Adjusted for non-recurring items, 3Q17 earnings were 22% higher on year, in tandem with a 17% increase in revenue to $232.5 million from a year ago.
GLP says same-property net operating income was up 6.9% year-to-date 3Q17. There also continues to be significant customer demand for GLP’s logistics facilities globally, with Group new and renewal leases up 42% year-on-year to 3.3 million sqm.
Positive market fundamentals also translated into a high global lease ratio of 92%, rent growth on renewal leases of 6.8% and customer retention of 73%.
GLP’s operations in China remained stable quarter-on-quarter, with the lease ratio unchanged at 87%. GLP remains positive on the medium to long term outlook for China and sees growing demand from the organised retail, auto parts and cold storage sectors.
GLP’s fee-generating capital base continues to grow, delivering a higher recurring source of income. In 3Q17, the company generated US$45 million ($63.7 million) of fund management fees, up 20% year-on-year.
GLP’s financial position remains strong, with cash of US$1.5 billion and net debt to assets of 30% on a look through basis following the syndication of GLP US Income Partners III.
GLP is undertaking an independent strategic review and the company has received various non-binding proposals from a number of parties but no definitive transaction has been entered into by the company, said the company.
(See also: GLP soars on reports of competing bids, extension of long-term leases)
(See also: Global Logistic Properties receives various proposals from a number of parties in strategic review)
No dividend has been declared for the quarter.
Shares of GLP closed 1 cent higher at $2.76 on Wednesday.
