Global Logistic Properties Limited -- Moody's affirms GLP's Baa2 ratings after transaction plans announced
The affirmations were made after the company announced the following proposed transactions: (1) disposal of assets to a J-REIT and (2) investment in funds that own logistics facilities in Brazil.
The ratings outlook is stable.
With respect to the proposed J-REIT transaction, the company plans to sell 30 of its Japanese logistics facilities to a J-REIT for a target consideration of around USD2.6 billion (JPY209 billion).
GLP will continue to act as the asset manager as well as maintain a minority interest in the J-REIT.
GLP plans to invest in funds that own logistic facilities in Brazil, by partnering with various investment funds, including Canadian Pension Plan Investment Board, China Investment Corporation and the Government of Singapore Investment Corporation ("GIC"), GLP's major shareholder.
GLP's share of initial equity investments will amount to approximately USD334 million.
"The proposed J-REIT transaction will improve GLP's credit metrics in the near term as well as its cash-on-hand," says Kaven Tsang, a Moody's Vice President and Senior Analyst.
The proposed asset disposal represents approximately 18% of GLP's total assets as of September 2012.
The new J-REIT will continue to be managed by GLP, to ensure that the J-REIT's performance remains unchanged.
Moody's estimates the disposal will decrease the company's annual EBTIDA by about USD100 million after factoring in the company's share of dividends and manager fees.
However, the disposal will also bring in net cash of USD1 billion, which will provide additional liquidity for funding its operations and investments.
Moreover, the USD1.1 billion debt reduction from the asset disposal, adjusted for pro-rated share of debt in the new J-REIT, outweighs the decline in EBITDA.
Moody's therefore expects some improvement in GLP's credit metrics; adjusted net debt/EBITDA will decrease to 4x-6x in the next 1-2 years from about 7.4x in FY 2012.
"While the disposal represents a shrinking of GLP's mature and stable portfolio, and an increase in its exposure to the emerging markets, Moody's believes that the incremental risk is manageable," says Tsang who is also Moody's lead analyst for GLP.
The investments in Brazil will have limited impact on GLP's credit profile given their small scale, which represents less than 2.5% of GLP's total assets.
This is consistent with the company's track record of a disciplined and progressive approach in managing its expansions, which has been demonstrated in its China portfolio.
Furthermore, a major portion (approximately 56% in terms of owned Gross Leasable Area) of the properties under the two Brazilian funds have been stabilized and are now being managed by experienced managers. These are cash generative and will provide GLP with a pro-rata share of revenue of approximately USD34 million per annum, before incremental fee income.
The additional capital expenditure required to develop the projects in the Brazilian funds is manageable, and its partnership with the major investors could reduce its funding risk.
GLP's Baa2 issuer rating continues to reflect its leading market position in modern logistics facilities in Japan and China.
Despite its proposed disposal, Moody's estimates that GLP's large and established Japanese portfolio will continue to generate USD250-USD260 million in EBITDA per annum for the next 2-3 years, representing approximately 50% of GLP's total EBITDA.
This cash flow is a stable funding source for the company's increasing business in the emerging markets.
At the same time, the Baa2 rating captures the company's exposure to regulatory uncertainties and implementation risks associated with its expansion in emerging markets like China.
However, such implementation risk has been well managed by the company, which maintains low investment costs and employs progressive investment and efficient planning.
The Baa2 rating further takes into consideration the company's seasoned management team, which has a wealth of experience and expertise in logistics real estate management.
The Baa2 rating has incorporated a one-notch downward adjustment for structural and legal subordination risk arising from GLP's holding company status and because most of its loans are at the subsidiary level and secured by properties.
Secured debt represented most of the company's total debt and 26.5% of its total assets as of September 2012.
This debt structure is unlikely to change in the near to medium term.
The stable outlook reflects Moody's expectation that GLP will maintain continued access to bank funding and a stable capital structure, balancing its equity and debt levels, and recycling capital to fund its planned expansion.
The rating could be upgraded if GLP can improve its (1) debt leverage, with debt/total assets falling under 30%, and (2) debt servicing capacity, with net debt/EBITDA declining below 4x-5x and EBITDA interest coverage surpassing 5x-6x on a sustained basis.
