SINGAPORE - GLP, a global provider of modern logistics facilities, reported a 64 per cent increase in profit after tax and minority interests (PATMI) to US$184 million (S$260.5 million) for the quarter ended Dec 31, from US$112 million a year ago, on the back of higher earnings in China, development gains in Japan and its entry into the US market.

Said GLP CEO Ming Z Mei: "Despite the uncertain economic environment, demand for modern logistics facilities continues to be driven by long-term, structural trends in domestic consumption. We signed 2.4 million sq m (26 million sq ft) of new and renewal leases in 3Q FY16, up 22 per cent year-on-year. Our fund management platform continues to deliver solid results, increasing our return-on-equity. We remain focused on executing our strategy of being the best operator, creating value through developments and expanding our fund management platform."

China earnings were up 50 per cent, driven by higher asset values, rent growth and continued lease up of developments, while Japan was up 34 per cent on the back of higher development completions.

GLP's average lease ratio remained unchanged quarter-on-quarter at 93 per cent, with customer retention ratio at 69 per cent, up from 63 per cent last quarter. GLP said 90 per cent of its portfolio is occupied by businesses geared towards domestic consumption, which remains relatively stable even in times of slower economic growth.

Same-property net operating income was strong across all of its markets, with China up 7.1 per cent, Japan up 2.2 per cent, Brazil up 7.2 per cent and US up 8.1 per cent in the quarter.

GLP started US$826 million of new developments in the third quarter, meeting 55 per cent of its full-year development starts target of US$2.9 billion.

During the same period, GLP completed US$516 million of developments with an approximate value creation margin of 27 per cent. This translated to US$67 million of pre-tax development gains for GLP.

GLP said it has met 66 per cent of its full-year development completions target of US$2.0 billion and remains confident of meeting its FY16 guidance as it continues to capture customer-driven demand.

During the period, GLP acquired a 15.5 per cent stake in China Materials Storage and Transportation Development Company and will also establish a development joint venture, giving it access to CMSTD's land resources of more than 9 million sq m

GLP said its fund management revenue in 3Q FY16 increased 19 per cent year-on-year to US$37 million. This comprised asset and property management fees of US$26 million and development fees of US$11 million from approximately US$22 billion of invested capital. GLP has US$10 billion of uncalled capital to be invested over the next three to four years, which will further increase the fees earned through its fund management platform.