Daito Trust (1878.T): October orders down 14.5% YoY - renewed double-digit decline

Daito Trust has released its October monthly orders. Orders totaled JPY33.7bn, down 14.5% YoY. Gross orders, before deducting cancellations, also fell 19% YoY. Cancellations totaled JPY4.3bn, down 42.3% YoY. The sales headcount increased to 2,942, up 6 YoY. The occupancy rate (residential) was 97.60%, up 0.27ppt YoY, a slightly smaller improvement than in September, which was up 0.34ppt YoY. Net orders deteriorated to a double-digit decline once again. The company appears to be continuing discounts for some customers, but partly because it secured contracts in September, there were simply few deals available for negotiation in October, resulting in lower orders. In November, the company plans to hold an internal campaign to promote orders, as it did last year, but the hurdle is not low given that net orders last November totaled JPY64.9bn. Meanwhile, leasing remains strong as the occupancy rate continues to improve gradually. We expect the improvement in leasing occupancy and rising re