Global Logistic   

GLP

quite interesting those 2 bits of news released today...

will it make the price go up? hmm... 

 

04/09/13	STATUTORY ANNOUNCEMENT ? INCORPORATION OF AN INDIRECT WHOLLY-OWNED SUBSIDIARY
04/09/13	NEWS RELEASE ? GLP TO COMMENCE DEVELOPMENT OF LARGE-SCALE LOGISTICS FACILITY IN GREATER TOKYO

 

GLP J-REIT has acquired nine assets?two from GLP at US$287m (¥28.5b) and seven from the GLP Japan Income Partners I fund (GLP owns 33.3%) at US$277m (¥27.5b). NPI yields were 5% and 6%, respectively. J-REIT will part finance with debt and equity (potentially issue up to 14.1% or 249,995 units). Given the acquisition yield of 5-6% and the trading yield of 4.6%, CS Japan research team estimates the transaction could add ~7% to the NAV and 9-10% to DPU. GLP will use proceeds to reinvest in business and subscribe to the J-REIT's placement to maintain its 15% stake. Note that it is a win-win deal for J-REIT and GLP as the latter is able to unlock value, realise fund management fee and recycle its assets into J-REIT, while acquisition will add value to the former. Although positive for J-REIT, cap rate levels have not met anticipated compression levels, therefore neutral for GLP. Overall, CS maintains OUTPERFORM on GLP as house like it as a proxy to the defensive logistics sector, with growth kicker from developments.

 

GLP has signed expansion lease agreements totaling 21k sm with one of the top 3 e-commerce companies in China. The new leases are in Chengdu (GLP Park CDHT) and Qingdao (GLP Park Qingdao Airport West). The customer, one of GLP?s top tenants in China by leased area, operates one of the country?s largest e-commerce platforms, offering an extensive range of products from electronics and home appliances to books and clothing. GLP lists Amazon (5.7% of lease area), VANCL (1.9%) and 360buy (1.4%) as its top 3 e-commerce tenants in China.

Mgt notes e-commerce companies are looking for larger, high-quality logistics facilities that enable them to expand their distribution capabilities while improving efficiency. Hence customers increasingly turn to GLP as the preferred facility provider bcs of its flexible national network of best-in-class logistics facilities has been tailored to help customers meet that need. The stock trades at an undemanding 13.4x P/E, 1.2x P/B, given its strong leasing momentum.

 

GLP leased 32,000 sqm at GLP Park SND (Suzhou) to new customer Yunda Express, one of China's largest express delivery companies, for the establishment of a sorting and distribution centre in Suzhou and Wuxi, due to the growing demand for e-commerce related services. At $2.72, GLP trades at 1.2x P/B, just under one standard deviation above its historical average of 1.1x P/B, and 12% discount to consensus RNAV of $3.03.

 

GLP leased 9,400 sqm space at GLP Guarulhos to Atlas Transporte & Logistica, one of Brazil's largest third-party logistics provider, for the establishment of its main distribution center in Brazil. The new lease at GLP's facility in Sao Paulo will bring its leasing occupancy to 100%. Separately, news reports in China from unknown sources are citing that the Chinese local governments are looking at raising the land prices, to relieve its pressure from debt repayment. This could potentially benefit GLP's massive land reserve of 11.9m sqm, compared to 7.4m sqm in its development pipeline and 7.6m sqm of completed gfa.

In Japan, GLP reiterated their support for GLP J-Reit through possible divestments with no firm confirmations on a timeline. CLSA estimates US$400m size divestment this year. In terms of cap rate compression, management remains optimistic that cap rates in Japan can tighten slightly further from current levels. GLP feels that only 2 competitors in Japan pose some level of competition given the full scaled operations. Lastly, GLP is cautiously optimistic that Japan will deliver some rental growth in future. At $2.66 compared with the average street RNAV of $3.03, GLP trades at 1.2x P/B, just under one standard deviation above its historical average of 1.1x P/B.

 

The stock is trading at a ~1.24x price to 30 June 2013 book value of US$1.79. The stock has corrected on the back of disappointment with the latest results. Nevertheless Macquarie has a TP of $3.06, premised upon growth in annual new starts and an improvement in the rate of completions for its logistic developments in China.

 

hi members,

any insights on glp?

