ANNUAL REPORT2011 - IIS Windows Server€¦ · · 2011-07-06Notice of Annual General Meeting 30 34 36 40 52 54 56 57 124 ... GLP is dedicated to improving supply chain efficiency

ANNUAL REPORT

2011

GrowinGAsiA’s LoGistics infrAstructure

the provider of modern logistics facilities

infrastructure in asia

GLP Park TEDA, China GLP Osaka, Japan GLP Park Lingang, China GLP Tokyo II, Japan

GLP Yokohama, Japan GLP Park Beijing Airport, China GLP Iwatsuki, Japan GLP Park Yantian, China

GLP Park HEDA, China GLP Narashino, Japan GLP Park Longgang, China GLP Amagasaki, Japan

GLP Tokyo, Japan GLP Park Wuzhong, China GLP Tosu I, Japan GLP Park Beijing Capital Airport, China

GLP Park Songjiang, China GLP Hayashima, Japan GLP Park Suzhou Industrial (Genway), China

GLP Tokai, Japan

GLP Kiyama, Japan GLP Park Chongqing, China GLP Narashino II, Japan GLP Park Hongqiao (North), China

To be the best in class logistics facilities provider by maximising value for all stakeholders including shareholders, customers, investors, colleagues and communities in which we live and operate.

MISSION

Total Gross Floor Area(1)

16.5 million sq.m.

Total Asset Value

US$11,700 million

Profit After Tax and Minority Interest (“PATMI”)

US$706 million

GLP Park Dalian Free Port, China

(1) Includes completed properties, properties under development or being repositioned, land held for future development and land reserve.

Revenue

US$474 million

Number of Properties(2)

330

Earnings Before Interest and Tax (“EBIT”)

US$883 million

27Number of Cities

CONTENTS

Corporate Profile Milestones and AwardsFinancial and Operational Highlights Letter to ShareholdersOperations and Portfolio Review

0102060812

Board of DirectorsExecutive CommitteeFinancial ReviewCorporate GovernanceInvestor Relations

Corporate Social ResponsibilityUse of ProceedsAudited Financial ReportShareholding StatisticsNotice of Annual General Meeting

3034 3640 52

54 56 57124126

(2) Completed properties in China and Japan as of 31 March 2011.

Global Logistic Properties Limited Annual Report 2011 1

CORPORATE PROFILE

Global Logistic Properties Limited (“GLP”) is Asia’s largest provider of modern logistics facilities. It owns,

manages and leases out 330 completed properties spread across 27 major cities in China and Japan, forming

an efficient logistics network with properties strategically located in key logistics hubs, industrial zones and

urban distribution centres. By providing flexible Multi-tenant, Build-to-suit and Sale-and-leaseback solutions,

GLP is dedicated to improving supply chain efficiency for the most dynamic manufacturers, retailers and 3rd party

logistics companies in the world. The Group was listed on the Mainboard of the Singapore Exchange Securities

Trading Limited on 18 October 2010 (Stock code: MC0.SI).

OUR STRENGThS

Significant embeddedvalue in the business beyond

pure cash flows

Scalable business model

Well-establishedbrand andreputation

Well-establishedtrack record and

experienced management

Award-winningorganisation

The largest provider of modern logisticsfacilities in Asia

Leadership in Asia’s two largest economies

Right market

opportunity

Rightteam

Right platform

GLP SolutionsCustomerFacilities

Needs

CustomerFacilitiesSolutions

NetworkDesign &

Optimisation

Site Selection& IncentiveNegotiation

FacilityDesign &

Construction

PropertyManagement

Services

Co-Marketingwith

Customers

Multi Tenant Distribution FacilitiesDevelopment

Build-to-SuitDistribution FacilitiesDevelopment

Sale & LeasebackConsulting &Transaction Execution

GLP bUSINESS MOdEL

Global Logistic Properties Limited Annual Report 20112

MILESTONES

2011(1)

Expanded into Xiamen, increasing our presence in China to 20 cities

Commenced 1.22 million sq.m. development starts and secured 1.3 million sq.m. of new and expansion

leased area(2)

Acquired approximately 53% stake in Airport City Development Co. Ltd. (“ACL”), the sole developer in the Beijing

Capital International Airport (“BCIA”) airside cargo handling and bonded logistics area, adding gross floor area (“GFA”)

of 273,843 sq.m. of completed properties and GFA of 513,000 sq.m. of development pipeline to our portfolio

GLP joined the Straits Times Index, the Singapore Exchange Securities Trading Limited’s (“SGX”) benchmark

comprising the 30 biggest listed companies

Tremendous response by Japanese team after March 11 earthquake led to the restoration of operations of

68 out of 69 Japan facilities within two weeks after the earthquake

GLP was listed on the

Mainboard of the Singapore

Exchange Securities

Trading Limited on 18

October 2010, the largest

IPO in Singapore since

1993 as at GLP’s listing day

(1) As of 31 March 2011.(2) For the financial year ended 31 March 2011.


2010Acquired a stake in the parent company of BLOGIS – the second largest provider of modern logistics facilities in

China after GLP

GLP was listed on the Mainboard of SGX on 18 October, the largest IPO in Singapore since 1993 as at GLP’s

listing day

Expanded into Zhongshan, increasing our presence in China to 19 cities

2009Announced and introduced corporate branding of “Global Logistic Properties” (“GLP”)

Became the largest provider of modern logistics facilities in China and Japan by floor area with over 250 established

customers across Japan and China

In March 2011, GLP joined

the Straits Times Index,

the SGX benchmark

comprising the 30 biggest

listed companies


AwARdS

2010“best Industrial/warehouse developer”

Global category, awarded at Euromoney’s 2010 Real Estate Awards

“best Industrial/warehouse developer in Asia”

Regional category, awarded at Euromoney’s 2010 Real Estate Awards

“best developer in China”

Country category, awarded at Euromoney’s 2010 Real Estate Awards

GLP Park SuzhouChina

The first logistics park of

GLP China

No.1 in the Top 50 China

Logistics Park Investment

Environment Awards by

China Communication and

Transportation Association

Our portfolio of modern facilities and logistics facilities-related services has won the Group various international awards, attesting to our capability to cater to large multi-national companies as well as leading domestic customers.


2010 Four of our logistics parks are named as “Five-Star warehouse Properties”

Recognised by the China Association of Warehouses and Storage

Top Modern warehouse in China and China’s Largest Public warehouse Platform

Recognised by the China Association of Warehouse and Storage

2009“best Industrial developer in Asia” and “best Industrial developer in China”

Awarded at Euromoney’s Real Estate Awards

Ten of our logistics parks are in the “Top 50 Logistics Parks in China”

Recognised by the China Communication and Transport Association

Ten of our logistics parks are named as “Five-Star warehouse Properties”

Recognised by the China Association of Warehouses and Storage

Received Third Green Award

of Forest of the 21st Century

in Amagasaki awarded by

Hyogo Prefecture in May

2010

GLP AmagasakiJapan


FINANCIAL & OPERATIONAL hIGhLIGhTS

+14.6%REVENUE

+23.5%OPERATING PROFIT(1)

+35.8%EBIT(2)

+56.3%PATMI(3)

GLP Park Beijing Capital Airport, China

(1) Profit from operating activities after share of results of jointly-controlled entities.(2) Earnings before interest and tax excluding revaluation.(3) Profit after tax and minority interests excluding revaluation.


Revenue(US$ million)

Japan385.7352.0 9.6%

Revenue(US$ million)

China

88.1

61.5 43.3%

EbIT excluding revaluation(US$ million)

Japan

346.4280.0

China

57.5

3.9

23.7%

1362.5%

EbIT excluding revaluation(US$ million)

FY2010 FY2011 FY2010 FY2011

FY2010 FY2011 FY2010 FY2011


Ang Kong huaChairman

Jeffrey h. SchwartzDeputy Chairman Chairman of the Executive Committee

Ming Z. MeiChief Executive Officer

LETTER TO ShAREhOLdERS


Our commitment to growth, profitability and our focus on customer relationships is deeply rooted in the culture of GLP.

dEAR ShAREhOLdERSIt gives us great pleasure to present the inaugural Annual Report of Global Logistic Properties (“GLP”).

The twelve months ended 31 March 2011 marked an exciting year for GLP with our Initial Public Offering (“IPO”) and subsequent listing on the Mainboard of the Singapore Exchange Securities Trading Limited (“SGX-ST”) on 18 October 2010.

With an equity raise of S$3.4 billion, our IPO was the largest real estate IPO ever globally. Our share offering was met with significant investor enthusiasm and was approximately 12 times oversubscribed with support from 10 cornerstone investors, global funds, institutions and retail investors. The market response served as an endorsement of the business we have built and as recognition of our leading position in Asia’s logistic properties market.

The positive outcome of our IPO has served to intensify the focus of GLP’s Board and the entire management team to build on our market leading positions and practice strong corporate governance while enhancing value for all our stakeholders.

SUPPORTING CONSUMPTION GROwTh IN ChINA ANd JAPANOur commitment to growth, profitability and financial stability is deeply rooted in the culture of GLP. It starts with us operating in and expanding into strategically chosen geographic markets while providing value-added services that support our customers.

We take our responsibility in meeting our customers’ needs very seriously. At GLP, we are committed to growing our position as the leading provider of modern, state-of-the-art logistic properties in Asia’s two largest economies, China and Japan, while selectively expanding our geographic footprint to meet our customers’ needs.

China is now the world’s second largest economy(1) and is experiencing very strong growth in domestic consumption.

Its GDP has climbed at a compound rate of 10.7 percent(2)

from 2005 to 2009. Across 2010, the economy grew by 10.3 percent. With a population of over 1.3 billion, China is on a path to become the largest consumer market in the world.

We are focused on creating the essential logistic infrastructure to help enable this growth in domestic consumption. Today, GLP is present in 20 major cities in China and is operating 261 completed properties of approximately 4.0(3) million square meters of gross floor area (“GFA”). We also have interests in an additional 4.0 million square meters of GFA under development or being repositioned and on land already held for future development, as well as a land reserve of 5.7 million square meters. We provide modern logistic facilities to a high quality and diversified base of customers such as Wal-Mart China, DHL, FedEx and Joyo Amazon as they move their products across the country to meet demand.

In Japan, the world’s third largest economy(1), we continue seeing opportunities as companies are driving value in their businesses through refinements in supply chain processes to generate greater operating efficiencies. The effects of the recent earthquake in Japan are still being felt in the general economy as the recovery takes hold. However, the relatively minimal impact to our buildings and the rapid response exhibited by our Japan team, has further strengthened our relationships and value proposition with customers. We have seen increased demand for modern, safer facilities stemming from this unfortunate and tragic loss. We remain very confident in Japan’s long-term prospects.

GLP has a presence in seven major cities in Japan with 2.8 million square meters of completed GFA. Covering all major logistics hubs in the country with concentration serving the greater Tokyo Bay and Osaka area, we support Panasonic Logistics, Hitachi Transport, Nippon Express, Sanyo Electric Logistics and NTT Docomo.

We have what we regard as a balanced portfolio of logistics properties with exposure to a high-growth market in China, counterweighted with a solid and stable market in Japan. This provides a strong foundation to build our company on.

What is significant is that the current logistics real estate markets in both China and Japan are under-served by existing infrastructure, which is generally regarded as less efficient from an

(1) International Monetary Fund, 2010 list of countries by gross domestic product (nominal).(2) National Bureau of Statistics of China.(3) On 100% basis.


LETTER TO ShAREhOLdERS

operational standpoint. The logistics industry is about efficiency and bringing products to customers in the shortest time at the lowest feasible cost. Fast response to variations in demand is critical, creating the need for modern, efficient facilities.

Logistics has moved far beyond warehouse or storage models. Speed, efficiency, flexibility, and expandability underpin everything in the industry. In both China and Japan, there is limited availability of modern logistics facilities. The development of such properties in these countries has neither kept pace with demand growth in China nor the push for distribution efficiency in Japan. Such facilities are indispensable to the world’s manufacturers and retailers as they compete for market share in Asia.

In providing these facilities, GLP stands markedly ahead of its competition. With each successive property we develop or acquire into our network, we extend our lead and distance ourselves from other logistic property providers.

The ability to sustain, and build upon, our leadership position in two of the largest economies in Asia is anchored by the synergy created through our “Network Effect”.

This “Network Effect” relates to our unique ability to serve customers across multiple locations by allowing them to scale up facilities rapidly and expand or reconfigure their distribution network quickly to meet emerging needs.

This proactiveness is one feature that makes GLP the preferred partner today for many manufacturers, retailers and supply chain managers in China and Japan.

Overall, our GFA of completed properties grew by 13.5 percent to 6.83 million square meters as of 31 March 2011, from 6.02 million square meters as of 31 March 2010, with the addition of 1.22 million square meters of GFA of started development in China in the year ended 31 March 2011 (“FY2011”).

bUILdING A SOLId FINANCIAL bASE Following our listing, we are well capitalised with IPO proceeds of S$3.4 billion. This puts us in an advantageous position to pursue acquisitions, development opportunities, joint ventures and partnerships.

We have produced strong operating results for FY2011. GLP’s earnings before interest and taxes (“EBIT”) at year end was US$883.1 million compared to a loss of US$62.7 million in the

year ended 31 March 2010 (“FY2010”)(1), with 68 percent of this amount contributed by Japan and 32 percent from China.

While Japan contributed a larger proportion of our revenue and EBIT, the higher rates of growth annually came out of our China operations – a 43 percent increase in revenue year-on-year and a higher EBIT by 149 percent at US$286 million in FY2011.

Our profit after tax for FY2011 was US$722.4 million compared to a loss of US$149.7 million in FY2010 primarily due to better operational performance and gain from changes in fair value of our portfolio properties in China and Japan.

We achieved revenue of US$473.9 million, an increase of 14.6 percent over the year ended 31 March 2010, due to the completion and stabilisation of the group’s development projects in China, better operational performance of our portfolio properties in China and Japan, the acquisition of ACL, and the strengthening of Japanese Yen and Chinese Yuan against the U.S. Dollar. For the full year, China accounted for about 19 percent of revenue with Japan contributing 81 percent.

Our financial position is managed conservatively with total debt-to-assets of 32 percent and a net debt-to-asset of 21 percent as of 31 March 2011. Our cash position at year-end is very strong, we ended the year with strong cash and cash equivalents of US$1,560 million.

POSITIONING OUR bUSINESSES FOR SUSTAINEd GROwThWe remain bullish on China. We regard the recent measures taken by the People’s Bank of China to increase banking reserve ratios in order to cool the property market, along with steps to strengthen the Renminbi, to be positive developments. We are optimistic that these moves will prevent bubbles, reduce inflation and create an orderly market. Such steps are also signs that the government regards the underlying economy as having sufficient strength and depth to absorb these measures without faltering.

In China, we presently have 5.7 million square meters of GFA land reserve. We have recently acquired a 19.9% effective shareholding in Shenzhen Chiwan Petroleum Supply Base Co., Ltd (“SCPSB”), the parent company of BLOGIS, which is the second largest modern logistic facility provider in China after GLP. We have recently invested US$369 million in an air cargo complex at the Beijing Capital International Airport. This

(1) Loss driven by non-operating, negative changes in property revaluation in Japan of US$458.9 million during FY2010.


positions us as the exclusive provider of distribution space inside the world’s second largest airport.

To further enhance our “Network Effect”, we also entered into a joint venture with Suzhou New District Bonded Logistic Centre Development Co., Ltd. (“SND BLCD”) to jointly develop the GLP Park SND to service logistics tenants in Suzhou, Jiangsu Province of China. This new venture will enable us to continue to serve the strong demand for logistic facilities created by the rapid increase in domestic consumption.

In China, we see a move to extend supply chain lines from the coastal cities of China to tap and serve consumer demand further inland. We intend to optimise our “Network Effect” and better serve customers by offering them logistics solutions in the cities to which they plan to expand.

GLP is in a prime position to ride the wave of manufacturers streamlining their processes and outsourcing logistics to third-party providers. Such a trend is creating demand from supply chain companies for facilities that meet the requirement of modern logistic management processes.

Our focus in Japan will be on maintaining high occupancy levels and developing facilities to begin to alleviate the acute shortage of modern logistic facilities. As it stands, only 6.5 percent of the total supply of logistics properties in the country are buildings of over 10,000 square meters of GFA and under 10 years of

We will also continue to build on our competitive market position by seeking opportunities for the development of new facilities in locations that enhance our current network and complement our customers’ business and expansion plans.

age. As the impact of the earthquake unfolds, we believe more customers in Japan will desire modern facilities with advanced seismic protection designed and built by GLP.

With the sustained demand for third party logistics providers and expansion of sectors such as internet and mail order services, GLP is well-positioned to benefit from these trends. We will also continue to build on our competitive market position by seeking opportunities for the development of new facilities in locations that enhance our current network and complement our customers’ business and expansion plans.

Our strategies of establishing a high quality portfolio of modern logistics facilities to support increased consumption in China and supply chain modernisation in Japan, while continuing to expand on our “Network Effect” to grow together with our customers, have served us well. In both countries, we enjoy a first mover advantage over both domestic and foreign competitors. We will continue to execute on our strategies and seize new opportunities as they arise to deliver growth and shareholder value.

ACKNOwLEdGMENTSOn behalf of our Board of Directors, we would like to thank our customers and business partners for their continued support. We would also like to thank Mr Wei Benhua, who stepped down as Non-Executive Independent Director on 2 May 2011 when appointed as the first Director of ASEAN+3 Macroeconomic Research Office (“AMRO”). We thank him for his valuable contribution and wish him much continued success. We want to thank all of our associates for their efforts and unwavering commitment to delivering superior results for our customers, investors and the communities we serve. And most of all, we would like to extend our appreciation to all our shareholders - our cornerstone investors, institutions and private individuals for your strong support and loyalty.

Your Board and management work for you and we are confident that GLP is in an excellent position to grow and create value for its shareholders.

Ang Kong hua Chairman

Jeffrey h. Schwartz Deputy Chairman and Chairman of the Executive Committee

Ming Z. Mei Chief Executive Officer


Shenyang

DalianBeijing

Tianjin

Qingdao

Nanjing Wuxi

Suzhou ShanghaiJiaxingHangzhou

Ningbo

Guangzhou

Foshan Shenzhen

Zhuhai

Chongqing

Chengdu

Sapporo

Tokyo

Osaka

Sendai

Hiroshima

Fukuoka

Nagoya

Singapore

Our Portfolio Locations

China

Japan

Headquarters

Zhongshan

OPERATIONS ANd PORTFOLIO REVIEw

Xiamen

China

Presence in 20 major cities

4.0 million sq.m. of completed GFA(1)(2)

GLP China’s current network serves logistics regions contributing 2/3 of China GDP

Fast-growing logistics market supported by domestic consumption growth

One of the world’s largest industrial outputs

Limited supply of modern logistics facilities

Japan

Presence in 7 major cities

2.8 million sq.m. of completed GFA(2)

GLP Japan’s current network serves logistics regions contributing 2/3 of Japan GDP

One of the world’s largest industrialised economies

Well-established logistics industry

Scarcity of modern logistics facilities

(1) 100% basis as of 31 March 2011 and excludes GFA attributable to BLOGIS.(2) As of 31 March 2011.


Leased Area for Completed Logistics Properties by End-user Industry

Auto & Parts7.0%

Electronics/High-tech

20.3%

Fast-moving Consumer Goods

(“FMCG”)29.8%

General LogisticsServices16.1%

Machinery0.6%

Other7.6%

Our Completed Properties by City(*) (million sq.m.)

Shanghai 15.4%

Guangzhou 4.3%

Tianjin 3.1%Dalian 2.6%

Beijing 6.5%

Shenzhen 2.5%Foshan 2.4%

Other cities(1) 5.8%

Tokyo 22.4%

Osaka 11.6%

Sendai 2.4%

Fukuoka 2.1%

Suzhou 16.4%

Other cities(2) 2.5%

China total:4.0mm sq.m.(59%)Japan total:

2.8mm sq.m.(41%)

Our Portfolio by Status (Excluding Land Reserve) (million sq.m.)

Properties under Development or Being

Repositioned 1.6mm sq.m.

14%

Land Held for Future Development2.4mm sq.m.

23%

Completed6.8mm sq.m.

63%

Notes:(*) “Tokyo” includes cities located in Kanto region; “Osaka” includes cities located in Kansai region; “Sendai” includes cities located in Tohoku region; “Fukuoka” includes cities located in Kyushu region.(1) Other cities include Qingdao, Nanjing, Wuxi, Chengdu, Chongqing, Hangzhou, Ningbo and Shenyang.(2) Other cities include Nagoya, Hiroshima and Sapporo.

Pharmaceutical/Medical

Instruments3.9%

Retail/Fast Food Chain14.7%


GLP is a market leader of modern logistics facilities in China

and Japan which gives the company fast-growing returns

from a youthful economy balanced by stable earnings from a

mature economy.

As of 31 March 2011, we own, manage and lease out a

network of 330 completed properties. Our properties and

Number of Properties/

Sites

231

30

104

38

66

469

69

538

3,406,820

623,236

1,557,841

2,429,893

5,718,917

13,736,707

2,796,918

16,533,625

Total GFA (sq.m.)

2,538,318

361,613

1,287,129

1,624,007

5,051,468

10,862,535

2,796,918

13,659,453

Effective Interest

GFA (sq.m.)(1)

12,342

4,618

3,364

5,579

N/A(7)

25,903

512,077

Total Valuation

(Local Currency Million)(2)

1,878

703

512

850

N/A

3,943

6,179

10,122

Total Valuation

(US$ Million)(3)

1,429

388

437

503

N/A

2,757

6,179

8,936

Effective Interest

Valuation (US$

Million)(1)(2)

Proportion of Total GFA (%)

Adjusted for our effective interest in non-wholly owned entities.As determined by Jones Lang LaSalle for China and CBRE for Japan. For China, currency used is RMB and for Japan, currency used is JPY. We do not treat a parcel of land in our land reserve as part of our assets unless and until the relevant PRC subsidiary and/or its jointly-controlled entity acquires the relevant parcel.As with the exchange rates used in the preparation of the financial statements as of 31 March 2011, an exchange rate of US$1.0000 = RMB6.5701 = JPY 82.8699 has been applied. “Properties under development or being repositioned” consists of five sub-categories of properties: (i) properties that we have commenced development, (ii) a logistics facility that is being converted from a bonded logistics facility to a non-bonded logistics facility, (iii) a logistics facility that is being converted from a non-bonded logistics facility to a bonded logistics facility, (iv) a light manufacturing facility comprising several buildings for which we are currently evaluating the feasibility of conversion of such buildings into a business park or research and development centre, and (v) a light industrial and logistics facility which will be upgraded into a standard logistics facility.“Land held for future development” refers to land which we have signed the land grant contract and/or we have land certificate, including non-core land and properties occupied by Air China and the Government or its related entities, that GLP doesn’t wish to own and will sell. “Land reserve” refers to parcels of land in respect of which the relevant PRC subsidiaries and/or their jointly-controlled entities have signed a master agreement, letter of intent or memorandum of understanding (as the case may be). The acquisition of the relevant parcels of land is subject to (i) a public bidding process, the signing of land grant agreements with the governmental authorities and obtaining of land and/or property title certificates, where the land is to be granted directly from the government authorities; or (ii) the signing of sale and purchase agreement and obtaining of land and/or property title certificates, where the vendor is not a governmental authority. N/A: not available.

(1)(2)

(3)

(4)

(5)

(6)

(7)


21%

4%

9%

15%

34%

83%

17%

100%

land parcels are spread geographically across 27 major cities

in China and Japan. Our total portfolio area, which includes

all properties as well as land for future use, stands at 10.8

million sq.m., of which completed properties make up 63% of

our portfolio. In addition, as of 31 March 2011, we have total

land reserves of 5.7 million sq.m., providing a strong pipeline

of land bank for our future growth.

Portfolio overview as of 31 March 2011

China

Completed and stabilised properties

Completed and pre-stabilised properties

Properties under development or being repositioned(4)

Land held for future development(5)

Land reserve(6)

China total

Japan

Completed and stabilised properties

Total


STRATEGIC ACqUISITIONS TOSTRENGThEN OUR MARKET POSITIONShortly after our public listing, we made two key

acquisitions to further strengthen our market leadership

position in Asia.

In December 2010, we acquired a 19.9% effective

shareholding in the Shenzhen Chiwan Petroleum Supply

Base Co., Ltd. (“SCPSB”), the parent company of BLOGIS,

the second largest modern logistics facility provider in China,

for HK$539 million. SCPSB is a Shenzhen-listed company

and a provider of logistics and oil and gas services. By

leveraging on BLOGIS’ high quality portfolio in several key

locations across China, we are able to further enhance our

“Network Effect” in a mutually beneficial way with BLOGIS.

As of March 2011, BLOGIS has 1.15(1) million sq.m. of

completed and uncompleted GFA in China.