The rating could be downgraded if (1) GLP's EBITDA declines sharply as a result of an economic deterioration in Japan and/or China; (2) the company's exposure to the emerging markets -- excluding China -- materially increases beyond 20% of its total assets; or (3) the company pursues an aggressive debt-funded expansion, such that debt/total assets exceeds 45-50%, net debt/EBITDA surpasses 6x-7x, or EBITDA interest coverage declines below 2.5x -3x on a sustained basis.
The principal methodology used in this rating was Moody's Approach for REITs and Other Commercial Property Firms published in July 2010. Please see the Credit Policy page on www.moodys.com for a copy of this methodology.
Global Logistic Properties Limited is a major operator of modern logistics facilities in Japan and China. As of 30 September 2012, it had 4.1 million square meters of completed gross floor area in seven major cities in Japan. In China, it had 12.1 million square meters of gross floor area in 31 cities, of which 6.9 million square meters were developed.
The company was listed on the Singapore Stock Exchange in October 2010. GIC, Singapore's sovereign wealth fund, is the single largest shareholder with a 50.6% stake.
The Global Scale Credit Ratings on this press release that are issued by one of Moody's affiliates outside the EU are endorsed by Moody's Investors Service Ltd., One Canada Square, Canary Wharf, London E 14 5FA, UK, in accordance with Art.4 paragraph 3 of the Regulation (EC) No 1060/2009 on Credit Rating Agencies. Further information on the EU endorsement status and on the Moody's office that has issued a particular Credit Rating is available on www.moodys.com.
For ratings issued on a program, series or category/class of debt, this announcement provides relevant regulatory disclosures in relation to each rating of a subsequently issued bond or note of the same series or category/class of debt or pursuant to a program for which the ratings are derived exclusively from existing ratings in accordance with Moody's rating practices. For ratings issued on a support provider, this announcement provides relevant regulatory disclosures in relation to the rating action on the support provider and in relation to each particular rating action for securities that derive their credit ratings from the support provider's credit rating. For provisional ratings, this announcement provides relevant regulatory disclosures in relation to the provisional rating assigned, and in relation to a definitive rating that may be assigned subsequent to the final issuance of the debt, in each case where the transaction structure and terms have not changed prior to the assignment of the definitive rating in a manner that would have affected the rating. For further information please see the ratings tab on the issuer/entity page for the respective issuer on www.moodys.com.
Moody's considers the quality of information available on the rated entity, obligation or credit satisfactory for the purposes of issuing a rating.
Moody's adopts all necessary measures so that the information it uses in assigning a rating is of sufficient quality and from sources Moody's considers to be reliable including, when appropriate, independent third-party sources. However, Moody's is not an auditor and cannot in every instance independently verify or validate information received in the rating process.
Please see Moody's Rating Symbols and Definitions on the Rating Process page on www.moodys.com for further information on the meaning of each rating category and the definition of default and recovery.
Please see ratings tab on the issuer/entity page on www.moodys.com for the last rating action and the rating history. The date on which some ratings were first released goes back to a time before Moody's ratings were fully digitized and accurate data may not be available. Consequently, Moody's provides a date that it believes is the most reliable and accurate based on the information that is available to it. Please see the ratings disclosure page on our website www.moodys.com for further information.
Please see www.moodys.com for any updates on changes to the lead rating analyst and to the Moody's legal entity that has issued the rating.
Kaven Tsang Vice President - Senior Analyst Corporate Finance Group Moody'sInvestors Service Hong Kong Ltd. 24/F One Pacific Place 88 Queensway Hong Kong China (Hong Kong S.A.R.) JOURNALISTS: (852) 3758 -1350 SUBSCRIBERS: (852) 3551-3077 Gary Lau MD - Corporate Finance Corporate Finance Group JOURNALISTS: (852) 3758 -1350 SUBSCRIBERS: (852) 3551-3077 Releasing Office: Moody's Investors Service Hong Kong Ltd. 24/F One Pacific Place 88 Queensway Hong Kong China (Hong Kong S.A.R.) JOURNALISTS: (852) 3758 -1350 SUBSCRIBERS: (852) 3551-3077 (C) 2012 Moody's Investors Service, Inc. and/or its licensors and affiliates (collectively, "MOODY'S"). All rights reserved.
