GLP

GLP: Following the EGM where GLP obtained an affirmative 95.37% of votes in favour of the landmark agreement in China, management released an update on its 4QFY14 operating metrics. Results were impressive. GLP secured a record 1m sqm of new and expansion leases in 4Q. The impact on the stabilised portfolio was visible with occupancy rising 2ppt to 91% on higher rents. 71% of leasing demand was derived from existing customers and suggests stronger momentum ahead as new relationships introduced by the China partners have yet to contribute. E-commerce tenants underpinned demand and now comprise 25% of China leased area. With growing consumption and emphasis on food safety, UBS think demand from the cold chain logistics will also become increasingly significant. GLP targets growth of 30-40% p.a in China development capex for next 3-5 years. Mgmt also provided greater visibility into the growth trajectory by reiterating a capex target of US$1.7b (+40% YoY) in FY15 and 30-40% annual growth in development capex for the next 3-5 years. UBS maintains Buy rating with TP of $3.23.