GLP

GLP: DBSV maintains Buy and raises TP to $2.61. House note that growth catalysts still in the works. Grp is maintaining its target development starts of 2msm GFA for this yr (0.47msm in 1Q13) in China. While macro outlook is more muted, there is still robust demand for logistics space from tenants that cater to domestic consumption trades such as ecommerce players. Indicative tenant demand remains at 4.2msm, relatively unchanged from the previous quarter. GLP’s growth visibility is backed by a huge land reserve of 9msm GFA and 2.4msm of land held for future development while rents are still renewed at 5-7% higher than previously. In Japan, development of 0.17msm GFA in the Development Fund with CPPIB has commenced. This will enable the group to generate more fee income as the development kicks off. The planned capital recycling through a J-Reit is on track. Continue to like GLP for this leadership positioning in the Asian logistics warehouse space and strong execution track record. Stock price catalyst remains the planned monetization of Japan assets and subsequent capital recycling into new accretive investments.