Background: GLP is a market leader in developing, owning, managing and leasing logistics facilities in China and Japan. GLP has a presence in 20 China cities with 8m sqm of GFA, and 7 cities in Japan with 2.8m sqm of completed GFA. Singapore’s GIC has a 50.6% shareholding in GLP.
Recent development: GLP recently announced the formation of a Japan Development Fund together with the Canada Pension Plan Investment Board (CCPIB). GLP and CCPIB will each chip in US$250m in equity over three years, and the fund may eventually have an AUM of US$1b.
Key ratios…
Price-to-earnings: 7.6 x
Price-to-NTA: 1.1 x
Dividend per share / yield: NIL / 0%
Net gearing: 0.3 x
Share price (S$) S$1.77
Issued shares (m) 4,595.6
Market cap (S$ m) 8,134.4
Free float (%) 41.1%
Recent fundraising activities Oct 2010: IPO at $1.96/share, 1,173.2m new shares
Financial YE 31 March
Major shareholders GIC 50.6%, Lone Pine Capital 8.3%
YTD change -18.1%
52 week px range S$1.56-S$2.33
Our view
Platform for development activities in Japan. The Japan Development Fund will be GLP’s exclusive vehicle for logistics development in Japan. GLP will be building multi-tenanted and build-to-suit facilities mainly in the greater Tokyo and Osaka areas. The first potential development site in Tokyo has already been identified. In addition, the Fund allows GLP to earn asset management, development and potential incentive fees, while still enjoying part of the attractive development margins and property cashflow.
Leveraging its Japan market leadership. GLP also plans to raise its rents in Japan, because there is still a shortage of newer storage and distribution facilities. Its Japanese portfolio is enjoying a 99% occupancy rate and GLP plans to increase rents by 5-10%, as demand for modern space has actually increased after the devastating earthquake in March.
Flurry of tie-ups in China. On Aug 11, GLP acquired a 90% stake in the holding company of Vailog Jiading Distribution Center and Vailong Songjiang Logistics Park for US$60.2m. The portfolio has a total NLA of 150,228 sqm and both properties are about 20km away from Shanghai’s Hongqiao International Airport. Two days earlier, GLP had taken a strategic 49% stake in Shanghai Yupei Group for US$53.6m. Yupei’s portfolio comprises four logistics/industrial parks located within the Yangtze River Delta Region with a total NLA of 252,943 sqm.
No comments:
Post a Comment