Global Logistic Properties’ profit plunged 24% to $273.4m

Blame it on forex losses.

Global Logistic Properties Limited’s net profit collapsed to S$273.4 million (US$203 million) in 1QFY17, 24% smaller than S$256.0 million (US$190 million) in the previous corresponding period. This was due to the company’s forex losses and lower revaluation gains.

Despite the profit decline, GLP’s results showed that group revenue for the quarter crept up 9% YoY to S$278.9 million (US$207 million) while core earnings increased 7% YoY to S$196.7 million (US$146 million), fuelled by expansion of overseas operations and fund management in China, Japan and US.

According to GLP, however, lease ratio in China slipped 1ppt to 86% compared to the previous quarter. In Japan, leasing of development projects was strong while the US portfolio performed better with rent growth of 20.7% on renewal leases. Same-property net operating income was up 2.1% and 7.2% in Japan and US respectively.

Amidst nearly flat group performance, GLP CEO Ming Z. Mei believes the company is gaining from long-term structural trends in domestic consumption.

“We will maintain strong investment discipline and focus on markets with high customer demand and limited supply. Demand from institutional investors to partner with GLP remains strong, and we will continue leveraging our fund management platform for strategic expansion,” Mei added.