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Singapore-based Global Logistic Properties (GLP) announced on Thursday (9 February) that its revenue increased 17 percent year-on-year to US$232 million during the quarter ended 31 December 2016 (Q3 FY2017).
However, net profit fell seven percent to US$171 million compared to the corresponding period in 2015. The drop is mainly due to a one-time syndication gain in Q3 FY2016 involving the group’s first US portfolio. There were also higher non-cash accounting foreign exchange losses during the period under review.
For the first three quarters of FY2017, GLP’s revenue climbed 13 percent to US$653 million on an annual basis, while net profit fell three percent to US$547 million.
At the same time, its same-property net operating income (NOI) rose 6.9 percent, while new and renewal leases soared 42 percent to 36 million sq ft, an indication that there continues to be a strong appetite for the group’s logistics facilities.
“Demand for GLP’s logistics facilities remains robust globally, with new and renewal leases up 42 percent year-on-year,” said its CEO Ming Z. Mei, adding that its new developments are proceeding at a healthy pace.
In Q3 FY2017, GLP started US$294 million worth of developments and completed US$337 million in projects. Since its founding, it has met 56 percent and 68 percent of its starts (US$2.1 billion) and completion (US$1.5 billion) targets respectively, while posting a development profit margin of 29 percent.
For the whole of FY2017, the group remains on track to achieve US$200 million in development profit, as it has already clocked US$181 million during the first three quarters.
Romesh Navaratnarajah, Senior Editor at PropertyGuru, edited this story. To contact him about this or other stories, email romesh@propertyguru.com.sg
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