0.190.55 0.08

1.04

0.30

1.34

1.56

0.77

2.33

2.38

1.41

2.76

2.60

2.80

3.22

2.80

4.03

3.79

5.36

6.02

6.83

FY2004 FY2005 FY2006 FY2007 FY2008 FY2009 FY2010 FY2011(4)

FY2005 - 2011 China GFA CAGR: 92.2%

FY2005 - 2011 Japan GFA CAGR: 34.6%

FY2004 - 2011 CAGR: 66.8%

China JapanGFA (million sq.m.)(3)

CREATING VALUE ACROSS ASIAGLP positions itself as the premier logistics facility provider

in Asia supporting the growth in domestic consumption.

With one of the largest network of strategically located

In January 2011, we acquired an approximate 53% equity stake

in Airport City Development Co., Ltd (“ACL”), the sole developer

in the Beijing Capital International Airport (“BCIA”) airside cargo

handling and bonded logistics area. This acquisition is our first

air cargo facility that is sited within the perimeter of a major

airport and brings into our portfolio a number of important

assets on the airside of the second runway at BCIA. It added

18 completed properties of approximately 273,843(2) sq.m. of

GFA and approximately 513,000 sq.m. of development pipeline

to our portfolio.

Together with our newly completed properties in the current

financial year, GLP’s completed portfolio increased by 13.5%

to 6.83 million sq.m. as of 31 March 2011 from 6.02 million

sq.m. as of 31 March 2010. Though presently focused on China

and Japan, we are bullish on Asia and foresee opportunities

to expand to other growing markets such as India.

modern logistics facilities in Asia, our “Network Effect”

allows our customers to expand within our logistics

parks as well as across our network locations as their

businesses grow.

(1) Information from BLOGIS public announcements and website as of 31 March 2011.(2) Portfolio information of ACL is updated as of 31 March 2011.(3) On 100% basis.(4) Excludes GFA attributable to BLOGIS.

0.47


China Portfolio



Providing the logistics infrastructure for China’s fast growing domestic consumption


As of 31 March 2011, our portfolio in China consists of 261 completed logistics and light assembly facilities with GFA of

approximately 4 million sq.m., located in the different cities as depicted below.

Beijing

Chengdu

Chongqing

Dalian

Foshan

Guangzhou

Hangzhou

Nanjing

Ningbo

Qingdao

Shanghai

Shenyang

Shenzhen

Suzhou

Tianjin

Wuxi

Comprising:

Stabilised

Pre-Stabilised

Completed Portfolio

27

6

1

8

8

14

6

2

2

5

46

1

4

114

15

2

261

231

30

Number of Properties

447,605

86,131

18,687

178,529

161,654

292,697

98,954

45,878

32,641

56,480

1,052,107

18,090

168,477

1,120,914

211,847

39,365

4,030,056

3,406,820

623,236

GFA

(sq.m.)

4,351

224

54

578

496

993

333

121

106

252

4,169

58

827

3,547

735

116

16,960

12,342

4,618

Property Valuation

(RMb million)

11.1%

2.1%

0.5%

4.4%

4.0%

7.3%

2.5%

1.1%

0.8%

1.4%

26.1%

0.4%

4.2%

27.8%

5.3%

1.0%

100%

84.5%

15.5%

Share of GFA

(%)

As of 31 March 2011



In FY2011, we completed GFA of 557,436 sq.m.(5) of new

facilities, acquired GFA 273,843 sq.m.(5) of completed facilities

and started development for 1.22 million sq.m.(5) of GFA, which

is in line with our target for the year.

We also have interests in 1.6 million sq.m. of GFA under

Number of cities

20Stabilised lease ratio(1)

92%Total GFA (sq.m.)(2)(5)

13.7 millionGFA under development (sq.m.)(3)(5)

1.6 millionGFA of land held for future development (sq.m.)(4)(5)

2.4 milliondevelopment or being repositioned, and over 2.4 million sq.m.

of GFA under land held for future development. Our properties

and land parcels are spread across 57 integrated parks (55

logistics parks and 2 light assembly facilities parks) in 20 major

cities. In addition, we also have approximately 5.7 million sq.m.

of GFA in land reserve.

Beijing

Chongqing

Dalian

Foshan

Guangzhou

Jiaxing

Ningbo

Shanghai

Qingdao

Shenyang

Shenzhen

Suzhou

Tianjin

Zhongshan

Total

7

6

1

2

6

1

2

28

8

2

5

29

5

2

104

Properties under development

or being Repositioned

As of 31 March 2011


124,561

68,674

22,559

38,326

112,757

21,879

33,589

419,280

71,949

37,265

156,659

368,670

59,103

22,570

1,557,841

Estimated GFA(5)

(sq.m.)

260

133

46

25

287

23

65

1,279

180

58

114

767

97

30

3,364

Property Valuation

(RMb million)

Beijing

Dalian

Foshan

Jiaxing

Ningbo

Qingdao

Shanghai

Shenzhen

Suzhou

Xiamen

Zhuhai

Total

1,737,434

323,450

29,150

73,592

118,929

395,934

947,251

65,352

268,843

136,440

387,773

4,484,148

Land held for Future

development(4)

As of 31 March 2011

607,553

227,140

22,770

47,721

63,473

184,101

742,196

49,518

142,463

145,614

197,344

2,429,893

3,959

210

9

23

36

162

699

27

106

160

188

5,579

Property Valuation

(RMb million)

Site Area

(sq.m.)

Stabilised lease ratio of logistic portfolio. Includes completed properties, properties under development or being repositioned, land held for future development and land reserve. Properties under development or being repositioned.“Land held for future development” refers to land which we have signed the land grant contract and/or we have land certificate, including non-core land and properties occupied by Air China and the Government or its related entities that GLP doesn’t wish to own and will sell.On 100% basis.

Estimated GFA(5)

(sq.m.)

(1)(2)(3)(4)

(5)


with leading players, such as with VANCL in Shanghai, Beijing

and Chengdu, and establish market leadership in specific

logistics parks for e-commerce, such as GLP Park Chengdu

Hi-tech Phase II. Other online retailers who have leases with us

include Joyo Amazon, VIPshop and 360buy.

GLP engages in various marketing initiatives in order to

attract new customers and expand our market recognition.

In China, we leverage on our relationships with some of our

leading customers by undertaking co-branded advertisement

campaigns. During financial year of 2011, customers engaged

in co-branded advertisement campaigns include Yum, Joyo

Amazon, VANCL, Volkswagen, and Unipart. Co-branded

advertising allows us to capitalise on the positive experiences

of our customers, utilising the numerous testimonials and

feedback we have received for marketing purposes.

PROSPECTSChina is currently the world’s second largest economy and is

one of the world’s fastest growing economies in recent years.

The country’s GDP grew by 10.3% in 2010 and is expected

to grow by 9.3% in 2011 and 8.9% in 2012 according to the

Consensus Forecast(1).

Domestic consumption has increasingly become a key driver

of China’s growth. Chinese nominal retail sales have grown

at a CAGR of 18.1% between 2005 and 2010, according to

National Bureau of Statistics of China. Immense potential

in China’s domestic consumption will be further unleashed

as per capita household income rises. At the same time, an

emerging trend is the balance of growth in coastal and inland

regions, which is expected to spur inter-regional logistics

activities. We believe that these trends will translate into


In FY2011, the total site area of acquired land including Beijing

ACL and additional land plots in Suzhou, Shanghai, Tianjin,

Xiamen and Zhongshan, is 3.0 million sq.m..

In terms of leasing demand, we continued to see new and

expansion leases of approximately 105,391 sq.m. per month in

FY2011 from both existing and new customers. The Weighted

Average Lease Expiry (“WALE”) reached 2.8 years for completed

properties as of 31 March 2011. With regard to our stabilised

logistics portfolio, our lease ratio improved from 86% as of 31

March 2010 to 92% as of 31 March 2011.

GLP’s Leased Area by End-user Industries and demand Type for Completed Logistics Properties(As of 31 March 2011)

FMCG19%

Electronics/High-tech

19%

Retail/Fast Food Chain

20%

GeneralLogistics Services

18%

Auto & Parts12%

Other8%Machinery

2%

Pharmaceutical/Medical Instruments

2%

Domestic Demand Related

74%

Import/Export Related

26%

Lease Ratios (%) and Rental (RMb/sq.m./day) for China(*)

0.97

1.00

0.90

0.80

0.70

100%

80%

60%

40%

20%

0%FY2009 FY2010 FY2011

86% 86% 92%

0.97 0.99

(*) Stabilised logistics portfolio

At present, GLP has more than 350 customers in China, with

approximately 74% of the leased area catering to domestic

demand as shown in the above end-user industry sectors. The

top 10 customers, accounting for about 25% of our leased

area, include Nice Talent Logistics Co., VANCL, Joyo Amazon,

PGL, DHL, DeWell, GM, Black & Decker, Samsung, and Wal-

Mart China. In FY2011, we also moved to capture opportunities

emerging from online retailers. We sought to deepen partnerships

(1) Asia Pacific Consensus Forecasts published by Consensus Economics Inc. on 4 April 2011.


strong demand for logistics services and modern logistics

facilities.

From 2005 to 2010, the logistics market in China has grown

at a compounded annual growth rate (“CAGR”) of 16%

according to National Development and Reform Commission(1).

The policymakers in China have, since 2005, identified the

logistics industry as one of the sectors to be supported by

the National Development and Reform Commission. Policy

support for the logistics industry can also be seen from

the Logistics Industry Revitalisation Plan released in 2009.

Recently, China’s 12th Five-year Plan (2011-2015) reflects the

policymakers’ continuous emphasis on the logistics industry

by opening up to foreign investment for logistics efficiency

improvement. Besides, the Plan also shows the government

is continuing to strengthen the shift to a consumption-driven

economy, and a more regionally-balanced development by

moving inland, coinciding with GLP’s strategy for growth.

To capture the growth in domestic consumption, companies

are expanding their distribution and logistics network

throughout China. And companies will continue to push

for higher efficiency of their supply chains, e.g. outsourcing

logistics services to third party logistics service providers

and upgrading their logistics facilities. We have as a result

seen an increasing demand for efficient, high quality logistics

space.

In contrast to the strong demand, there have been very

limited new completions in the last two years and new

supply of logistics facilities will be constrained by scarcer

land supply and higher threshold for facility investment laid

by local governments with an intention to upgrade social

logistics system. GLP as a leading facility provider with a

good track record, has increasing competitive advantages

in providing solutions for both local governments and

customers.

With our development pipeline, geographical presence

across China and “Network Effect”, GLP is in a remarkably

favourable position to capture growth opportunities in

China.

Auto & Parts

Online RetailRetail / Food

“Network Effect” to support our customers’ national expansion Robust building quality and proactive services ensure customers’ operational continuity

Opportunities for co-branding initiatives with customers

GLP Solutions

VALUE TO CUSTOMERS

Easy Network Expansion

Ensured Operation Continuity

Co-brandingEffects

Efficiency Improvement & Cost Saving

Partner Facilitating ResourceIntegration

CAPEX Saving

(1) Based on total logistics expenditure announced by the National Development and Reform Commission.

Online Retail


GFA of Properties Under development or being Repositioned

1,557,841sq.m.GFA of Land held for Future development

2,429,893sq.m.

New Completed Properties(1)

831,279sq.m.


The following tables delineate new completed properties in FY2011, properties under development or being repositioned and land held for future development as of 31 March 2011.

GLP Park Beilun, China GLP Park Lingang, China

GLP Park TEDA, China GLP Park Sanshan, China

(1) Including completed properties developed and acquired.


GLP Park Lingang

GLP Park Lingang

GLP Park Lingang

GLP Park Lingang

GLP Park Songjiang

GLP Park Songjiang

GLP Park Suzhou Industrial (Genway)

GLP Park Suzhou

GLP Park Suzhou

GLP Park Suzhou

GLP Park Qingdao Airport East

GLP Park Qingdao Airport East

GLP Park HEDA

GLP Park Beilun

GLP Park Beilun

GLP Park TEDA

GLP Park TEDA

GLP Park SEDA

GLP Park Sanshan

GLP Park Sanshan

GLP Park CDHT

GLP Park CDHT

GLP Park CDHT

Total Completed Properties developed

GLP Park ACL

Total Completed Properties Acquired

Total New Completed Properties

Logistics Park Name

Lingang Lot B1

Lingang Lot B2

Lingang Lot E1

Lingang Lot E2

Songjiang B3

Songjiang B4

Samsung Phase IV

Suzhou C26

Suzhou C27

Suzhou C28

Qingdao Airport East B1

Qingdao Airport East B2

HEDA A1

Beilun B1

Beilun B2

TEDA B7

TEDA B8

SEDA B1

Sanshan B1

Sanshan B2

CDHT B6

CDHT B7

CDHT B8

Beijing ACL Buildings

Property Name GFA

(sq.m.)

Actual Start date(1)

New Completed Properties

CityEffective Interest

(%)

Asset Type

Actual Completion

date(1)

Shanghai

Shanghai

Shanghai

Shanghai

Shanghai

Shanghai

Suzhou

Suzhou

Suzhou

Suzhou

Qingdao

Qingdao

Hangzhou

Ningbo

Ningbo

Tianjin

Tianjin

Shenyang

Foshan

Foshan

Chengdu

Chengdu

Chengdu

Beijing

50%

50%

50%

50%

100%

100%

50%

50%

50%

50%

100%

100%

100%

100%

100%

80%

80%

60%

100%

100%

100%

100%

100%

53%

Logistic Facility

Logistic Facility

Logistic Facility

Logistic Facility

Logistic Facility

Logistic Facility

Industrial

Logistic Facility

Logistic Facility

Logistic Facility

Logistic Facility

Logistic Facility

Logistic Facility

Logistic Facility

Logistic Facility

Logistic Facility

Logistic Facility

Logistic Facility

Logistic Facility

Logistic Facility

Logistic Facility

Logistic Facility

Logistic Facility

Logistic Facility

54,738

54,738

47,746

47,746

25,738

24,902

13,802

36,382

36,144

12,729

10,833

11,533

14,365

16,909

15,732

16,149

7,796

18,090

24,018

10,909

24,178

16,609

15,650

557,436

273,843

273,843

831,279

Q3 2009

Q3 2009

Q3 2009

Q3 2009

Q3 2010

Q3 2010

Q1 2011

Q2 2009

Q2 2009

Q1 2011

Q1 2011

Q1 2011

Q3 2008

Q3 2010

Q3 2010

Q3 2010

Q3 2010

Q2 2009

Q3 2010

Q3 2010

Q4 2010

Q4 2010

Q4 2010

Q1 2011

Q1 2011

Q2 2011

Q2 2011

Q4 2011

Q4 2011

Q2 2011

Q1 2011

Q2 2011

Q4 2011

Q4 2011

Q4 2011

Q3 2011

Q4 2011

Q4 2011

Q3 2011

Q3 2011

Q1 2011

Q2 2011

Q2 2011

Q3 2011

Q3 2011

Q3 2011

Q4 2011

Fiscal quarters.(1)



GLP Park Pudong Heqing

GLP Park Hongqiao West

GLP Park Pudong Airport

GLP Park Suzhou Industrial

(Genway)


(Genway)


(Genway)

GLP Park Suzhou

GLP Park Suzhou

GLP Park Kunshan

GLP Park Dianshanhu

GLP Park Qiandeng

GLP Park Jiashan

GLP Park Beilun

GLP Park Daxing

GLP Park Daxing

GLP Park Beijing Airport

GLP Park Beijing Airport

GLP Park TEDA

GLP Park Xiqing

GLP Park Dalian Port

GLP Park SEDA

GLP Park Zengcheng

GLP Park Zengcheng

GLP Park Shunde

GLP Park Yantian

GLP Park Longgang

GLP Park Zhongshan

GLP Park Chongqing

GLP Park Chongqing

Total

Logistics Park Name

Heqing B1

Hongqiao West B1-B4

Pudong Airport B1-B5

Genway Gangtian 23-24

Genway Gangtian 25-26

Genway API Phase III

Suzhou C29-C32

Suzhou Samsung I2

Kunshan B1

Dianshanhu A1-A3

Qiandeng B1-B3

Jiashan B1

Beilun B3-B4

Daxing A1-A2

Daxing B1-B3

Beijing Airport B5

Beijing Airport B6

TEDA B9-B11

Xiqing PhaseII A1-A2

Dalian Port W6

SEDA II B2-B3

Zengcheng B1-B2

Zengcheng B3-B6

Shunde B3, B5

Yantian A3

Longgang II B1-B4

Zhongshan A1-A2

Chongqing II B2, B4-B6

Chongqing II B1, B3

Property Name GFA

(sq.m.)

Actual Start date(1)

Properties under development


(%)

Asset Type

Estimated Completion

date(1)

Shanghai

Shanghai

Shanghai

Suzhou

Suzhou

Suzhou

Suzhou

Suzhou

Suzhou

Suzhou

Suzhou

Jiaxing

Ningbo

Beijing

Beijing

Beijing

Beijing

Tianjin

Tianjin

Dalian

Shenyang

Guangzhou

Guangzhou

Foshan

Shenzhen

Shenzhen

Zhongshan

Chongqing

Chongqing

100%

100%

100%

50%

50%

50%

50%

50%

90%

100%

100%

100%

100%

60%

60%

100%

100%

80%

100%

60%

60%

100%

100%

100%

50%

51%

100%

100%

100%

Logistic Facility

Logistic Facility

Logistic Facility

Logistic Facility

Logistic Facility

Industrial

Logistic Facility

Logistic Facility

Logistic Facility

Logistic Facility

Logistic Facility

Logistic Facility

Logistic Facility

Logistic Facility

Logistic Facility

Logistic Facility

Logistic Facility

Logistic Facility

Logistic Facility

Logistic Facility

Logistic Facility

Logistic Facility

Logistic Facility

Logistic Facility

Logistic Facility

Logistic Facility

Logistic Facility

Logistic Facility

Logistic Facility

74,073

70,968

83,400

30,240

72,723

5,451

47,195

5,714

24,384

53,209

44,122

21,879

33,589

30,133

65,150

24,976

4,302

26,748

32,355

22,559

37,265

36,303

76,454

38,326

64,114

92,545

22,570

44,507

24,167

1,209,421

Q4 2011

Q1 2011

Q3 2011

Q3 2011

Q3 2011

Q3 2011

Q2 2011

Q3 2011

Q2 2011

Q2 2011

Q4 2011

Q2 2011

Q3 2011

Q2 2011

Q2 2011

Q3 2011

Q3 2011

Q3 2011

Q2 2011

Q2 2011

Q2 2011

Q3 2010

Q1 2011

Q4 2011

Q4 2011

Q4 2011

Q3 2011

Q1 2011

Q1 2011

Q2 2013

Q3 2012

Q2 2012

Q2 2012

Q1 2013

Q2 2012

Q1 2012

Q1 2012

Q2 2012

Q1 2012

Q1 2013

Q4 2012

Q3 2012

Q2 2012

Q1 2012

Q2 2012

Q1 2012

Q3 2012

Q2 2012

Q3 2012

Q3 2012

Q2 2012

Q2 2012

Q4 2012

Q2 2013

Q3 2013

Q2 2012

Q1 2012

Q2 2012

(1) Fiscal quarters.(2) Completion date is estimated. It will be updated according to the future progress.

GLP Park Jinqiao

GLP Park Laogang

GLP Park Suzhou

GLP Park Qingdao Airport West

Total

Logistics Park Name

Jinqiao E1-E9

Laogang E1-E9

Suzhou Bonded (Phase I)

Qingdao Airport West B5-B12

Property Name GFA

(sq.m.)

Actual/Estimated

Start date(1)CityEffective Interest

(%)

Asset Type


date(1)(2)

Shanghai

Shanghai

Suzhou

Qingdao

100%

100%

50%

100%

Light Industrial

Warehouse

Warehouse

Warehouse

154,912

35,927

85,632

71,949

348,420

Q4 2011

Q1 2012

Q2 2011

Q2 2010

Q3 2012

Q3 2012

Q2 2013

Q2 2013

Properties being Repositioned


GLP Park Fengcheng

GLP Park Fengcheng

GLP Park Fengcheng

GLP Park Pujiang

GLP Park Lingang

GLP Park Lingang

GLP Park Lingang

GLP Park Lingang

GLP Park Suzhou Industrial (Genway)

GLP Park Wuzhong

GLP Park Wangting

GLP Park Qiandeng

GLP Park Hangzhou Bay

GLP Park Hangzhou Bay

GLP Park Jiashan

GLP Park Qianwan Port



GLP Park Jiaonan



GLP Park ACL

GLP Park ACL

GLP Park ACL

GLP Park ACL

GLP Park ACL

GLP Park ACL

GLP Park ACL

GLP Park ACL






GLP Park Xiamen Airport

GLP Park Xiamen Airport

GLP Park Shunde

GLP Park Longgang

GLP Park Zhuhai

GLP Park Zhuhai

Total

Logistics Park Name

Fengcheng Lot A

Fengcheng Lot B

Fengcheng Lot C

Pujiang(2)

Lingang Lot F Warehouse

Lingang Lot F Container Yard

Lingang Lot J

Lingang Lot G

Genway Land 2-6

Wuzhong B1

Wangting II & III

Qiandeng II

Hangzhou Bay Lot A(3)

Hangzhou Bay Lot B(3)

Jiashan II

Qianwan Port A1-A3

Qianwan Port A4-A6

Qianwan Port Land

Jiaonan

Qingdao Airport West

B2B4 (Bonded)

Qingdao Airport West

B3 (Non-bonded)

ACL I

ACL II

ACL III

ACL IV

ACL V

ACL VI

ACL VII

ACL Disposal(4)

Dalian Port Lot 5-I

Dalian Port Lot 5-II

Dalian Port Lot 5-III

Dalian Port Lot 6-I

Dalian Port Lot 6-II

Xiamen Airport I

Xiamen Airport II

Shunde III

Longgang III

Zhuhai I

Zhuhai II

Property Name GFA

(sq.m.)

Estimated Start

date(1)

Land held for Future development


(%)

Asset Type


date(1)

Shanghai

Shanghai

Shanghai

Shanghai

Shanghai

Shanghai

Shanghai

Shanghai

Suzhou

Suzhou

Suzhou

Suzhou

Ningbo

Ningbo

Jiaxing

Qingdao

Qingdao

Qingdao

Qingdao

Qingdao

Qingdao

Beijing

Beijing

Beijing

Beijing

Beijing

Beijing

Beijing

Beijing

Dalian

Dalian

Dalian

Dalian

Dalian

Xiamen

Xiamen

Foshan

Shenzhen

Zhuhai

Zhuhai

100%

100%

100%

100%

50%

50%

50%

50%

50%

100%

50%

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

53%

53%

53%

53%

53%

53%

53%

53%

60%

60%

60%

60%

60%

51%

51%

100%

51%

70%

70%

Logistic Facility

Logistic Facility

Logistic Facility

Logistic Facility

Logistic Facility

Contained Yard

Logistic Facility

Logistic Facility

Industrial

Logistic Facility

Logistic Facility

Logistic Facility

Logistic Facility

Logistic Facility

Logistic Facility

Logistic Facility

Logistic Facility

Logistic Facility

Logistic Facility

Logistic Facility

Logistic Facility

Logistic Facility

Logistic Facility

Logistic Facility

Logistic Facility

Logistic Facility

Logistic Facility

Logistic Facility

Logistic Facility

Logistic Facility

Logistic Facility

Logistic Facility

Logistic Facility

Logistic Facility

Logistic Facility

Logistic Facility

Logistic Facility

Logistic Facility

Logistic Facility

Logistic Facility

50,000

43,488

36,196

144,775

188,394

31,450

167,219

80,674

24,948

13,446

58,320

45,748

30,415

33,058

47,721

59,333

44,768

15,000

35,000

20,000

10,000

43,000

80,000

40,000

171,000

41,000

47,000

91,000

94,553

45,118

45,118

22,559

75,468

38,877

117,600

28,014

22,770

49,518

13,990

183,354

2,429,893

Q2 2012

Q3 2013

Q3 2013

N/A

Q3 2012

Q3 2012

Q1 2014

Q1 2013

Q1 2014

Q4 2015

Q2 2012

Q1 2013

N/A

N/A

Q1 2012

Q1 2012

Q4 2012

Q4 2013

Q1 2012

Q2 2013

Q2 2013

Q1 2012

Q4 2012

Q3 2013

Q3 2014

Q3 2015

Q3 2016

Q3 2017

N/A

Q1 2012

Q1 2014

Q1 2015

Q1 2014

Q1 2015

Q1 2012

Q4 2013

Q3 2012

Q1 2013

Q1 2012

Q3 2013

Q2 2013

Q2 2014

Q2 2014

N/A

Q2 2014

Q2 2014

Q1 2016

Q2 2014

Q1 2017

Q4 2016

Q1 2013

Q2 2014

N/A

N/A

Q1 2013

Q2 2013

Q1 2014

Q1 2015

Q2 2013

Q3 2014

Q3 2014

Q3 2012

Q4 2013

Q3 2014

Q3 2015

Q3 2016

Q3 2017

Q3 2018

N/A

Q3 2013

Q2 2015

Q2 2016

Q2 2015

Q2 2016

Q1 2013

Q1 2015

Q2 2013

Q2 2014

Q3 2013

Q3 2014

Fiscal quarters.We have been notified by the relevant PRC governmental authority that the property has been put into a re-zoning plan and we have agreed to the re-zoning in principle. Upon agreement of a mutually acceptable compensation price, we are obliged to return the property to the relevant PRC governmental authority. We have to go through a public bidding process should we wish to acquire the re-zoned property. The subject land have been returned to the local government in Q1 FY2012.The subject land are to be disposed.

