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Latest Earnings From Global Logistic Properties Ltd: Rounding Up A Year Of Growth

Yesterday, Global Logistic Properties Ltd (SGX: MCO) had released its results for the quarter and year ended 31 March 2016 (fiscal 2016).

As a brief background, the company – known as GLP for short – is a provider of modern logistics facilities in four countries, namely China, Japan, US, and Brazil. The company develops and operates its logistics properties and also has a real estate fund management arm.

With that, let’s dive into the company’s latest earnings.

Financial highlights

The following’s a quick summary of some of the latest financial figures:

  1. Gross revenue for the quarter came in at US$199.1 million, up 19% from the same quarter a year ago. For the full year, revenue grew by 10%, clocking in at US$777.5 million.
  2. Profit attributable to owners (Including revaluation gains) for the reporting quarter rose by 46% to US$152.7 million. Similarly for the full-year period, profit had shot up by 48% to US$719.1 million. But, if revaluation gains were stripped away, the picture looks different. Profit for the quarter (not including revaluation gains) had dropped by 21% from a year ago to US$52 million. For the whole of fiscal 2016, profit (not including revaluation gains) had increased by 20% to US$241 million.
  3. With the higher bottom-line, GLP’s earnings per share (EPS) followed suit, increasing by 52% on a quarterly basis to 3.06 US cents. For the full year, GLP’s EPS had climbed by 53% from 9.41 US cents in fiscal 2015 to 14.43 US cents.
  4. The company ended 31 March 2016 with a net asset value (NAV) per unit of US$1.87, up 3% from the US$1.81 seen a year ago.
  5. GLP ended fiscal 2016 with US$1.03 billion in cash and equivalents and US$4.77 billion in total debt, resulting in a net debt position of US$3.75 billion. This is a significant step back from the net debt position of US$1.4 billion seen a year ago  (cash and equivalents of US$1.45 billion and debt of US$2.85 billion).
  6. Free cash flow (FCF) for fiscal 2016 came in at US$410.2 million (operating cash flow of US$418.5 million and capex of US$8.4 million). However, this is lower than fiscal 2015 when FCF stood at US$434.5 million (operating cash flow of US$444.4 million and capex of US$9.9 million). Just to point out, only the purchase of plant and equipment figures have been used for capex calculations.
  7. Lastly, GLP had declared a final dividend of S$0.06 per share. This is up 9% from the S$0.055 per share declared in fiscal 2015.

Operational highlights

GLP’s higher revenue for the year was mainly attributable to the completion and stabilization of development projects in China along with growing rents and the inclusion of management fee income from GLP US Income Partners I and GLP US Income Partners II.

These were partially offset by the syndication of the GLP Brazil Income Partners II portfolio to 40% and the sale of properties to GLP J-REIT.

The logistics outfit’s higher profit came partly from higher fair value gains from investment properties in the company’s China portfolio and in the portfolios of its joint ventures in Japan and Brazil.  Higher contributions from US operations in GLP US Income Partners I and GLP US Income Partners II also contributed positively to GLP’s overall bottom-line.

Outlook

Speaking on his thoughts about GLP’s future, Ming Z. Mei, the company’s chief executive, said in the earnings release:

“In FY16, GLP saw solid results across our three business pillars – operations, development and fund management. Against a more cautious macro-economic environment, the results highlight the value of our solutions and strong ‘Network Effect’. GLP remains well-positioned to serve its customers in the current environment.

We are confident in the long-term outlook of our markets and will maintain strong investment discipline with a focus on locations that are seeing good demand and limited supply.”

GLP last traded at $1.84 on Thursday. This translates to a price-to-book ratio of 0.71 and a trailing dividend yield of 3.2%.

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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 Esjay does not own shares in any companies mentioned.