GLP

GLP: Continues to see strong demand for its facilities in China. Grp announced that it has signed new and expansion lease agreements totalling 152,000sqm in China. Full occupancy has been achieved at two of its facilities, namely GLP Park Chengdu Hi-tech and phase one of GLP Chongqing. Phase two of GLP Chongqing is experiencing strong customer demand driven by robust mkt demand for modern logistics facilities and value-added solutions.

We note that stock has rebounded strongly recently after being sold down 17% in Aug and amid positive newsflow, including last Thur's announcement that it has formed a US$500m 50:50 JV with the Canada Pension Plan Investment Board to develop logistics facilities in Japan. GLP's Japan portfolio is currently 99% leased, and continued strong demand is expected to give the company wriggle room to raise rents there, or even possibly the monetization of its Jap assets in a REIT, given its stable cash flows.

Majority of street is bullish on stock, with 6 Buys and 1 Hold with a Mean TP of $2.52. At current price, valuations are undemanding, with grp trading at 1x P/B vs peer Hang Lung at 1.16x. See near term resistance at $1.805.