GLP

GLP: CIMB is upbeat on the US deal given its positive demand/supply fundamentals. Initial contributions are likely to be marginal with potential upside from growing occupancy, marking to market the under-rented portfolio as well as optimising tax and cost efficiencies. Notably, the deal allows GLP to almost double its AUM, expand fee income contributions and boost ROE in the longer run. CIMB lifts FY16-17 EPS by 2.2-5.9% and RNAV by 2¢ to $3.31. House keeps Add with a higher TP of $3.31 (from $3.29).