Global Logistics Properties net profit jumps by 42% to US$382m

On back of higher asset values and development gains.

The logistics firm flexed its muscles in a drastically weakening macroeconomic environment, registering a strong leasing performance for 1H16.

According to a statement by GLP, the results were underpinned by healthy leasing performance in all markets, as well as its continued expansion of GLP&rsquo s fund management platform.

&ldquo Our growing fund management business provides a stable income stream while also attracting third-party institutional capital to help fund our expansion,&rdquo Ming Mei, CEO of GLP said.

GLP&rsquo s resilience was tested in the economic turmoil in China, as it maintained its leasing pace in the country. It&rsquo s Chinese leases and expansions increased by 29% yoy.

&ldquo Our confidence in our China business is underpinned by long-term, structural trends in domestic consumption and the country&rsquo s need to replace obsolete logistics facilities. Demand for our facilities is primarily based on domestic consumption which has continued to expand in spite of slower GDP growth,&rdquo Ming said.

Meanwhile, GLP said the development of modern logistics facilities remain one of its key engines of growth.

&ldquo In 2Q FY16, GLP started US$384 million of new developments (GLP share: 56%), primarily in China. In the same period, the Group completed US$349 million of developments (GLP share: 47%) which translated to US$40 million of development gains, representing an approximate value creation margin of 24%,&rdquo GLP said.

GLP also highlighted their healthy fund management platform.

&ldquo Fund management revenue in 1H FY16 increased 51% year-on-year to US$74 million. This consists of asset and property management fees of US$45 million and development and acquisition fees of US$29 million from approximately US$17 billion of invested capital,&rdquo the statement said.