(1) (2)

(3)(4)


Japan Portfolio

GLP Tokyo II, Japan



building and providing a new modern logistics infrastructure for Japan


GLP Osaka, Japan GLP Tokyo, Japan

In reviewing our Japan operations, we must first recognise

the tragedy that the country and its people experienced

in March 2011 when a major earthquake and a tsunami

devastated many communities along the North East coast.

Fortunately, no member of GLP’s staff or their immediate

families were lost or injured in the disaster. We responded

rapidly after the tsunami struck and have worked closely with

our tenants to restore operations and minimise downtime

at their facilities. The damage to our buildings amounted

to approximately JPY3.18 billion (US$38.4 million), which

is approximately 0.6% of our total portfolio value in Japan.

This is a testimony to the high quality specifications of

our buildings in Japan. Repairs were carried out and the

damaged buildings have resumed full operations, save

for 1 property – GLP Sendai which is expected to resume

operation in June 2011.

Tokyo

Osaka

Sendai

Fukuoka

Nagoya

Hiroshima

Sapporo

Stabilised portfolio

CompletedPortfolio

32

18

7

5

3

3

1

69


1,532,349

790,590

162,913

140,249

101,984

52,798

16,034

2,796,917

GFA

(sq.m.)

322,866

127,060

17,751

17,590

17,520

7,670

1,620

512,077

Property Valuation

(JPY million)

54.8%

28.3%

5.8%

5.0%

3.6%

1.9%

0.6%

100.0%

Share of GFA

(%)

As of 31 March 2011

Our 2.8 million sq.m. of GFA in Japan are completed and

stabilised. Demand from 3PL companies, e-commerce

industry and companies in the fast-moving consumer goods

industry continue to grow. As of 31 March 2011, our Japan

portfolio has an average lease ratio of 99%.



GLP Tokyo II, Japan

Our customer retention ratio remained stable at 83% with

WALE at 31 March 2011 of 5.9 years. The top 10 customers

account for about 64.1% of our leased area and include ASKUL

Corporation, Coca-Cola West Logistics Co., Ltd, Hitachi

Transport System, Ltd, Nippon Express Co., Ltd, Panasonic

Logistics Co., Ltd, Renown Incorporated, Sanyo Electric

Logistics Co., Ltd, Senko Co., Ltd, Shinkai Transport Systems,

Ltd, and Yamato Logistics Co., Ltd.

PROSPECTSEconomists predict that Japan’s economy will undergo a

“short-lived dip and strong recovery from the second half

of 2011”. Nomura Securities has announced its updated

forecast for Japan GDP of 0.5% in 2011 and 2.9% in 2012

Number of cities

7Stabilised lease ratio

99%Total GFA (sq.m.)

2.8 millionrespectively(1). The logistics industry remains inherently strong

with 3PL demonstrating an estimated growth of 6.1% as of 31

March 2011(2). Structural changes in the industry arising from

companies seeking to minimise cost and outsource logistics

services as well as scarcity of large modern logistics facilities in

Japan will continue to drive growth in the sector.

In the aftermath of the March tsunami, there has been a surge

in construction activities. Demand for new logistics facility space

remains strong; within a week of the earthquake and tsunami, we

received requests for nearly 200,000 sq.m. of new space. This

space was primarily used for distribution centres for relief goods in

the affected areas, and as replacement space needed by clients

for damaged facilities. GLP will continue to seek development and

acquisition opportunities to boost its portfolio in Japan.

Over the longer term, we expect increased demand for our

earthquake resistant and modern facilities. There is also

potential for existing logistics facilities to be reconfigured so as

to better cope with natural disasters. There will likely be greater

demand for energy-efficient facilities due to limited electricity

availability after the destruction of several nuclear power

generation plants by the tsunami. We also see opportunities

among potential tenants who want to move out of older, non-

earthquake resistant warehouses they now occupy to the

modern and earthquake resistant facilities which GLP owns.

1.080

Lease Ratios (%) and Rental (Yen/sq.m./mth) for Japan(*)

1,100

1,050

1,000

950

900

100%

80%

60%

40%

20%

0%FY2009 FY2010 FY2011

100% 99% 99%

1.085 1.077

(1) Source: Nomura Securities –“Economy Outlook 2010 -2012”, 25 May 2011.(2) Source: LOGI-BIZ, September 2010 issue –“3PL White Paper”.

(*) Stabilised logistics portfolio


bOARd OF dIRECTORS

Ang Kong hua Jeffrey h. Schwartz Ming Z. Mei dr. Seek Ngee huat

Lim Swe Guan Tham Kui Seng wei benhua(1)

Steven Lim Kok hoong dr. dipak Jain Paul Cheng Ming Fun

Yoichiro Furuse

(1) Mr. Wei Benhua resigned as a Non-Executive Independent Director on 2 May 2011.


Ang Kong hua, 67, is our Independent Chairman.

Following stints at the Economic Development Board from

1966 to 1967 and DBS Bank from 1968 to 1974, Mr. Ang spent

28 years as CEO of NSL Ltd (formerly NatSteel Ltd). Mr. Ang

retired as CEO from NSL Ltd in 2003. Mr. Ang currently serves

as the Chairman of Sembcorp Industries Ltd, an industrial

conglomerate listed on the Singapore Exchange. His other

appointments include Director of Government of Singapore

Investment Corporation Private Limited (“GIC”), GIC Special

Investments Private Limited and Southern Steel Berhad.

Mr. Ang’s appointments in the past included directorships

at NSL Ltd, CIMC Raffles Offshore (Singapore) Limited, k1

Ventures Limited, Neptune Orient Lines Ltd, DBS Bank Ltd and

DBS Group Holdings Ltd.

Mr. Ang graduated from the University of Hull, UK, with a

Bachelor of Science (Economics) Upper II Honours degree

in 1966.

Ming Z. Mei, 39, is our Chief Executive Officer, Co-founder

of GLPH, and Executive Director. He was formerly the Chief

Executive Officer of ProLogis for China and Asian Emerging

Markets. He opened ProLogis’ first China office in 2003 and

built up our China operations to their current scale. Prior to

joining ProLogis, Mr. Mei was with Owens Corning, a world

leading construction materials manufacturer, where he held

various key roles in finance, manufacturing, sales, marketing

and strategic planning and general management.

Mr. Mei graduated from the J.L. Kellogg School of Management

at Northwestern University and the School of Business and

Management at the Hong Kong University of Science and

Technology with a Master of Business Administration. He

received his Bachelor of Science in Business from Indiana

University School of Business.

Jeffrey h. Schwartz, 52, is our Deputy Chairman of

the Board, Chairman of the Executive Committee, Executive

Director, and Co-founder of Global Logistic Properties

Holding Limited (“GLPH”). Mr. Schwartz joined ProLogis, a

NYSE-listed Fortune 500 company, in 1994, and held various

executive roles, rising to Chief Executive Officer in 2005 as

well as Chairman of the Board in 2007. While at ProLogis,

Mr. Schwartz spearheaded ProLogis’ entry into the European

markets in 1997, and also established ProLogis’ Asia platform

in 2002, initially in Japan and eventually progressing to China

and Korea. Mr. Schwartz serves on the advisory boards of

the Guanghua School of Management, Peking University and

Fundacao Dom Cabral, Brazil. He is a member of the Board

of Trustees of Emory University and a Treasurer of the Real

Estate Roundtable, a non-profit public policy organisation. He

also sits on the Board of Las Vegas Sands Corp.

Mr. Schwartz graduated from Harvard Business School in

1985 with a Master of Business Administration. Mr. Schwartz

graduated from Emory University in 1981 with a Bachelor of

Business Administration.

dr. Seek Ngee huat, 61, is a Non-Executive Director.

He is President of GIC Real Estate Pte. Ltd., the real estate

investment arm of GIC and also a member of the GIC Board

of Directors and the GIC Group Executive Committee. Prior to

joining GIC in 1996, Dr. Seek was a Partner with Jones Lang

Wootton, based in Sydney. He is Chairman of the Institute of

Real Estate Studies, National University of Singapore, his alma

mater, and has served on the advisory boards of the Guanghua

School of Management, Peking University and Fundacao Dom

Cabral, Brazil, and the real estate programs at Cambridge

University and Harvard University. He was a Board Director of

the Pension Real Estate Association, USA and the founding

Chairman of the Property Council of Australia Property Index.

Dr. Seek graduated with a Master of Science (Business

Administration) from the University of British Columbia in 1975

and a PhD in Urban Research from the Australian National

University in 1981.


bOARd OF dIRECTORS

wei benhua(1), 64, is a Non-Executive Independent Director. Mr. Wei has served as the Adviser to the Governor of the People’s Bank of China (“PBOC”) from 2008 to January 2010. He was the Deputy Administrator of the State Administration of Foreign Exchange (“SAFE”) of the People’s Republic of China from 2003 to 2008. Prior to joining SAFE, Mr. Wei served as Director-General of International Department in PBOC from 1996 to 1999. Mr. Wei was also China’s representative in various international organisations. From 1988 to 1991, he was an Alternate Executive Director representing China in the Asian Development Bank. From 1992 to 1995, he was an Alternate Executive Director representing China in the International Monetary Fund (“IMF”) and from 1999 to 2003, he was an Executive Director representing China in the IMF.

Mr. Wei received his Bachelor of Arts in English Language from the Inner Mongolia Normal University and his Master degree in International Finance from the Graduate School of the People’s Bank of China.

Yoichiro Furuse, 69, is a Non-Executive Independent Director. Mr. Furuse is currently the President of Evanston Corporation, a Senior Adviser of Permira Advisers K.K. and a director of Nitto Denko Corporation. From 2001 to 2005, he was the Executive Director & Executive Vice President of SANYO Electric Co., Ltd where he was responsible for its corporate management functions and internal control. Prior to this, Mr. Furuse served as the Senior Managing Director of Mazda Motor Corporation from 1996 to 2000 where he was responsible for domestic marketing, financing and overseeing the relationship with Ford Motor Company. Mr. Furuse began his career with Sumitomo Bank Limited in 1964 where he served as an Executive Director of International Banking Unit, West Japan Region, Domestic Corporate Planning. His last position with Sumitomo Bank Limited was as the bank’s Senior Executive Director where he oversaw all the business activities of the bank within Europe, Middle East and Africa.

Mr. Furuse received his Master of Business Administration from Northwestern University’s Kellogg School of Management in 1970 and his Bachelor of Laws from Osaka University in 1964.

Lim Swe Guan, 57, is the Alternate Director to Dr. Seek Ngee Huat. He joined GIC Real Estate Pte Ltd in 1997 and was a Managing Director of GIC Real Estate Pte Ltd, the real estate investment arm of Government of Singapore Investment Corporation Pte Ltd before retiring on 18 February 2011. In November 1995, Mr. Lim joined SUNCORP Investments in Brisbane, Australia as Portfolio Manager, Property Funds. In June 1986, Mr. Lim was recruited by Jones Lang Wootton in Sydney, Australia to the position of Senior Research Analyst. He was appointed Manager in October 1987 and Director in 1989. Prior to that, he worked as a property consultant with Knight Frank, Cheong Hock Chye & Bailieu from 1985 to 1986. He also sits on the boards of General Property Trust and Thakral Holdings Group in Australia and Sunway City Berhad in Malaysia. He is also a CFA charter holder.

He graduated with a Bachelor of Science in Estate Management in 1979 from the University of Singapore and a Master of Business Administration from the Colgate Darden Graduate School of Business, The University of Virginia in 1985.

Tham Kui Seng, 53, is a Non-Executive Independent Director. Mr. Tham has held executive positions in various industries, including more than 10 years in real estate. His last executive position was as Chief Corporate Officer of CapitaLand Limited, overseeing the corporate services functions of the real estate group from 2002 to 2008. He also held the position of Chief Executive Officer of CapitaLand Residential Limited from 2000 to 2005. His other past directorships include Australand Holdings Limited, the Ascott Limited and Raffles Holdings Limited.

He is currently a director of Raffles Medical Group Ltd, The Straits Trading Company Limited, CapitaLand China Holdings Pte Ltd, SPI (Australia) Assets Pty Ltd and SembCorp Industries Ltd. He is also a member of the Board of The Housing & Development Board (“HDB”) and Chairman of E M Services Private Limited, a subsidiary of HDB.

Mr. Tham received his Bachelor of Arts in Natural Science – Engineering Science from the University of Oxford, United Kingdom in 1979.

Mr. Wei Benhua stepped down as Non-Executive Independent Director on 2 May 2011 following his appointment as the first director of the ASEAN+3 Macroeconomic Research Office (“AMRO”).

(1)


Steven Lim Kok hoong, 64, is a Non-Executive Independent Director. He has over 32 years of audit and financial consulting experience and was responsible for the audits of statutory boards and some of the largest multinational corporations in Singapore, Indonesia and Malaysia. Mr. Lim served as a Senior Partner of Ernst & Young Singapore from 2002 to 2003. He started his career in Arthur Andersen in 1971 and served as the Managing Partner of Arthur Andersen Singapore from 1990 to 2002 and as Regional Managing Partner for the ASEAN region in Arthur Andersen from 2000 to 2002.

Mr. Lim is a non-executive director of Parkway Trust Management Limited, Genting Singapore PLC, Hoe Leong Corporation Ltd, Sabana Real Estate Investment Management Pte Ltd and Amtek Engineering Ltd. His past directorships include SembCorp Logistics Ltd, GES International Limited, Toll (SCL) Ltd and Transcu Group.

Mr. Lim is a Member of the Institute of Certified Public Accountants of Singapore and the Institute of Chartered Accountants in Australia. He graduated with a Bachelor of Commerce Degree from the University of Western Australia in 1971.

dr. dipak Jain, 54, is a Non-Executive Independent Director. He is the Dean of Insead, a European Business school with campuses in France, Singapore and Abu Dhabi. Prior to this he was the Sandy and Morton Goldman Professor in Entrepreneurial Studies and a professor of marketing at Kellogg School of Management at Northwestern University, where he has been a member of the faculty since 1986.

From 2001 to 2009, Dr. Jain served as Dean of the Kellogg School of Management at Northwestern University. Prior to his appointment as Dean, he served as the Associate Dean of Academic Affairs for five years. Dr. Jain has been a visiting professor of marketing at the Sasin Graduate Institute of Business Administration at Chulalongkorn University in Bangkok, Thailand, since 1989. He taught at Gauhati University in India from 1980 to 1983.

Dr. Jain also sits on the Board of other companies, such as Deere & Company, The Northern Trust Company, MediaBank LLC and Reliance Industries Limited.

He has a Master of Science in Management and Administrative Services and a PhD in management science at the University of Texas at Dallas in 1987.

Paul Cheng Ming Fun, 74, is a Non-Executive Independent Director. He is Chairman of the China High Growth Fund as well as Chairman and independent non-executive director of the Vietnam Infrastructure Fund. He is currently also Deputy Chairman and independent non-executive director of Esprit Holdings Ltd. In addition, he also serves as the independent non-executive director of Vietnam Infrastructure Ltd., Pacific Alliance China Land Ltd. and Pacific Can China Holdings Ltd.

Mr. Cheng was the Chairman of The Link Management Ltd. from 2005 to 2007, Chairman of Inchcape Pacific Ltd. from 1992 to 1998 as well as the Chairman of N.M. Rothschild & Sons (Hong Kong) Ltd from 1996 to 1998. His other past directorships include Sino Hotel (Holdings) Ltd, Sino Land Co., Ltd, Tsim Sha Tsui Properties Ltd, Hutchinson Harbour Ring Ltd. (formerly known as ICG Asia Ltd.), The Wharf (Holdings) Ltd, Kingboard Chemical Holdings Ltd, Hutchinson Global Communications Holdings Ltd and Pou Sheng International (Holdings) Limited.

Mr. Cheng was a member of the Legislative Council of Hong Kong from 1988 to 1991 and from 1995 to 1997 and, was a member of the Preparatory Committee established by the Central Government of Beijing from 1994 to 1998 in relation to Hong Kong’s reversion to Chinese sovereignty. He also served as the Chairman of the Hong Kong General Chamber of Commerce from 1992 to 1994. He was also awarded the Independent Non-Executive Director of the Year Award from the Hong Kong Institute of Directors in 2009.

Mr. Cheng has a Bachelor of Arts from Lake Forest University, Illinois, United States in 1958 and received his Master of Business Administration from The Wharton Business School at University of Pennsylvania, United States in 1961.


ExECUTIVE COMMITTEE

From left to right

Kent Yang, Stephen Schutte, Heather Xie, Ming Z. Mei, Jeffrey H. Schwartz, Masato Miki, Ralf Wessel, Yoshiyuki Chosa

Jeffrey h. Schwartz, 52, is our Deputy Chairman of the Board, Chairman of the Executive Committee, Executive Director, and Co-founder of Global Logistic Properties Holding Limited (“GLPH”). Mr. Schwartz joined ProLogis, a NYSE-listed Fortune 500 company, in 1994, and held various executive roles, rising to Chief Executive Officer in 2005 as well as Chairman of the Board in 2007. While at ProLogis, Mr. Schwartz spearheaded ProLogis’ entry into the European markets in 1997, and also established ProLogis’ Asia platform in 2002, initially in Japan and eventually progressing to China and Korea. Mr. Schwartz serves on the advisory boards of the Guanghua School of Management, Peking University and Fundacao Dom Cabral, Brazil. He is a member of the Board of Trustees of Emory University and a Treasurer of the Real Estate Roundtable, a non-profit public policy organisation. He also sits on the Board of Las Vegas Sands Corp.

Mr. Schwartz graduated from Harvard Business School in 1985 with a Master of Business Administration. Mr. Schwartz graduated from Emory University in 1981 with a Bachelor of Business Administration.

Ming Z. Mei, 39, is our Chief Executive Officer, Co-founder of GLPH, and Executive Director. He was formerly the Chief Executive Officer of ProLogis for China and Asian Emerging Markets. He opened ProLogis’ first China office in 2003 and built up our China operations to their current scale. Prior to joining ProLogis, Mr. Mei was with Owens Corning, a world leading construction materials manufacturer, where he held various key roles in finance, manufacturing, sales, marketing and strategic planning and general management.

Mr. Mei graduated from the J.L. Kellogg School of Management at Northwestern University and the School of Business and Management at the Hong Kong University of Science and Technology with a Master of Business Administration. He received his Bachelor of Science in Business from Indiana University School of Business.


Kent Yang, Stephen Schutte, Heather Xie, Ming Z. Mei, Jeffrey H. Schwartz, Masato Miki, Ralf Wessel, Yoshiyuki Chosa

Masato Miki, 47, is the President of the Group’s Japan operations. Mr. Miki was formerly President and Co-CEO of ProLogis Japan. Mr. Miki joined ProLogis Japan in 2002 and steered the company to become one of the prominent players in the Japan logistics space. Prior to joining ProLogis, Mr. Miki held several key positions within Mitsui Fudosan Co. Ltd from 1987 to 2002. In 1994, Mr. Miki relocated to New York to join Mitsui Fudosan America Inc. as Treasurer and was responsible for corporate and property financing. In 2000, Mr. Miki returned to Tokyo to participate in the company’s J REIT project team and contributed to the public offering of the first J REIT in Japan, which was sponsored by Mitsui Fudosan Co. Ltd. Mr. Miki obtained his Master of Science in Real Estate Finance from New York University in 1999, and received his Bachelor of Arts in Political Science and Economics from Waseda University in 1987. He is based in Japan.

Fang xie, heather, 47, is the Chief Financial Officer for the Group. Ms. Xie joined the company from ProLogis pursuant to the 2009 Acquisition. Ms. Xie was Managing Director and Chief Financial Officer of ProLogis China, where she was responsible for finance, treasury, tax, human resources and information technology of the China business. Ms. Xie was the Chief Financial Officer of Momentive Performance Materials Shanghai from 2007 to 2008. Previously, she spent over a decade from 1994 to 2006 in the General Electric group of companies, and held various positions, including serving as the Chief Financial Officer of General Electric Toshiba Silicones and General Electric Infrastructure China/Asia, and the Treasurer and Controller of General Electric Asia Pacific. Ms. Xie received her Bachelor and Master degrees from People’s University of China and a Master degree of Arts from Cornell University in New York. She is based in Shanghai.

Stephen Schutte, 44, is General Counsel and Chief Administrative Officer for the Group. Mr. Schutte was formerly Senior Vice President, General Counsel and Secretary at DCT Industrial Trust Inc. where he oversaw the provision of all legal services for the company, risk management and emerging markets and served as a market officer responsible for all investment and leasing matters in Seattle, Mexico and Northern California. Prior to that, he was Associate General Counsel of ProLogis overseeing joint ventures, acquisitions, complex loan transactions and developments in excess of USD 1 billion annually and was responsible for structuring and overseeing operations across multiple foreign countries. From 1998 to 2001, Mr. Schutte practiced real estate and corporate law with the international law firm of LeBoeuf, Lamb, Greene & MacRae. Mr. Schutte received his J.D. from the University of Iowa College of Law and his B.A. from Creighton University. He is based in Singapore.

Kent Yang, 42, is the Managing Director of China operations and is in charge of the company’s business in China, including leasing properties, property management, and customer relations and services. Mr. Yang joined Shanghai Lingang GLP International Logistics Park Co. Ltd. in 2005 as a General Manager. Prior to that, Mr. Yang was the Managing Director of Wuxi Hua Yang Hi-Tech Venture Capital Inc. from 2002 to 2005 where he was responsible for the overall management of the company. Mr. Yang has over 17 years of experience in industrial real estate and construction. Mr. Yang received his Bachelor of Architecture degree from the University of Southern California in 1993 and a Master of Science in Real Estate Development from Columbia University in 1996. He is based in Shanghai.

Yoshiyuki Chosa, 41, is the Managing Director of the Group’s Japan operations. Mr. Chosa was formerly Vice President and subsequently Senior Vice President, Investment Management of ProLogis Japan, where he was responsible for the acquisition, development and investment business of the company in Japan. Mr. Chosa joined ProLogis Japan in March 2003 as Vice President to launch and expand its acquisition business. Prior to joining ProLogis Japan, Mr. Chosa held several key positions within Mitsui Fudosan Co., Ltd, and Mitsui Fudosan Investment Advisors, Inc., a group company of Mitsui Fudosan. In Mitsui Fudosan Co., Ltd, Mr. Chosa was involved in condominium and housing development projects as well as office leasing. In Mitsui Fudosan Investment Advisors, he was responsible for providing asset management services and real estate investment advisory services to overseas institutional investors. Mr. Chosa holds a Bachelor of Laws from Keio University in 1992. He is based in Japan.

Ralf wessel, 39, is Managing Director, Fund Management and Business Development for the Group. Mr. Wessel was formerly Managing Director, Global Investment Management at ProLogis where he was responsible for a circa USD 21 billion investment platform. Previously, Mr. Wessel was Head of Asset Management of ProLogis European Properties, listed on the Euronext, and Senior Vice President Fund Management Europe at ProLogis. Before joining ProLogis, Mr. Wessel was a partner at Equity Estate, an Amsterdam based real estate investment management company with circa USD 1 billion asset under management. Mr. Wessel has more than 13 years of experience in the real estate sector and holds a Masters in Financial Management from the University of Amsterdam and an MSc in Real Estate Investment from City University London. He is based in Singapore.


FINANCIAL REVIEw

REVENUERevenue increased by 14.6% to US$473.9 million in the year

ended 31 March 2011 as compared to US$413.5 million in

the year ended 31 March 2010. The increase was primarily

attributable to the completion and stabilisation of development

projects in China, improvement in our operational performance,

the strengthening of the Japanese Yen and Chinese Renminbi

against the U.S. dollar, as well as the acquisition of ACL in

January 2011.

Our stabilised logistics facilities in China achieved higher lease

ratio of 92% as of 31 March 2011, compared to 86% as of

31 March 2010. The average new and expansion leased area

per month of our facilities in China was 105,391 sq.m. during

the past 12 months. The occupancy of our logistics facilities in

Japan remained stable with an average lease ratio of 99% and

weighted average lease expiry of 5.9 years.

