SINGAPORE (Feb 5): Lower fair-value gains from joint ventures and higher operating expenses and taxes sent Global Logistic Properties' earnings for the December quarter tumbling 36.2% y-o-y to US$112.4 million ($140.5 million).

Revenue edged up 0.7% to US$179 million. It included one month's contribution from a portfolio of properties in Brazil acquired in June last year.

Most of the revenue, US$117.9 million, came from China, which also accounted for the bulk of GLP's earnings before interest and taxes.

During the quarter, GLP completed 6.8 million sq ft of developments in China with a total investment cost of US$308 million. It recognized US$40 million of development revaluation gains.

It also signed 6.5 million sq ft of new and expansion leases in China in the December quarter. Rents on leases renewed in China increased 7.3%.

Revenue from Japan fell 23% to US$49.2 million as GLP had sold 11 properties to its Japan REIT. A weaker yen, against the US dollar, also weighed on GLP's Japan revenue.

Income tax expenses for the quarter increased 38.2% to US$47.2 million due to changes in the fair value of its investment properties and higher taxable income from operations in China and Brazil.

GLP had net cash of US$400 million as at Dec 31. Net debt was 4% of total assets.

GLP shares fell 0.4% to $2.51 yesterday.