SINGAPORE - Global Logistic Properties, the GIC-backed owner of modern warehouses and distribution centres, posted a 62 per cent surge to US$247 million (S$344.1 million) in fourth-quarter net profit compared to US$153 million in the year-ago period, driven by higher asset values.
Revenue for the three months to end-March 2017 rose 14 per cent to US$227 million, GLP said on Friday (May 19).
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 continued to deliver strong recurring income in FY2017, 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 square metres (143 million square feet), with a 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, 2017, 1 per cent lower quarter-on-quarter driven by a lower lease ratio in China.
Said GLP CEO Ming Z Mei: "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 during its fiscal 2017 year, with average development profit margin of 28 per cent in FY2017. In FY2018, GLP intends to maintain its development pace and start US$2.2 billion of new developments and complete US$1.7 billion worth.
The company also said it has syndicated approximately 50 per cent of its third US portfolio acquired December 2016. The remaining committed capital partners are expected to fund their share of approximately 40 per cent by July 2017 upon the receipt of regulatory approvals, with GLP expected to retain a stake of less than 10 per cent.
On its ongoing strategic review, GLP reiterated that it remains in discussions with shortlisted buyout bidders and conducting due diligence.
The board has proposed a final dividend of 6 Singapore cents per share, in line with last year's payout.