GLP

GLP: has pre-leased ~77k sm to Deppon Logistics, one of China’s leading third-party logistics providers. With the inclusion of these leases, Deppon is now GLP’s second largest customer in China at 2.8% of total leased area. The newly signed agreements are for, i) 53k sm pre-leased at GLP Park Langfang in Hebei Province, which comprises 7 buildings with total gfa of 140.5k sm upon completion in Apr ’13, and ii) 24k sm pre-leased at GLP Park Hefei Hi-Tech in Anhui Province, comprising 4 buildings with a total gfa of 77.6k sm when completed in May ’13. The continued pre-leases at GLP should underpin earnings visibility at the company. The stock trades at 17.2x P/E, 1.2x P/B. Technically, the stock has pulled back to $2.70, a support level indicated by the 50 day MA. Watch for a reversal of the indicators which could suggest a resumption of the longer term uptrend. If $2.70 is broken, see next support at $2.60. On a bounce, expect the counter to test first resistance at $2.80 followed by $2.90 (just above the all time high).