Brokers' Take

Global Logistic Properties > Hold (Downgrade) OCBC Investment Research, Feb 10 Target price: S$2.87 Feb 10 price: S$2.76

Q3 FY17 Patmi (profit after tax and minority interests) fell 7 per cent y-o-y to US$171 million mainly due to the absence of a one-time syndication gain related to GLP's first US portfolio in Q3 FY16 and foreign exchange losses in Q3 FY17 ... Adjusted for non-recurring items, core earnings and same-property net operating income rose 22 per cent and 7 per cent, respectively, as scale of operations and fund management platform continues to grow. We deem these results to be mostly within expectations.

After updating our valuation model with the latest financials and being cognisant of a potential sale ahead as an option under the strategic review, we update our fair value estimate to our RNAV of S$2.87. While we are positive on GLP's long term fundamentals, we ... believe it could be judicious for long-time investors to take some profits off the table after a breathtaking 57 per cent rally since Nov 16.