GLP reports 3.4% on-year rise on Q3 net profit

Global Logistic Properties (GLP) says its third quarter net profit rose 3.4 per cent year-on-year to US$86.3 million.

This was boosted by higher revenue contribution from its new properties in China.

Revenue for the quarter ended Dec 31 rose 18.8 percent to US$144.7 million from the previous year.

GLP, which own properties in China and Japan, says in a statement that its revenue from China properties rose 81 percent to US$41.5 million.

The company says the higher revenue in China is mainly due to the completion and stabilisation of the group’s development projects, increasing the leasable area of the properties owned by the subsidiaries in China and the acquisition of Airport City Development in January last year.

Meanwhile, Mr. Jeffrey H. Schwartz, Deputy Chairman and Chairman of the Executive Committee of GLP says “growth in retail sales in China remained at a healthy pace of 17 percent over the past year. Due to the robust demand, we are currently 70 percent preleased on developments which are being delivered through March 2012.”

Mr. Ming Z. Mei, Chief Executive Officer of GLP, says the company is currently in various stages of discussions with customers on 4.0 million square metres (sqm) of space in China.

He is also optimistic of the company’s prospects in China and Japan going forward.

Mr Ming says “we see growth opportunities in both China and Japan and we will focus on continuing to grow our footprint profitably while extending our value chain of services that help our customers do business better.”

This recent quarter has also seen GLP expand their footprint into four new cities – Greater Hefei, Greater Jinan, Langfang and X’ian.

Leasing momentum in China has grown 52 percent with 135,000 sqm in new and expansion leases signed.

“We have sufficient balance sheet capacity to prudently fund our growth initiatives,” Mr Schwartz said.

GLP has US$1.8 billion in cash on its balance sheets, with a net debt to total assets ratio of 22 percent.

In response to a question during a conference call on the company’s impact to an expected downturn, Schwartz said: “We remain cautious and are monitoring the situation in Europe closely and that is one reason why we are managing a relatively conservative balance sheet.”

Source : Channel NewsAsia – 14 Feb 2012

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