GLP shares hit 19-month high on extension of US lease deal
Singapore warehouse leader counts on US for sizable chunk of sales
YUI NAKAMURA, NQN staff writer
SINGAPORE -- Shares in Global Logistic Properties jumped on Thursday, after the Singaporean warehouse developer and manager announced the extension of a lease arrangement with a major U.S. client.
The stock extended gains from Wednesday in morning trading, at one point hitting 2.70 Singapore dollars. That price, up 7.5% from the previous day, was the highest mark since June 11, 2015.
Before trading opened, GLP said it had renewed a deal to lease three distribution facilities in the U.S. cities of Columbus, Atlanta and Orlando. The locations cover a total of 334,000 sq. meters.
GLP entered the U.S. market in 2014. Thanks to acquisitions, it now runs 16 million sq. meters of facilities there. The country accounted for some 8% of GLP's nearly $800 million in sales for the year ended March 2016 -- making the U.S. its No. 3 market after China, which accounted for about 70%, and Japan, which chipped in roughly 20%.
GLP is majority-owned by GIC, Singapore's state investment company. In November, GLP shares surged on reports that a Chinese company was considering a buyout. Though GLP has denied that negotiations are underway, the stock has been on the rise since.