GLP

GLP: (S$1.915) 1QFY17 earnings dragged by FX and revaluation gains
- Headline net profit slipped 24.3% to US$202.9m largely on FX losses of US$33.1m (1QFY16: US$0.1m) and lower revaluation gains.
- Core net profit slumped 31.8% to US$38.6m, making up 15% of FY17 street estimate.
- Revenue rose 8.6% on 1) completion and stabilisation of development projects in China with increasing rents, 2) higher management fee income from the inclusion of GLP US Income Partners II and 3) growth in development activities in Japan.
- Overall leasing demand remained stable. Lease ratio at 91% (-1% q/q). Rental growth of 9.6% led by US and China.
- GLP has achieved 20% of its full year target for development starts.
- Stock currently trades at 0.73x P/B. The street is relatively bullish on the stock with 12 Buy, 3 Hold, and 1 Sell ratings and consensus TP of $2.20.