GLP Quarterly Report Summary - Feb 2015

Below is the summary of the financial report after the webcast reporting of GLP today:

• The company will continue to bring values to investors via three pronged growth strategy - development of the industrial properties, fund management and operations of the logistic facilities
• For development of industrial properties, the group is targeting of US$8bn total development completion in next 3 years and expecting US$1bn revaluation gains from this. The value creation margin is about 25%. Apart from it, the group receives development fees from development funds and promote income from reaching IRR hurdles in fund management platform
• Fund management platform is expected to grow 99% compound annually from US$ 2.6 bn in year 2012 to US$ 20.4bn in year 2015, with additional US$ 8.1bn from US alone in FY2015. Fund fees expected to grow significantly over the years. GLP expected to complete fund syndication to pare down stake to 10% (from 55%) by 3Q15
• For China market, GLP reduced its forecast for FY2015 development completion to US$1 bn from US1.1 bn due mainly to the delays in completion permitting process. Nonetheless, it's expecting a US$1.4 bn Total development completion in FY16
• For Japan market, GLP continues its strategy of recycling capital from stabilized assets in Japan into development, as capitalization rate in Japan market is in the downtrend. The group is setting target of US$980 Mn for Development Completion in FY16
• For Brazil market, GLP forecasts a moderated economic growth, with interest rates continuing to trend upwards. Companies are shifting from owning to leasing warehouses to improve supply chain efficiency
• The group achieved Net Profit of US$381 Mn on the back of revenue of US$541 Mn. Changes in fair value of investment properties is US$358Mn. Annualized EPS and NAV are 9.84 US cents and US$1.82 each. Estimated ROE is about 5.5%. Current Market Cap of GLP is now S$11.85 Bn