Global Logistic Properties (GLP) has turned around in its fiscal third quarter from a loss in the year-ago period, posting a net profit of US$82.1 million.
A public-listed company which owns warehouses and other logistic assets mostly in China and Japan – GLP had made a US$305.4 million loss in the corresponding quarter of last year.
Revenue for the three months ended Dec 31 last year rose 12.9 per cent to US$125.2 million, mainly due to the completion and stabilisation of GLP’s projects in China. For the first nine months, GLP registered a net profit of US$673.6 million, compared to a loss of US$291.5 million in the year-ago period. Revenue increased by 13.8 per cent to US$349.4 million in the nine months, primarily driven by the strengthening of the Japanese yen against the US dollar.
The company, which listed on the Singapore Exchange last October, said it continued to see strong demand in China and enjoyed a stable portfolio in Japan.
GLP chief executive Ming Z Mei, said: “We enjoyed strong customer demand for properties. In China, we saw demand for an average of 103,300 sq m of new and expansion-leased area per month for the first nine months of this financial year.”
According to GLP deputy chairman Jeffrey Schwartz, there is a scarcity of modern logistics facilities in Japan – especially in prime locations.
“GLP is in a good position to satisfy this demand from our portfolio as Japanese manufacturers outsource their logistics function in order to run their core operations more efficiently. 2011 will be an exciting year, as the supply and demand dynamics in Japan looks set to make development attractive,” he said.