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3 Things You Should Know About Global Logistic Properties

GLPGlobal Logistic Properties Limited (GLP) (SGX: MC0) is the largest provider of modern logistics facilities in China, Japan and Brazil.

The company designs, builds and manages high-quality warehouse storage facilities for numerous customers including household-name manufacturers and retailers, as well as third party logistics companies.

By positioning the warehouses within easy access of highways, seaports and airports, GLP provides its customers with cost effective and convenient distribution facilities for import and export logistics as well as domestic market distribution. The company can also customise its sites to suit different customers’ needs.

But did you know…

  1. GLP Park Diashanhu was awarded the 2012-2013 “Top 10 Logistic Park Award” China E-commerce Logistics Service Supplier, by the China Federation of Logistics & Purchasing-CFLP. It was also the five-time winner of the Euromoney Real Estate Awards from 2007-2011.
  2. Major GLP customers include Japanese multinationals Panasonic and Nikon, US cosmetics firm Estee Lauder and German sportswear giant Adidas.
  3. Global Logistic Properties announced a whopping 33% rise in earnings to S$258m for the three months to June 30, compared to the same period in 2012.

Global Logistics currently owns, manages and leases out 565 logistics and industrial properties in China and Japan and has with a property portfolio of 21.4 million square metres located across 62 cities, forming an efficient logistics network serving 700 customers.

Dividend investors may be interested to know that GLP offered shareholders a dividend of S$0.04 per share, a 33% increase on the previous year’s S$0.03 – and with such solid bases in China, Japan and Brazil, investors instantly benefit from geographic diversification.

Future Projects

Global Logistics certainly seems to have bounced back after its share price plunged back in February, following The Government of Singapore Investment Corporation (GIC) having sold 12.5% of its stake in the company. It has recently announced that a leading global consumer goods company will be establishing its national distribution centre at GLP Park Jiangning, Nanjing, China.

The company has also arranged to lease 24k square metres at GLP Park Zengcheng and GLP Park Yunpu, Guangzhou to one of China’s largest express delivery companies, and has partnered with BMW Brilliance Automotive to develop its largest distribution centre in China. It also leases 44k square metres to Goodbaby, China’s leading provider of children’s products.

Indeed, China now makes up 39% of GLP’s revenue base – and with the country’s growing interest in direct consumption and online shopping more retailers may be looking for well-positioned logistics facilities – which could mean a lucrative future for GLP.

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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. Motley Fool Singapore contributor Alison Hunt doesn’t own shares in any companies mentioned.