REVENUE bY GEOGRAPhICAL MARKETSChinaRevenue increased by 43.3% to US$88.1 million in the year

ended 31 March 2011 as compared to US$61.5 million in the

year ended 31 March 2010. The revenue increase was primarily

attributable to the completion and stabilisation of development

projects, the improvement in our operational performance, the

acquisition of ACL in January 2011, as well as the strengthening

of the Chinese Renminbi against the U.S. dollar.

JapanRevenue increased by 9.6% to US$385.7 million in the year

ended 31 March 2011 as compared to US$352.0 million in the

year ended 31 March 2010, which was primarily attributable

to the improvement in our operational performance and the

strengthening of the Japanese Yen against the U.S. dollar

by approximately 8%, which correspondingly increased our

revenue upon translation to U.S. dollars.

ExPENSESManagement fees decreased to US$15.9 million in the year

ended 31 March 2011 from US$35.1 million in the year ended

31 March 2010, due to management fees charged by Global

Revenue by Geographic Location

Logistic Properties Holding Limited (“GLPH”) which were

eliminated following the completion of the GLPH Acquisition on

14 October 2010.

Property-related expenses increased by 14.9% to US$70.7

million in the year ended 31 March 2011 from US$61.5 million

in the year ended 31 March 2010. The increase was primarily

attributable to the completion of development projects which

increased the leasable area of our properties in China.

Other expenses increased by 89.4% to US$46.2 million in

the year ended 31 March 2011 from US$24.4 million in the

year ended 31 March 2010. The increase was primarily due

to the expenses incurred by GLPH, which was consolidated

by the Group following the completion of GLPH Acquisition on

14 October 2010. Other expenses also included the expenses

incurred by ACL acquired in January 2011.

FY2011

China 19%US$88.1 million

Japan 81%US$385.7 million

FY2010

China 15%US$61.5 million

Japan 85%US$352.0 million


FY2010

57

280

FY2011

ShARE OF RESULTS (NET OF INCOME TAx) OF JOINTLY-CONTROLLEd ENTITIESShare of results of jointly-controlled entities increased by

76.5% to US$56.5 million in the year ended 31 March 2011

as compared to US$32.0 million in the prior year. The increase

was primarily attributable to our share of the increase of change

in fair value of investment properties held by jointly-controlled

entities in China of US$40 million (net of deferred tax) in the

year ended 31 March 2011 as compared to US$21 million

in the prior year, and improved operating results. GLPH was

accounted for as jointly-controlled entity before the completion

of GLPH Acquisition and consolidated into the Group following

the completion of the GLPH Acquisition.

EbIT ANd EbIT ExCLUdING REVALUATIONEBIT increased to US$883.1 million for the year ended 31 March

2011 as compared to a loss of US$62.7 million for the year

ended 31 March 2010. The increase was primarily due to a gain

from changes in fair value of investment properties of US$456.3

million recognised in the year ended 31 March 2011 as compared

to a loss of US$369.0 million in the prior year; translation gains

arising from the strengthening of the Japanese Yen and Chinese

The discrepancy between the totals on the stack chart and the summation of Japan and China EBIT excluding revaluation is due to other income / expenses arising from Global Logistic Properties Limited, Global Logistic Properties Holdings Limited (Cayman) and its subsidiaries outside of China and Japan.

Renminbi against the U.S. dollar and improved operating results

by US$52.8 million; an increase of US$24.5 million in share of

results of jointly-controlled entities resulting from improvements

in property valuation and better operating performance in China;

and a gain from changes in fair value of financial derivatives of

US$11.3 million compared to a loss of US$3.5 million last year.

Also contributing to the increase in EBIT was a US$27.7 million

loss on the disposal of a non-core subsidiary and its jointly-

controlled entities in China last year.

EBIT excluding revaluation (defined as EBIT excluding changes

in fair value of investment properties of subsidiaries and the

share of changes in fair value of investment properties of jointly-

controlled entities, net of deferred tax) was US$387.2 million for

the year ended 31 March 2011 as compared to US$285.2 million

for the year ended 31 March 2010. The increase was primarily

due to the improved operating results, the strengthening of the

Japanese Yen and Chinese Renminbi against the U.S. dollar, a

gain from changes in fair value of financial derivatives compared

to a loss in the prior year, and a loss on the disposal of non-core

subsidiary and its jointly-controlled entities recognised during the

year ended 31 March 2010.

PROFIT AFTER TAxGLP achieved profit after tax of US$722.4 million during the

year ended 31 March 2011 as compared to a loss after tax

of US$149.7 million during the year ended 31 March 2010.

The increase in EBIT was partially offset by the increase in net

interest expense and income tax expense. Net interest expense

increased to US$75.6 million in the year ended 31 March 2011

from US$65.4 million in the previous year primarily due to

more bank loans borrowed for the funding of developments in

China, and the strengthening of the Japanese Yen against the

U.S. dollar, which correspondingly increased interest expense

incurred by Japan upon translation to U.S. dollars. Income tax

expense increased to US$85.0 million in the year ended 31

March 2011 from US$21.6 million last year primarily attributable

to the increase in deferred income tax expense arising from

gains of changes in fair value of investment properties.

EbIT Excluding Revaluation(1) (US$ million)

4

JAPAN ChINA

(1)

346

387

285


PATMI ANd PATMI ExCLUdING REVALUATIONProfit attributable to equity holder of the Company (“PATMI”)

increased to a net profit of US$706.1 million during the year

ended 31 March 2011 as compared to a loss of US$176.7

million during the year ended 31 March 2010.

PATMI excluding revaluation (defined as PATMI excluding

changes in fair value of investment properties of subsidiaries

and the share of changes in fair value of investment properties

of jointly-controlled entities, both net of deferred tax) was

US$279.0 million during the year ended 31 March 2011 as

compared to US$178.6 million during the year ended 31 March

2010.

ASSETSTotal assets as of 31 March 2011 was US$11,699.7 million as

compared to US$7,397.4 million as of 31 March 2010.

Investment properties increased to US$9,078.3 million

as of 31 March 2011 from US$6,529.0 million as of 31

March 2010 primarily due to the acquisition of ACL, new

land acquisition and property developments in China and

improvements in property prices in China and Japan, as well

as the strengthening of the Chinese Renminbi and Japanese

Yen against the U.S. dollar.

Jointly-controlled entities increased to US$372.4 million as of

31 March 2011 from US$315.5 million as of 31 March 2010

primarily attributable to share of increase in fair value of the

investment properties held by jointly-controlled entities in China

arising from the improvement in property prices experienced in

China. This was partially offset by the consolidation of interest

in GLPH following the completion of the GLPH Acquisition on

14 October 2010.

Intangible assets primarily comprised goodwill recognised from

the GLPH Acquisition of US$369.6 million, goodwill recognised

from the acquisition of ACL of US$73.7 million, as well as

trademark and non-competition.

Other investments comprised the investment in 45,890,000

Class B shares in Shenzhen Chiwan Petroleum Supply Base

Co., Ltd. (“Chiwan”), representing approximately 19.9% of the

total issued share capital of Chiwan, which was stated at fair

value as of 31 March 2011 amounting to US$62.7 million.

FINANCIAL REVIEw

LIAbILITIESTrade and other payables decreased to US$526.7 million as of

31 March 2011 from US$1,380.2 million as of 31 March 2010.

The loans from third parties, amounting to US$313.6 million as

of 31 March 2010, were novated to a related party on 27 August

2010. The shareholders’ loans and intercompany advances from

related parties of US$1,162.4 million as of 31 March 2010 and

the above US$313.6 million intercompany advance were repaid

or capitalised in conjunction with the listing of the Company

during the year ended 31 March 2011. Trade and other payables

as of 31 March 2011 also included consideration payable for

acquisition of ACL amounting to US$66.8 million, and payables

recorded by ACL of US$239.6 million.

Deferred tax liabilities increased to US$342.6 million as of 31

March 2011 from US$135.2 million as of 31 March 2010 primarily

due to the increase in fair value of investment properties.

The total amount of loans and borrowings increased to

US$3,692.2 million as of 31 March 2011 from US$3,380.6 million

as of 31 March 2010 due to a US$42.2 million increase in loan

borrowings in China for the purpose of funding the construction of

property projects, and translation effects amounting to US$331.9

million arising from Japanese Yen-denominated borrowings due

to the strengthening of the Japanese Yen against the U.S. dollar,

and the loan borrowings of ACL amounting to US$281.6 million

as of 31 March 2011. This was partially offset by the US$30.5

million decrease in loan and borrowings in Japan, and the

US$313.6 million decrease in loan borrowings arising from the

loan novation mentioned above.

LIqUIdITY ANd bORROwINGSAs of 31 March 2011, we had aggregate cash and cash

equivalents of US$1,559.9 million compared to US$412.0 million

as of 31 March 2010. No bank balances of subsidiaries have

been pledged with banks as of 31 March 2011 and 2010.

Our third party borrowings consist of bonds and bank

loans, aggregating US$3,692.2 million as of 31 March 2011.

Our indebtedness were made up of US$2,827.0 million of

secured bonds, US$817.0 million of secured bank loans and

US$48.2 million of unsecured bank loans. The secured bonds

and secured bank loans are collateralised by pledges on

our subsidiaries’ investment properties with an aggregated

carrying amount of US$8,008 million.


25.4%

Group total: US$3,692 million

The effective interest rate for our bank loans as of 31 March

2011 ranged from 4.86% to 6.60% per annum in China and

from 1.10% to 1.85% per annum in Japan. The effective

interest rate for our bonds as of 31 March 2011 ranged from

1.00% to 2.67% per annum in Japan.

Subsequent to the year end, on 11 May 2011, the Company

issued RMB2.65 billion and RMB350 million Fixed Rate

Notes due 2016 and 2018 respectively, under the US$2

billion Euro Medium Term Note Programme. The Notes bear

fixed interest of 3.375% per annum for the 5 year tenor and

4.000% per annum for the 7 year tenor.

The issuance of the RMB-denominated Notes enables the

Company to diversify its sources of funding and also mitigate

its interest rate risk in China.

debt Maturity Profile

FY2012 FY2013 FY2014 FY2015 beyond FY2015

41.5%

17.6%

4.6%10.9%

27.2%

Japan total: US$3,100 million

46.7%

17.9%

1.0%7.2%

15.9%

China total: US$592 million

14.3%15.9%

23.3%

10.0%6.1%

14.5%

Leverage Ratio(as of 31 March 2011)

debt and Interest Ratios (for the year ended 31 March 2011)

Excludes cash balances as of 31 March 2011.EBITDA calculated as EBIT excluding revaluation and before amortisation and depreciation.Gross interest before deductions of capitalised interest and interest income.

(1)(2)(3)

32%

21%5.4x 5.0x

Leverage, debt and Interest Ratios



FY2016 FY2017

Total debt to Assets Net debt to Assets(1) Net debt/EbITdA(2) EbITdA/Interest(3)


CORPORATEGOVERNANCE

Global Logistic Properties Limited (the “Company”) is

committed to ensuring the highest standards of corporate

governance as a means of enhancing corporate performance

and accountability. The Company has established a series of well-

defined policies and processes to protect key stakeholder interests,

guided in part by adhering to the principles prescribed under the

Singapore Code of Corporate Governance 2005 (the “Code”).

The Board of Directors (the “Board”) and management of the

Company (the “Management”) recognise the importance of

strong corporate governance and the maintenance of high

standards of accountability to our shareholders, and remain

firmly committed to seeing that those standards are satisfied

through an evolving suite of governance practices that are

woven into the fabric of the Company’s business.

Since listing on the Singapore Exchange Securities Trading

Limited (“SGX”) in October 2010, the Board and Management

have undertaken an aggressive and aligned pursuit of best

practices in corporate governance and will continue to enhance

its governance framework to ensure it remains relevant and well

balanced with the Company’s pursuit of its business objectives.

This Corporate Governance Report sets out the Company’s

corporate governance processes, practices and activities

during the financial year ended 31 March 2011 (“FY2011”) with

specific reference to the guidelines of the Code.

ThE bOARd’S CONdUCT OF ITS AFFAIRS(PRINCIPLE 1) A critical function of the Board is to protect and enhance long-

term value and returns for its shareholders. Beyond carrying

out its statutory responsibilities, the Board also:

provides leadership and guidance on the overall strategic

direction and business conduct of the Company;

reviews the performance of the senior management team

and ensures that they are appropriately remunerated;

oversees processes for evaluating the adequacy of

internal controls, risk management, financial reporting,

and compliance;

sets the Company’s values and ensures that the necessary

human resources are in place to meet the long term objectives

of the Company and obligations to shareholders;

reviews and approves annual budgets, major funding

proposals, significant investment and divestment proposals,

and a variety of other strategic initiatives tabled by

Management; and

reviews and sets corporate governance standards and

practices ensuring that business objectives are pursued

through prudent and effective controls.

Apart from matters specifically reserved for Board approval,

such as material acquisitions and dispositions of assets,

corporate or financial restructuring, share issuances and a

variety of responsibilities not specifically delegated pursuant to

the Company’s Memorandum and Articles of Association, the

Board also appoints the Chief Executive Officer (the “CEO”),

approves the policies and guidelines for Board and senior

Management remuneration, and approves the appointment

of Directors. The Board is the highest authority of approval

and to optimise operational efficiency has delegated certain

of its functions to four standing committees, namely, the

Audit Committee, Nominating Committee, Compensation

Committee and Investment Committee.

The Board convenes regularly scheduled meetings to,

among other things, coincide with its review and approval of

the Company’s financial results. The Company’s Articles of

Association permits Board and Board Committee meetings

to occur via telephone conference, videoconference or other

electronic means of communication to facilitate participation

at meetings by Directors who are unable to attend in person.

A two-day offsite meeting was also held in Shanghai in March

2011 to further foster in-depth discussion and consideration

of the Company’s long-term vision and strategy. In addition

to its regular quarterly meetings, the Board also convenes ad-

hoc meetings from time to time as business and other matters

warrant. Details of Board and Board Committee meetings

held and attendance since the Company’s listing in October

2010 are set forth below.

1.

2.

3.

4.

5.

6.


Upon appointment, each Director is issued a formal letter

of appointment explaining the roles, duties and responsibilities

expected together with committee assignments. Directors

undergo a comprehensive orientation programme to

explain the Company’s business, governance practices,

core values, strategic direction and industry-specific

training. Directors also receive ongoing education and

training through the circulation of articles of interest,

reports and press releases pertaining to the Company’s

business.

As a newly listed company, the Directors also undertook

extensive training by outside legal consultants to better

Ang Kong Hua

Jeffrey H. Schwartz

Ming Z. Mei

Dr. Seek Ngee Huat

Lim Swe Guan(1)

Tham Kui Seng

Wei Benhua(2)

Yoichiro Furuse

Steven Lim Kok Hoong

Dr. Dipak Jain

Paul Cheng Ming Fun

board ofdirectors

2

2

2

2

2

2

2

2

2

2

2

2

board

2

1

-

-

-

-

2

-

-

2

-

2

AuditCommittee

1

1

-

-

1

-

-

-

-

-

1

-

CompensationCommittee

0

-

-

-

-

-

-

-

-

-

-

-

NominatingCommittee

Meetings held(*)

3

-

3

3

3

-

1

3

1

-

-

-

InvestmentCommittee

bOARd ANd bOARd COMMITTEE MEETINGS ANd ATTENdANCEFROM 18 OCTObER 2010 TO 31 MARCh 2011

Attendance

(*) The Company was listed on 18 October 2010. All Directors were appointed on 24 September 2010.

(1) Mr. Lim Swe Guan is an alternate director to Dr. Seek Ngee Huat.(2) Mr. Wei Benhua resigned as a Director on 2 May 2011.

understand continuing listing obligations of the Company,

disclosure obligations, and general requirements of a

Director serving on a board of an SGX listed company.

This training was further supplemented during the February

meeting and the strategic meeting in March. The Directors

receive regular updates from all levels of Management

concerning key aspects of the Company’s business and

participated in an on-site facility tour during the strategic

meeting. The Company also provides regular updates on

risk management practices and has developed with the

Directors a variety of programs involving conflicts of interest

in transactions with the Company, dealings in Company

securities, and disclosure of interests in securities.


CORPORATEGOVERNANCE

ThE bOARd ANd ITS COMMITTEESThe Board has delegated certain of its functions to Board

Committees whose purpose is to assist the Board in

discharging its duties in an efficient manner with members

bearing expertise in the committees on which they serve.

Each Committee is governed by a charter which outlines its

terms of reference, responsibilities and composition. Board

Committees will review their charters annually to make

sure they follow best practices and continue to address

the responsibilities delegated to them. Any changes to

the charters will be recommended to and discussed by

the Board. Committee chairs provide regular updates of

activities to the full Board to give each Director insight

into all aspects of the Company and minutes of all Board

Committee meetings are available to each Director.

Audit Committee

The Audit Committee (“AC”) is chaired by Steven Lim Kok Hoong

and comprises a total of four members. The other members of

the AC are Ang Kong Hua, Tham Kui Seng, and Paul Cheng

Ming Fun. All members of the AC are non-executive and

independent. The AC held two meetings since the Company’s

listing in October 2010 and its roles and responsibilities are

detailed further below.

Compensation Committee

The Compensation Committee (“CC”) is chaired by Ang Kong

Hua and comprises a total of three members. The other

members of the CC are Seek Ngee Huat and Dipak Jain.

All members of the CC are non-executive and a majority are

independent. The responsibilities of the CC include regularly

reviewing the appropriateness and relevance of the executive

remuneration policy, overseeing equity based plans and the

terms of awards thereunder, reviewing succession plans

for senior Management, and providing overall guidance on

compensation recommendations for the Board of Directors and

Management. The CC held one meeting since the Company’s

listing in October 2010 and its roles and responsibilities are

detailed further below.

Investment Committee

The Investment Committee (“IC”) is chaired by Seek Ngee Huat

and comprises a total of five members since the resignation

of Wei Benhua on 2 May 2011. The other members of the IC

are Yoichiro Furuse, Tham Kui Seng, Jeffrey H. Schwartz, and

Ming Z. Mei. The IC is charged with reviewing and providing the

Board of Directors with an annual investment and divestment

strategy and identifying new business directions and strategies.

It monitors and approves investment criteria, share-based

transactions, credit facility transactions above a certain

threshold, investments in new markets outside of China and

Japan, and certain investments or divestments in China and

Japan which are above a threshold delegated to Management.

The IC held three meetings since the Company’s listing in

October 2010.

Nominating Committee

The Nominating Committee (“NC”) is chaired by Dipak Jain and

comprises a total of three members. The other members of

the NC are Steven Lim Kok Hoong and Paul Cheng Ming Fun.

All members of the NC are non-executive and independent.

The Chairman of the NC is not a substantial shareholder

or directly associated with a substantial shareholder. The

primary responsibilities of the NC include overseeing the

review and appointment process of new Directors, reviewing

and recommending to the Board nominees for re-election,

and ensuring the existence of a formal assessment of Board

effectiveness as a whole and contribution of each Director.

The NC held its first meeting in May 2011 and its roles and

responsibilities are detailed further below.

bOARd COMPOSITION ANd GUIdANCE (PRINCIPLE 2)The Directors believe in having a strong and independent element

on the Board that is sized to promote effective and candid

discussion and efficient decision-making. Through FY2011 the

Board had ten Directors, seven of whom were independent.

With the resignation of Mr. Wei on May 2, the Board now

comprises nine Directors, six of whom are independent and

non-executive. The composition of the Company’s Board and

Board Committees is as follows:


Ang Kong Hua

(Chairman)

Jeffrey H. Schwartz

(Deputy Chairman)

Ming Z. Mei

(CEO)

Dr. Seek Ngee Huat

Lim Swe Guan(1)

Tham Kui Seng

Wei Benhua(2)

Yoichiro Furuse


Dr. Dipak Jain

Paul Cheng Ming Fun

Name of directors

Non-Executive / Independent

Executive / Non-Independent

Executive / Non-Independent

Non-Executive / Non-Independent

Alternate Director







designation

Member

-

-

-

-

Member

-

-

Chairman

-

Member

AuditCommittee

Chairman

-

-

Member

-

-

-

-

-

Member

-

CompensationCommittee

-

-

-

-

-

-

-

-

Member

Chairman

Member

NominatingCommittee

-

Member

Member

Chairman

-

Member

Member

Member

-

-

-

InvestmentCommittee

Note: All Directors and Committee members were appointed on 24 September 2010

(1) Mr. Lim Swe Guan is an alternate director to Dr. Seek Ngee Huat.(2) Mr. Wei Benhua resigned as Director on 2 May 2011.

The NC is responsible for assessing the independence of

the Directors. Each Director is required annually to complete

an independence questionnaire, based on the guidelines

provided in the Code, which is then reviewed and discussed

by the NC. The NC evaluates each Director, including his

independence, before making its recommendation to the full

Board. In addition, each NC member is required to abstain

from voting or influencing resolutions of the NC in which

he has a conflict of interest in the subject matter under

consideration, including determinations of independence

and suitability for continued service on the Board.

After completing its assessment, the NC concluded, and

the Board of Directors agreed, that there are presently six

independent Directors.

The Chairman of the Board is Ang Kong Hua. He is a director

of Government of Singapore Investment Corporation Private

Limited (“GIC”) and GIC Special Investments Private Limited

(“GIC SI”). GIC is the holding company of GIC Real Estate

Private Limited, which is the fund manager of the investment

held by Government of Singapore Investment Corporation

(Realty) Private Limited (“GIC Realty”). GIC Realty is our

substantial shareholder. Mr. Ang’s role as a director of GIC and

GIC SI is of a non-executive nature and he is not involved in

the day-to-day management of GIC and GIC SI or accustomed

or under any obligation, whether formal or informal, to act

in accordance with the directions, instructions or wishes of

GIC and GIC SI in discharging his duties as our Chairman.

Nonetheless, Mr. Ang will not participate in any discussions

of the Board in relation to any interested person transactions

involving GIC Realty and its subsidiaries (together, the “GIC

Realty Group”) or any matters that might give rise to a conflict

of interest with GIC Realty Group and shall abstain from voting

on any such proposals at any meeting of the Board.

The other five independent Directors, namely Tham Kui

Seng, Yoichiro Furuse, Steven Lim Kok Hoong, Dipak Jain

and Paul Cheng Ming Fun, all of whom do not have any

concurrent appointments as directors of any entity within

GIC, will be able to make decisions with respect to interested

person transactions and conflicts of interests involving the

GIC Realty Group and the Company and its subsidiaries. In

addition, members of the AC will oversee all interested person

transactions and conflict of interest issues involving GIC Realty

Group and the Group.


CORPORATEGOVERNANCE

Taking into consideration the foregoing, the Board of Directors

has determined that Mr. Ang’s relationship with GIC and GIC

SI would not interfere, or be reasonably perceived to interfere,

with the exercise of his independent business judgment of the

best interests of the Company and its subsidiaries. On the

basis of the foregoing, the Board is of the view that Mr. Ang is

regarded as independent.

Yoichiro Furuse is a President of Evanston Corporation, which

provided advisory and consultancy services to the Company

from 19 July 2009 to 18 October 2010. The scope of Mr.

Furuse’s advisory services included advising the Company on

corporate strategy, marketing and financing, and introducing

the Company to potential customers and financial institutions.

The aggregated payments made by the Company for all

services provided by Evanston Corporation in respect of any

financial year ended March 31 is less than S$200,000. The

provision of advisory services by Evanston Corporation to the

Company was terminated immediately prior to the Company’s

listing with SGX in October 2010. Taking into consideration

the foregoing, the Board of Directors has determined that

Mr. Furuse’s relationship with Evanston Corporation would

not interfere, or be reasonably perceived to interfere, with the

exercise of his independent business judgment of the best

interests of the Company and its subsidiaries. On the basis of

the foregoing, the Board is of the view that Mr. Furuse should

be regarded as independent director.

In addition to reviewing a Director’s independence, the NC

also reviews and discusses the contribution of each Director

to the Company and Board as a whole, his attendance and

preparedness at meetings and his skills in meeting the various

and changing needs of the Board. The NC is also responsible

for examining the size and composition of the Board to ensure it

operates in an efficient manner with effective decision-making,

sufficient competencies represented as needed, and a healthy

balance of executive and non-executive directors operating

in an open forum allowing for independent judgment. After

conducting its reviews and assessment and deliberating the

items outlined above, the NC makes its recommendation to

the full Board on any Director appointment, whether new or

through re-election or reappointment.

The Board, in view of the nature and scope of business

operations, considers that the present Board size and

composition is efficient and effective when it comes to

decision-making and has adequate strong and independent

elements. As evidenced by their respective business and

working experience set out elsewhere in the Annual Report,

the Directors possess the appropriate expertise to act as

directors of our Company.

