Brokers' take

Global Logistic Properties | Add

July 22 close: S$2.60

Target price: S$3.31

CIMB Research, July 21

GLP has set up China Logistics Fund II (CLF II) with a potential assets under management (AUM) of US$7 billion. GLP China will take a 56 per cent share and the remainder are taken by 7 institutional investors. This will enable the group to bring in new capital sources while creating more development value as well as expanding its fund management platform (total AUM +36 per cent to US$27.1 billion).

In our view, this move will raise fee income and impact earnings and revised net asset value (RNAV) from FY 2018 onwards when the fund ramps up its activities. Hence, we increase our 2017-18 earnings per share estimates by 1.4-4.4 per cent to factor in the higher recurrent income str…