GLP

GLP: Announced 1Q11 results which were in-line.
Rev at US$129m, +15.2% yoy and +3.7% qoq, while Core Net Profit (Excluding revaluation gains) at US$73.3m, +2.3% yoy and +22.5% qoq.

Strong rev performance attributable to completion and stabilization of projects in China, acquisition of Airport City Dev and strengthening of Jap Yen against USD. There was also mgt fee rev from jointly controlled entities in China and 3rd parties in China and Japan of US$2.0m recognized by GLP following the completion of the GLPH Acquisition on Oct10.

Net profit however affected by one-off rental losses from Jap earthquake and higher interest expenses, +44.5% to US$9.7m. Going forward, grp confident of prospects, noting increased demand for new dev and existing space in Jap, with major leases signed with 3rd party logistic players in qtr, keeping current lease ratio at a high 99%, while Grp’s dev pipeline, geographical presence across China places it in a strong favorable position to capture growth opportunities.

Valuations compelling, with Grp currently trading at 0.97x P/B vs Hang Lung of 1.43x, while net gearing stood at a comfortable 30.5%, giving headroom for further acquisitions.