ChAIRMAN ANd ChIEF ExECUTIVE OFFICER (PRINCIPLE 3)The roles of the Chairman and Chief Executive Officer

(“CEO”) of the Company remain distinct through a clear

division of responsibilities. The Board has recently adopted

Role Statements for both the Chairman and CEO for greater

transparency. The Chairman’s Role Statement provides that

his responsibilities include, without limitation:

leading the Board and upholding the highest standards of

integrity and probity;

constructively determining and approving with the full Board

the Company’s strategy;

ensuring that the Board is properly organised, functions

effectively and meets its obligations and responsibilities;

promoting effective communication and constructive

relations amongst the Directors, within Board Committee

and between the Directors and management;

ensuring that Board matters are effectively organised to

enable Directors to receive timely and clear information in

order to make sound decisions;

promoting high standards of corporate governance;

establishing a relationship of trust with the CEO; and

ensuring effective communication with the shareholders.

The CEO, together with the Deputy Chairman, is the

highest-ranking executive officer of the Company whose

primary role is to effectively manage and supervise the

day-to-day business and operations of the Company,

all in accordance with the strategy, policies, budget

and business plans approved by the Board. The CEO’s

Role Statement provides that his responsibilities include,

without limitation:

•

•

•

•

•

•••


running the Company’s business and developing its vision,

mission, core values, strategies and business objectives;

providing clear and decisive leadership and guidance to

employees of the Company;

accounting to the Board for all aspects of the Company’s

administration, operations and performance;

providing timely strategic and operational information to the

Board, including performance reports and other matters

that the Board may not otherwise be aware of;

managing and cultivating relationships with regulators,

leading communication efforts with shareholders and

the public and ensuring compliance with disclosure

obligations; and

developing organisational structures which ensure an

effective and cohesive senior management team.

The Board also has the assistance of the non-executive

and independent Directors in fulfilling a pivotal role in

corporate accountability and transparency. Their presence

is important as they provide unbiased independent

views, advice and judgment to address the interests of

the Company and those of the shareholders and other

stakeholders.

As the roles of the Chairman and CEO are separate, and

given the independence of our Chairman, the Board has

determined that it need not appoint a lead independent

director at this time. The independent and non-executive

Chairman does not have any relationships with the executive

Management of the Company’s Group.

bOARd MEMbERShIP (PRINCIPLE 4) ANd bOARd PERFORMANCE (PRINCIPLE 5)The Board has a formal and transparent process for the

appointment and re-appointment of Directors.

Pursuant to the Company’s Articles of Association, at

least one-third of the Board, including executive and non-

executive Directors, must retire from office by rotation and

are subject to re-election at every Annual General Meeting

(“AGM”). All Directors are required to retire at least once

every three years. Newly appointed Directors are subject

to retirement and re-election at the AGM immediately

following their appointment. As all current Directors

were appointed on 24 September 2010, therefore, each

Director is eligible for re-election by the shareholders at

the upcoming AGM.

The NC will review the size and composition of the

Board on an annual basis and make any recommended

modifications to the Board. The NC further advises the

Board on the appointment, re-nomination and retirement

of Directors. Whether a Director voluntarily retires or is

required to retire from office by rotation, or the need for a

new Director otherwise arises, the NC seeks to maintain

the proper balance of expertise, skills and attributes among

Directors, including relevant core competencies in areas

such as accounting and finance, real estate, strategic

planning and customer based knowledge. Before making its

recommendations to the full Board, the NC is free to seek

advice from external consultants, and will ultimately provide

a shortlist of candidates for the Board’s consideration.

The NC considers attendance, preparedness, participation and

ability to think independently when evaluating the performance

and contributions of a Director for recommendation to the

Board, as well as the evolving needs of various skills and

expertise to best serve the business of the Company both now

and in the future.

To ensure that Directors possess the necessary experience,

skills and knowledge needed to best serve the Company

and its shareholders, the Directors embark on regular

training and education concerning the business of the

Company and its performance. In addition to the strategic

planning session in March 2011, the Directors underwent

on-site facilities tours and meetings with local officials to

better understand the logistics industry, receive regular

in-depth briefings on a variety of industry-specific topics,

engage in regular compliance and governance training,

and may attend other appropriate courses, conferences

and seminars at their discretion.

•

•

•

•

•

•


CORPORATEGOVERNANCE

Starting with its first meeting in May 2011, the NC undertakes

a process to evaluate the effectiveness of the Board as a

whole and the contributions by each Director. As part of this

process, each Director is required to complete appraisal forms

to assess the overall effectiveness of the Board. The appraisal

process focuses on evaluating the appropriate size and

composition of the Board, access to information, processes

and accountability, and communication with management.

The evaluations are reviewed by the NC for further

recommendation to the Board, all as a means to continuously

review the Board’s effectiveness and ability to perform its

duties. The NC further established a platform which going

forward will allow each Director to assess the effectiveness

of other Directors through a series of targeted questionnaires

and individual meetings with the NC Chairman.

ACCESS TO INFORMATION (PRINCIPLE 6)In advance of each meeting, Management provides the Board

with information specific to the agendas for that meeting, which

typically include general business and operational updates,

strategic initiatives, and financial reports. In addition, as matters

arise outside of scheduled meetings, the Board is provided with

periodic updates on key operational activities.

The Board has separate, independent, and regular access to

senior Management and the Company Secretary. The Company

Secretary attends all meetings of the Board and Board

Committees, prepares minutes arising therefrom, and ensures

that proper protocols are observed and applicable rules and

regulations are complied with. The appointment and removal of

the Company Secretary is a matter for the Board as a whole.

As needed, the Board and Board Committees are free to seek

external advice at the Company’s cost to ensure they have ready

access to all resources needed to make informed decisions.

PROCEdURES FOR dEVELOPING REMUNERATION POLICIES (PRINCIPLE 7)A central responsibility of the CC is to assist the Board in

developing formal and transparent policies on remuneration

matters. The CC has developed and recommended to the

Board the Company’s current policies for remunerating Board

members and key executives to appropriately attract, retain

and motivate Directors and key executives needed for the

Basic Retainer Fee

board Chairman

director

Fees for Audit Committee

Committee Chairman

Committee Members

Fees for Other Committees

Committee Chairman

Committee Members

Attendance Fees (per meeting)

Restricted Stock Grant ($ Value)

$ 85,000

$ 50,000

$ 40,000

$ 20,000

$ 30,000

$ 15,000

$ 1,500

$ 35,000

The proposed framework for Directors’ fees for the financial year

ending 31 March 2012 is the same as that for FY2011 except

for the annual restricted stock grant value which is proposed

to be increased to $50,000. The grant will be issued under

the GLP Restricted Share Plan. The CC assessed independent

advice from seasoned consultants to determine the level and

mix of remuneration for the Board and management for the

upcoming year.

The Directors’ remuneration from 24 September 2010, the

date on which they were all appointed, through the financial

year ended 31 March 2011 is as follows:

successful operation of the business. The recommendations

arose out of extensive work with external consultants on both

Board and executive compensation which centred on retention

and attraction of key individuals through an appropriate mix of

cash compensation and stock-based awards.

LEVEL ANd MIx OF REMUNERATION (PRINCIPLE 8)dISCLOSURE ON REMUNERATION (PRINCIPLE 9)The fees for non-executive Directors for the financial year

ended 31 March 2011 comprised a basic retainer, additional

fees for appointment to and chairing of Board Committees,

attendance fees and a stock issuance. As executive Directors,

neither Jeffrey H. Schwartz nor Ming Z. Mei receive Director

fees but are both remunerated as members of management.

The general framework for the foregoing fees was as follows, all

in US dollars per annum:


No Director is involved in deciding his own remuneration. Fees are

recommended by the Compensation Committee and approved

by the Board and remain subject to the approval of shareholders.

To attract and retain Directors, timely payment of their fees

is essential. Accordingly, the Company will seek shareholder

approval of Directors’ fees for the current financial year so that

they may be paid quarterly in arrears for that year rather than 17

months after services are provided. As partial payment of Director

fees will be issued in Company stock with a vesting period, the

Board remains aligned with the interests of other shareholders.

The Company advocates a performance based remuneration

system for executive Directors and key management that is

Ang Kong Hua

Jeffrey H. Schwartz

Ming Z. Mei

Dr. Seek Ngee Huat

Tham Kui Seng

Wei Benhua (6)

Yoichiro Furuse


Dr. Dipak Jain

Paul Cheng Ming Fun

Name of director

$76,305

-

-

$58,473

$51,766

$41,350

$38,350

$60,681

$53,974

$50,266

directors’ Fees

-

$502,977

$565,235

-

-

-

-

-

-

-

FixedComponent(1)

Fixed Component refers to base salary plus employer’s statutory contributions to the Singapore Central Provident Fund made from 24 September 2010 through 31 March 2011. Base salaries for each of Mr. Schwartz and Mr. Mei are set forth in their respective service agreements which commenced on 18 October 2010 and provide for a monthly base salary of US$83,300. Mr. Mei’s base monthly salary is inclusive of an allowance of US$100,000 per annum for housing expenses and tuition for his dependent children.Variable Component refers to cash bonuses awarded for performance for the year ended 31 March 2011. Pursuant to the service agreements of Mr. Schwartz and Mr. Mei, each is entitled to an annual bonus of approximately US$1,000,000, the actual amount of which is ultimately determined by the Board upon recommendation of the Compensation Committee. At 31 March 2011 no cash bonuses have yet been award to either Mr. Schwartz or Mr. Mei.Benefits for Mr. Schwartz include a monthly housing reimbursement. Mr. Mei’s housing allowance and tuition reimbursement are part of his base salary as described above.Pursuant to a resolution passed by the sole shareholder of the Company in September 2010, each non-executive Board member is entitled to receive a share value award equal to US$35,000 per annum as of 31 March 2011. On a pro-rata basis, from commencement of service on 24 September 2010, the share value award is US$18,227. Actual grants have not yet been provided, however, as the Compensation Committee is finalising terms and conditions of all share grants under the Company’s RSP and PSP plans. Once final, the share calculation will be performed and grants will be issued. It is presently contemplated that shares awarded to the non-executive Board members will be granted under the GLP Restricted Share Plan which will vest over a set period of time.Pursuant to their service agreements, Mr. Schwartz and Mr. Mei are each entitled to receive a share value award of approximately US$1,300,000 for each full year of employment thereunder. As of 31 March 2011 no grants have yet been awarded to either Mr. Schwartz or Mr. Mei. Final determination of share value awards rests with the Board and once made, the share calculation will be performed and grants will be issued. It is presently contemplated that share awards to Mr. Schwartz and Mr. Mei will be divided evenly between the GLP Restricted Share Plan and GLP Performance Share Plan, with the former vesting pro-rata over a set period of time and the latter vesting only upon the occurrence of pre-established conditions. The final terms and conditions recommended by the Compensation Committee and approved by the Board will ultimately determine the precise makeup and terms of the grants issued.Mr. Wei resigned from the Board of the Company on 2 May 2011.

VariableComponent(2)

-

$0

$0

-

-

-

-

-

-

-

benefits(3) Equity(4) Total

-

$41,100

$0

-

-

-

-

-

-

-

$18,227

$0(5)

$0(5)

$18,227

$18,227

$18,227

$18,227

$18,227

$18,227

$18,227

$94,532

$544,077

$565,235

$76,701

$69,993

$59,578

$56,578

$78,909

$72,201

$68,493

(1)

(2)

(3)

(4)

(5)

(6)

flexible and responsive to the market. The remuneration

is linked to the Company and an individual executive‘s

performance, and total remuneration comprises a fixed

monthly salary and other benefits, as well as variable

performance bonus and participation in the GLP PSP and

GLP RSP which are further described in the Directors Report.

The aggregate number of new shares to be issued under

the share plans is subject to a maximum limit of 15.0% of

the Company’s total issued share capital when taken into

account together with all other share plans concurrently

implemented by the Company. As of the date of this

Corporate Governance Report no actual awards have yet

been granted to any Director or employee of the Company.


CORPORATEGOVERNANCE

The Company has entered into a service agreement with Jeffrey

H. Schwartz and Ming Z. Mei for a period of four years from

18 October 2010 and renewable thereafter unless otherwise

terminated by either party by giving six months’ notice in

writing. Certain other key management personnel are also

employed under service agreements which generally stipulate

remuneration terms and other benefits consistent with the

Company’s prevailing policies.

The remuneration of the Company’s five top-earning key

executives, other than executive Directors, in bands of

S$250,000 for the period from 1 April 2010 through financial

year ended 31 March 2011 are set out as follows:

AUdIT COMMITTEE (PRINCIPLE 11)The AC comprises four members, all of whom are non-

executive and independent, and who bear relevant business

experience, knowledge of the operations, finance and auditing

procedures of the Company, and with at least two members

having accounting or related financial management expertise

or experience. The AC is required to meet four times per year

and has met twice since the Company listing in October 2010

through March 2011.

The AC has full discretion to investigate any matter within its

terms of reference and may commission any investigation into

matters involving suspected fraud or irregularity of internal

controls or infringement of law, rule or regulation which has or

is likely to have a material impact on the Company’s operating

results or financial position. The AC is required to discuss any

such matters with the external auditors and report to the

Board at the appropriate time. It has direct access to internal

and external auditors and full discretion to invite any Director

or officer to attend its meetings.

The AC is principally charged with assisting the Board in

discharging its statutory and other responsibilities concerning

internal controls, financial and accounting matters, compliance

and business and financial risk management. During the

year, the AC reviewed the Group’s financial information

and any public financial reporting with management and

external auditors prior to submission to the Board. The

duties of the AC include:

reviewing and approving the audit plan prepared by the

external auditors and the audit plan prepared by the internal

audit department;

reviewing with external auditors and the internal audit

department the adequacy and effectiveness of the Group’s

internal control system;

reviewing with the internal audit department the program,

scope and results of the internal audit and management’s

response to their findings to ensure that appropriate follow-

up measures are taken;

(a)

(b)

(c)

S$1,750,000 to

below S$2,000,000

S$1,000,000 to

below S$1,250,000

S$750,000 to

below S$1,000,000

Below S$250,000

Masato Miki

Heather Fang Xie

Yoshiyuki Chosa

Kent Yang

Stephen Schutte(1)

bands Executives

(1) Employment commenced in January 2011

No employee of the Group whose remuneration exceeded

S$150,000 during FY2011 was an immediate family member

of any of the members of the Board.

ACCOUNTAbILITY (PRINCIPLE 10)The Board presents a balanced and understandable

assessment of the Company’s performance, position and

prospects through the release of its quarterly and full year

financial results. The Audit Committee and Board review and

approve all results and corresponding releases before they are

disseminated to the public. For FY2011, the Company’s CEO

and Chief Financial Officer (“CFO”) have provided assurance to

the Board on the integrity of its financial statements and on the

Company’s risk management, compliance and internal control

systems. In keeping with SGX listing rules, the Board provides

a negative assurance statement to shareholders in respect of

interim financial statements, which is supported by a negative

assurance statement from the Company’s CEO and CFO.


reviewing the independence and objectivity of the

external auditors, and the nature and extent of non-audit

services provided by them and made recommendations

to the Board on the re-appointment of the external

auditors;

reviewing interested person transactions for potential

conflicts of interest as well as all conflicts of interests to

ensure that proper measures to mitigate such conflicts of

interests have been put in place; and

reviewing filings with the SGX-ST or other regulatory

bodies which contain the Group’s financial information

and ensured proper disclosure.

During its meetings, the CEO, Deputy Chairman, CFO,

and other select executives were also in attendance.

The AC is responsible for overseeing the Company’s

whistleblower policy and to that end has approved the

Global Logistic Properties Limited Whistleblowing Policy

(“GLP Whistleblowing Policy”) through which employees

may, in confidence, raise concerns about possible

improprieties in matters of financial reporting or otherwise.

The AC is charged with reviewing periodic updates from

the head of Internal Audit as to any reported impropriety,

including the steps taken and ultimate resolution thereof,

and with ensuring that the GLP Whistleblowing Policy

overall provides an effective means of anonymous

reporting. The GLP Whistleblowing Policy also permits

staff to communicate directly with the CEO or Chairman

of the AC if they feel circumstances warrant.

INTERNAL CONTROLS ANd INTERNAL AUdIT (PRINCIPLES 12 ANd 13)The Board believes that the system of internal controls and

processes maintained by management through the date of

this report adequately meets the needs of the Company in

today’s business environment. The system is designed to

provide reasonable and not absolute assurance in achieving

certain internal control standards while allowing the Company

to appropriately manage risk at varying levels while pursuing

its business objectives.

The Company possesses an in-house internal audit function to

assist the AC in discharging its responsibilities in ensuring there

is sound control over the Company’s operations, including

statutory compliance, accounting and asset management. The

head of the Internal Audit Department (“IAD”) reports directly to

the AC Chairman and administratively to the Deputy Chairman

of the Board and CEO. The IAD has adopted the Standards

for Professional Practice of Internal Auditing established by the

Institute of Internal Auditors and consults regularly with outside

experts to create sound internal audit practices.

The IAD uses a risk-based approach in developing its internal

audit plan which aligns its focus on key risks across the

Group’s business. This plan is approved by the AC and aims

to assist the Board in promoting sound risk management

through assessing the design and effectiveness of controls

that govern key business processes. IAD also seeks to

identify and report on risks identified in consultation with

the AC and ensure proper closure and remediation of any

such risks.

The Company’s external auditors, KPMG LLP, have also

provided an independent perspective and analysis on the

internal financial control system. Material non-compliance

and internal control weaknesses and recommendations for

improvements noted during their audit are reported to the

AC. The AC has reviewed the effectiveness of the actions

taken by the management on the recommendations made by

the internal audit team and external auditors in this respect.

The AC has also met separately with the external auditors

without the presence of management.

Structurally, the Company has created a clearly defined

operating structure with lines of responsibility and delegated

authority together with adequate reporting mechanisms to

senior management and the Board. The Company is guided

by its robust Operating Manual applicable to all employees

which governs a multitude of responsibilities and establishes

various checks and balances on operating procedures. The

Company also maintains a whistleblower system permitting

the anonymous reporting of financial or other abuses as

outlined in its Whistleblowing Policy.

(d)

(e)

(f)


In light of the work performed by the IAD during the financial

year and the review undertaken by the external auditors, the

AC is of the opinion that there are adequate internal controls

in place within the Company.

COMMUNICATION wITh ShAREhOLdERS (PRINCIPLES 14 ANd 15)The Company remains committed to maintaining high

standards of disclosure and corporate transparency. This

is achieved through regular and open communication

with shareholders, the investment community and the

media. Through its Investor Relations and Communications

Departments (“IRC”), the Company is focused on providing

relevant and timely information about the Company’s business

developments and performance. Senior Management actively

participates in one-on-one meetings, roadshows, conferences

and investor events led by the IRC.

All material information, including quarterly financial results,

is disclosed regularly and on a timely basis via SGXNET. The

Company is also undertaking the development of a new,

robust website containing an abundance of investor-related

information which will provide a locus of presentations,

stock exchange announcements, annual reports, corporate

calendar, and other items generally of interest to stakeholders

in the Company.

As the Company approaches the upcoming AGM, it has

designed the inaugural event to be held at a convenient

location with easy access via public transportation. Any

registered shareholder who cannot attend may appoint a

proxy to attend and vote on his behalf. It is anticipated that

the AGM will contain presentations to update the shareholders

on the progress of the Company, and Directors and senior

management will be in attendance to field questions and

concerns of shareholders. The Company’s external auditors

will also be present to assist the Board as needed. The

Company understands the importance of separate resolutions

at General Meetings on each substantially separate issue and

supports the Code’s principle with regard to the “bundling”

of resolutions.

CORPORATEGOVERNANCE

In preparation for the AGM, shareholders are encouraged

to refer to SGX’s investor guides, namely An Investor’s

Guide To Reading Annual Reports and An Investor’s

Guide To Preparing For Annual General Meetings. The

guides, in both English and Chinese versions are available

on the SGX website.

dEALING IN SECURITIESThe Company has adopted and implemented the Global

Logistic Properties Limited Internal Compliance Code on

Dealing in Securities by Relevant Officers (“Securities Policy”)

to guide the Board, management and all employees in

transacting in Company securities.

The Securities Policy reminds Directors and officers

of the Company to not deal, directly or indirectly, in the

Company’s securities on short-term considerations and to

be mindful of the law on insider trading as prescribed by

the Securities & Futures Act, Chapter 289 of Singapore.

The Securities Policy also makes clear that it is an offence

to deal in Company securities, and securities of other

listed companies, while possessing material non-public

information and prohibits trading as well during the following

blackout periods:

the period commencing two weeks before the

announcement of the Company’s financial statements

for the first, second and third quarters of its financial

year; and

the period commencing one month before the

announcement of the Company’s financial statements

for its full financial year.

Each of the above blackout periods will end after the relevant

results of the Company are announced. All Directors and

employees are notified of when each blackout period will

commence by way of an internal memo issued by the

General Counsel.

i)

ii)


Schwartz-Mei Group

Schwartz-Mei Group

Associates of Recosia China

Government of SingaporeInvestment CorporationPrivate Limited

Recosia China

Interested Person

US$405,400

US$532,545

US$2,432,608

US$62,819

US$1,314,038

Aggregate Value

Nature of Transaction

Allocation of IPO expenses

Reimbursement of Office expenses

Payment of arm’s length office leases

Payment of consulting fee for internal audit services

Payment of Loan interest

MATERIAL CONTRACTS (RULE 1207(8) OF ThE LISTING MANUAL)Except as disclosed in Interested Person Transactions,

there were no material contracts entered into by the

Company or any of its subsidiaries involving interests of

any Director or controlling shareholder during the financial

year ended 31 March 2011.

INTERESTEd PERSON TRANSACTIONSThe Company has established procedures to ensure that

all transactions with Interested Persons are reported to

the AC on a timely manner. The AC has reviewed the

Interested Person Transactions (“IPT”) entered into during

the financial year by the Company and the aggregate

value of IPT entered during the financial year ended 31

March 2011 is set out below. As the Company does not

have shareholders’ mandate under Rule 920, there is no

IPT reporting associated therewith.

RISK MANAGEMENTIdentifying potential risk and managing its uncertainty in

the pursuit of business objectives is a key objective of the

Company. The Company regularly reviews and improves

its business and operational activities to identify areas of

significant business risk and take appropriate measures

to control and mitigate that risk. Successfully managing

risk involves reducing uncertainty while achieving business

results and providing the Board, management and the

Company’s shareholders with reasonable assurances

that significant risks can be appropriately identified and

managed.

Risks arise in varying forms from financial to reputational,

and beyond its documented policies the Company seeks

to inculcate a culture of compliance among its employees

through awareness, ownership and identification which

is promoted from the top levels of the Board and senior

management. Through its Operating Manual, Whistleblowing

Policy, Disclosure Policy and Code of Ethics, employees

are continually reminded of the steps taken to avoid

unnecessary risks that could have long-term effects on the

Company.

The AC is charged with overseeing risk management

practices generally and in conjunction with the IAD seeks to

identify areas of concern and implement plans to mitigate

significant risks to the Company. With the various systems,

practices and policies the Company has implemented and

which are discussed above, together with a culture of risk-

awareness, the AC is of the opinion that there are adequate

internal controls in place within the Company.


INVESTOR RELATIONS

OVERVIEwGLP is committed to open and proactive communications

with shareholders and the broader investment community.

The Group strives to release relevant material information in a

timely and comprehensive manner to aid investors with their

investment decisions. GLP utilises multiple communication

channels to broadcast its announcements. In addition to

posting announcements on the Singapore Exchange and the

GLP corporate website, the Group distributes news alerts to

subscribers of its email service.

INVESTOR OUTREACh To enhance access to Management, GLP hosts quarterly

results briefings for analysts and semi-annual results briefings

for journalists. The Management takes the opportunity to share

with analysts and journalists the Group’s business performance,

strategy and outlook on these occasions.

As a newly listed company, the Management places strong

emphasis on attracting new investors and broadening its

shareholder base. Since listing, it has participated in overseas

non-deal roadshows to meet potential investors and update

existing shareholders. In addition, the Management regularly

attends local and overseas investor conferences to raise the

company’s profile (see Table 1 for details). Besides face-to-

face meetings, it hosts conference calls with Singapore and

overseas investors to discuss the Group’s performance.

Apart from such discussions, GLP also facilitates site visits

for fund managers and analysts to its logistics properties in

China and Japan. Such visits provide investors with first-

hand insight of the quality and scale of the Group’s modern

logistics facilities.

RESEARCh COVERAGESeven brokerages cover GLP as at end March 2011. GLP

remains committed to engaging sell-side analysts regularly to

update them on the Group’s developments.

INCLUSION IN MARKET INdICESGLP was included as a constituent stock in the FTSE EPRA/

NAREIT Global Real Estate Index Series on 19 October 2010,

a day after its listing on the Singapore Exchange. The FTSE


EPRA/NAREIT Global Real Estate Index Series is designed to

represent general trends in global real estate equities.

