Global Logistic Properties Q4 profit falls 34.5% to US$105 million

SINGAPORE - Mainboard-listed Global Logistic Properties (GLP) posted a 34.5 per cent fall in net profit to US$104.86 million for the fourth quarter ended March 31, 2015, from US$159.98 million for the same period a year ago.

GLP, which provides modern logistics facilities in China, Japan, Brazil and the US, said the lower net earnings were mainly due to higher non-controlling interests' share of profits following the completion of investment by the consortium of investors to own a 33.8 per cent stake in GLP China, higher operating expenses arising from an increased property portfolio and business expansion and higher income-tax expenses.

Revenue for the quarter rose 6.2 per cent to US$166.76 million from US$156.97 million in the year-ago period, mainly attributable to the completion and stabilisation of development projects in China with increasing rents, and the inclusion of one month's management fee revenue from GLP US Income Partners I.

For the full year, net profit declined 29 per cent at US$486.2 million, while revenue was up 13.3 per cent at US$708.01 million on the back of strong China operational results and further expansion of GLP's fund management platform.

Looking ahead, GLP said its markets have attractive supply-and-demand dynamics for logistics facilities in the medium and long term.

It added: "GLP remains mindful of the near-term challenges in the local and global economic environments. The company believes its market leading positions, strong management team and solid balance sheet position is well for continued profitable growth."

Earnings per share for the fourth quarter was 2.01 US cents while net asset value per share was US$1.81.

A final one-tier tax-exempt dividend of 5.5 Singapore cents per share was declared, an increase of 22 per cent over last year's.

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