CREDIT RATINGS ISSUED BY MOODY'S INVESTORS SERVICE, INC. ("MIS") AND ITS AFFILIATES ARE MOODY'S CURRENT OPINIONS OF THE RELATIVE FUTURE CREDIT RISK OF ENTITIES, CREDIT COMMITMENTS, OR DEBT OR DEBT-LIKE SECURITIES, AND CREDIT RATINGS AND RESEARCH PUBLICATIONS PUBLISHED BY MOODY'S ("MOODY'S PUBLICATIONS") MAY INCLUDE MOODY'S CURRENT OPINIONS OF THE RELATIVE FUTURE CREDIT RISK OF ENTITIES, CREDIT COMMITMENTS, OR DEBT OR DEBT-LIKE SECURITIES. MOODY'S DEFINES CREDIT RISK AS THE RISK THAT AN ENTITY MAY NOT MEET ITS CONTRACTUAL, FINANCIAL OBLIGATIONS AS THEY COME DUE AND ANY ESTIMATED FINANCIAL LOSS IN THE EVENT OF DEFAULT. CREDIT RATINGS DO NOT ADDRESS ANY OTHER RISK, INCLUDING BUT NOT LIMITED TO: LIQUIDITY RISK, MARKET VALUE RISK, OR PRICE VOLATILITY. CREDIT RATINGS AND MOODY'S OPINIONS INCLUDED IN MOODY'S PUBLICATIONS ARE NOT STATEMENTS OF CURRENT OR HISTORICAL FACT. CREDIT RATINGS AND MOODY'S PUBLICATIONS DO NOT CONSTITUTE OR PROVIDE INVESTMENT OR FINANCIAL ADVICE, AND CREDIT RATINGS AND MOODY'S PUBLICATIONS ARE NOT AND DO NOT PROVIDE RECOMMENDATIONS TO PURCHASE, SELL, OR HOLD PARTICULAR SECURITIES. NEITHER CREDIT RATINGS NOR MOODY'S PUBLICATIONS COMMENT ON THE SUITABILITY OF AN INVESTMENT FOR ANY PARTICULAR INVESTOR. MOODY'S ISSUES ITS CREDIT RATINGS AND PUBLISHES MOODY'S PUBLICATIONS WITH THE EXPECTATION AND UNDERSTANDING THAT EACH INVESTOR WILL MAKE ITS OWN STUDY AND EVALUATION OF EACH SECURITY THAT IS UNDER CONSIDERATION FOR PURCHASE, HOLDING, OR SALE.
ALL INFORMATION CONTAINED HEREIN IS PROTECTED BY LAW, INCLUDING BUT NOT LIMITED TO, COPYRIGHT LAW, AND NONE OF SUCH INFORMATION MAY BE COPIED OR OTHERWISE REPRODUCED, REPACKAGED, FURTHER TRANSMITTED, TRANSFERRED,DISSEMINATED, REDISTRIBUTED OR RESOLD, OR STORED FOR SUBSEQUENT USE FOR ANY SUCH PURPOSE, IN WHOLE OR IN PART, IN ANY FORM OR MANNER OR BY ANY MEANS WHATSOEVER, BY ANY PERSON WITHOUT MOODY'S PRIOR WRITTEN CONSENT.
All information contained herein is obtained by MOODY'S from sources believed by it to be accurate and reliable. Because of the possibility of human or mechanical error as well as other factors, however, all information contained herein is provided "AS IS" without warranty of any kind. MOODY'S adopts all necessary measures so that the information it uses in assigning a credit rating is of sufficient quality and from sources MOODY'S considers to be reliable including, when appropriate, independent third-party sources. However, MOODY'S is not an auditor and cannot in every instance independently verify or validate information received in the rating process. Under no circumstances shall MOODY'S have any liability to any person or entity for (a) any loss or damage in whole or in part caused by, resulting from, or relating to, any error negligent or otherwise or other circumstance or contingency within or outside the control of MOODY'S or any of its directors, officers, employees or agents in connection with the procurement, collection, compilation, analysis, interpretation, communication, publication or delivery of any such information, or (b) any direct, indirect, special, consequential, compensatory or incidental damages whatsoever (including without limitation, lost profits), even if MOODY'S is advised in advance of the possibility of such damages, resulting from the use of or inability to use, any such information. The ratings, financial reporting analysis, projections, and other observations, if any, constituting part of the information contained herein are, and must be construed solely as, statements of opinion and not statements of fact or recommendations to purchase, sell or hold any securities. Each user of the information contained herein must make its own study and evaluation of each security it may consider purchasing, holding or selling.
