GLP sees longer-term benefit from Chinese investment

GLOBAL Logistic Properties (GLP) registered a 12 per cent drop in net profit to US$179.4 million for its first quarter ended June 30, while revenue rose 18 per cent to US$169.3 million.

The revenue of the logistics facility provider, 36 per cent owned by Singapore's GIC, rose on the back of higher rents and a continued lease-up of development projects in China.

But earnings fell due to several factors, chiefly its continual contribution of assets into its Japanese Reit, GLP J-Reit, which siphons rental income away from the parent company's bottom line. This quarter also saw an absence of foreign-exchange gains which it enjoyed a year ago because it had hedged the yen when selling a tranche of properties to the Reit before the currency weakened.