GLP’s Q3 net profit skyrockets 63.8% to $260.7m

Thanks raised contributions from associates and JVs.

Global Logistics Properties (GLP) closed the third quarter of FY16 with a net profit of US$184.2m, or about $260.7m, reflecting a whopping 63.8% YoY surge.

According to a report by OCBC, this is thanks to increased contributions from its associate and joint venture companies, gains from the syndication of its 45% interest in GLP US Income Partners I in October 2015, as well as raised value gains on its properties, partially offset by increased finance expenses as GLP recognized mark-to-market losses of foreign exchange contracts and recorded higher interest expense from its USD MTN.

On an ex-valuation basis, net profit for the quarter climbed about 26% YoY to US$83m, from 3QFY15’s US$66m.

GLP management reiterated that domestic consumption in key markets, which remains stable even in times of sluggish economic growth, boosted 90% of its overall portfolio growth. The company’s China lease ratio stood at 88% as at end of the quarter, while same-property net operating income growth and effective rent growth on renewal leases climbed up 7.1% and 2.5% YoY respectively.

Meanwhile, China asset values saw growth as cap rates dipped 25 bps in mid-tier cities while 1.4m sqm of new and renewal leases were inked in the quarter, reflecting a 27% YoY jump. Same-property NOI inched up in Japan (2.2%), Brazil (7.2%), and the US (8.1%) over the quarter.