Will a weak development pipeline sink GLP in FY17?

Its dominance in the market is key.

A decreased development pipeline is not enough to faze Global Logistics Properties (GLP), as analysts assert that the firm’s underlying business will remain stable.

According to a report by DBS, in FY17, the underlying business remains stable with an increased lease ratio of 92%, as well as decent growth in rents on renewals.

In addition, GLP’s dominant position in the respective markets and modern facilities is an advantage in a competitive landscape.

Further, as at end-FY16, AUM of GLP’s fund management platform jumped to US$35b. On top of this, GLP has another US11b of uncalled capital to be deployed.

Given that the platform is highly scalable and an ROE-enhancing business arm of the group, management is focusing on boosting returns and operational scale by setting up new funds. 

Join Singapore Business Review community
Join Singapore Business Review community
A NOTE FROM SINGAPORE BUSINESS REVIEW

Reaching the people who run Asia's businesses is harder than it used to be.

Inboxes are crowded. Attention is short. The executives you most want to reach — the founders, CFOs, and operators who actually move budgets — are the hardest to find through the usual channels. If you're building a company, a category, or a reputation, you already know this.

We've spent twenty years building the room they read. Singapore Business Review is where senior decision makers in Singapore and across Southeast Asia come for business coverage they can't get elsewhere — in print, online, and in person at the summits and roundtables we host across seven markets.

If you have something these readers should know about — a point of view worth publishing, a product worth their attention, an event worth their time — we'd like to hear what you're trying to do.