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COMMERCIAL PROPERTY, RESIDENTIAL PROPERTY | Tim Charlton, Singapore
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Global Logistic Properties' profit rises 62% to $344.2m

Thanks to higher asset values.

According to OCBC Investment Research, Global Logistic Properties' 4Q17 PATMI increased 62% YoY to US$247.1m ($344.2m) mainly due to higher asset values.

"We saw portfolio cap rates compress over the quarter in Japan, US and Brazil," the brokerage firm said.

However, after adjusting for non-recurring items, 4Q17 earnings fell 5% YoY mainly due to lower contributions from the group’s second US portfolio after its syndication in 2Q17.

In terms of the topline, 4Q17 revenues increased 14.0% to S$226.9m mostly due to rent growth and lease-up after the completion and stabilization of Chinese development projects, financial services income from China and higher fund management fee income.

Here's more from the brokerage firm:

Overall we judge this quarter’s number to be broadly in line with expectations. Management logistic facilities globally, with the group’s average lease ratio at a healthy 91% as at end Mar 2017 (albeit down 1% QoQ due to some weakness in China), and group new and renewal leases up 35% YoY to 13.3m sqm, 6.3% growth in same-property NOI and 8.9% rent growth in renewal leases.

Regarding the ongoing strategic review, GLP reports that it remains in discussion with several shortlisted parties following its evaluation of non-binding proposals received and the due diligence reports continued customer demand for its process is ongoing. Management reiterates that there is no assurance that any transaction will materialize from the review. An ordinary dividend of 6.0 S-cents per share has been proposed.

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