GLP suddenly slashes China development targets due to leasing market weakness

Targets have been pushed back by almost a year.

Global Logistics Properties has suddenly cur its development targets in China for FY16, a report by Barclays revealed.

The report said that targets are being pushed back by 9-12 months to preserve rent and occupancy growth after GLP suffered some tenant leasing weakness in June.

"After witnessing some tenant move-outs in June, management cut the targets for development starts and completions in China in FY16 by 23% and 21% to US$1.7bn and US$1.1bn, respectively. The US$1.7bn development starts implies a 5% y/y development start growth, disappointing compared with previous guidance of 31%," Barclays noted.

“While GLP has seen minimal move-outs in July and continued strong leasing in July, management decided to trim FY16E development starts and completions targets for prudence and not compromise on future rent growth and occupancy. Lease ratio was down 3ppt to 88%, partly due to newer properties being added into ‘stabilised properties’ every quarter by definition. As GLP has seen strong leasing in July, management expects lease ratio to recover to 90% in FY16,” the report added.

Also Read

Food factory at 30 & 32 Tuas Avenue 12 up for sale for $19.0m

CICT NPI rises 6.3% YoY to $293.7M in 1Q24

Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!

I want to download the media kit