GLP Q2 profit more than doubles, boosted by China

Global Logistic Properties yesterday said its second-quarter net profit more than doubled from the corresponding period a year earlier due to higher contributions from its China operations and currency conversion gains.

Net profit was US$200.7 million (S$258.9 million) in the three months ended Sept 30, compared with US$85.4 million a year earlier, the provider of logistics facilities in China and Japan said in its results filing. Excluding asset revaluations, net profit rose 39 per cent to US$103.2 million from US$74.2 million.

The Singapore-listed company, which is majority-owned by the Government of Singapore Investment Corporation, said revenue for the period rose 19.9 per cent to US$138.5 million.

The increase was mainly attributable to the completion and stabilisation of development projects in China, the contribution from Airport City Development that was acquired in January, as well as gains in the Japanese yen and Chinese yuan against the US dollar of 9.5 and 5.4 per cent, respectively.

GLP deputy chairman Jeffrey Schwartz said: “Despite the economic headwinds in Europe and North America, our Asia-based business was able to achieve strong growth in revenue and profit.”

“Leasing momentum has accelerated and we see robust demand, across the portfolio, we signed 1.2 million square metres of new and expansion leases in the first half of the year. However, we will continue to monitor the market closely and will adjust our strategy according to market conditions,” he added.

Source : Today – 11 Nov 2011

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