Shares of Global Logistic Properties, which owns warehouses in China and Japan, rose 2.3% to a record high after it said it plans to raise US$1.3 billion ($1.6 billion) by setting up a real estate investment trust in Japan.
At 9:39 a.m., GLP was up 2.3% at $2.72 and have gained nearly 55% since the start of the year, outperforming the Straits Times Index’s 15% rise.
GLP said it will set up its first real estate investment trust with 30 properties valued at US$2.6 billion and that the amount raised will be used mainly for projects in China and Japan.
CIMB Research raised its target price for GLP to $2.55 from $2.48, after lifting its restated net asset value estimate for the property developer to account for enhanced asset management activities and upside from deploying proceeds to China and Japan.
However, the brokerage kept its ‘neutral’ rating on GLP, as its shares have gained 52% so far this year, and it believes that near-term positives have been priced in.
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