Global Logistics Properties profit up 57% to $153M

Operational performance flourished in its core Chinese and Japan markets in 1QFY13.

In a release, the Mainboard-listed provider of modern logistics facilities reported solid results for the three months ended 30 June 2012 (“1Q FY2013”) with PATMI of US$153 million, up 57% from the previous year.

"1Q FY2013 revenue grew 32%. The increase was driven primarily by the completion of development projects and operational growth in China with 1Q FY2013 revenue in China increasing 75%. Revenue in Japan was up 18%. The two factors driving these results were: lease cancellation income received from a tenant in Japan (the same space has been subsequently retenanted) and fee income from our growing fund management platform," Global Logistic Properties Limited (“GLP”) said.

"1Q FY2013 Group EBIT and PATMI increased by 54% and 57% respectively. Results were driven by strong operational performance in China, where 1Q FY2013 EBIT rose 229% and PATMI increased 419%. In Japan, EBIT and PATMI grew by 11% and 20% respectively driven by the growth in our fund management platform," it said.

"1Q FY2013 net cashflow generated from operations increased 129% to US$140 million. GLP posted an 18% year-on-year increase in its Net Asset Value (“NAV”) per share. As of 1Q FY2013, 49% of GLP’s NAV is attributable to Japan and 45% to China," it added.

“We are pleased to report further progress. China and Japan both remain attractive markets, with strong demand and a limited supply of modern logistic facilities. Our leading position in these countries and strong teams continue to drive our performance," said Mr. Jeffrey H. Schwartz, Deputy Chairman and Co-Founder of GLP.

“Our balanced portfolio and robust capital structure, further strengthened in July, provide us with a strong foundation for future growth. We remain mindful of global economic conditions but are confident that our focus on the best markets will lead to continued growth in earnings, increased cash flow and long-term shareholder value," he added.

For his part. Mr. Ming Z. Mei, Chief Executive Officer and Co-Founder of GLP, said: “Revenue and earnings in 1Q FY2013 were driven by strong customer demand in our key markets. In China, we signed 277,000 sqm of new and expansion leases, up 38% from the last quarter. Our business in Japan is growing with strong cash flow.

“We continued to build our land bank, with 1.2 million sqm of land acquired for future development in the quarter and we remain on track to meet our target of 2.4 million sqm of development starts in China and Japan in FY2013 – 44% higher than FY2012. Operating cash flow continued to increase, up 129%, demonstrating our commitment to delivering strong shareholder returns as well as facilitating growth for our customers," Mei added.