GLP has reported revenues of US$262m for the three months ended 30 June 2017 (Q1 FY18) which represents a 27% increase versus the prior year. 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.
Q1 FY18 earnings were US$144m, 29% lower year-on-year, due to lower revaluations this quarter. Earnings excluding revaluations were up 131%, due to foreign exchange movements.
The Group’s new and renewal leases increased 35% year-on-year to 3.3m sq m (36m sq ft), with approximately 72% of customers renewing their leases with GLP. Rent growth remained healthy, with the Group recording 5.2% growth in same-property net operating income and 7.7% rent growth on renewal leases.
GLP’s stabilized logistics portfolio lease ratio in China was 84%, down from 85% last quarter, driven by a lower lease ratio of development properties that stabilized in Q1 FY18. As a result, the Group’s average lease ratio stood at 90% as of 30 June 2017, 1% lower quarter-on-quarter.
GLP’s development program is driven by customer demand. In Q1 FY18, the Group started US$226m and completed US$252m of development projects. This represents 11% and 15% of Group development starts and completions targets respectively. Development is historically lower in the first quarter due to seasonality but generally picks up in the second half of the financial year. The company expects to meet its FY18 global development targets of US$2.2bn of development starts and US$1.7bn of development completions.
Ming Z. Mei, Chief Executive Officer of GLP, said: “With retail and consumption patterns changing, both opportunities and challenges are ahead for the modern logistics business. We continue to position our business for long-term growth by creating a logistics ecosystem that can better serve our customers. 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.”
GLP continues to look for opportunities to grow the platform in new and existing markets, including a potential new China income fund and potentially expanding into Europe.
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