SINGAPORE (Dec 15): GLP, the owner and operator of modern warehousing facilities, could be most affected by the liquidity curbs introduced in China given that the latter accounts for over 56% of its NAV, says UOB Kay Hian in a Tuesday report.
“We downgrade GLP to 'hold' but maintain our target price of $2.40 post the 11% run-up in share price,” says lead analyst Vikrant Pandey who is also maintaining its “overweight” on the sector with CapitaLand, City Developments, A-REIT, CapitaLand Commercial Trust and Frasers Logistics and Industrial Trust as his top picks.
In a Tuesday report, Vikrant says capital curbs in China will see overseas investments face closer scrutiny from state regulators. These include capital outflows from China into overseas real-estate deals worth more than US$1 billion ($1.4 billion) by Chinese state-owned enterprises (SOE), and investments of US$1 billion or more by any Chinese companies in an overseas entity unrelated to the investor’s core business.
