GLP

GLP: Announced plans for Jap REIT to recycle capital into China. Grp aims to rebalance portfolio in favor of China where growth prospects in medium term better. Tip rental rates in China industrial mkt to grow 15-20% in a yr in coastal cities and for NAVs to rerate. We note that valuation are attractive at 1.1x P/B vs Hang Lung 1.3x, a level that does not factor in growth potential of China and premium for GLP’s mkt leader share……

Grp’s Jap portfolio is worth a whopping US$6.18b which could bring in significant capital when recycled and China portfolio valued at US$1.88b. We note that majority of street remains bullish on stock, with a mean TP of $2.57. Technically see near term resistance at $2.08 followed by $2.14.