SINGAPORE - Global Logistic Properties (GLP) reported on Friday (Aug 12) a 24.3 per cent drop in net profit for the first quarter largely due to foreign exchange losses and lower revaluation gains compared to a year earlier.
Earnings for the three months to June 30 came in at US$202.9 million from US$268.1 million a year ago.
But core earnings, adjusted for non-recurring items, were up 7 per cent year-on-year, driven by growth in China operations and continued expansion of GLP's fund management platform in Japan and the US.
Revenue grew 8.6 per cent to US$206.6 million from US$190.2 million a year ago.
This was largely due to the completion and stabilisation of development projects in China with increasing rents, and increase in management fee income from the inclusion of GLP US Income Partners II and growth in development activities in Japan, said GLP.
But the increase was partially offset by the ongoing rents adjustment in China resulting from the transition of business tax to value-added tax regime and the weakening of the Chinese Renminbi against the US dollar, with average rates decreasing by 6.5 per cent, said the company.
Net finance costs also rose to US$70 million from US$13.8 million a year ago.
GLP said renewal leases signed in the first quarter rose 17 per cent year on year. Rent growth on renewed leases was up 9.6 per cent globally, led by US and China. Customer retention remained stable at 71 per cent but slower leasing of development projects in China and Brazil led to a 1 per cent drop in GLP's average lease ratio, which stood at 91 per cent as of June 30.