SINGAPORE, July 31 (Reuters) - Global Logistic Properties Ltd (GLP) on Friday booked a 49 percent rise in first-quarter profit on rising asset values and income from an expanded fund management platform, but cut its China warehouse development goal due to market uncertainty.
Singapore-headquartered GLP, which operates warehouses in China, Japan, Brazil and the United States, said profit after tax and minority interest reached $268.1 million.
It also said it aimed to finish developing $1.1 billion worth of warehouse space in China in the business year through March, rather the $1.4 billion targeted in February.
“Recent volatility in capital markets has some impact on customer sentiment,” Chief Executive Ming Mei said on an earnings conference call. The firm’s long-term China outlook remained positive, he said.
Of 18 analysts monitoring GLP, 17 recommend or strongly recommend buying the firm’s stock, Thomson Reuters data showed. Most analysts expect GLP to benefit from growing demand for logistics facilities due to a booming e-commerce market.
Over the past two years, GLP and partners have agreed to buy over $13 billion worth of warehouse space via GLP’s fund management platform, including a deal this week to buy a $4.55 billion logistics portfolio in the United States.
GLP shares were down 4.4 percent in Friday morning trade, while the broader market was 1.5 percent lower. (Reporting by Aradhana Aravindan; Editing by Christopher Cushing)