 

Rebounding soon?

 

1QFY14 net profit of US$204m (+33.3% y/y) reached 65% of FY14 estimate, mainly boosted by gains of US$135m (1QFY13: US$44.8m) from revaluation of its Japanese assets. Stripping out one-time gains, pretax profit fell 18% to $109.7m, in tandem with the 20% drop in revenue to US$137.2m due to the sale of 33 properties to GLP J-REIT in Nov 12, depreciation of JPY and lease cancellation by a tenant in Japan. Revenue from China surged 40% to US$78.9m (58% from 33% share in 1QFY13), driven development completions and rental growth. Balance sheet remained sturdy with leverage of 9.2%, average debt maturity of 4.9 years and NAV of US$1.79.

Rents and lease ratios remained stable across the portfolio, with rental growth outlook intact. Development starts in China beat expectations at 0.73m sqm vs FY target of 2.5m sqm. With US$1.79b cash pile and 9.2% net debt/asset, GLP has the flexibility to finance capex. Japan cap rates compressed 13 bp to 5.2%, which saw NAV broadly remaining flat at US$2.5b despite JPY depreciation. GLP continues to add to its landbank with the acquisition of 0.58m sqm in China. Land reserves stands at 11.9m sqm, underpinning future growth. The market may view results as a " miss" but CS expect earnings to be back-loaded with more completions and increased leasing demand which has picked up in the last six weeks. CS continue to like GLP due to its logistics exposure (defensive), with a growth kicker from its development completions. Nomura maintains NEUTRAL with TP $2.70 CS maintain OUTPERFORM with TP $3.15

 

Global Logistic Properties posts 33% higher Q1 earnings of US$204 mil

GLP, the leading provider of modern logistics facilities in China, Japan and Brazil, reported a 33% increase in earnings to US$204 million ($259 million) for the three months ended 30 June 2013 (1QFY14) as the company continues to benefit from solid development momentum and rent growth across its portfolio.

1QFY14 group revenue was US$137 million. This was 20% lower than the same period last year (1QFY13), mainly due to the contribution of 33 Japan properties to GLP J-REIT. Revenue in China was up 40%, driven by developments and continued rent growth. In Japan, revenue was 51% lower, mainly due to the contribution of properties to GLP J-REIT, depreciation of the Japanese Yen  and lease cancellation income received from a tenant in 1QFY13. Adjusting for these three items, Japan revenue was up 1%.

Fund management revenue in 1QFY14 was US$12 million, up 122% from a year earlier. This comprised asset and property management fees of US$8 million and property development fees of US$4 million. GLP expects fund fees to continue increasing in tandem with the strategic growth of the fund management platform.

1QFY14 Group EBIT and earnings rose 34% and 33% respectively, driven by higher revenue in China and revaluation gains of US$159 million. Revaluation gains were mainly attributable to higher property values in Japan, as well as developments and rent growth in China.

...Prev Close: $2.800...

 

 

GLP was just nor  participating  with the overall market today!

  http://stockmarketmindgames.blogspot.sg/2013/08/glp-15k-trade-on-safe-short.html 

 

GLP has leased 23,000 sqm of space at GLP Park Zengcheng and GLP Park Yunpu to a e-commerce player, which intends to use both facilities to provide express services in Guangzhou and throughout China to meet increasing demand. The new lease of 18,000 sqm at GLP Park Zengcheng and 5,000 sqm at GLP Park Yunpu raises occupancy to 97% and 99% respectively.

 

GLP continuing on its leasing momentum, GLP signed another agreement to lease 44,000 sqm of space at GLP Park Qiandeng and GLP Park Langfang in China to Goodbaby, a leading provider of children products. The new lease brings Goodbaby's total lease area with GLP to 51,000 sqm. At GLP Park Qiandeng in Suzhou, Goodbaby expanded 38,000 sqm to serve as its customer's national distribution center. With this lease, GLP Park Qiandeng will be 90% committed. A further 6,000 sqm of space was pre-leased at GLP Park Langfang ahead of its completion, and will be meant for Goodbaby's regional distribution.

