Daiwa House Logistics Trust (DHLU) on May, 13 2026 released its business update for the quarter ended Mar, 31 2026, highlighting portfolio stability and forthcoming positive rent reversions.

Portfolio occupancy stood at 87.8%, with 16 of 19 assets fully let, and the weighted average lease expiry held at 6.3 years. Of three leases due in the current quarter, one has been renewed and a second is expected to be renewed, both at higher rents. Negotiations are under way for the remaining expiries and for vacant space at DPL Kawasaki Yako.

Net property income for the Japan portfolio fell 4.9% year on year in yen terms, offset in part by a 2.7% cash-basis increase from Vietnam’s D Project Tan Duc 2. On a Singapore-dollar basis, overall portfolio NPI declined 12.4% due to currency movements and higher vacancies in Japan.

As at Mar, 31 2026, aggregate leverage edged up to 40.6% following the March 2026 cash distribution, while interest coverage remained healthy at 5.1 times. Fixed-rate debt accounted for 99.3% of borrowings, and all properties were unencumbered.

Management said demand for modern logistics space in Japan and Vietnam remains firm, supported by e-commerce and third-party logistics growth, although it remains cautious amid macroeconomic uncertainties and potential interest-rate pressures.