GLP’s earnings surge 48% to $992.94m in FY16

Thanks to raised China profits, completed Japan projects.

Global Logistics Properties (GLP) profit after tax and minority interests (PATMI) has soared 48% YoY to US$719m ($992.94m) in FY16. This is largely due to increased China earnings, Japan project completions, and contribution from GLP’s US business.

According to the company’s press release, China earnings for the fiscal year spiked 30% thanks to increased asset values, rent growth, and sustained lease up of developments. Japan share results climbed 21% on back of increased development completions.

Further, GLP has syndicated 66% of its second US portfolio to three leading global institutional investors, and bagged proceeds of US$1.3b in April this year. The group states it intends to fully syndicate the rest of the US$4.7b portfolio soon and maintain a stake of less than 10%.

For Q4, GLP’s profits came in at US$153m, reflecting a 46% YoY growth. This includes a net forex loss of US$8m.

The group also recommends a 9% YoY climb to $6 cents per share in the payment of ordinary dividends, subject to shareholders’ approval.

Meanwhile, leasing remained stable in FY16, as 9.8m sqm of new and renewal leases were inked, which marks a 23% YoY surge. Average lease ratio came in at 92% as of 31 march 2016, and same-property net operating income grew 6.9% for the year.

GLP further notes that 90% of the its portfolio is occupied by businesses focused on domestic consumption, which historically has remained relatively stable even during sluggish economic growth.

Looking forward, GLP expects to continue growing its natural hedge policy of financing its operations in local currency including the possibility of rolling out RMB-denominated bonds in China in the near future.