Global Property Research (“GPR”) included GLP in its GPR 250

Indices on 19 October 2010. The Group was also admitted to

the GPR General Index on 1 January 2011.

GLP was included as a constituent of the 30-member FTSE

Straits Times Index, the benchmark index for the Singapore

Exchange, on 21 March 2011. This inclusion followed a half-

yearly review by the index managers, namely, Singapore Press

Holdings, Singapore Exchange and the FTSE Group.

wEbSITEThe GLP website is a key information resource for retail

and institutional investors. Statutory announcements, press

releases, financial results, results presentation slides and non-

deal roadshow presentation slides may be downloaded from

the website.

URL: www.GLProp.com

EMAIL UPdATESShareholders may sign up for free email alerts of news releases

on the GLP website.

ENqUIRIESShareholders with queries relating to GLP may contact the

investor relations team at:

Tel: +86 21 6105 3989

Email: [email protected]

Investor Relations Events (October 2010 to March 2011)

date

2010November

November

December

2011January

February

February

March

March

March

March

Event

Second quarter results announcement

Macquarie Global Property Conference, Hong Kong

Macquarie Global Property Conference, New York

DBS Vickers Pulse of Asia Conference, Singapore

Third quarter results announcement

Nomura ASEAN Corporate Day, Europe

Daiwa Capital Markets Singapore’s Tokyo Conference, Japan

UBS Global Markets conference, United States

Citigroup 2011 Global Property CEO Conference, United States

JP Morgan Asia Pacific Real Estate Conference, Singapore

1. Bank of America Merrill Lynch

2. China International Capital Corporation

3. Citi Investment Research

4. DBS Vickers Securities

5. JP Morgan Securities

6. Nomura

7. UBS Securities

brokerages covering GLP (as of 31 March 2011)

Table 1


CORPORATE SOCIAL RESPONSIbILITY

GLP is committed to giving back to

society by serving the needs of the

community and leaving a lasting and

positive social imprint wherever it

operates.

As one of the largest providers of modern

logistics facilities in Asia, GLP is uniquely

positioned to draw on its expertise,

network and strong reputation to carry

out initiatives that can make a difference

and touch the lives of those in need. The

Hope School Programme in China and

the Group’s contributions to the rescue

and rebuilding efforts in Japan are prime

examples of such initiatives.

hOPE SChOOL PROGRAMMEThe Hope School Programme seeks to meet the education

infrastructure needs of communities in the remote and

under-developed regions of China. Through its network

and good reputation in the People’s Republic of China

(“PRC”), GLP was able to form a partnership that combines

the resources and expertise of the Salvation Army, relevant

PRC government-sponsored foundations such as the

China Youth Development Foundation, the China Children

and Teenagers’ Fund, as well as the Project Hope office

and local education authorities to identify communities that

are in urgent need of support to construct or repair their

primary schools.

Tapping into its GLP Hope School Fund, GLP continues

to build one Hope School with every 500,000 square

metres of building developed. For each Hope School, GLP

supervises the construction of the school building, including

classrooms, teachers’ offices, dormitories, sports facilities,


washrooms and walking paths to help children get to school

safely to ensure that the communities have all the resources

they need to provide a better learning environment for the

children.

GLP’s support for Hope Schools extends beyond constructing

and furnishing the schools. GLP employees also volunteer

their efforts and their own money to support field work and

donation drives to provide items such as story books, sports

equipment and seasonal gifts to the Hope Schools. This

is carried out as part of the GLP Employee Volunteerism

Programme. Since the start of 2011, GLP employees also

began volunteering as teachers at Hope Schools.

Since 2006, more than 1,300 children throughout five

provinces in China - Guangxi, Ningxia, Shenyang, Yunnan

and Henan - have benefitted from the six GLP Hope Schools

built in those areas. Through the Hope School Programme,

the Group seeks to carry out more social initiatives that will

leave a long-lasting impact on the communities in China

and Japan.

CONTRIbUTING TO ThE RESCUE EFFORTS ANd REbUILdING OF JAPANOn 11 March 2011, a devastating earthquake and tsunami in

the eastern coast of Japan levelled entire cities. Thousands

perished and hundreds of thousands were left homeless in

makeshift shelters. This disaster, from the initial destruction to

the aftermath including radiation leaks from damaged power

generation plants in the Sendai and Fukushima areas, is the

worst to impact the country in decades.

GLP is committed to assist in alleviating the suffering caused

by this tragedy. With the support of the Group’s tenants,

GLP offered part of its logistic facilities for the storage and

distribution of relief supplies. In the first week following the

earthquake, GLP also initiated a group-wide donation drive

in aid of the victims of the tragedy. Together, GLP and close

to 90% of its employees raised funds that were donated to

the Japanese Red Cross Society to help with the rescue

and rebuilding efforts in Japan. GLP is closely monitoring the

events in Japan as they unfold, and the Group stands ready to

provide further assistance as needed to help Japan recover.


USE OF PROCEEdS

The proceeds from the initial public offering is approximately S$3.4 billion (US$2.6 billion).

Up to 31 March 2011, an aggregate amount of approximately S$2.3 billion (US$1.8 billion) of proceeds from the

offering has been utilised in accordance with the stated use in the IPO prospectus, as follows:

Approximately S$133.3 million (US$102.9 million) has been disbursed for the payment of underwriting

commissions and other offering expenses;

Approximately S$1,018.4 million (US$780.8 million) has been utilised to redeem preferred equity as part of

the Corporate Reorganisation as described in the Prospectus;

Approximately S$617.3 million (US$474.4 million) has been utilised to pay down shareholder loans,

intercompany advances and relevant interest accrued as described in the Prospectus;

Approximately S$90.0 million (US$69.1 million) has been utilised for the purposes of the acquisition of

45,890,000 B shares of Shenzhen Chiwan Petroleum Supply Base Co., Ltd., as further described in the

Company’s SGXNet announcement dated 22 December 2010;

Approximately S$197.9 million (US$153.3 million) has been utilised for the purposes of satisfying part of

the consideration for the acquisition of an equity interest in Airport City Development Co., Ltd., as further

described in the Company’s SGXNet announcement dated 4 January 2011;

Approximately S$242.9 million (US$185.6 million) has been utilised for acquisitions, disbursement as capital

injections and shareholders’ loans to support our business growth in China; and

Approximately S$1.9 million (US$1.5 million) has been disbursed for general corporate use purposes.

CONTENTS

Directors’ Report

Statement by Directors

Independent Auditors’ Report

Balance Sheets

Income Statement

58

61

62

63

64

AUDITED FINANCIAL REPORT

Statement of Comprehensive Income

Statements of Changes in Equity

Statement of Cash Flows

Notes to the Financial Statements

65

66

69

71


DIRECTORS’ REPORTFor the Financial Year Ended 31 March 2011


We are pleased to submit this annual report to the members of the Company together with the audited fi nancial statements for

the fi nancial year ended 31 March 2011.

Directors

The directors in offi ce at the date of this report are as follows:

Ang Kong Hua (Appointed on 24 September 2010)

Jeffrey H. Schwartz (Appointed on 24 September 2010)

Ming Z. Mei (Appointed on 24 September 2010)

Dr. Seek Ngee Huat (Appointed on 24 September 2010)

Lim Swe Guan (Alternate director to Dr. Seek Ngee Huat, appointed on 24 September 2010)

Tham Kui Seng (Appointed on 24 September 2010)

Yoichiro Furuse (Appointed on 24 September 2010)

Steven Lim Kok Hoong (Appointed on 24 September 2010)

Dr. Dipak Jain (Appointed on 24 September 2010)

Paul Cheng Ming Fun (Appointed on 24 September 2010)

Directors’ Interests in Shares or Debentures

Except as disclosed in this report, no director who held offi ce at the end of the fi nancial year had interest in shares, debentures,

warrants or share options of the Company or its related corporations either at the date of appointment, or at the end of the

fi nancial year.

According to the register kept by the Company for the purposes of Section 164 of the Singapore Companies Act, Chapter

50 (the Act), particulars of interests of directors who held offi ce at the end of the fi nancial year (including those held by their

spouses and infant children) in shares and share options in the Company and in its related corporations (other than wholly-owned

subsidiaries) are as follows:

Held in the name ofdirector or nominee Deemed Interest

Ordinary SharesHoldings at

date of appointmentHoldings

at end of yearHoldings at

date of appointmentHoldings

at end of year

Jeffrey H. Schwartz Nil 61,512,307(1) Nil Nil

Ming Z. Mei Nil 61,512,307(1) Nil Nil

Dr. Seek Ngee Huat Nil Nil Nil 200,000(2)

Notes:

(1) On 18 October 2010, the date the Company was listed on SGX-ST, Jeffrey Howard Schwartz and Ming Z. Mei were deemed to

have an interest in the Schwartz-Mei Group Limited’s (“SMG”) direct interest in 151,882,251 shares of the Company. As a result of a

pro rata distribution on 30 March 2011 by SMG of all its direct shareholding interest in 151,882,251 shares of the Company amongst its

shareholders, Jeffrey H. Schwartz and Ming Z. Mei each holds a direct interest in 61,512,307 shares in the Company.

(2) Junestar Capital Limited (“Junestar”) holds 200,000 shares in the Company. Dr. Seek Ngee Huat is a director of Junestar. He is also the

registered shareholder in respect of 50 per cent. of the issued share capital of Junestar. Dr. Seek Ngee Huat’s wife, Josephine Au Yeong, is

also a director of Junestar and the registered shareholder of the remaining 50% of the issued share capital of Junestar. Dr. Seek therefore

has a deemed interest in the GLP shares held by Junestar.

There were no changes in any of the above mentioned directors’ interests in the Company and its related corporations between

the end of the fi nancial year and 21 April 2011.

DIRECTORS’ REPORT

For the Financial Year Ended 31 March 2011


Directors’ Contractual Benefi ts

Except as disclosed in Note 32 of the Notes to the Financial Statements for the year ended 31 March 2011, since the end of

the last fi nancial year, no director has received or become entitled to receive, a benefi t by reason of a contract made by the

Company or its related corporations with the director, or with a fi rm of which he is a member, or with a company in which he has

a substantial fi nancial interest.

Arrangements to Enable Directors to Acquire Shares and Debentures

Except as disclosed in Note 2(a) and Note 15 of the Notes to the Financial Statements for the year ended 31 March 2011, the

“Directors’ Interests in Share or Debentures” and “Share Plans” sections of this report, neither at the end of, nor at any time

during the fi nancial year, was the Company a party to any arrangement whose objects are, or one of whose objects is, to enable

the directors of the Company to acquire benefi ts by means of the acquisition of shares in or debentures of the Company or any

other corporate body.

Share Plans

The Compensation Committee of the Company has been designated as the committee responsible for the administration of the

GLP Share Plans. The Compensation Committee comprises the following members:

Ang Kong Hua

Dr. Seek Ngee Huat

Dr. Dipak Jain

(a) GLP Performance Share Plan and GLP Restricted Share Plan

The GLP Performance Share Plan (“GLP PSP”) and Restricted Share Plan (“GLP RSP”) (collectively referred to as the

“GLP Share Plans”) were approved and adopted at the Company’s Extraordinary General Meeting held on 24 September

2010.

The GLP RSP is intended to apply to a broader base of employees, non-executive Directors and Directors of the

Company, while the GLP PSP is intended to apply to a narrower range of executives of the Group.

Awards under the GLP PSP represent the right of a participant to receive fully paid shares free of charge, upon the

achievement of prescribed performance conditions within the time period prescribed by the Compensation Committee.

Awards are released once the performance conditions specifi ed on the date on which the award is to be granted have

been achieved. There is no vesting period beyond the performance achievement periods.

Awards under the GLP RSP represent the right of a participant to receive fully paid shares free of charge. Awards granted

under the GLP RSP will be subject to vesting periods but, unlike awards granted under the performance share plan, will

not be subject to performance targets.

The aggregate number of new shares to be delivered under the GLP Share Plans is subject to a maximum limit of 15.0%

of the total number of issued shares in the capital of the Company (excluding treasury shares) on the date preceding the

grants of awards thereunder.

(b) Awards under the GLP Share Plans

Since the commencement of the GLP Share Plans up to the end of the fi nancial year, no awards have been granted

under the GLP Share Plans.

Options to Subscribe for Unissued Shares

There were no options granted during the fi nancial year to subscribe for unissued shares of the Company or its subsidiaries. No

shares have been issued during the fi nancial year by virtue of the exercise of options to take up unissued shares of the Company

or its subsidiaries. There were no unissued shares of the Company or its subsidiaries under options granted by the Company

or its subsidiaries as at the end of the fi nancial year. No options have been granted during the fi nancial year which enables the

option holder to participate by virtue of the options in any share issue of any other company.

DIRECTORS’ REPORTFor the Financial Year Ended 31 March 2011


Audit Committee

The members of the Audit Committee during the year and at the date of this report are:

• Steven Lim Kok Hoong (Chairman), non-executive director

• Ang Kong Hua, non-executive director

• Tham Kui Seng, non-executive director

• Paul Cheng Ming Fun, non-executive director

The Audit Committee performs the functions specifi ed in Section 201B of the Act, the Listing Manual of the SGX-ST and the

Code of Corporate Governance.

The Audit Committee also reviews arrangements by which employees of the Company may, in confi dence, raise concerns about

possible improprieties in matters of fi nancial reporting or other matters. Pursuant to this, the Audit Committee has introduced

a Whistleblowing Policy where employees may raise improprieties to the Audit Committee Chairman in good faith, with the

confi dence that employees making such reports will be treated fairly and be protected from reprisal.

The Audit Committee met two times during the year ended 31 March 2011. Specifi c functions performed during the year included

reviewing the scope of work and strategies of both the internal and external auditors, and the results arising therefrom, including

their evaluation of the system of internal controls. The Audit Committee also reviewed the assistance given by the Company’s

offi cers to the auditors. The fi nancial statements of the Group and the Company were reviewed by the Audit Committee prior

to the submission to the Board of Directors of the Company for adoption. The Audit Committee also met with the internal and

external auditors, without the presence of management, to discuss issues of concern to them.

The Audit Committee has, in accordance with Chapter 9 of the Listing Manual of the SGX-ST, reviewed the requirements for

approval and disclosure of interested person transactions, reviewed the procedures set by the Group and the Company to

identify and report and where necessary, seek approval for interested person transactions and, with the assistance of the internal

auditors, reviewed interested person transactions.

The Audit Committee also undertook quarterly reviews of all non-audit services provided by KPMG LLP and its member fi rms

and was satisfi ed that they did not affect their independence as external auditors of the Company.

The Audit Committee has recommended to the Board of Directors that the auditors, KPMG LLP, be nominated for re-

appointment as auditors at the forthcoming Annual General Meeting of the Company.

The auditors, KPMG LLP, have indicated their willingness to accept re-appointment.

On behalf of the Board of Directors

Ang Kong Hua Ming Z. Mei Director Director

2 June 2011

STATEMENT BY DIRECTORS



In our opinion:

(a) the fi nancial statements set out on pages 63 to 123 are drawn up so as to give a true and fair view of the state of affairs

of the Group and of the Company as at 31 March 2011, and of the results, changes in equity and cash fl ows of the

Group for the year ended on that date in accordance with the provisions of the Singapore Companies Act, Chapter 50

and Singapore Financial Reporting Standards; and

(b) at the date of this statement, there are reasonable grounds to believe that the Company will be able to pay its debts as

and when they fall due.

The Board of Directors has, on the date of this statement, authorised these fi nancial statements for issue.

On behalf of the Board of Directors

Ang Kong Hua Ming Z. Mei Director Director

2 June 2011

INDEPENDENT AUDITORS’ REPORTTo the Members of Global Logistic Properties Limited


Report on the fi nancial statements

We have audited the accompanying fi nancial statements of Global Logistic Properties Limited (the “Company”) and its

subsidiaries (the “Group”), which comprise the balance sheets of the Group and the Company as at 31 March 2011, the income

statement, statement of comprehensive income, statement of changes in equity and statement of cash fl ows of the Group for the

year then ended, and a summary of signifi cant accounting policies and other explanatory notes, as set out on pages 63 to 123.

Management’s responsibility for the fi nancial statements

Management is responsible for the preparation of fi nancial statements that give a true and fair view in accordance with the

provisions of the Singapore Companies Act, Chapter 50 (the “Act”) and Singapore Financial Reporting Standards and for devising

and maintaining a system of internal accounting controls suffi cient to provide a reasonable assurance that assets are safeguarded

against loss from unauthorised use or disposition; and transactions are properly authorised and that they are recorded as

necessary to permit the preparation of true and fair profi t and loss accounts and balance sheets and to maintain accountability of

assets.

Auditors’ responsibility

Our responsibility is to express an opinion on these fi nancial statements based on our audit. We conducted our audit in

accordance with Singapore Standards on Auditing. Those standards require that we comply with ethical requirements and

plan and perform the audit to obtain reasonable assurance about whether the fi nancial statements are free from material

misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the fi nancial statements.

The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of

the fi nancial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control

relevant to the entity’s preparation of fi nancial statements that give a true and fair view in order to design audit procedures that

are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal

control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting

estimates made by management, as well as evaluating the overall presentation of the fi nancial statements.

We believe that the audit evidence we have obtained is suffi cient and appropriate to provide a basis for our audit opinion.

Opinion

In our opinion, the consolidated fi nancial statements of the Group and the balance sheet of the Company are properly drawn up

in accordance with the provisions of the Act and Singapore Financial Reporting Standards to give a true and fair view of the state

of affairs of the Group and of the Company as at 31 March 2011 and the results, changes in equity and cash fl ows of the Group

for the year ended on that date.

Report on other legal and regulatory requirements

In our opinion, the accounting and other records required by the Act to be kept by the Company and by those subsidiaries

incorporated in Singapore of which we are the auditors have been properly kept in accordance with the provisions of the Act.

KPMG LLPPublic Accountants and

Certifi ed Public Accountants

Singapore

2 June 2011

BALANCE SHEETS

As at 31 March 2011

The accompanying notes form an integral part of these consolidated fi nancial statements.


Group Company Note 2011 2010 2011 2010

US$’000 US$’000 US$’000 US$’000

Non-current assetsInvestment properties 4 9,078,302 6,528,973 – –

Subsidiaries 5 – – 4,657,615 903,540

Jointly-controlled entities 6 372,433 315,469 – –

Deferred tax assets 7 19,683 20,232 – –

Plant and equipment 8 4,620 75 – –

Intangible assets 9 489,175 – – –

Other investments 10 62,689 – – –

Other non-current assets 11 22,341 17,351 – –

10,049,243 6,882,100 4,657,615 903,540

Current assetsTrade and other receivables 12 90,600 103,227 432,003 –

Financial derivative assets 13 – 33 – –

Cash and cash equivalents 14 1,559,893 412,021 924,367 –

1,650,493 515,281 1,356,370 –

Total assets 11,699,736 7,397,381 6,013,985 903,540

Equity attributable to owners of the CompanyShare capital 15 5,941,696 * 5,941,696 *

Reserves 16 677,471 1,566,222 68,634 (9,541)

6,619,167 1,566,222 6,010,330 (9,541)

Non-controlling interests 17 364,948 776,197 – –

Total equity 6,984,115 2,342,419 6,010,330 (9,541)

Non-current liabilitiesLoans and borrowings 18 2,755,100 2,664,831 – 170,000

Financial derivative liabilities 13 10,426 16,652 – –

Deferred tax liabilities 7 342,603 135,192 – –

Other non-current liabilities 19 125,795 124,707 – –

3,233,924 2,941,382 – 170,000

Current liabilitiesLoans and borrowings 18 937,067 715,749 – 143,600

Trade and other payables 20 526,654 1,380,206 3,234 599,481

Financial derivative liabilities 13 14,682 16,077 – –

Current tax payable 3,294 1,548 421 –

1,481,697 2,113,580 3,655 743,081

Total liabilities 4,715,621 5,054,962 3,655 913,081

Total equity and liabilities 11,699,736 7,397,381 6,013,985 903,540

* Less than US$1,000

INCOME STATEMENTFor the Financial Year Ended 31 March 2011



Group Note 2011 2010

US$’000 US$’000

Revenue 22 473,865 413,467

Other income 23 8,818 4,623

Management fees (15,928) (35,101)

Property-related expenses (70,655) (61,467)

Other expenses (46,208) (24,395)

349,892 297,127

Share of results (net of income tax) of jointly-controlled entities 56,461 31,984

Profi t from operating activities after share of results of jointly-controlled entities 406,353 329,111

Net fi nance costs 24 (55,542) (60,468)

Non-operating income/(expenses) 25 351 (27,680)

Profi t before changes in fair value of investment properties 351,162 240,963

Changes in fair value of investment properties 456,313 (369,006)

Profi t/(loss) before income tax 25 807,475 (128,043)

Income tax expense 26 (85,044) (21,637)

Profi t/(loss) for the year 722,431 (149,680)

Profi t/(loss) attributable to:Owners of the Company 706,062 (176,685)

Non-controlling interests 16,369 27,005


Earnings/(Loss) per share (cents)- Basic and diluted 27 23.44 (10.13)

STATEMENT OF COMPREHENSIVE INCOME




Group 2011 2010

US$’000 US$’000


Other comprehensive incomeExchange differences arising from consolidation of foreign operations and translation of

foreign currency loans 307,789 100,633

Effective portion of changes in fair value of cash fl ow hedges (252) –

Change in fair value of available-for-sale investments (6,428) –

Other comprehensive income for the year1 301,109 100,633

Total comprehensive income for the year 1,023,540 (49,047)

Total comprehensive income attributable to:Owners of the Company 910,014 (108,554)

Non-controlling interests 113,526 59,507

Total comprehensive income for the year 1,023,540 (49,047)

1 There is no income tax effects relating to these components of other comprehensive income.

STATEMENTS OF CHANGES IN EQUITYFor the Financial Year Ended 31 March 2011


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47

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22

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STATEMENTS OF CHANGES IN EQUITY



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STATEMENTS OF CHANGES IN EQUITYFor the Financial Year Ended 31 March 2011


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5,9

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ents

.

STATEMENT OF CASH FLOWS



Note 2011 2010US$’000 US$’000

Cash fl ows from operating activitiesProfi t/(Loss) before income tax 807,475 (128,043)

Adjustments for:

Amortisation of transaction costs of bonds 6,149 4,892

Depreciation of plant and equipment 568 35

Amortisation of intangible assets 1,555 –

Loss on disposal of subsidiaries and jointly-controlled entities – 27,680

Negative goodwill on acquisition of subsidiaries (351) –

Share of results of jointly-controlled entities (56,461) (31,984)

Changes in fair value of investment properties (456,313) 369,006

Changes in fair value of fi nancial derivatives (11,335) 3,510

Impairment loss on trade and other receivables 216 124

Interest income (801) (1,560)

Interest expense 76,448 66,953

367,150 310,613

Changes in working capital:

Trade and other receivables (1,325) (3,304)

Trade and other payables 6,643 (44,685)

Cash generated from operations 372,468 262,624

Income tax paid (11,202) (8,782)

Net cash from operating activities 361,266 253,842

Cash fl ows from investing activitiesAcquisition of subsidiaries, net of cash acquired 28 (135,744) (65,720)

Acquisition of non-controlling interests – (10,146)

Development expenditure on investment properties (203,286) (113,255)

Disposal of investment properties 4,288 9,860

Disposal of subsidiaries, net of cash disposed of 28 – 12,250

Purchase of plant and equipment (669) (6)

Acquisition of other investments (69,118) –

Interest income received 815 1,560

Dividends received from jointly-controlled entities 1,530 6,305

Net cash used in investing activities (402,184) (159,152)


STATEMENT OF CASH FLOWSFor the Financial Year Ended 31 March 2011


Note 2011 2010US$’000 US$’000

Cash fl ows from fi nancing activitiesContribution from non-controlling interests 4,157 –

(Repayment of)/Proceeds from loans and advances from immediate holding

company and related corporations (368,548) 6,193

Net proceeds from issue of ordinary shares 2,507,212 –

Proceeds from bank loans 322,638 160,498

Repayment of bank loans (119,465) (12,986)

Proceeds from issue of bonds 502,057 –

Redemption of bonds (700,595) (42,622)

Redemption of preference shares issued by subsidiaries (780,769) (30,673)

Deposits pledged – 7,250

Interest paid (80,459) (67,121)

Dividends paid (135,128) (17,409)

Net cash from fi nancing activities 1,151,100 3,130

Net increase in cash and cash equivalents 1,110,182 97,820

Cash and cash equivalents at beginning of year 412,021 304,147

Effect of exchange rate changes on cash balances held in foreign currencies 37,690 10,054

Cash and cash equivalents at end of year 14 1,559,893 412,021

Signifi cant Non-Cash Transactions

1 On 27 August 2010, the Group’s external bank loans amounting to USD313,600,000 were novated to a related corporation, resulting in an

increase in interest-free inter-company advances.

