Global Logistic Properties : 3Q FY2016 RESULTS - PRESENTATION SLIDES

PowerPoint Presentation

3rd Quarter and Year to Date FY2016‌‌‌‌‌‌‌‌‌‌‌‌‌‌‌‌‌‌‌‌‌‌‌

Results for Period ended December 31, 2015

4 February 2016

1. Highlights

GLP Soja

Japan

1. Highlights

1. Financial Results

2. Appendix

   
   

   3Q FY16 Highlights

   
   

   
   

   
   

   • Earnings up 64%, driven by higher earnings in China, development gains in Japan and GLP's US entry

     OPERATIONS

     Leading Developer, Owner & Manager of Modern Logistics Facilities

     • Domestic Consumption: ~90% of Overall Portfolio

       • Domestic consumption remains relatively stable even in times of slower economic growth

       • Group lease ratio maintained at 93%

       • 3Q FY16 new and renewal leases of 2.4 million sqm, up 22%1

         
         

         DEVELOPMENT

         Creating Value

       • China same property NOI up 7.1%

         
         

     • Development Pipeline Continues to Generate Value

       • Completed US$516 million of development2 with 27% value creation margin - GLP share of value creation US$67 million

       • Started US$826 million of developments, up 297% yoy

         
         

         
         

         FUND MANAGEMENT

         Scalable Platform; Recurring Fees

     • Significant Growth in Fund Management Platform

       • Fund management fees up 19% to US$37 million, from US$22 billion of invested capital

       • 66% of GLP US Income Partners II in contract to be syndicated; additional investors expected to join in 2016

Note:

1. Excludes impact of new US segment for comparability purposes

2. On 100% basis 3

   Overview of Logistics Markets

   
   

   
   

   
   

   China: Continued Growth in Domestic Consumption

   Japan: Modern Logistics Facilities are Scarce

   • Demand for modern logistics space in China driven by continued growth in domestic consumption

   • Supply chain reconfiguration creating opportunities for GLP to modernize outdated stock of existing warehouses

     
     

     90%

     80%

     70%

     60%

     50%

     40%

     30%

     Domestic Consumption as % of Total GDP

     
     

     51.2%

     
     

     48.2%

     
     

     58.0%

     
     

     67.0%

     
     

     7.0%

     6.0%

     5.0%

     4.0%

     3.0%

     2.0%

     1.0%

     0.0%

     Logistics Facilities Vacancy in Japan

     
     

     Greater Tokyo Greater Osaka

     
     

     2.3%

     
     

     2.2%

     
     

     Oct-11

     Jan-12

     Apr-12

     Jul-12

     Oct-12

     Jan-13

     Apr-13

     Jul-13

     Oct-13

     Jan-14

     Apr-14

     Jul-14

     Oct-14

     Jan-15

     Apr-15

     Jul-15

     Oct-15

     China Japan USA Germany

     
     

     Source: World Bank, Bureau of National Statistics Source: Ichigo Real Estate, October2015

     
     

     Brazil: Economic Headlines Masking the Opportunity

     US: Strong Demand Outpacing Supply

   • Companies continue to shift towards leasing warehouses rather than owning

     GLP Brazil - Stable Portfolio

     98% 96% 97% 94% 95%95%

     25

     20

     15

     
     

     100%

     80%

     60%

   • Supply remains well below historical levels: supply level in 2015 satisfied less than 70% of demand

Completions vs Net Absorption in the US Market

2.0%

% of Total Stock

1.0%

10 16.8 17.8 20.4 20.6 20.7 21.1

5

0

FY2013 FY2014 FY2015 1Q FY16 2Q FY16 3Q FY16

Rental (BRL/sqm/mth) Lease Ratio

40%

20%

0%

0.0%

-1.0%

-2.0%

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015E

Completions Net Absorption

Source: CBRE-EA, 3Q 2015

4