GLP

GLP: Signed a build-to-suit agreement with Trinet Logistics Co, a major third-party logistics provider in Japan. Trinet will use GLP Kobe-Nishi as its main distribution center in Greater Osaka, which is expected for completion in 1Q15. The project is the tenth development under GLP Japan Development Venture, a 50/50 JV between GLP and the Canada Pension Plan Investment Board. With this new development, the JV has now committed JPY118b (US$1.2b) of its target investment of US$2.1b. Management has reiterated that modern logistics facilities in Japan are scarce, making up only 2.5% of logistics facilities. Meanwhile, demand for these facilities have been growing rapidly, with the fast growing e-commerce market snapping up available leases, underpinned by supply chain consolidation and growth in domestic consumption. At $2.62, GLP trades at 24% discount to its consensus RNAV of $3.45.