GLP

GLP: forms 50/50 JV with Canada Pension Plan Invmt Board (CPPIB) to develop and hold institutional quality, modern logistics facilities. Each partner will invest US$250m of equity over a projected 3yr invmt horizon. The Fund is open-ended, with a targeted leverage of 50% loan-to-value (after stabilization).
The Japan Devt Fund will focus on building multi-tenant and build-to-suit facilities mainly in the greater Tokyo and Osaka areas in Japan. A site in Tokyo has been identified as the first potential devt for the Fund.
GLP notes that modern logistics facilities in Japan are scarce. Of the 480m sm of total logistics facilities, only 9.2m sm (or 1.9%) of that are modern logistics facilities.
Stock trades at 0.94x P/B. The majority of Street has Buy ratings with recent TP ranging btwn $2.50-2.80. Its shares end up 1.8% at $1.67 Wednesday, and have fallen 22.6% ytd amid worries over slowing growth in China, where it is also growing its portfolio.