Thursday, November 15, 2012

Global Logistic Properties - A step closer in going global

2Q13 core is in line at 26% of our FY13 and 24% of consensus. GLP will be entering Brazil through 

two JV funds. Taken with its planned J-REIT, AUM looks set to balloon − a strong positive − though 

the deal comes with higher risk premiums and equity fund raising. 1H13 core EPS forms 52% of our 

FY13 number. We raise our FY13-15 core EPS by 8-12% for this Brazilian deal but note that NPI 

could plunge once its J-REIT is established. We lift our RNAV-based target price but remain Neutral 

in view of limited upside from its Brazilian and J-REIT initiatives.

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