15-02-2011, 08:02 AM
Business Times - 15 Feb 2011
GLP posts Q3 profit of US$83.4m
It reverses loss of US$307.9m a year earlier when it saw a fair-value deficit
By FELDA CHAY
GLOBAL Logistic Properties (GLP), which was listed on the Singapore Exchange mainboard in October last year, yesterday announced a net profit of US$83.4 million for the third quarter ended Dec 31, 2010, reversing the US$307.9 million loss it incurred a year earlier as a result of a fair-value deficit.
For the comparative three months ended Dec 31, 2009, GLP recorded a net fair-value loss of US$387.4 million, attributed mainly to declining property prices in Japan. This compares with a net fair value gain of US$11.8 million for the three months ended Dec 31, 2010, contributed in part by the strengthening of the Japanese yen against the US dollar.
Revenue for the three months to Dec 31, 2010, rose 12.9 per cent to US$125.2 million. GLP, which operates warehouses and logistic facilities in China and Japan, said this was helped by the completion and stabilisation of its development projects in China.
Earnings per share for the period was 2.09 US cents, compared with a loss per share of 17.66 US cents a year earlier.
On a nine-month basis, net profit was US$656.8 million, against a loss of US$309.7 million for the previous corresponding period. Revenue increased by 13.8 per cent to US$349.4 million due mainly to better operational performance of properties in China and Japan, as well as the strengthening of the Japanese yen against the US dollar.
The group's results, which were announced yesterday before the market opened, sent its shares up as much as six cents to S$1.99, on a day when the market also saw a broad recovery. The stock ended the day three cents higher at S$1.96.
Commenting on the group's financial performance, GLP deputy chairman Jeffrey Schwartz said: 'We are seeing increasing demand for efficient and high-quality logistics facilities in China, especially as domestic consumption grows across the country.'
A scarcity of modern logistic facilities in Japan, in particular in prime locations, bodes well for the group's business there, he added. 'GLP is in a good position to satisfy this demand from our portfolio as Japanese manufacturers outsource their logistics function in order to run their core operations more efficiently. 2011 will be an exciting year as the supply and demand dynamics in Japan looks set to make development attractive,' said Mr Schwartz.
Revenue from China for the quarter surged 41.7 per cent from a year earlier to US$23.4 million, while turnover from Japan grew 7.8 per cent to US$101.8 million.As at Dec 31, GLP had cash and cash equivalents of US$1.8 billion, as opposed to US$393 million a year earlier. Net asset value per ordinary share at end-Dec was US$1.43, versus 90 US cents as at March 31 last year.
GLP posts Q3 profit of US$83.4m
It reverses loss of US$307.9m a year earlier when it saw a fair-value deficit
By FELDA CHAY
GLOBAL Logistic Properties (GLP), which was listed on the Singapore Exchange mainboard in October last year, yesterday announced a net profit of US$83.4 million for the third quarter ended Dec 31, 2010, reversing the US$307.9 million loss it incurred a year earlier as a result of a fair-value deficit.
For the comparative three months ended Dec 31, 2009, GLP recorded a net fair-value loss of US$387.4 million, attributed mainly to declining property prices in Japan. This compares with a net fair value gain of US$11.8 million for the three months ended Dec 31, 2010, contributed in part by the strengthening of the Japanese yen against the US dollar.
Revenue for the three months to Dec 31, 2010, rose 12.9 per cent to US$125.2 million. GLP, which operates warehouses and logistic facilities in China and Japan, said this was helped by the completion and stabilisation of its development projects in China.
Earnings per share for the period was 2.09 US cents, compared with a loss per share of 17.66 US cents a year earlier.
On a nine-month basis, net profit was US$656.8 million, against a loss of US$309.7 million for the previous corresponding period. Revenue increased by 13.8 per cent to US$349.4 million due mainly to better operational performance of properties in China and Japan, as well as the strengthening of the Japanese yen against the US dollar.
The group's results, which were announced yesterday before the market opened, sent its shares up as much as six cents to S$1.99, on a day when the market also saw a broad recovery. The stock ended the day three cents higher at S$1.96.
Commenting on the group's financial performance, GLP deputy chairman Jeffrey Schwartz said: 'We are seeing increasing demand for efficient and high-quality logistics facilities in China, especially as domestic consumption grows across the country.'
A scarcity of modern logistic facilities in Japan, in particular in prime locations, bodes well for the group's business there, he added. 'GLP is in a good position to satisfy this demand from our portfolio as Japanese manufacturers outsource their logistics function in order to run their core operations more efficiently. 2011 will be an exciting year as the supply and demand dynamics in Japan looks set to make development attractive,' said Mr Schwartz.
Revenue from China for the quarter surged 41.7 per cent from a year earlier to US$23.4 million, while turnover from Japan grew 7.8 per cent to US$101.8 million.As at Dec 31, GLP had cash and cash equivalents of US$1.8 billion, as opposed to US$393 million a year earlier. Net asset value per ordinary share at end-Dec was US$1.43, versus 90 US cents as at March 31 last year.
