GLP net profit up 34% in Q2 on higher revenue and forex gain

Higher revenue and foreign exchange gains boosted results for Global Logistic Properties (GLP) in its second quarter.

Net profit went up 33.6 per cent to S$231.3 million from the previous year, the group said in a Singapore Exchange filing on Friday morning.

For the three months ended Sept 30, revenue climbed 31.9 per cent to S$281.7 million from the previous year. The expansion in revenue was mainly due to revenue from financial services in China and from the completion and stabilisation of development projects in China with increasing rents, though this was partially offset by the sale of properties to GLP J-Reit, it said.

The group recorded a net finance income of US$18.6 million in the quarter, compared with a net finance cost of US$31.3 million a year ago, thanks to foreign exchange gains recorded from GLP China's US dollar intercompany loans.

Earnings per share rose to 4.92 Singapore cents from 3.53 Singapore cents in the previous year.

GLP also announced a slew of executive appointments that it said will support its long-term global growth strategy.

It has appointed Heather Xie, who is currently the chief financial officer (CFO), as the chairman and CEO of GLP Financial Services, based in Shanghai.

The new CFO will be Kaz Tsutsumi, who will continue to be global treasurer for GLP and CFO of GLP Japan. This will be effective from Jan 1, 2018.

Chief operating officer Steve Schutte will relocate to Chicago from Singapore, to support the expansion of GLP's business in the US and Europe; he will continue to oversee global operations, GLP said.

The group has also appointed Alan Yang to be the chief investment officer, based in Los Angeles.

"The appointments reflect GLP's commitment to further strengthen its global leadership position in logistics solutions and fund management," said the firm in a press release.