GLP Q2 net profit slides 38% on higher non-operating losses and tax expense

GLOBAL Logistic Properties' (GLP) net profit for the second quarter ended September fell 38 per cent to US$89.5 million from US$145 million a year ago on the back of higher tax and non-operating losses.

Revenue rose 32 per cent to US$193 million from US$147 million mainly due to the inclusion of the Brazil portfolio, completion and stabilisation of development projects in China with higher rents. This was partially offset by the sale of 11 properties in Japan to GLP J-Reit in March and September and the weakening of the Japanese yen against the US dollar, said the firm in an announcement on the Singapore Exchange.

Earnings per share fell to 1.68 US cents from 2.87 US cents. No dividend was recommended.

Revenue from mainboard-listed firm's operations in China - the group's biggest income contributor - rose 21 per cent to US$107 million, while it came in marginally lower in Japan at US$56.02 million.

Earnings before income tax from China operations, where it provides modern logistic facilities, grew 7 per cent to US$177 million, primarily due to an increase in fair value gain from the reassessment of certain property values and improvement in profits from operating activities.

Saying that China, Japan and Brazil have attractive supply and demand dynamics for logistics facilities in the medium and long term, GLP added that it remained mindful of the near-term challenges in the local and global macro environments.

GLP's fund management platform currently stands at US$13.2 billion, up 23 per cent year-on-year.