Global Logistic Properties Ltd is a leading provider of modern logistics facilities in China, Japan and Brazil. The group develops, owns and manages a 28 million sqm (301m sq ft) real estate portfolio comprising logistics facilities strategically located across more than 60 cities, forming an efficient logistics network serving more than 800 customers. In addition, through its fund management platform, the group partners with international real estate investors to directly invest in logistics real estate. GLP is poised to benefit from positive e-commerce trends and growing demand for logistics facilities in its key markets. We like the group’s exposure to China’s growth potential, particularly in 3PL, e-commerce and retail given its market-leading position underpinned by strong partnerships with industry leaders and land sourcing capabilities. Rated BUY with a fair value estimate of S$2.99.
Market leader in logistics facilities in China, Japan and Brazil
Global Logistic Properties Ltd (“GLP") is a leading provider of modern logistics facilities in China, Japan and Brazil. The group develops, owns and manages a 28 million sqm (301m sq ft) real estate portfolio comprising logistics facilities strategically located across more than 60 cities, forming an efficient logistics network serving more than 800 customers. In addition, through GLP’s fund management platform, the group partners with international real estate investors to directly invest in logistics real estate. As at end Oct-2014, total assets under fund management stood at US$13.2b (on a fully leveraged and invested basis), and the group continues to foresee healthy demand from capital partners seeking to leverage on GLP’s operational expertise in logistics facilities.
Well positioned to benefit from growth in key markets
GLP is poised to benefit from positive e-commerce trends and growing demand for logistics facilities in its key markets. We like the group’s exposure to China’s growth potential, particularly in 3PL, e-commerce and retail given its market-leading position underpinned by strong partnerships with industry leaders and land sourcing capabilities. In Japan, despite being a developed and mature economy, the country has only begun to improve its supply chains through modern logistic facilities, thus highlighting an opportunity for GLP to fill the market gap. Finally, Brazil’s growing consumer market and its need for supply chain efficiency improvement points to a positive outlook for GLP’s Brazil business.
Rated BUY with S$2.99 fair value estimate
We use a RNAV (revalued net asset valuation) methodology to value GLP and arrive at an estimate of S$2.99 per share. Given GLP’s strong balance sheet position and its exposure to a growing market segment, we opt to apply no discount to its RNAV. Rated BUY with a fair value estimate of S$2.99.
Global Logistic Properties Ltd (“GLP") is a leading provider of modern logistics facilities in China, Japan and Brazil. The group develops, owns and manages a 28 million sqm (301m sq ft) real estate portfolio comprising logistics facilities strategically located across more than 60 cities, forming an efficient logistics network serving more than 800 customers. In addition, through GLP’s fund management platform, the group partners with international real estate investors to directly invest in logistics real estate. As at end Oct-2014, total assets under fund management stood at US$13.2b (on a fully leveraged and invested basis), and the group continues to foresee healthy demand from capital partners seeking to leverage on GLP’s operational expertise in logistics facilities.
Well positioned to benefit from growth in key markets
GLP is poised to benefit from positive e-commerce trends and growing demand for logistics facilities in its key markets. We like the group’s exposure to China’s growth potential, particularly in 3PL, e-commerce and retail given its market-leading position underpinned by strong partnerships with industry leaders and land sourcing capabilities. In Japan, despite being a developed and mature economy, the country has only begun to improve its supply chains through modern logistic facilities, thus highlighting an opportunity for GLP to fill the market gap. Finally, Brazil’s growing consumer market and its need for supply chain efficiency improvement points to a positive outlook for GLP’s Brazil business.
Rated BUY with S$2.99 fair value estimate
We use a RNAV (revalued net asset valuation) methodology to value GLP and arrive at an estimate of S$2.99 per share. Given GLP’s strong balance sheet position and its exposure to a growing market segment, we opt to apply no discount to its RNAV. Rated BUY with a fair value estimate of S$2.99.
No comments:
Post a Comment