GLP's Q4 net down 34.5% to US$105m

Singapore

GIC-BACKED Global Logistic Properties (GLP) on Thursday reported a 34.5 per cent fall in net profit to US$104.86 million for the final quarter ended March, from US$159.98 million in the year-ago period.

The group - which provides logistics facilities in the US, Japan, China and Brazil - said the poorer showing in its bottom line was largely due to higher non-controlling interests' share of profits following the completion of investment by the consortium of investors to own a 33.8 per cent stake in GLP China, higher operating expenses arising from an increased property portfolio, and business expansion as well as higher income-tax expenses.

Revenue for the quarter was up 6.2 per cent to US$166.76 million from US$156.97 million in the year-ago period, mainly due to the completion and stabilisation of development projects in China with increasing rents, and the inclusion of one month's management fee revenue from GLP US Income Partners I.

However, the increase in turnover was partially offset by the sale of 11 properties in Japan to GLP J-Reit in March 2014 and September 2014 as well as the weakening of the Japanese yen against the US dollar.

Earnings per share for the quarter was 2.01 US cents while net asset value per share was US$1.81. A final one-tier, tax-exempt dividend of 5.5 Singapore cents per share was declared - an increase of 22 per cent over a year ago.

Revenue for the year ended March was up 13.3 per cent at US$708.01 million. Meanwhile, the group's net profit was down 29 per cent at US$486.2 million, with earnings per share of 9.41 US cents.

The group's fund management as at end-March 2015 was US$20 billion, up 80 per cent year-on-year. Of this amount, US$16.5 billion has already been invested. Based on the assets under management and fee structure of its existing fund platform, GLP said it could generate annual fund fees of US$150 million.

China, which GLP considers its main growth market for development, remains the group's largest market, representing 56 per cent of GLP's pro-forma net asset value as end-March 2015. Japan accounted for 22 per cent, Brazil 6 per cent and US would be 4 per cent following the selldown of GLP's stake in GLP US Income Partners I.

In a note on Thursday, GLP said its markets have "attractive supply-and- demand dynamics for logistics facilities in the medium and long term". The group believes that operating in multiple countries with their different currencies provides it a "natural hedge" against foreign exchange exposure.

On Thursday, the counter closed trading down 0.37 per cent at S$2.70.