Strategy
PROACTIVE ASSET MANAGEMENT
The Manager will proactively manage the DHLT Portfolio to maintain and improve its operational performance, seeking to optimise the cash flow and the value of the properties. The Manager will also look to drive organic growth and improve occupancy rates, encourage strong relationships with the tenants of its portfolio properties, actively negotiate for extension of leases prior to maturity, implement asset management strategies with the aim of ensuring continued relevance of the properties and facilitate property enhancement opportunities.
Achievements or Actions Taken in FY2025
- Achieved higher rent for all the 9 leases renewed or signed with new tenants, with a weighted average rent uplift of approximately 11%1
- Portfolio occupancy rate of 87.8% as at 31 December 2025, with 16 out of 19 properties at full occupancy
- Maintain relatively long WALE of 6.6 years as at 31 December 2025
- Valuation of Japan Portfolio remained stable while valuation of Vietnam property grew by 2.2%, in local currency terms
PRUDENT CAPITAL MANAGEMENT
The Manager will endeavour to maintain a strong balance sheet, employ an appropriate mix of debt and equity in financing acquisitions of properties, secure diversified funding sources to access both financial institutions and capital markets, optimise cost of capital within the borrowing limits set out in the Property Funds Appendix and utilise interest rate and foreign exchange hedging strategies where appropriate to minimise exposure to market volatility.
Achievements or Actions Taken in FY2025
- Maintained aggregate leverage at healthy level of 40.2% as at 31 December 2025
- Recorded interest coverage ratio of 5.5 times, which was well above the regulatory limit2
- Maintained a high proportion of 99.3% of borrowings in fixed-rate
- 100% of the properties were unencumbered as at 31 December 2025
- Continued to apply systematic hedging mechanism to smooth out volatility in income due to foreign exchange movements
ACQUISITION GROWTH
The Manager will pursue opportunities to undertake acquisitions of quality income-producing logistics and industrial assets that it believes will be accretive to the DHLT Portfolio and improve returns to Unitholders relative to DHLT’s weighted average cost of capital, and opportunities for future income and capital growth. In evaluating future acquisition opportunities, the Manager will seek acquisitions that may enhance the diversification of the portfolio by location and tenant profile, and optimise risk-adjusted returns to the Unitholders.
The Manager believes it is well positioned to pursue its acquisition strategy. In the course of pursuing acquisition opportunities, the Manager will only invest in stable properties with high-occupancy rates and avoid high-risk investments within the sector and geographical regions, confined by the borrowing limits set out in the Property Funds Appendix, including, for the avoidance of doubt, the aggregate leverage limits.
In evaluating potential targets, the Manager will take into consideration factors such as, yield requirement, tenant mix and occupancy characteristics, location, value-enhancing opportunities, and building specifications.
Achievements or Actions Taken in FY2025
- Continued to grow the portfolio with the acquisition of DPL Gunma Fujioka, a freehold logistics property located in Greater Tokyo
- Will continue to leverage on Sponsor ROFR and network for future growth
SUSTAINABILITY
The Manager shares the Sponsor’s fundamental approach to asset management and has included ESG considerations in its real estate investment management operations. As such, the Manager has established the following sustainability considerations as guidance in respect of its real estate investment and management responsibilities which include
- prevention of global warming;
- harmony with the environment;
- conservation of natural resources (reducing waste, protecting water resources);
- prevention of chemical pollution;
- establishment of an internal framework and initiatives for employees;
- building of trust relationships with external stakeholders;
- promotion of communication through information disclosure; and
- compliance with laws and regulations, and risk management
In collaboration with the property managers, the Manager will incorporate the ESG perspectives in both the management of properties and investment decisions.
Achievements or Actions Taken in FY2025
- Established sustainability-linked loan framework and obtained second-party opinion
- Entered into first sustainability-linked loan with a S$30 million facility
- Increased total NLA of green-certified properties by5.0% to more than 475,000 sqm
- Maintained high proportion of green-certified rated properties at 96.0%3 with 17 of the 19 properties certified green
- Increased capacity of solar panels installed at its properties by 15.9% to 18.8 MWp
- All renewed/new leases entered into during FY2025 contained “green” clause
1. Based on the monthly rent of the renewed/new leases compared against the preceding leases for the same respective spaces.
2. The Monetary Authority of Singapore has revised the Code on Collective Investment Schemes to, inter alia, rationalise the leverage requirements for REITs and all REITs are subjected to a minimum ICR threshold of 1.5 times and an aggregate leverage limit of 50%, effective from 28 November 2024.
3. Based on the independent valuation of the properties as at 31 December 2025 and converted to S$.
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