Hot Investment Profile: Global Logistic Properties
SGX Stock Code: MC0 / Stock Price: 1.91
Leading global logistics facilities developer, Global Logistic Properties (GLP) was one of last week’s top five value traded stocks on the Singapore Exchange. With the aim of providing a single point of contact for clients to establish their distribution networks, Singapore-based GLP has established several logistics parks and light assembly facilities in China, Japan, Brazil and the United States covering a total of 538 million square feet.
Company Snapshot
GLP’s logistics solutions enable its clients to expand and establish their supply and distribution chains across 118 cities in its countries of operations:
- In China, GLP has 218 logistics parks in 38 major cities, connected to all of the mainland’s main air and seaports, highways and logistics hubs.
- In Japan, GLP built 85% of its 96 logistics parks in Tokyo and Osaka.
- In Brazil, GLP based 89% of its 63 logistics parks in São Paulo and Rio de Janeiro.
- In the US, GLP has 691 logistics parks in 38 major markets.
GLP serves more than 4,000 clients in a wide variety of industries, including
- fast-moving consumer goods
- e-commerce and retail
- fast food chains
- general logistics services
- auto and automotive parts manufacturers
- high technology, electronics and machinery
- pharmaceuticals and medical instruments
These clients have the option of choosing from GLP’s three main service offerings:
- Multi-tenant Facilities, which meet clients’ short lead-time requirements with convenient and cost-effective general warehousing facilities in strategic locations.
- Build-to-suit Development, which allows clients to choose and customise the site of their facilities.
- Sale and Leaseback, which provides clients with financial assistance by purchasing client-owned distribution facilities and leasing them back to client.
Fund management likewise plays a major role in GLP’s business, with the company accumulating a total of USD29 billion in assets in mid-2015.
Stock Analysis
Bloomberg reports a -11.40% YTD for Global Logistic, with a one-year return of -27.68%.
Global Logistic has a dividend-indicated gross yield of 2.88%, with an earnings per share of USD0.132.
Latest Developments
- In May, GLP subsidiary Iowa China Offshore Holdings revealed plans to sell RMB10 billion-Panda bonds as part of a fundraising plan.
- GLP signed new leases for a total of 153,000 square meters with four leading Chinese third-party logistics companies in April.
- GLP’s share price performance improved relative to peers in March, breaching its 50-day moving average.
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Photo credit: http://www.glprop.com/about-glp.html