Thursday, February 07, 2013
Global Logistic Properties - Ramping up in China
GLP’s 3Q13 saw a substantial ramp up in development starts and land acquisitions in China, a sign that excess capital will progressively be deployed into growth. Its recent monetisation of a third of its Japan assets appears timely, mitigating the negative impact of a Yen decline. The 3Q13 result was in line with our estimates at 22% of our full year forecast and 24% of consensus. 9M13 core EPS formed 75% of our full year. We lower our FY13-15 core EPS on asset sales into the JREIT, but lift our RNAV-based target price on accretion from an enlarged China portfolio. Maintain Outperform with catalysts from further asset recycling.