2 On 18 October 2010, pursuant to the master restructuring agreement, shareholders’ loans and intercompany advances from related

parties of US$1,143,000,000 were capitalised by way of an issue and allocation of 817,647,411 new ordinary shares in the capital of the

Company. Simultaneously, the Company acquired the entire share capital of Japan Logistic Properties 1 Private Limited, Japan Logistic

Properties 2 Pte. Ltd., Japan Logistic Properties 3 Pte. Ltd. and Global Logistic Properties Holdings Limited by way of an issue and

allotment of 1,567,139,305 new ordinary shares in the capital of the Company.

3 On 5 January 2011, the Group acquired 53.1% equity interest in Airport City Development Co., Ltd. for an aggregate consideration

of approximately RMB2,434,000,000 (equivalent to approximately US$368,800,000), to be settled by way of cash and shares. On 12

January 2011, 88,905,000 new ordinary shares in the capital of the Company was issued as share consideration for the acquisition.

4 During the year ended 31 March 2010, the non-controlling shareholder of a subsidiary made a capital contribution to the subsidiary

through the assignment of land to be developed as an investment property to the subsidiary. The fair value of the land was assessed to

be approximately US$10,211,000 on the date of capital contribution.

5 During the year ended 31 March 2010, each of the then equity holders Global Logistic Properties Holdings Limited, contributed capital of

US$1,000,000 to the entity respectively.


NOTES TO THE FINANCIAL STATEMENTS



Notes to the fi nancial statements

These notes form an integral part of the fi nancial statements.

The fi nancial statements were authorised for issue by the Board of Directors on 2 June 2011.

1 Domicile and activities

Global Logistic Properties Limited (the “Company”) is incorporated in the Republic of Singapore and has its registered

offi ce at 50 Raffl es Place, #32-01, Singapore Land Tower, Singapore 048623.

The principal activities of the Company and its subsidiaries are those of an investment holding and provision of distribution

facilities and services.

On 15 September 2010, the Company changed its name from Reco China Logistics Private Limited to Global Logistic

Properties Pte. Ltd. On 17 September 2010, the Company converted into a public company limited by shares and

changed its name to Global Logistic Properties Limited. The Company was listed on the Mainboard of the Singapore

Exchange Securities Trading Limited (“SGX-ST”) on 18 October 2010.

The immediate and ultimate holding companies of the Company are Recosia Pte. Ltd. and Government of Singapore

Investment Corporation (Realty) Private Limited (“GIC Realty”) respectively. Both companies are incorporated in the

Republic of Singapore.

The consolidated fi nancial statements relate to the Company and its subsidiaries (together referred to as the “Group”) and

the Group’s interests in jointly-controlled entities.

2 Basis of preparation

(a) Corporate reorganisation

On 27 September 2010, the Company entered into a master restructuring agreement (as defi ned herein, the

“Master Restructuring Agreement”), which include:

(i) the acquisition of 100% interests in Japan Logistic Properties 1 Private Limited (“JLP 1”), Japan Logistic

Properties 2 Pte. Ltd. (“JLP 2”) and Japan Logistic Properties 3 Pte. Ltd. (“JLP 3”) from Reco Platinum

Pte Ltd (“Reco Platinum”), Reco Benefi t Private Limited (“Reco Benefi t”) and Reco Heir Private Limited

(“Reco Heir”) respectively (the “Japan Reorganisation”) by way of an issue and allotment of an aggregated

1,187,433,000 new ordinary shares in the capital of the Company;

(ii) the acquisition of 50% interests in Global Logistic Properties Holdings Limited (“GLPH”) from Reco

Logistics Management Private Limited (“Reco Logistics”) (the “GLPH Reorganisation”) and the remaining

50% interests in GLPH from Schwartz-Mei Group Limited (“SMG”), which is controlled by two directors

of the Company (the “GLPH Acquisition”) by way of an issue and allotment of 189,853,000 new ordinary

shares in the capital of the Company to each equity holder. In connection with the acquisition of GLPH

from Reco Logistics Management and SMG, the Company issued and allocated 31,583,000 new ordinary

shares to GLP Associate Benefi ts Co. Ltd. for the benefi t of eligible employees; and

(iii) the redemption of preferred equity of the Japanese subsidiaries of JLP 1, JLP 2 and JLP 3 with an

aggregate amount of JPY63,899,700,000 (equivalent to approximately US$780,769,000) which were held

by certain subsidiaries of GIC Realty and the subscription of new preferred equity by the Group of the

same amount in replacement thereof.

NOTES TO THE FINANCIAL STATEMENTSFor the Financial Year Ended 31 March 2011


2 Basis of preparation (cont’d)

(a) Corporate reorganisation (cont’d)

The ultimate holding company of Reco Platinum, Reco Benefi t, Reco Heir and Reco Logistics is GIC Realty.

The Japan Reorganisation and the GLPH Reorganisation are considered to be acquisitions of equity interests by

entities under common control and therefore the entities acquired by the Group pursuant to these reorganisations

have been accounted for in a manner similar to the pooling-of-interests method. Accordingly, the assets and

liabilities of these entities have been included in the fi nancial statements at their historical carrying amounts.

Although the master restructuring agreement was entered into on 27 September 2010 and was effective on 18

October 2010, the fi nancial statements present the fi nancial condition, results of operations and cash fl ows as if

the reorganisations had occurred as of the beginning of the earliest period presented.

(b) Statement of compliance

The fi nancial statements are prepared in accordance with Singapore Financial Reporting Standards (“FRS”).

(c) Basis of measurement

The fi nancial statements have been prepared on the historical cost basis except for certain assets and liabilities

which are measured at fair value as described below.

(d) Functional and presentation currency

The fi nancial statements are presented in United States dollars (“US dollars” or “US$”), which is the Company’s

functional currency. All fi nancial information presented in US dollars has been rounded to the nearest thousand,

unless otherwise stated.

(e) Use of estimates and judgements

The preparation of fi nancial statements in conformity with FRSs requires management to make judgements,

estimates and assumptions that affect the application of accounting policies and the reported amounts of assets,

liabilities, income and expenses. Actual results may differ from these estimates.

Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are

recognised in the period in which the estimates are revised and in any future periods affected.

Information about critical judgments in applying accounting policies that have the most signifi cant effect on the

amounts recognised in the fi nancial statements is included in the following notes:

Note 4 – Valuation of investment properties

Note 28 – Valuation of assets and liabilities acquired in business combination

Note 30 – Valuation of fi nancial instruments

Information about assumptions and estimation uncertainties that have a signifi cant risk of resulting in a material

adjustment within the next fi nancial year are included in the following notes:

Note 7 – Utilisation of tax losses




2 Basis of preparation (cont’d) (f) Changes in accounting policies

(i) Accounting for business combination

The Group has applied FRS 103 Business Combinations (2009) in its accounting for business combinations.

Business combinations are now accounted for using the acquisition method as at the acquisition date (see

Note 3(a)(i)).

Previously, business combinations were accounted for under the purchase method. The cost of an

acquisition was measured at the fair value of the assets given, equity instruments issued and liabilities

incurred or assumed at the date of exchange, plus costs directly attributable to the acquisition. The excess

of the Group’s interest in the net fair value of the identifi able assets, liabilities and contingent liabilities over

the cost of acquisition was credited to profi t or loss in the period of acquisition. For business acquisitions

that were achieved in stages, any existing equity interests in the acquiree were not re-measured to their fair

value. Contingent consideration was recognised as an adjustment to the cost of acquisition only when it

was probable and could be measured reliably.

The change in accounting policy has been applied prospectively to new business combinations occurring

on or after 1 April 2010 and has no impact on earnings per share.

(ii) Accounting for acquisitions of non-controlling interests

From 1 January 2010, the Group has applied FRS 27 Consolidated and Separate Financial Statements

(2009) in accounting for acquisitions of non-controlling interests. See Note 3(a)(vi) for the new accounting

policy.

Previously, goodwill was recognised on the acquisition of non-controlling interests in a subsidiary, which

represented the excess of the cost of the additional investment over the carrying amount of the interest in

the net assets acquired at the date of the transaction.

The change in accounting policy has been applied prospectively and has no impact on earnings per share.

3 Signifi cant accounting policies

The accounting policies set out below have been applied consistently to all periods presented in these fi nancial

statements, and have been applied consistently by the Group entities, except as explained in Note 2(f), which addresses

changes in accounting policies.

(a) Basis of consolidation

(i) Business combinations

Business combinations are accounted for using the acquisition method as at the acquisition date, which

is the date on which control is transferred to the Group. Control is the power to govern the fi nancial and

operating policies of an entity so as to obtain benefi ts from its activities. In assessing control, the Group

takes into consideration potential voting rights that are currently exercisable.

The consideration transferred does not include amounts related to the settlement of pre-existing

relationships. Such amounts are generally recognised in profi t or loss.

Costs related to the acquisition, other than those associated with the issue of debt or equity securities, that

the Group incurs in connection with a business combination are expensed as incurred.



3 Signifi cant accounting policies (cont’d)

(a) Basis of consolidation (cont’d)

(i) Business combinations (cont’d)

Any contingent consideration payable is recognised at fair value at the acquisition date. If the contingent

consideration is classifi ed as equity, it is not remeasured and settlement is accounted for within equity.

Otherwise, subsequent changes to the fair value of the contingent consideration are recognised in profi t or

loss.

The Group elects on a transaction-by-transaction basis whether to measure non-controlling interests at

fair value, or at their proportionate share of the recognised amount of the identifi able net assets of the

acquiree, at the acquisition date. If the business combination is achieved in stages, the Group’s previously

held equity interest in the acquiree is remeasured to fair value as at the acquisition date through profi t or

loss.

(ii) Subsidiaries

Subsidiaries are entities controlled by the Group. Control exists when the Group has the power to govern

the fi nancial and operating policies of an entity so as to obtain benefi ts from its activities. In assessing

control, potential voting rights that presently are exercisable are taken into account.

The fi nancial statements of subsidiaries are included in the consolidated fi nancial statements from the

date that control commences until the date that control ceases. Losses applicable to the non-controlling

interests in a subsidiary are allocated to the non-controlling interests even if doing so causes the non-

controlling interests to have a defi cit balance.

Changes in the Group’s interests in subsidiaries that do not result in a loss of control are accounted for

as equity transactions. Upon the loss of control, the Group derecognises the assets and liabilities of the

subsidiary, any non-controlling interests and the other components of equity related to the subsidiary. Any

surplus or defi cit arising on the loss of control is recognised in profi t or loss. If the Group retains any

interest in the previous subsidiary, then such interest is measured at fair value at the date that control is

lost. Subsequently, it is accounted for as an equity-accounted investee or as an available-for-sale fi nancial

asset depending on the level of infl uence retained.

(iii) Special purpose entities

The Group has also established a number of special purpose entities (SPE) for investment purposes. The

Group may not have any direct or indirect shareholdings in these entities. An SPE is consolidated if, based

on an evaluation of the substance of its relationship with the Group, and the SPE’s risks and rewards, the

Group concludes that it controls the SPE. SPEs controlled by the Group were established under terms

that impose strict limitations on the decision-making powers of the SPEs’ management and that result

in the Group receiving the majority of the benefi ts related to the SPEs’ operations and net assets, being

exposed to the majority of risks incident to the SPEs’ activities, and retaining the majority of the residual or

ownership risks related to the SPEs or their assets.

(iv) Acquisition of entities under common control

For acquisition of entities interest under the common control, the identifi able assets and liabilities were

accounted for at their historical costs, in a manner similar to the “pooling-of-interests” method of

accounting. Any excess or defi ciency between the amounts recorded as share capital issued plus any

additional consideration in the form of cash or other assets and the amount recorded for the share capital

acquired is recognised directly in equity.





(a) Basis of consolidation (cont’d)

(v) Investments in jointly-controlled entities

Jointly-controlled entities are those entities over whose activities the Group has joint control, established by

contractual agreement and requiring unanimous consent for strategic fi nancial and operating decisions.

Jointly-controlled entities (collectively referred to as “equity accounted investees”) are accounted using the

equity method and are recognised initially at cost. The costs of the investments include transaction costs.

The Group’s investments include goodwill identifi ed on acquisition, net of any accumulated impairment

losses. The consolidated fi nancial statements include the Group’s share of the income, expenses and

equity movements of equity accounted investees, after adjustments to align the accounting policies with

those of the Group, from the date that signifi cant infl uence or joint control commences until the date that

signifi cant infl uence or joint control ceases. When the Group’s share of losses exceeds its interest in equity

accounted investee, the carrying amount of that interest, including any long-term investments, is reduced

to zero, and the recognition of further losses is discontinued except to the extent that the Group has an

obligation or has made payments on behalf of the investee.

(vi) Acquisitions of non-controlling interests

Acquisitions of non-controlling interests are accounted for as transactions with owners in their capacity as

owners and therefore no goodwill is recognised as a result of such transactions.

(vii) Transactions eliminated on combination

Intra-group balances and transactions, and any unrealised income or expenses arising from intra-group

transactions, are eliminated in preparing the consolidated fi nancial statements. Unrealised gains arising

from transactions with jointly-controlled entities are eliminated against the investment to the extent of the

Group’s interest in the investee. Unrealised losses are eliminated in the same way as unrealised gains, but

only to the extent that there is no evidence of impairment.

(viii) Accounting for subsidiaries and jointly-controlled entities by the Company

Investments in subsidiaries and jointly-controlled entities are stated in the Company’s balance sheet at cost

less accumulated impairment losses.

(b) Foreign currencies

(i) Foreign currency transactions

Items included in the fi nancial statements of each entity in the Group are measured using the currency that

best refl ects the economic substance of the underlying events and circumstances relevant to that entity

(the “functional currency”).

Transactions in foreign currencies are translated to the respective functional currencies of Group’s entities

at the exchange rate at the date of the transaction. Monetary assets and liabilities denominated in foreign

currencies at the reporting date are retranslated to the functional currency at the exchange rate at that

date. Non-monetary assets and liabilities denominated in foreign currencies that are measured at fair value

are retranslated to the functional currency at the exchange rate at the date on which the fair value was

determined. Non-monetary items in a foreign currency that are measured in terms of historical costs are

translated using the exchange rate at the date of the transaction.

Foreign currency differences arising on retranslation are recognised in profi t or loss, except for differences

arising on the retranslation of available-for-sale equity instruments, a fi nancial liability designated as a hedge

of the net investment in a foreign operation (see (iii) below), or qualifying cash fl ow hedges, which are

recognised in other comprehensive income.




(b) Foreign currencies (cont’d)

(ii) Foreign operations

The assets and liabilities of foreign operations, including goodwill and fair value adjustments arising on

acquisition, are translated to US dollars at exchange rates at the reporting date. The income and

expenses of foreign operations are translated to US dollars at exchange rates prevailing at the dates of the

transactions. Goodwill and fair value adjustments arising from the acquisition of a foreign operation are

treated as assets and liabilities of the foreign operation and translated at the closing rate.

Foreign currency differences are recognised in other comprehensive income, and presented in the foreign

currency translation reserve (translation reserve) in equity. However, if the operation is not a wholly-owned

subsidiary, then the relevant proportionate share of the translation difference is allocated to the non-

controlling interests. When a foreign operation is disposed of such that control, signifi cant infl uence or

joint control is lost, the cumulative amount in the translation reserve related to that foreign operation is

transferred to profi t or loss as part of the gain or loss on disposal. When the Group disposes of only part

of its interest in a subsidiary that includes a foreign operation while retaining control, the relevant proportion

of the cumulative amount is reattributed to non-controlling interests. When the Group disposes of only part

of its investment in a jointly-controlled entity that includes a foreign operation while retaining signifi cant

infl uence or joint control, the relevant proportion of the cumulative amount is reclassifi ed to profi t or loss.

When the settlement of a monetary item receivable from or payable to a foreign operation is neither planned

nor likely in the foreseeable future, foreign exchange gains and losses arising from such a monetary item

are considered to form part of a net investment in a foreign operation. These are recognised in other

comprehensive income, and are presented in the translation reserve in equity.

(iii) Hedge of a net investment in foreign operation

The Group applies hedge accounting to foreign currency differences arising between the functional currency

of the foreign operation and the Company’s functional currency (US dollars), regardless of whether the net

investment is held directly or through an intermediate parent.

Foreign currency differences arising on the retranslation of a fi nancial liability designated as a hedge of a net

investment in a foreign operation are recognised in other comprehensive income to the extent the hedge

is effective, and presented within equity in the foreign currency translation reserve. To the extent that the

hedge is ineffective, such differences are recognised in profi t or loss. When the hedged net investment is

disposed of, the relevant amount in the foreign currency translation reserve is transferred to profi t or loss as

part of the profi t or loss on disposal.

(c) Financial instruments

(i) Non-derivative fi nancial instruments

The Group initially recognises loans and receivables and deposits on the date that they are originated. All

other fi nancial assets are recognised initially on the trade date at which the Group becomes a party to the

contractual provisions of the instrument.

The Group derecognises a fi nancial asset when the contractual rights to the cash fl ows from the asset

expire, or it transfers the rights to receive the contractual cash fl ows on the fi nancial asset in a transaction

in which substantially all the risks and rewards of ownership of the fi nancial asset are transferred. Any

interest in transferred fi nancial assets that is created or retained by the Group is recognised as a separate

asset or liability.

Financial assets and liabilities are offset and the net amount presented in the balance sheet when, and only

when, the Group has a legal right to offset the amounts and intends either to settle on a net basis or to

realise the asset and settle the liability simultaneously.





(c) Financial instruments (cont’d)

(i) Non-derivative fi nancial instruments (cont’d)

The Group classifi es non-derivative fi nancial assets into the following categories: loans and receivables and

available-for-sale fi nancial assets.

Loans and receivables

Loans and receivables are fi nancial assets with fi xed or determinable payments that are not quoted in an

active market. Such assets are recognised initially at fair value plus any directly attributable transaction

costs. Subsequent to initial recognition, loans and receivables are measured at amortised cost using the

effective interest method, less any impairment losses.

Loans and receivables comprise cash and cash equivalents, trade and other receivables, except

prepayments.

Cash and cash equivalents comprise cash balances and bank deposits.

Available-for-sale fi nancial assets

Available-for-sale fi nancial assets are non-derivative fi nancial assets that are designated as available for sale

or are not classifi ed in any of the above categories of fi nancial assets. Subsequent to initial recognition,

they are measured at fair value and changes therein, other than impairment losses (see Note 3(g)) are

recognised in other comprehensive income and presented in the fair value reserve in equity. When an

investment is derecognised, the gain or loss accumulated in equity is reclassifi ed to profi t or loss.

Available-for-sale fi nancial assets comprise equity securities.

(ii) Non-derivative fi nancial liabilities

The Group initially recognises debt securities issued and subordinated liabilities on the date that they

are originated. All other fi nancial liabilities are recognised initially on the trade date at which the Group

becomes a party to the contractual provisions of the instrument.

The Group derecognises a fi nancial liability when its contractual obligations are discharged or cancelled or

expire.

Financial assets and liabilities are offset and the net amount presented in the balance sheet when, and only

when, the Group has a legal right to offset the amounts and intends either to settle on a net basis or to

realise the asset and settle the liability simultaneously.

The Group has the following non-derivative fi nancial liabilities, loans and borrowings, and trade and other

payables.

Such fi nancial liabilities are recognised initially at fair value plus any directly attributable transaction costs.

Subsequent to initial recognition, these fi nancial liabilities are measured at amortised cost using the effective

interest method.

(iii) Share capital

Ordinary shares are classifi ed as equity. Incremental costs directly attributable to the issue of ordinary

shares are recognised as a deduction from equity, net of any tax effects.




(c) Financial instruments (cont’d)

(iv) Derivative fi nancial instruments, including hedge accounting

The Group holds derivative fi nancial instruments to hedge its interest rate risk exposures.

On initial designation of the derivative as the hedging instrument, the Group formally documents the

relationship between the hedging instrument and hedged item, including the risk management objectives

and strategy in undertaking the hedge transaction and the hedged risk, together with the methods that

will be used to assess the effectiveness of the hedging relationship. The Group makes an assessment,

both at the inception of the hedge relationship as well as on an ongoing basis, of whether the hedging

instruments are expected to be “highly effective” in offsetting the changes in the fair value or cash fl ows

of the respective hedged items attributable to the hedged risk, and whether the actual results of each

hedge are within a range of 80%-125%. For a cash fl ow hedge of a forecast transaction, the transaction

should be highly probable to occur and should present an exposure to variations in cash fl ows that could

ultimately affect reported profi t or loss.

Derivatives are recognised initially at fair value; attributable transaction costs are recognised in profi t or

loss as incurred. Subsequent to initial recognition, derivatives are measured at fair value, and therein are

accounted as described below.

Cash fl ow hedges

When a derivative is designated as the hedging instrument in a hedge of the variability in cash fl ows

attributable to a particular risk associated with a recognised asset or liability or a highly probable forecast

transaction that could affect profi t or loss, the effective portion of changes in the fair value of the derivative

is recognised in other comprehensive income and presented in hedging reserve in equity. The amount

recognised in other comprehensive income is removed and included in profi t or loss in the same period as

the hedged cash fl ows affect profi t or loss under the same line item in the income statement as the hedged

item. Any ineffective portion of changes in the fair value of the derivative is recognised immediately in the

profi t or loss.

If the hedging instrument no longer meets the criteria for hedge accounting, expires or is sold, terminated,

exercised, or the designation is revoked, then hedge accounting is discontinued prospectively. The

cumulative gain or loss previously recognised in other comprehensive income and presented in the hedging

reserve in equity remains there until the forecast transaction affects profi t or loss. When the hedged item is

a non-fi nancial asset, the amount recognised in other comprehensive income is transferred to the carrying

amount of the asset when the asset is recognised. If the forecast transaction is no longer expected to

occur, then the balance in other comprehensive income is recognised immediately in profi t or loss. In other

cases, the amount recognised in other comprehensive income is transferred to profi t or loss in the same

period that the hedged item affects profi t or loss.

Other non-trading derivatives

When a derivative fi nancial instrument is not held for trading, and is not designated in a qualifying hedge

relationship, all changes in its fair value are recognised immediately in profi t or loss.

(d) Plant and equipment

Plant and equipment are stated at cost less accumulated depreciation and impairment losses. Cost includes

expenditure that is directly attributable to the acquisition of the asset.

Subsequent expenditure relating to plant and equipment that has already been recognised is added to the

carrying amount of the asset when it is probable that future economic benefi ts, in excess of the originally assessed

standard of performance of the existing asset, will fl ow to the Group. All other subsequent expenditure is

recognised as an expense in the period in which it is incurred.





(d) Plant and equipment (cont’d)

Depreciation is recognised on a straight-line basis over their estimated useful lives of furniture, fi ttings and

equipment ranging from 2 to 10 years.

The assets’ residual values, useful lives and depreciation methods are reviewed, and adjusted if necessary, at each

reporting date.

(e) Intangible assets

(i) Goodwill

Goodwill represents the excess of the cost of the acquisition over the Group’s interest in the net fair value of

the identifi able assets, liabilities and contingent liabilities of the acquiree. Goodwill arising on the acquisition

of a non-controlling interest in a subsidiary represents the excess of the cost of the additional investment

over the carrying amount of the net assets acquired at the date of exchange.

Goodwill arising on the acquisition of subsidiaries is presented in intangible assets. Goodwill arising on the

acquisition of jointly-controlled entities is presented together with investments in jointly-controlled entities.

Goodwill is measured at cost less accumulated impairment losses, and tested for impairment. Negative

goodwill is recognised immediately in profi t or loss.

(ii) Other intangible assets

Other intangible assets that are acquired by the Group and have fi nite useful lives are measured at costs

less accumulated amortisation and accumulated impairment losses.

(iii) Amortisation

Amortisation is calculated over the cost of the asset, less its residual value.

Amortisation is recognised in profi t or loss on a straight-line basis over the estimated useful lives of

intangible assets, other than goodwill, from the date that they are available for use, since this most clearly

refl ects the expected pattern of consumption of the future economic benefi ts embodied in the asset. The

estimated useful lives of intangible assets are as follows:

Trademarks 20 years

Non-competition over the term of relevant agreement

(f) Investment properties

Investment properties are properties held either to earn rental income or for capital appreciation or both.

Investment properties comprise completed investment properties, investment properties under re-development,

properties under development and land held for development. They are not for sale in the ordinary course of

business, used in the production or supply of goods or services, or for administrative purposes.

Land held for development represents lease prepayments for acquiring rights to use land in the People’s Republic

of China (“PRC”) with periods ranging from 40 to 50 years. Such rights granted with consideration are recognised

initially at acquisition cost less accumulated amortisation of these rights over the lease period.