GLP has been undergoing a strong leasing momentum for its China and Japan properties. Several global funds have increased their stakes into the chinese warehouse space, betting China's emerging middle class will lead to higher domestic consumption and demand for logistics operators. At $2.85, GLP trades at a premium valuation of 33.1x forward P/E and P/B of 1.28x. This high valuation multiple could be attributed to the group's vast land reserve in China. As at 31 Mar, GLP had 6.9m sqm gfa of completed properties. This is compared to an additional land reserve of 15m sqm gfa and 3.1m sqm gfa of properties under development currently. China contributed 39% to GLP's revenue in FY13.

 

GLP: Leased 13,000 sqm of space at GLP Chikushino to a new customer, CL Co. The new lease raises occupancy at GLP Chikushino to 100%. CL Co is an expanding 3rd-party logistics company that deals with consumer and pharmaceutical products, which will utilize GLP Chikushino as its main distribution center within the region. GLP has been undergoing a strong leasing momentum for its China and Japan properties. Market watchers see strong demand growth in the global logistics space, supported by the rising global e-commerce trend. However, continued positive operational developments does not come cheap. At $2.88, GLP trades at a valuation of 33.3x forward P/E, which is higher than one standard deviation above its historical average of 25x.

 

   

FTSE ST Real Estate Index is showing weakness in property sector. GLP is forming a Head and Shoulders trend reversal pattern. Be caution!

  http://mystocksinvesting.com/singapore-stocks/ft-st-real-estate-index/ftse-st-real-estate-index-elliott-wave-b-ended/

 

very good counter to hoot up and down..enjoy

 

Two leasing agreements for 23k sqm (248k sf) of logistics space with Chinese ecommerce firm Lefeng has been signed. 18k sqm (194k sf) at GLP Park Beijing ACL and 5k sqm (54k sf) at GLP Park Chengdu Hi-Tech.

Management has reported the strong demand for strategically-located logistics space from the retail industry in China along with the rapid growth of domestic consumption and e-commerce. Additionally, the government's bid for urbanisation has also helped boost demand for logistics services and activities. China operations contributed 39% to GLP's revenues in FY13, and GLP continues to maintain a strong land bank to meet future demand. Lefeng was founded in 2008, is a leading e-commerce company that specializes in women's beauty and skincare products. According to independent market research firm Euromonitor, China's online cosmetics sales will increase 3-fold to Rmb120b by 2015. GLP trades at 1.3x P/B., and has a 12-month estimated TP of $3.12. 1QFY14 results is estimated to be out 14 Aug.

 

UBS maintains Buy with $3.23 TP. House met with Jeff Schwartz (Deputy Chairman of the Board), Yoshiyuki Chosa (President of GLP Japan) and Genji Jacobs (Vice President of Asset Management) in Tokyo.

The key objectives of the trip were to get an update on its Japan operations and leasing activity, glean insights into the potential divestment of the company’s House note that lifting of online drug sales ban will drive a new wave of space demand, as leasing enquiries are up 50% with strong interest from 3rd Party Logistics (3PL), retailers and manufacturers.

  Solid demand is also reflected in a 2.8% vacancy rate for multi-tenanted facilities in Tokyo, a historical low since 2004. Demand is already tight, but could see a new wave as online retailers strengthen networks and platforms for improved speed and quality of delivery following the lifting of a ban on online drug sales by Japan’s Prime Minister. Asset divestment to GLP J-REIT remains on management’s agenda

The GLP-JREIT lock-up expires on 18 June, but as third-party appraisals and committee approvals could take a couple of weeks, news of the divestment may only be announced towards end-June/mid-July. Cap rates would not have compressed significantly thus, the deal dynamics would likely reflect a balance between accretive J-REIT growth and enabling GLP to retain the option on asset reflation.

 

GLP has leased approx 13k sm of space at GLP Park Beijing Airport to SPH Keyuan Pharma, a subsidiary of Shanghai Pharma. This brings Shanghai Pharma’s leases at GLP to 36k sm in four locations across Beijing, Shanghai and Suzhou. Following this, GLP Park Beijing Airport is 97% leased. Shanghai Pharma is a leading developer, manufacturer, distributor, and retailer of pharmaceuticals, vaccines, medical devices, eqpt and other health supplies. The customer is investing in cooling and insulation eqpt and installing an automated forklift system to meet the special storage and distribution requirements of pharmaceutical pdts. Separately, the co posts its presentation slides for its New York investor meetings held over 3-4 Jun.