GLP

GLP: Leased 9,400 sqm space at GLP Guarulhos to Atlas Transporte & Logistica, one of Brazil's largest third-party logistics provider, for the establishment of its main distribution center in Brazil. The new lease at GLP's facility in Sao Paulo will bring its leasing occupancy to 100%. Separately, news reports in China from unknown sources are citing that the Chinese local governments are looking at raising the land prices, to relieve its pressure from debt repayment. This could potentially benefit GLP's massive land reserve of 11.9m sqm, compared to 7.4m sqm in its development pipeline and 7.6m sqm of completed gfa. In Japan, GLP reiterated their support for GLP J-Reit through possible divestments with no firm confirmations on a timeline. CLSA estimates US$400m size divestment this year. In terms of cap rate compression, management remains optimistic that cap rates in Japan can tighten slightly further from current levels. GLP feels that only 2 competitors in Japan pose some level of competition given the full scaled operations. Lastly, GLP is cautiously optimistic that Japan will deliver some rental growth in future. At $2.66 compared with the average street RNAV of $3.03, GLP trades at 1.2x P/B, just under one standard deviation above its historical average of 1.1x P/B.