Investors Association (Singapore) before its annual general meeting, scheduled for Apr, 24 2026 in Singapore.

Management attributed a decline in the valuation of its D Project Kuki S warehouse to the shortening land lease, which now has about nine years left before its July 2034 expiry. Options under review include negotiating a lease extension or acquiring the land.

Portfolio occupancy slipped to 87.8 % in FY2025 from 97.6 % in FY2024, mainly due to vacancies at DPL Sendai Port (31.9 % occupied) and DPL Koriyama (74.6 %). The trust said large floor plates at Sendai Port have delayed tenant replacement, while Koriyama’s occupancy has historically fluctuated. Leasing agencies and the sponsor’s network are being engaged to improve take-up, and asset recycling remains an option.

Regarding rising Japanese interest rates, the manager noted capitalisation rates across its Japan portfolio have stayed “relatively stable”. About 99.3 % of borrowings are fixed-rate and all are yen-denominated, matching 96.9 % of assets by value. A hypothetical 1.5 percentage-point rise in rates on FY2026 maturities of roughly 12 billion Japanese yen would trim FY2025 distribution per unit by about 4 %, it estimated. Weighted average debt maturity stands at 2.9 years.

Net asset value per unit fell to 0.65 Singapore dollars at end-2025 from 0.76 Singapore dollars at IPO in Nov, 2021, largely due to a 31 % depreciation of the yen versus the Singapore dollar. A breakdown showed foreign-exchange effects reduced equity each year, partially offset by fair-value gains on properties. Total unitholder return since listing is –12.5 %, against –4.4 % for the Lion-Phillip S-REIT ETF and a median –4.8 % for seven logistics-industrial S-REIT peers.

To narrow its share-price discount to NAV and fund future acquisitions, the trust is considering options such as asset recycling, debt capital markets and hybrid instruments. Management said it will keep unitholders informed through “clear and transparent disclosures” while prioritising occupancy recovery and disciplined capital management.