NO WARRANTY, EXPRESS OR IMPLIED, AS TO THE ACCURACY, TIMELINESS, COMPLETENESS, MERCHANTABILITY OR FITNESS FOR ANY PARTICULAR PURPOSE OF ANY SUCH RATING OR OTHER OPINION OR INFORMATION IS GIVEN OR MADE BY MOODY'S IN ANY FORM OR MANNER WHATSOEVER.
MIS, a wholly-owned credit rating agency subsidiary of Moody's Corporation ("MCO"), hereby discloses that most issuers of debt securities (including corporate and municipal bonds, debentures, notes and commercial paper) and preferred stock rated by MIS have, prior to assignment of any rating, agreed to pay to MIS for appraisal and rating services rendered by it fees ranging from $1,500 to approximately $2,500,000. MCO and MIS also maintain policies and procedures to address the independence of MIS's ratings and rating processes. Information regarding certain affiliations that may exist between directors of MCO and rated entities, and between entities who hold ratings from MIS and have also publicly reported to the SEC an ownership interest in MCO of more than 5%, is posted annually at www.moodys.com under the heading "Shareholder Relations -- Corporate Governance -- Director and Shareholder Affiliation Policy."
Any publication into Australia of this document is by MOODY'S affiliate, Moody's Investors Service Pty Limited ABN 61 003 399 657, which holds Australian Financial Services License no. 336969. This document is intended to be provided only to "wholesale clients" within the meaning of section 761G of the Corporations Act 2001. By continuing to access this document from within Australia, you represent to MOODY'S that you are, or are accessing the document as a representative of, a "wholesale client" and that neither you nor the entity you represent will directly or indirectly disseminate this document or its contents to "retail clients" within the meaning of section 761G of the Corporations Act 2001.
Notwithstanding the foregoing, credit ratings assigned on and after October 1, 2010 by Moody's Japan K.K. ("MJKK") are MJKK's current opinions of the relative future credit risk of entities, credit commitments, or debt or debt-like securities. In such a case, "MIS" in the foregoing statements shall be deemed to be replaced with "MJKK". MJKK is a wholly-owned credit rating agency subsidiary of Moody's Group Japan G.K., which is wholly owned by Moody's Overseas Holdings Inc., a wholly-owned subsidiary of MCO.
This credit rating is an opinion as to the creditworthiness or a debt obligation of the issuer, not on the equity securities of the issuer or any form of security that is available to retail investors. It would be dangerous for retail investors to make any investment decision based on this credit rating. If in doubt you should contact your financial or other professional adviser.
- vom Unternehmen
- Peer Group
Relevant: Nachrichten von ausgesuchten Quellen, die sich im Speziellen mit diesem Unternehmen befassen
Alle: Alle Nachrichten, die dieses Unternehmen betreffen. Z.B. auch Marktberichte die außerdem auch andere Unternehmen betreffen
vom Unternehmen: Nachrichten und Adhoc-Meldungen, die vom Unternehmen selbst veröffentlicht werden
Peer Group: Nachrichten von Unternehmen, die zur Peer Group gehören
Analysen zu Global Logistic Properties Ltd
Private Krankenversicherung Tarifvergleich
Mehr zur Global Logistic Properties-Aktie
Heute im Fokus
Concur stellt sich zum Verkauf - Kontakt auch zu SAP. 'Deepwater Horizon': Halliburton zahlt 1,1 Milliarden Dollar Entschädigung. Metro trennt sich von Beteiligung an britischem Großhändler Booker. Permira verkauft erneut Hugo-Boss-Aktien. Frankreich rückt von Sparziel für 2015 ab.
Diese Aktien sind auf den Verkauflisten der Experten
Welche Billig-Airline ist die beste der Welt?
Diese Aktien sind auf den Kauflisten der Experten