GLP’s third-quarter net profit up 3% to $109m

Straits Times: Wed, Feb 15
   WAREHOUSE provider Global Logistic Properties’ (GLP) third-quarter net profit rose 3.4 per cent to US$86.3 million (S$109 million) on the back of higher revenue and a net fair value gain of US$24.3 million.   Revenue for the three months ended Dec…

WAREHOUSE provider Global Logistic Properties’ (GLP) third-quarter net profit rose 3.4 per cent to US$86.3 million (S$109 million) on the back of higher revenue and a net fair value gain of US$24.3 million.

Revenue for the three months ended Dec 31 surged 19 per cent to US$144.7 million.

For the nine month period, however, net profit slumped 42 per cent to US$384.2 million even as revenue rose 18 per cent to US$412.4 million.

GLP, which owns properties in China and Japan, said that the higher revenue in the quarter was due mainly to the completion and stabilisation of the firm’s development projects in China, contribution from its acquisition of Airport City Development and foreign exchange gains.

Airport City is the sole developer of air cargo handling and bonded warehouse logistic facilities for Beijing Capital International Airport.

While some forecasts have indicated more moderate overall growth of the Chinese economy, demand for logistic services is expected to stay strong due to sustained growth in domestic consumption, the firm added.

‘The group sees strong demand from various customer segments, such as third party logistics companies, online retailers and manufacturers.

‘Importantly, we are seeing a continuing increase in demand from domestic companies utilising our services. The group continues to maintain a strong land bank to meet future demand,’ GLP said in a statement released yesterday.

Japan’s economy has also recovered from damage caused by the earthquake and tsunami in March last year. Its economic growth is expected to be 1.9 per cent this year, GLP noted.

Mr Jeffrey H. Schwartz, GLP’s deputy chairman and chairman of the executive committee added that the firm is currently 70 per cent pre-leased on developments which are being delivered through to next month due to robust demand.

Given the recent turbulence in the global financial markets, however, the firm will continue to closely monitor further developments.

GLP owns, manages and leases out 380 completed properties in 133 logistics parks spread across 28 cities in China and Japan.

Earnings per share for the quarter fell from 2.09 US cents a year earlier to 1.88 US cents, while net asset value per share was US$1.66, up from US$1.44 as at March 31 last year.

GLP’s shares closed one cent down at $1.98 yesterday.

Source: The Straits Times © Singapore Press Holdings Ltd.

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