GLP my see some dilution from J-REIT plan: Religare

Stock Name: GLP
Company Name: GLOBAL LOGISTIC PROP LIMITED

Research House: Religare Capital

Price Call: HOLD

Target Price: 2.46

If GLP’s Japanese assets are floated at book value, there could be dilution of about US$0.04/share unless GLP announces new accretive investments, Religare says.

It notes the Japanese assets have an annualised 1Q13 EBIT of US$452 million ($551 million) and asset value of US$7.9 billion.

While GLP could theoretically divest all 68 of its Japanese assets, instead of the 30 it is injecting into the J-REIT, it would find it difficult to re-deploy that much capital in a short time frame, the house notes.

It keeps a Hold call with $2.46 target. The stock is up 2.6% at $2.73.