Global Logistic Properties (GLP)

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#61
Business Times - 15 Feb 2011

GLP posts Q3 profit of US$83.4m


It reverses loss of US$307.9m a year earlier when it saw a fair-value deficit

By FELDA CHAY

GLOBAL Logistic Properties (GLP), which was listed on the Singapore Exchange mainboard in October last year, yesterday announced a net profit of US$83.4 million for the third quarter ended Dec 31, 2010, reversing the US$307.9 million loss it incurred a year earlier as a result of a fair-value deficit.

For the comparative three months ended Dec 31, 2009, GLP recorded a net fair-value loss of US$387.4 million, attributed mainly to declining property prices in Japan. This compares with a net fair value gain of US$11.8 million for the three months ended Dec 31, 2010, contributed in part by the strengthening of the Japanese yen against the US dollar.

Revenue for the three months to Dec 31, 2010, rose 12.9 per cent to US$125.2 million. GLP, which operates warehouses and logistic facilities in China and Japan, said this was helped by the completion and stabilisation of its development projects in China.

Earnings per share for the period was 2.09 US cents, compared with a loss per share of 17.66 US cents a year earlier.

On a nine-month basis, net profit was US$656.8 million, against a loss of US$309.7 million for the previous corresponding period. Revenue increased by 13.8 per cent to US$349.4 million due mainly to better operational performance of properties in China and Japan, as well as the strengthening of the Japanese yen against the US dollar.

The group's results, which were announced yesterday before the market opened, sent its shares up as much as six cents to S$1.99, on a day when the market also saw a broad recovery. The stock ended the day three cents higher at S$1.96.

Commenting on the group's financial performance, GLP deputy chairman Jeffrey Schwartz said: 'We are seeing increasing demand for efficient and high-quality logistics facilities in China, especially as domestic consumption grows across the country.'

A scarcity of modern logistic facilities in Japan, in particular in prime locations, bodes well for the group's business there, he added. 'GLP is in a good position to satisfy this demand from our portfolio as Japanese manufacturers outsource their logistics function in order to run their core operations more efficiently. 2011 will be an exciting year as the supply and demand dynamics in Japan looks set to make development attractive,' said Mr Schwartz.

Revenue from China for the quarter surged 41.7 per cent from a year earlier to US$23.4 million, while turnover from Japan grew 7.8 per cent to US$101.8 million.As at Dec 31, GLP had cash and cash equivalents of US$1.8 billion, as opposed to US$393 million a year earlier. Net asset value per ordinary share at end-Dec was US$1.43, versus 90 US cents as at March 31 last year.

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#62
Business Times - 18 Feb 2011

GLP signs leases covering 136,000 sqm in China


By FELDA CHAY

GLOBAL Logistic Properties (GLP) has signed new and expansion leases totalling 136,000 square metres in China for the month of January.

Among firms that chose to take up additional space provided by the logistic facility and warehouse provider is Joyo-Amazon, one of the largest online retailers in China. This will see Joyo-Amazon take up more space in GLP Park Suzhou, a logistics park within the Suzhou Industrial Park.

CR Vanguard, one of China's largest supermarket groups with more than 3,200 retail stores in the country, signed a pre-lease agreement for a 12,206 square metre build-to-suit distribution centre with GLP in Zhongshan, Guangdong province.

Said Kent Yang, managing director of GLP China: 'We are seeing strong market demand driven by sustained domestic consumption, which contributed to the volume of new and expansion lease activity we saw in January.

'We are optimistic that the continuing trend of increased outsourcing by consumption-related companies and logistics facilities will further strengthen our diverse customer base and development pipeline and enable GLP to optimise our 'network effect' and better serve customers by continuously offering them logistics solutions in multiple cities to which they plan to expand.'

On Monday, GLP announced a net profit of US$83.4 million for the third quarter ended Dec 31, 2010. This reversed the US$307.9 million loss it incurred a year earlier as a result of a fair-value deficit.

Earnings per share for the period was 2.09 US cents, compared with a loss per share of 17.66 US cents a year earlier.

Revenue for the period rose 12.9 per cent to US$125.2 million. GLP, which operates warehouses and logistic facilities in China and Japan, said this was helped by the completion and stabilisation of its development projects in China.

Yesterday, its shares closed unchanged at $1.90. GLP's IPO price was $1.96.

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#63
I think the portfolio of GLP does make it attractive to institutional investors and pension funds.

Japan properties provide stable income with matured market and less competition (quite insane to build a lot of new logistic properies in Japan now with gloomy outlook) and large landbank and pre-stablized properties in China provide growth (almost everybody thinks China as the world's growth engine).

even the growth in China is never materialized, still GLP can enjoy good and steady income from its Japan portfolio.

of course, whether the current price is worth to invest, that's another question.
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#64
GLP to be added to Singapore's STI from Mrch 21, replacing SMRT

On Thursday 10 March 2011, 17:43 SGT

SINGAPORE, March 10 (Reuters) - Global Logistic Properties , which owns warehouses in China and Japan, will replace subway operator SMRT Corp as a constituent of Singapore's Straits Times Index (STI) following a half-yearly review, the index managers said on Thursday.

Inclusion in a benchmark index is often positive for companies as it attracts investments from fund managers as well as investors who track markets via exchange-traded funds.


The 30-member STI, Singapore's most widely followed index, is managed by Singapore Press Holdings , Singapore Exchange and Britain's FTSE Group.
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#65
This news is not surprising - I notice the STI always loves large cap stocks and since GLP has "backing", I guess it definitely qualifies as a "blue chip".

Though the inclusion of GLP does not automatically mean it makes a good investment! Tongue
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#66
Does GLP even gives dividends?
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#67
not been monitoring and just realised that glp had been on the downtrend till now being below ipo price. any view to share?

i got a few lots from ipo. is it still good to hold? or maybe even to load more to average down the price?
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#68
(13-03-2011, 06:40 PM)bb88 Wrote: not been monitoring and just realised that glp had been on the downtrend till now being below ipo price. any view to share?

i got a few lots from ipo. is it still good to hold? or maybe even to load more to average down the price?

CMA has fallen a long way from its IPO price as well. I guess the market needs time to judge the viability of their respective business model.

Disclaimer: Please feel free to correct any error in my post. I am not liable for anything. Do your own research and analysis. I do NOT give buy or sell calls and stock tips. Buy and sell at your risk. I am not a qualified financial adviser so I do not give any advice. The postings reflects my own personal thoughts which may or may not be accurate.
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#69
Faced with a bad market condition, Mr. market suddenly decides to judge the viability of their business model? Big Grin
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#70
"Prescient" knowledge about the Jap losses
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