GLP

GLP: Continuing on its leasing momentum, GLP signed another agreement to lease 44,000 sqm of space at GLP Park Qiandeng and GLP Park Langfang in China to Goodbaby, a leading provider of children products. The new lease brings Goodbaby's total lease area with GLP to 51,000 sqm. At GLP Park Qiandeng in Suzhou, Goodbaby expanded 38,000 sqm to serve as its customer's national distribution center. With this lease, GLP Park Qiandeng will be 90% committed. A further 6,000 sqm of space was pre-leased at GLP Park Langfang ahead of its completion, and will be meant for Goodbaby's regional distribution. GLP has been undergoing a strong leasing momentum for its China and Japan properties. Several global funds have increased their stakes into the chinese warehouse space, betting China's emerging middle class will lead to higher domestic consumption and demand for logistics operators. At $2.85, GLP trades at a premium valuation of 33.1x forward P/E and P/B of 1.28x. This high valuation multiple could be attributed to the group's vast land reserve in China. As at 31 Mar, GLP had 6.9m sqm gfa of completed properties. This is compared to an additional land reserve of 15m sqm gfa and 3.1m sqm gfa of properties under development currently. China contributed 39% to GLP's revenue in FY13.