GLP reported that its FY16 PATMI increased 47.9% YoY to S$719.1m primarily due to higher asset values in China, development completion gains in Japan and contributions from its US business.

In terms of the topline, FY16 revenues rose 9.8% YoY to S$777.5m as the group benefited from the completion and stabilization of development projects in China with higher rents, the inclusion of management fee income from GLP US Income Partners 1 and GLP US Income Partners II, partially offset by the syndication of GLP Brazil Income Partners II Portfolio to 40% and the divestment of properties to GLP J-REIT.

A final dividend of 6.0 S-cents is proposed. Overall, we judge these results to be within expectations and FY16 PATMI constitutes 101.6% of our full year forecast. We will speak with the company later today regarding these results and, in the meantime, maintain BUY with our fair value estimate of S$2.68 under review.

Source: OCBC Research - 19 May 2016