Global Logistic Properties - DBS Research 2016-01-06: A leader in its field

Global Logistic Properties - DBS Research 2016-01-06: A leader in its field GLOBAL LOGISTIC PROP LIMITED MC0.SI 

Global Logistic Properties - A leader in its field 

Leverage into China’s rapidly growing e-commerce sector. 

  • We maintain BUY on Global logistics Properties (GLP) with TP of S$2.73, pegged at 20% discount to RNAV. 
  • With the largest portfolio of modern logistics warehouses in China, GLP remains on the front seat to benefit from China’s rising consumerism and thriving e-commerce outlook. 

Robust development pipeline in FY16 and beyond 

  • The group is targeting US$3.4bn in development starts in 2016, which is 30% higher y-o-y. 
  • The group is also expecting US$2.3bn of development completions, which is almost 92% higher y-o-y. 
  • For development starts, c.64% will be in be China, 28% in Japan and the remainder in Brazil. In total, the group has a development pipeline of US$6.5bn (GLP’s share: US$2.9bn) to drive earnings over the next 3 years. 

AUM of fund management platform rose to S$20bn 

  • As of end Mar-15, total AUM rose to US$20bn, and the group has another US$3.5bn of uncalled capital to be deployed. Given that this business is a highly scalable and ROE enhancing business arm of the group, management is focusing on driving returns and operational scale through establishing new funds. 
  • In the immediate term, GLP has recently launched a new US$7bn China development fund (CLF II) primarily looking at development opportunities in China. This will further entrench its market leader position within the logistics warehouse space in China. 


  • We maintain our BUY call, with target price maintained at S$2.73, based on a 20% discount to RNAV. 

Key Risks to Our View: 

  • A faster than expected ramp up in competing supply on the back of a slowdown retail sector in China, impacting on demand for logistics warehouses.

Derek Tan DBS Vickers | Mervin SONG DBS Vickers | http://www.dbsvickers.com/ 2016-01-06
DBS Vickers SGX Stock Analyst Report BUY Maintain BUY 2.73 Same 2.73