DBS Group Research analysts Dale Lai and Derek Tan have trimmed their target price on Daiwa House Logistics Trust (DHLT) to 88 cents from 95 cents previously to account for weaker JPY.
This is as DHLT's entire portfolio is in Japan and entirely earned in JPY. “We have revised our estimates to consider the impact of the weaker JPY to earnings. Based on our assumptions, there will be about 9% downside in FY2022 DPU, entirely due to the depreciating JPY against SGD,” the analysts explain.
They project that the impact to earnings will worsen to about 15% by FY2023, before gradually reversing from FY2024 onwards.