Global Logistic Properties (GLP), the GIC-backed owner of modern warehouses and distribution centres, posted a 62 per cent surge in fourth-quarter net profit to US$247 million (S$342 million), driven by higher asset values.
Revenue for the three months ended March 31 rose 14 per cent to US$227 million, GLP said.
After adjusting for non-recurring items, core earnings for the quarter dropped 5 per cent year on year mainly due to lower contribution from GLP's second US portfolio following its syndication. GLP has retained a 10 per cent stake in it.
Full-year net profit rose 10.4 per cent to a record US$793.7 million. GLP said its development and fund management businesses delivered strong recurring income, with development pre-tax profit of US$266 million and fund fees up 21 per cent to US$181 million.
New and renewal leases were up 35 per cent year on year to 13.3 million sq m, with 6.3 per cent growth in same-property net operating income and 8.9 per cent rent growth on renewal leases. On average, 73 per cent of customers renewed their leases with GLP. The group's average lease ratio stood at 91 per cent as of March 31 - 1 per cent lower quarter on quarter, driven by a lower lease ratio in China.
GLP chief executive Ming Z Mei said: "We exceeded our development targets and our fee-generating capital base continues to grow, delivering higher recurring income from management fees.
"Demand from institutional investors to partner with GLP remains strong and we continue to explore options to grow our fund management platform in new and existing markets, in line with our capital recycling strategy."
GLP started US$2.2 billion of developments and completed US$1.6 billion of projects in its 2017 fiscal year, with average development profit margin of 28 per cent. In the current year, GLP intends to maintain its development pace and start US$2.2 billion of new developments and complete US$1.7 billion worth. It also said it has syndicated about 50 per cent of its third US portfolio acquired last December. The remaining committed capital partners are expected to fund their share of about 40 per cent by July upon the receipt of regulatory approvals, with GLP expected to retain a stake of less than 10 per cent.
On its strategic review, GLP reiterated it is in talks with shortlisted buyout bidders and is doing due diligence. The board has proposed a final dividend of six cents a share, in line with last year's payout.
