GLP posts 29% fall in Q1 profit on lower revaluations

Global Logistic Properties Limited's facility in Sao Paulo, Brazil. The company's net profit fell to US$144.2 million from US$202.9 million in the first quarter.
Global Logistic Properties Limited's facility in Sao Paulo, Brazil. The company's net profit fell to US$144.2 million from US$202.9 million in the first quarter.PHOTO: GLOBAL LOGISTIC PROPERTIES

SINGAPORE - Asia's biggest warehouse operator Global Logistic Properties (GLP) reported on Tuesday (Aug 8) a 28.9 per cent fall in net profit to US$144.2 million (S$196.4 million) for the first quarter from US$202.9 million in the year-ago period on lower revaluations.

Core earnings excluding revaluations were stable year-on-year, underpinned by recurring income from operations and the continued expansion of GLP's fund management platform.

Revenue for the three months to end June rose 26.7 per cent to US$261.8 million from US$206.6 million a year ago, due mainly to the revenue from financial services in China, completion and stabilisation of development projects in China with increasing rents, and increase in management fee income from fund management platform.

No dividends were declared for the period.

A Chinese private equity consortium, backed by GLP CEO Ming Z Mei, won a bid last month to acquire GLP and take it private for S$16 billion in Asia's largest private equity buyout. The group is offering S$3.38 in cash per share, representing an 81 per cent premium over GLP's 12-month volume weighted average price and a 25 per cent premium over its last full trading day before the offer announcement.

Said Mr Ming in the earnings announcement: "It is business as usual for GLP. I continue to serve as CEO and our strong local teams remain focused on executing our strategy and further developing our global platform."