Daiwa House Logistics Trust's (DLHT) public offer will close on Wed Nov 24, 2021) at 12.00 pm.  The REIT will commence trading on a “Ready” basis on Fri Nov 26, 2021 at 2.00 pm.

DLHT’s annualised distribution per unit yield in 2021 is forecast to be around 6.3%, rising to 6.5% in 2022. The IPO price is estimated at 80 cents, and net asset value is likely to be 76 cents. The number of units outstanding is estimated at 675 million, indicating a market capitalisation of $540 million at IPO, which will make it one of the smallest S-REITs. The aggregate leverage post listing could be as high as 43.8% but this is likely to ease to 36.9% after repayment of a short-term consumption tax loan. 

“We have taken a consumption tax loan of close to $66 million because of this acquistion,” explains Anne Chua, CFO of DHLT’s manager. The consumption tax - which is akin to GST - is $70 million. It is refundable and the refund is expected in 2Q2022. As such, aggregate leverage will fall to 36.9%.

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