Will a weak development pipeline sink GLP in FY17?

Its dominance in the market is key.

A decreased development pipeline is not enough to faze Global Logistics Properties (GLP), as analysts assert that the firm’s underlying business will remain stable.

According to a report by DBS, in FY17, the underlying business remains stable with an increased lease ratio of 92%, as well as decent growth in rents on renewals.

In addition, GLP’s dominant position in the respective markets and modern facilities is an advantage in a competitive landscape.

Further, as at end-FY16, AUM of GLP’s fund management platform jumped to US$35b. On top of this, GLP has another US11b of uncalled capital to be deployed.

Given that the platform is highly scalable and an ROE-enhancing business arm of the group, management is focusing on boosting returns and operational scale by setting up new funds.