Stock Name: GLP
Company Name: GLOBAL LOGISTIC PROP LIMITED
CIMB raises Global Logistic Properties (MC0.SG) price target to $3.32 from $3.06, citing catalysts from lower Japanese cap rates and asset recycling initiatives. The expected reflation of the Japanese economy is driving acquisition appetite for logistics properties and culminating in lower cap rates, it says; "we believe that revaluation gains from GLP's Japanese assets may come faster than expected and we expect the group to recycle more Japanese assets in 2H13." CIMB sees a few value propositions: There is 10 cents per share upside if cap rates are compressed by 50 bps; an enlarged AUM platform could immediately add 10ct a share; the redeployment of its excess capital into China at current run rates for the next five years could lift valuations by 38 cents per share. However, it notes that a weaker yen against the USD remains a drag for GLP; the house lowers its FY13-15 core EPS estimates by 17%-23% citing a weaker JPY and earnings lost from assets injected into GLP J-REIT. It keeps GLP rated Outperform. Shares are flat at $2.95.
Company Name: GLOBAL LOGISTIC PROP LIMITED
| Research House: CIMB | Price Call: BUY | Target Price: 3.32 |
CIMB raises Global Logistic Properties (MC0.SG) price target to $3.32 from $3.06, citing catalysts from lower Japanese cap rates and asset recycling initiatives. The expected reflation of the Japanese economy is driving acquisition appetite for logistics properties and culminating in lower cap rates, it says; "we believe that revaluation gains from GLP's Japanese assets may come faster than expected and we expect the group to recycle more Japanese assets in 2H13." CIMB sees a few value propositions: There is 10 cents per share upside if cap rates are compressed by 50 bps; an enlarged AUM platform could immediately add 10ct a share; the redeployment of its excess capital into China at current run rates for the next five years could lift valuations by 38 cents per share. However, it notes that a weaker yen against the USD remains a drag for GLP; the house lowers its FY13-15 core EPS estimates by 17%-23% citing a weaker JPY and earnings lost from assets injected into GLP J-REIT. It keeps GLP rated Outperform. Shares are flat at $2.95.
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