GLP

GLP: CIMB maintains O/p with $3.32 TP. House note that the yen continues to weaken but lower yields implied by the market should neutralise the impact on GLP’s asset valuations. We believe that the market is now ideal for GLP to recycle more assets in Japan to facilitate future growth or possibly a higher dividend payout. House make a few adjustments to model 1) lower FY13-15 core EPS estimates by 17-23% for a weaker ¥ vs. US$ and earnings lost from assets injected into GLP J-REIT, 2) a 50bp decline in Japanese cap rates and 3) higher AUM fee assumptions as expect more asset recycling in the next 12 months. House SOTP is raised by 8%. Maintain Outperform with catalysts from lower cap rates and asset recycling initiatives.