Global Logistic Properties' (MC0.SG) 3Q13 results were in line with expectations, CIMB says, noting 9M13 core EPS was 75% of its FY13 forecast.
"GLP's 3Q13 saw a substantial ramp up in development starts and land acquisitions in China, a sign that excess capital will progressively be deployed into growth. Its recent monetization of a third of its Japan assets appears timely, mitigating the negative impact of a yen decline."
It notes the JREIT proceeds are hedged at USD/JPY of 88.5, more favorable than current rates.
"While GLP is in no rush to monetize assets in China, we believe a recycling platform via private funds could eventually be established and provide a driver for further growth."
It keeps an Outperform call and raises its target to $3.06 from $2.93 on accretion from its enlarged China portfolio. The stock is down 1.8% at $2.71.
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