GLP 2Q12 PATMI Increased 135% to US$201 Million

• China 2Q12 revenue increased 74% year-on-year
• Achieved strong operational performance in 1H12 with 1.2 million square metres of new and expansion space leased, up 84% year-on-year in China
• 923,000 square meters of development starts in 1H12 in China to meet customer demand

 

US$ million	3-month ended Sep 2011            (2Q12)	3-month ended Sep 2010            (2Q11)	Change	6-month ended Sep 2011            (1H12)	6-month ended Sep 2010            (1H11)	Change
Revenue	139	116	20%	268	228	18%
EBIT excluding revaluation	102	90	14%	198	179	11%
EBIT	222	102	118%	345	667	(48%)
PATMI excluding revaluation	103	74	39%	177	146	21%
PATMI	201	85	135%	298	573	(48%)

 

Singapore, November 10, 2011 - Singapore, November 10, 2011 - Global Logistic Properties Limited (“GLP”), the market leader in modern logistics facilities in China and Japan, grew PATMI by 135% to US$201 million for the three months ended September 30, 2011 (“2Q12”). The strong financial performance was boosted by the completion and stabilisation of GLP’s development projects in China and favourable currency translation. 

2Q12 Group PATMI (excluding revaluation) increased by 39% year-on-year to US$103 million. The gain in fair value of investment properties amounted to US$90 million and US$31 million for subsidiaries and jointly-controlled entities (net of tax) respectively, driven by rental growth and stabilisation of developments in China. 

2Q12 Group EBIT (excluding revaluation) increased 14% year-on-year to US$102 million. In China, EBIT (excluding revaluation) rose 76% year-on-year to US$22 million, driven by completion and stabilisation of development projects as well as new acquisitions. In Japan, EBIT (excluding revaluation) grew by 11% year-on-year primarily due to the strengthening of the Japanese Yen against the U.S. Dollar.

Mr. Jeffrey H. Schwartz, Deputy Chairman and Chairman of the Executive Committee of GLP said: “We are pleased with this excellent set of results. Despite the economic headwinds in Europe and North America, our Asia based business was able to achieve strong growth in revenue and profit. Leasing momentum has accelerated and we see robust demand, across the portfolio, we signed 1.2 million square metres of new and expansion leases in the first half of the year. However, we will continue to monitor the market closely and will adjust our strategy according to market conditions, should they change.”

Operating Portfolio Metrics
GLP continues to see strong operational momentum. For the three months ended September 30, 2011, new and expansion leased area was 672,000 square metres in China, an increase of 108% compared to the same period last year. For the six months ended September 30, 2011, new and expansion leased area was 1.2 million square metres in China, an increase of 84% compared to the same period last year. GLP initiated development starts totalling 923,000 square metres and stabilised[ Stabilisation refers to properties completed for than one year or have achieved a lease ratio of above 93%, whichever is earlier.] 1.1 million square metres of developments in China in 1H12.

Stabilised logistics lease ratios remained healthy in both countries, with China reaching 91% while Japan remained stable at 99%.

Capital Markets Activities
For the six months ended September 30, 2011, GLP completed the refinancing of JPY89.3 billion (US$1.2 billion) Japan debt, representing 35% of GLP’s overall debt in Japan. Besides lowering interest costs, the debt maturities have also been extended by an average of 4.8 years.

In addition, GLP has been acquiring strategic assets to enhance its “Network Effect”. During the quarter, GLP entered into agreement to establish a joint venture with Zhejiang Transfar Road-Port Development Co., Ltd, the leading developer of the road port platform in China. Besides adding GFA of 951,354 square metres to its portfolio, the partnership will bring significant logistics cost savings to GLP’s customer base and create attractive opportunities for future development. Over in Japan, GLP has started work on its first development, Misato III, as a part of the Japan Development Fund a 50/50 joint venture with Canada Pension Plan Investment Board (“CPPIB”) to develop modern logistics facilities in Japan. Each partner will invest US$250 million of equity over a projected three year investment horizon. 

Mr. Ming Z. Mei, Chief Executive Officer of GLP, said: “We are excited by the growth opportunities in China and Japan. We recently completed a customer survey in China which highlighted that our customers are optimistic about future growth and logistics demand. 80% of our customers surveyed forecasted over 10% business growth next year and 79% expected over 25% growth in logistics space over the next three years. We are also focused on initiatives that will enable us to serve our customers better as we continue to grow our portfolio while providing superior services within the logistics value chain. Our recent strategic partnership with Transfar Road-Port will allow us to expand our extensive logistics network in China and bring cost savings to our tenant base. In Japan, we are delighted to work with CPPIB to develop high quality, modern logistics facilities.”

Earnings Call Information
A teleconference for investors and analysts is scheduled on Thursday, November 10th at 6.00pm Singapore time.  The dial in number is +65 6722 6342 and the conference ID is 18298173. 

About Global Logistic Properties (www.glprop.com)
Global Logistic Properties (GLP) is Asia’s largest provider of modern logistics facilities. It owns, manages and leases out 380 completed properties in 133 logistics parks spread across 28 major cities in China and Japan, forming an efficient logistics network with properties strategically located in key logistics hubs, industrial zones and urban distribution centres. By providing flexible solutions of Multi-tenant, Build-to-suit and Sales-and-leaseback, GLP is dedicated to improving the supply chain efficiency for strategic expansion goals of the most dynamic manufacturers, retailers and 3rd party logistics companies in the world. The Group was listed on the Mainboard of Singapore Exchange Securities Trading Limited on October 18, 2010 (Stock code: MC0.SI).

Investor Relations & Media Team
Email: investor.relations@glprop.com
 
Ambika Goel, CFA
SVP- Capital Markets and Investor Relations    
Tel: +65 6643 6372
Email: agoel@glprop.com

For the full Global Logistic Properties Limited Financial Statements announcement, please visit our website: www.glprop.com

 

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