GLP

GLP: Announced 3Q12 results, which was saw core earnings below estimates. Rev at US$145m, +19% yoy and +4.3% qoq, while core net profit excluding revaluation gains at US$68m, -7% yoy and -34% qoq. Result brings 9M12 rev to US$412m, +18% yoy and core net profit to US$245m, +12% yoy.

Grp’s higher rev was mainly attributable to the completion and stabilisation of its development projects in China, contribution from ACL, while grp also saw an a net fair value gain of US$ 24.3m, which helped boost bottom-line. However, core bottom-line was impacted by unrealised foreign exchange losses on JPY assets

Going forward, grp remains confident of prospects and note that portfolio continues to deliver solid results and see sustained leasing momentum in China driven by growing domestic demand, with China now contributing to abt 29% of grp’s total rev vs 19% yoy.

We note that balance sheet remains strong, with Leverage ratio at 21.7%, while fundamentals remain strong, with grp’s Jap portfolio at 97% leased and a Wale of 5.4yrs, while China at 91% leased with a Wale of 3.4yrs. At current price, grp trades at 0.95x P/B.

Ratings as follow:
CIMB maintains O/p with $2.27 TP