Global Logistic Properties (GLP)

Global Logistic Properties, GIC buy US portfolio for $8.1 bln
SINGAPORE Sun Dec 7, 2014 8:22pm EST

Dec 8 (Reuters) - Global Logistic Properties Ltd on Monday said it had teamed up with Singaporean sovereign wealth fund GIC Pte Ltd to invest $8.1 billion in a U.S. logistics real estate portfolio, its first foray into the United States.

Singapore-listed GLP, which provides logistics facilities in China, Japan and Brazil, said in a statement it would initially hold a 55 percent stake in the venture and GIC would take 45 percent.

GLP added however that it would cut its stake to 10 percent by August 2015 as it had received interest from investors looking at the U.S. logistics market.

"This transaction gives us immediate scale as well as the best team in the U.S. logistics market," GLP co-founder and chief executive officer Ming Z. Mei said.

GLP and GIC are taking over the portfolio from various companies affiliated with the Blackstone Group L.P..

GIC has stepped up its real-estate purchases in recent months, buying office buildings in Tokyo and investing in Australian student accommodation as a way to diversify its portfolio and secure better yields. (Reporting by Rujun Shen; Editing by Stephen Coates)

http://businesstimes.com.sg/companies-ma...s-in-china

GLP signs new lease deals with six third-party logistics providers in China
By Teh Shi Ning tshining@sph.com.sg @TehShiNingBT

6 Jan 6:46 PM
GLOBAL Logistic Properties (GLP), which provides modern logistics facilities in China, Japan and Brazil, has signed new agreements to lease a total of 84,000 square metres (904,000 square feet) of such facilities with six third-party logistics providers in China.....

Bank of America and Hillhouse have come new substantial shareholders while Lone Pine has ceased to be one.

http://infopub.sgx.com/FileOpen/_2015052...eID=354053

http://infopub.sgx.com/FileOpen/_Hillhou...eID=353230

http://infopub.sgx.com/FileOpen/_FORM3_L...eID=353228

For more information of Hillhouse: http://hillhousecap.com/
Interesting Chairman and interesting portfolio.

There is also an article in today's zaobao.

GLP says no deal yet after reports of interest in US$4.5b of US warehouses: http://btd.sg/1C0dr3F

i am looking through the results and have the following questions


(US$ million) 1Q FY2016 1Q FY2015 Change
Revenue 190 169 12%
EBIT 450 273 65%
EBIT exreval 117 113 4%
PATMI 268 179 49%
PATMI exreval 57 61 (7%)


1.) Revaluation of the properties is the key driver. if you strip it out the numbers are not impressive
2.) why are there such high costs related to revaluation? isn't is just pure a paper excercise?

anyone can help to shed some lights?

(31-07-2015, 01:46 PM)sg550319 Wrote: i am looking through the results and have the following questions


(US$ million) 1Q FY2016 1Q FY2015 Change
Revenue 190 169 12%
EBIT 450 273 65%
EBIT exreval 117 113 4%
PATMI 268 179 49%
PATMI exreval 57 61 (7%)


1.) Revaluation of the properties is the key driver. if you strip it out the numbers are not impressive
2.) why are there such high costs related to revaluation? isn't is just pure a paper excercise?

anyone can help to shed some lights?

My view is that the revaluation gain is not merely a paper exercise. The revaluation is a result of warehouse development. GLP acquire land and develop the warehouse. Upon completion of the development, the property value goes up accordingly. This is a key strategy of GLP.

The sell down immediately after the result tells all.

(31-07-2015, 01:46 PM)sg550319 Wrote: i am looking through the results and have the following questions


(US$ million) 1Q FY2016 1Q FY2015 Change
Revenue 190 169 12%
EBIT 450 273 65%
EBIT exreval 117 113 4%
PATMI 268 179 49%
PATMI exreval 57 61 (7%)


1.) Revaluation of the properties is the key driver. if you strip it out the numbers are not impressive
2.) why are there such high costs related to revaluation? isn't is just pure a paper excercise?

anyone can help to shed some lights?

1) The numbers excluding revaluation represent the 'cash earning' from its asset management business and rental income. The revaluation are just paper gains.

2) The revaluation isn't negative. Profit = revaluation gains + recurring profits. Strip out the revaluation gains and you just are left with the low return rental business income.

(02-08-2015, 02:33 PM)touzi Wrote: My view is that the revaluation gain is not merely a paper exercise. The revaluation is a result of warehouse development. GLP acquire land and develop the warehouse. Upon completion of the development, the property value goes up accordingly. This is a key strategy of GLP.

Hi touzi,

Just curious, does GLP announce its redevelopment or enhancement? I noticed MLT does but didn't see the same for GLP (though afaik it is not mandated for GLP to announce).

(vested in MLT)

Sent from my D5503 using Tapatalk

(31-07-2015, 01:46 PM)sg550319 Wrote: i am looking through the results and have the following questions


(US$ million) 1Q FY2016 1Q FY2015 Change
Revenue 190 169 12%
EBIT 450 273 65%
EBIT exreval 117 113 4%
PATMI 268 179 49%
PATMI exreval 57 61 (7%)


1.) Revaluation of the properties is the key driver. if you strip it out the numbers are not impressive
2.) why are there such high costs related to revaluation? isn't is just pure a paper excercise?

anyone can help to shed some lights?

Hi,

The differences are not due to revaluation costs.

The total revaluation gain reflected in EBIT is $333 million which comprises of revaluation gain of $231 million for subsidiaries and $102 million for joint ventures. EBIT of $450 million less revaluation $333 million gives us $117 million as disclosed for EBIT ex-revaluation.

For the PATMI ex-revaluation reconciliation, revaluation gains on subsidiary properties has to be apportioned to the minority interests as well.