GLP

GLP: Barring a global recession, GLP is confident the China market will help drive its growth and take up a larger share of its portfolio.
Of note, online retail sales in China have doubled every year for the last five years, benefiting e-commerce retailers.
The co is now banking on the likes of Amazon and Taobao to drive demand for its modern logistics facilities in China.

GLP says its properties in China make up 42% of its portfolio NAV, compared to 48% for Japan. It believes its China's share of portfolio could surpass Japan's in the years to come.

With >90% of its leases today focused on domestic consumption, the co is unfazed by weakening economic growth in China as it believes any slowdown has been confined to the low-value manufacturing sector. Its modern logistics facilities are also scarce in China enabling them to charge rents 30% higher than its competitors in the lower end of the market.

Overnight, the co also announced increase in its preferential shareholdings in various jointly-controlled Japanese entities. The co has been rumored to be preparing for the spin off of its Japanese assets into a Reit worth about $1b.

The stock trades at 1x P/B, similar to its closest peer CMA.