(f) Investment properties (cont’d)

(i) Completed investment properties and investment properties under re-development

Completed investment properties and investment properties under re-development are measured at fair

value with any changes therein recognised in profi t or loss.

When an investment property is disposed of, the resulting gain or loss recognised in profi t or loss is the

difference between net disposal proceeds and the carrying amount of the property.

(ii) Properties under development and land held for development

Property that is being constructed or developed for future use as investment property is initially recognised

at cost, including transaction costs, and subsequently at fair value with any change therein recognised in

profi t or loss.

(g) Impairment

(i) Financial assets (including receivables)

A fi nancial asset not carried at fair value through profi t or loss is assessed at each reporting date

to determine whether there is any objective evidence that it is impaired. A fi nancial asset is impaired if

objective evidence indicates that a loss event has occurred after the initial recognition of the asset, and that

the loss event had a negative effect on the estimated future cash fl ows of that asset that can be estimated

reliably.

Objective evidence that fi nancial assets are impaired can include default or delinquency by a debtor,

restructuring of an amount due to the Group on terms that the Group would not consider otherwise,

indications that a debtor or issuer will enter bankruptcy.

The Group considers evidence of impairment for receivables at both a specifi c asset and collective level.

All individually signifi cant receivables are assessed for specifi c impairment. All individually signifi cant

receivables found not to be specifi cally impaired are then collectively assessed for any impairment that

has been incurred but not yet identifi ed. Receivables that are not individually signifi cant are collectively

assessed for impairment by grouping together receivables with similar risk characteristics.

In assessing collective impairment, the Group uses historical trends of the probability of default, timing

of recoveries and the amount of loss incurred, adjusted for management’s judgement as to whether

current economic and credit conditions are such that the actual losses are likely to be greater or less than

suggested by historical trends.

An impairment loss in respect of a fi nancial asset measured at amortised cost is calculated as the

difference between its carrying amount and the present value of the estimated future cash fl ows discounted

at the asset’s original effective interest rate. Losses are recognised in profi t or loss and refl ected in an

allowance account against receivables. Interest on the impaired asset continues to be recognised through

the unwinding of the discount. When a subsequent event causes the amount of impairment loss to

decrease, the decrease in impairment loss is reversed through profi t or loss.

(ii) Non-fi nancial assets

The carrying amounts of the Group’s non-fi nancial assets, other than investment properties and deferred

tax assets, are reviewed at each reporting date to determine whether there is any indication of impairment.

If any such indication exists, then the asset’s recoverable amount is estimated. For goodwill, and intangible

assets that have indefi nite useful lives or that are not yet available for use, the recoverable amount is

estimated each year at the same time.





(g) Impairment (cont’d)

(ii) Non-fi nancial assets (cont’d)

The recoverable amount of an asset or cash-generating unit is the greater of its value in use and its fair

value less costs to sell. In assessing value in use, the estimated future cash fl ows are discounted to their

present value using a pre-tax discount rate that refl ects current market assessments of the time value of

money and the risks specifi c to the asset. For the purpose of impairment testing, assets that cannot be

tested individually are grouped together into the smallest group of assets that generates cash infl ows from

continuing use that are largely independent of the cash infl ows of other assets or groups of assets (the

“cash-generating unit, or CGU”). Subject to an operating segment ceiling test, for the purposes of goodwill

impairment testing, CGUs to which goodwill has been allocated are aggregated so that the level at which

impairment is tested refl ects the lowest level at which goodwill is monitored for internal reporting purposes.

Goodwill acquired in a business combination is allocated to groups of CGUs that are expected to benefi t

from the synergies of the combination.

The Group’s corporate assets do not generate separate cash infl ows. If there is an indication that a

corporate asset may be impaired, then the recoverable amount is determined for the CGU to which the

corporate asset belongs.

An impairment loss is recognised if the carrying amount of an asset or its CGU exceeds its estimated

recoverable amount. Impairment losses are recognised in profi t or loss. Impairment losses recognised in

respect of CGUs are allocated fi rst to reduce the carrying amount of any goodwill allocated to the units,

and then to reduce the carrying amounts of the other assets in the unit (group of units) on a pro rata basis.

An impairment loss in respect of goodwill is not reversed. In respect of other assets, impairment losses

recognised in prior periods are assessed at each reporting date for any indications that the loss has

decreased or no longer exists. An impairment loss is reversed if there has been a change in the estimates

used to determine the recoverable amount. An impairment loss is reversed only to the extent that the

asset’s carrying amount does not exceed the carrying amount that would have been determined, net of

depreciation or amortisation, if no impairment loss had been recognised.

Goodwill that forms part of the carrying amount of an investment in jointly-controlled entity is not

recognised separately, and therefore is not tested for impairment separately. Instead, the entire amount of

the investment in a jointly-controlled entity is tested for impairment as a single asset when there is objective

evidence that the investment may be impaired.

(h) Employee benefi ts

(i) Defi ned contribution plans

A defined contribution plan is a post-employment benefit plan under which an entity pays fixed

contributions into a separate entity and will have no legal or constructive obligation to pay further amounts.

Obligations for contributions to defi ned contribution pension plans are recognised as employee benefi t

expense in profi t or loss in the periods during which services are rendered by employees.

(ii) Short-term employee benefi ts

Short-term employee benefi t obligations are measured on an undiscounted basis and are expensed as the

related service is provided.

A liability is recognised for the amount expected to be paid under short-term cash bonus or profi t-sharing

plans if the Group has a present legal or constructive obligation to pay this amount as a result of past

service provided by the employee, and the obligation can be estimated reliably.




(h) Employee benefi ts (cont’d)

(iii) Employee leave entitlement

Employee entitlements to annual leave are recognised when they accrue to employees. A provision is

made for the estimated liability for annual leave as a result of services rendered by employees up to the

balance sheet date.

(iv) Share-based payment

For equity-settled share-based payment transactions, the fair value of the services received is recognised

as an expense with a corresponding increase in equity over the vesting period during which the employees

become unconditionally entitled to the equity instrument. The fair value of the services received is

determined by reference to the fair value of the equity instrument granted at the date of the grant. At each

reporting date, the number of equity instruments that are expected to be vested are estimated. The impact

on the revision of original estimates is recognised as an expense and as a corresponding adjustment

to equity over the remaining vesting period, unless the revision to original estimates is due to market

conditions. No adjustment is made if the revision or actual outcome differs from the original estimate due

to market conditions.

For cash-settled share-based payment transactions, the fair value of the goods or services received is

recognised as an expense with a corresponding increase in liability. The fair value of the services received

is determined by reference to the fair value of the liability. Until the liability is settled, the fair value of the

liability is remeasured at each reporting date and at the date of settlement, with any changes in fair value

recognised as an expense for the period.

The proceeds received from the exercise of the equity instruments, net of any directly attributable

transaction costs, are credited to share capital when the equity instruments are exercised.

(i) Provision

A provision is recognised if, as a result of a past event, the Group has a present legal or constructive obligation

that can be estimated reliably, and it is probable that an outfl ow of economic benefi ts will be required to settle the

obligation. Provisions are determined by discounting the expected future cash fl ows at the pre-tax rate that refl ects

current market assessments of the time value of money and the risks specifi c to the liability. The unwinding of the

discount is recognised as fi nance cost.

(j) Leases

When entities within the Group are lessees of an operating lease

Where the Group has the use of assets under operating leases, payments made under the leases are recognised

in profi t or loss on a straight-line basis over the term of the lease. Lease incentives received are recognised in

profi t or loss as an integral part of the total lease payments made. Contingent rentals are charged to profi t or loss

in the accounting period in which they are incurred.

When entities within the Group are lessors of an operating lease

Assets subject to operating leases are included in investment properties (see Note 3(f)).

(k) Revenue recognition

Rental income

Rental income receivable under operating leases is recognised in profi t or loss on a straight-line basis over the

term of the lease, except where an alternative basis is more representative of the pattern of benefi ts to be derived

from the leased asset. Lease incentives granted are recognised as an integral part of the total rental income to be

received. Contingent rentals are recognised as income in the accounting period in which they are earned.




3 Signifi cant accounting policies (cont’d) (k) Revenue recognition (cont’d)

Management fee income

Management fee income is recognised in profi t or loss as and when services are rendered.

Dividend income

Dividend income is recognised on the date that the Group’s right to receive payment is established.

(l) Government grants

Grants that compensate the Group for expenses already incurred or for purpose of giving immediate fi nancial

support with no future related costs are recognised in profi t or loss in the period in which it becomes receivable.

(m) Finance income and expenses

Finance income comprises interest income on funds invested (including available-for-sale fi nancial assets), gains

on disposal of available-for-sale fi nancial assets, gains on hedging instruments that are recognised in profi t or loss.

Interest income is recognised as it accrues in profi t or loss, using the effective interest method.

Finance costs comprise interest expense on borrowings, unwinding of the discount on provisions and contingent

consideration, losses on disposal of available-for-sale fi nancial assets, impairment losses recognised on fi nancial

assets (other than trade receivables), and losses on hedging instruments that are recognised in profi t or loss.

Borrowing costs that are not directly attributable to the acquisition, construction or production of a qualifying asset

are recognised in profi t or loss using the effective interest method.

Foreign currency gains and losses are reported on a net basis as either fi nance income or fi nance costs depending

on whether foreign currency movements are in a net gain or net loss position.

(n) Income tax expense

Income tax expense comprises current and deferred tax. Current tax and deferred tax are recognised in profi t or

loss except to the extent that it relates to a business combination, or items recognised directly in equity or in other

comprehensive income.

Current tax is the expected tax payable or receivable on the taxable income or loss for the year, using tax rates

enacted or substantively enacted at the reporting date, and any adjustment to tax payable in respect of previous

years.

Deferred tax is recognised in respect of temporary differences between the carrying amounts of assets and

liabilities for fi nancial reporting purposes and the amounts used for taxation purposes. Deferred tax is not

recognised for the following temporary differences: the initial recognition of assets or liabilities in a transaction

that is not a business combination and that affects neither accounting nor taxable profi t or loss, and differences

relating to investments in subsidiaries and jointly-controlled entities to the extent that it is probable that they will

not reverse in the foreseeable future. In addition, deferred tax is not recognised for taxable temporary differences

arising on the initial recognition of goodwill. Deferred tax is measured at the tax rates that are expected to be

applied to temporary differences when they reverse, based on the laws that have been enacted or substantively

enacted by the reporting date. Deferred tax assets and liabilities are offset if there is a legally enforceable right

to offset current tax liabilities and assets and they relate to income taxes levied by the same tax authority on the

same taxable entity, or on different tax entities, but they intend to settle current tax liabilities and assets on a net

basis or their tax assets and liabilities will be realised simultaneously.

A deferred tax asset is recognised for unused tax losses, tax credits and deductible temporary differences, to the

extent that it is probable that future taxable profi ts will be available against which they can be utilised. Deferred

tax assets are reviewed at each reporting date and are reduced to the extent that it is no longer probable that the

related tax benefi t will be realised.




(o) Earnings per share

The Group presents basic and diluted earnings per share (“EPS”) data for ordinary shares. Basic EPS is calculated

by dividing the profi t or loss attributable to ordinary shareholders of the Company by the weighted average number

of ordinary shares outstanding during the period, adjusted for events, other than the conversion of potential

ordinary shares, that have changed the number of ordinary shares outstanding without a corresponding change

in resources. Diluted EPS is determined by adjusting the profi t or loss attributable to ordinary shareholders and

the weighted average number of ordinary shares outstanding, and for the effects of all dilutive potential ordinary

shares.

(p) Segment reporting

An operating segment is a component of the Group that engages in business activities from which it may earn

revenues and incur expenses, including revenues and expenses that relate to transactions with any of the

Group’s other components. All operating segments’ operating results are reviewed regularly by the Group’s Chief

Operating Decision Maker to make decisions about resources to be allocated to the segment and assess its

performance, and for which discrete fi nancial information is available.

(q) Related parties

For the purposes of these fi nancial statements, parties are considered to be related to the Group if the Group

has the ability, directly or indirectly, to control the party or exercise signifi cant infl uence over the party in making

fi nancial and operating decisions, or vice versa, or where the Group and the party are subject to common control

or common signifi cant infl uence. Related parties may be individuals or other entities.

(r) New standards and interpretations not adopted

A number of new standards, amendments to standards and interpretations are effective for annual periods

beginning after 1 April 2010, and have not been applied in preparing these fi nancial statements. None of these

are expected to have a signifi cant impact on the fi nancial statements of the Group.

4 Investment properties

Group 2011 2010

US$’000 US$’000

At April 1 6,528,973 6,374,448

Additions 208,524 117,856

Disposals (8,601) (9,860)

Acquisition of subsidiaries 1,180,639 147,721

Borrowing cost capitalised 1,947 168

Development fees capitalised 8,637 5,609

Changes in fair value 456,313 (369,006)

Effect of movements in exchange rates 701,870 262,037

At March 31 9,078,302 6,528,973

Comprising:Completed investment properties 7,729,018 6,187,031

Investment properties under re-development 122,464 33,191

Properties under development 570,159 79,834

Land held for development 656,661 228,917

9,078,302 6,528,973




4 Investment properties (cont’d)

Properties under development and land held for development are stated at fair value as at 31 March 2011.

Investment properties are held mainly for use by external customers under operating leases. Generally, the leases contain

an initial non-cancellable period of one to twenty years. Subsequent renewals are negotiated with the lessees. There are

no contingent rents arising from the lease of investment properties.

Investment properties with carrying value totalling approximately US$8,008,481,000 as at 31 March 2011 (2010:

US$5,807,046,000) were mortgaged to banks and bondholders to secure credit facilities for the Group (Note 18). Interest

capitalised as costs of investment properties amounted to approximately US$1,947,000 (2010: US$168,000) during the

year.

In determining fair value, a combination of approaches were used, including the direct comparison, income capitalisation,

discounted cash fl ow approach and residual approach. The direct comparison method involves the analysis of

comparable sales of similar properties and adjusting the sale prices to that refl ective of the investment properties. The

income capitalisation approach capitalises an income stream into a present value using single-year capitalisation rates, the

income stream used is adjusted to market rentals currently being achieved within comparable investment properties and

recent leasing transactions achieved within the investment property. The discounted cash fl ow method requires the valuer

to assume a rental growth rate indicative of market and the selection of a target internal rate of return consistent with

current market requirements. The residual approach values properties under development and land held for development

by reference to its development potential and deducting development costs to be incurred, together with developers’

profi t margin, assuming it was completed as at the date of valuation.

In relying on the valuation reports, management has exercised its judgement and is satisfi ed that the valuation methods

and estimates are refl ective of the current market conditions.

The range of terminal capitalisation rates applied to the net cash fl ows to determine the fair value of properties under the

discounted cash fl ows approach are as follows:

Terminal capitalisation rate2011 2010

% %

PRC 6.25 - 7.50 6.50 - 7.50

Japan 5.25 - 7.50 5.11 - 9.46

The fair value of investment properties assessed by independent valuers who hold recognised and relevant professional

qualifi cations and have recent experience in the location and category as at 31 March 2011 were US$9,078,302,000

(2010: US$6,528,973,000).



5 Subsidiaries

CompanyNote 2011 2010

US$’000 US$’000

Unquoted equity shares, at cost 3,188,607 903,540

Loans to subsidiaries:

- Interest-free (a) 960,181 –

- Interest-bearing (b) 508,827 –

4,657,615 903,540

(a) The interest-free loans to subsidiaries are unsecured. The settlement of these amounts is neither planned nor likely

to occur in the foreseeable future. As these amounts are, in substance, a part of the Company’s net investment in

subsidiaries, they are stated at cost less accumulated impairment losses.

(b) The interest-bearing loans to subsidiaries are unsecured and bear interest of 1.5% per annum. The settlement of

these amounts is neither planned nor likely to occur in the foreseeable future. As these amounts are, in substance,

a part of the Company’s net investment in subsidiaries, they are stated at cost less accumulated impairment

losses.

(c) Details of the subsidiaries are set out in Note 33.

6 Jointly-controlled entities

Group2011 2010

US$’000 US$’000

Interests in jointly-controlled entities 372,433 315,469

See Note 33 for details of signifi cant jointly-controlled entities.

The following amounts represent the Group’s proportionate share of results, assets and liabilities of the jointly-controlled

entities:

Group2011 2010

US$’000 US$’000

Assets and liabilitiesNon-current assets 520,191 449,393

Current assets 41,143 96,824

Total assets 561,334 546,217

Non-current liabilities (152,751) (131,143)

Current liabilities (36,150) (99,605)

Total liabilities (188,901) (230,748)

ResultsRevenue 96,169 76,261

Expenses (39,708) (44,277)

Profi t for the year 56,461 31,984

Capital commitments in relation to interests in jointly-controlled entities 7,165 7,165

Proportionate interest in jointly-controlled entities’ commitments 18,565 153,993




7 Deferred tax

Movements in deferred tax assets and liabilities during the year are as follows:

AtApril 1

Acquisition of subsidiaries

Effect of movements in exchange

rates

Recognised in profi t or loss

(Note 26)At

March 31Group US$’000 US$’000 US$’000 US$’000 US$’000

2011Deferred tax assetsUnutilised tax losses 7,128 4,235 280 419 12,062

Investment properties 12,015 – 1,177 (7,208) 5,984

Interest rate swaps 1,636 – 174 (555) 1,255

Others 59 826 75 324 1,284

20,838 5,061 1,706 (7,020) 20,585

Deferred tax liabilitiesInvestment properties (134,970) (127,937) (13,264) (66,593) (342,764)

Others (828) – (92) 179 (741)

(135,798) (127,937) (13,356) (66,414) (343,505)

Total (114,960) (122,876) (11,650) (73,434) (322,920)

2010Deferred tax assetsUnutilised tax losses 5,964 – – 1,164 7,128

Investment properties 4,313 – 233 7,469 12,015

Interest rate swaps 1,414 – 71 151 1,636

Others 59 – 4 (4) 59

11,750 – 308 8,780 20,838

Deferred tax liabilitiesInvestment properties (107,398) (2,275) (3,605) (21,692) (134,970)

Others (1,062) – (45) 279 (828)

(108,460) (2,275) (3,650) (21,413) (135,798)

Total (96,710) (2,275) (3,342) (12,633) (114,960)

Deferred tax liabilities and assets are offset when there is a legally enforceable right to set off current tax liabilities and

when the deferred taxes relate to the same tax authority. The amounts determined after appropriate offsetting are

included in the balance sheet as follows:

Group2011 2010

US$’000 US$’000

Deferred tax assets 19,683 20,232

Deferred tax liabilities (342,603) (135,192)



7 Deferred tax (cont’d)

Deferred tax assets have not been recognised in respect of the following items because it is not probable that future

taxable profi t will be available against which the Group can utilise the benefi ts therefrom:

Group2011 2010

US$’000 US$’000

Tax losses 78,400 68,460

Tax losses are subject to agreement by the tax authorities and compliance with tax regulations in the respective countries

in which the subsidiaries operate. Unrecognised tax losses amounting to US$73,673,000 (2010:US$68,460,000) will

expire within 1 to 5 years.

8 Plant and equipment

Furniture,fi ttings and equipment

Group US$’000

CostAt 1 April 2009 195

Additions 6

At 31 March 2010 201

Additions 524

Acquisition of subsidiaries 8,496

Effect of movements in exchange rates 290

At 31 March 2011 9,511

Accumulated depreciationAt 1 April 2009 91

Depreciation charge for the year 35

At 31 March 2010 126

Depreciation charge for the year 568

Acquisition of subsidiaries 4,069

Effect of movements in exchange rates 128

At 31 March 2011 4,891

Carrying amountsAt 1 April 2009 104

At 31 March 2010 75

At 31 March 2011 4,620




9 Intangible assets

Goodwill Trademark Non-

competition TotalGroup US$’000 US$’000 US$’000 US$’000

CostAt 1 April 2010 – – – –

Acquisition of subsidiaries 443,230 40,400 7,100 490,730

At 31 March 2011 443,230 40,400 7,100 490,730

Accumulated amortisationAt 1 April 2010 – – – –

Amortisation for the year – 913 642 1,555

At 31 March 2011 – 913 642 1,555

Carrying amountsAt 1 April 2010 – – – –

At 31 March 2011 443,230 39,487 6,458 489,175

Impairment test for goodwill

For the purpose of goodwill impairment testing, the aggregate carrying amount of goodwill allocated to each cash-

generating unit (“CGU”) as at 31 March 2011 and the key assumptions used in the calculation of recoverable amounts in

respect of terminal growth rate and discount rate are as follows:

Carrying amount Discount rate Terminal growth rate2011 2010 2011 2010 2011 2010

Group US$’000 US$’000 % % % %

GLP China1, 2 228,092 – 8.00 – 3.00 –

GLP Japan1 141,467 – 5.00 – 1.00 –

Airport City Development Group

(“ACL Group”) 73,671 – 8.00 – 3.00 –

Total 443,230 –

1 Relates to the leasing of logistic facilities and provision of asset management services

2 Excludes the ACL Group

The recoverable amount of the CGUs is determined based on value in use calculation. The value in use calculation is

a discounted cash fl ow model using cash fl ow projections based on the most recent budgets and forecasts approved

by management covering fi ve years. Cash fl ows beyond these periods are extrapolated using the estimated terminal

growth rates stated in the table above. The discount rate applied is the weighted average cost of capital from the relevant

business segment.

The terminal growth rate used for each CGU does not exceed management’s expectation of the long term average

growth rate of the respective industry and country in which the CGU operates.

The Group believes that any reasonably possible changes in the above key assumptions applied are not likely to materially

cause the recoverable amount to be lower than its carrying amount.



10 Other investment

Group2011 2010

US$’000 US$’000

Available-for-sale investment 62,689 –

During the year, the Group acquired a 19.9% equity interest in Shenzhen Chiwan Petroleum Supply Base Co., Ltd.,

which is listed on the Shenzhen Stock Exchange for a consideration of HK$539,207,500 (equivalent to approximately

US$69,117,000). The investment was stated at fair value at the balance sheet date.

11 Other non-current assets

Group2011 2010

US$’000 US$’000

Trade receivables 15,732 12,894

Deposits 1,982 –

Prepayments 4,627 4,457

22,341 17,351

Trade receivables comprise non-current rent receivables. Management has assessed that no allowance for impairment

losses is required in respect of the Group’s non-current rent receivables.

12 Trade and other receivables

Group Company2011 2010 2011 2010

US$’000 US$’000 US$’000 US$’000

Trade receivables 9,346 9,657 – –

Impairment losses (263) (117) – –

Net trade receivables 9,083 9,540 – –

Amounts due from subsidiaries (non-trade and

interest-bearing) – – 431,609 –

Amounts due from related corporations:

- trade – 673 – –

- non-trade and interest-free – 38 – –

Amounts due from jointly-controlled entities:

- trade 598 – – –

- non-trade and interest-free 15 – – –

Amounts due from non-controlling interests

(non-trade and interest-free) 37 – – –

Loans to non-controlling interests – 974 – –

Notes receivable from related corporations – 30,615 – –

650 32,300 431,609 –




12 Trade and other receivables (cont’d)

Group Company2011 2010 2011 2010

US$’000 US$’000 US$’000 US$’000

Deposits 43,332 50,089 118 –

Other receivables 10,028 3,702 3 –

Impairment losses (86) (530) – –

9,942 3,172 3 –

Prepayments 27,593 8,126 273 –

90,600 103,227 432,003 –

The non-trade balances due from subsidiaries, related corporations, jointly-controlled entities and non-controlling interests

are unsecured and repayable on demand. The effective interest rate of amounts due from subsidiaries as at 31 March

2011 is 4.79% (2010: Nil%) per annum.

At 31 March 2010, the effective interest rate of loans to non-controlling interests and notes receivable from related

corporations were 4.00% and 1.23% per annum respectively.

Deposits include an amount of US$43,132,000 (2010: US$47,577,000) in relation to the acquisition of new investments.

Other receivables comprise principally interest receivables and other recoverables. Prepayments include prepaid

construction costs of US$20,399,000 (2010: US$6,850,000).

(a) The maximum exposure to credit risk for loans and receivables at the reporting date (by country) is:

Gross

Allowance for doubtful receivables Gross

Allowance for doubtful receivables

2011 2011 2010 2010US$’000 US$’000 US$’000 US$’000

GroupPRC 60,041 (349) 91,642 (647)

Japan 3,062 – 4,106 –

Singapore 253 – – –

63,356 (349) 95,748 (647)

CompanySingapore 431,730 – – –



12 Trade and other receivables (cont’d)

(b) The ageing of loans and receivables at the reporting date is:

Gross

Allowance for doubtful receivables Gross

Allowance for doubtful receivables

2011 2011 2010 2010US$’000 US$’000 US$’000 US$’000

GroupNot past due 59,441 – 91,584 –

Past due 1 – 30 days 2,463 – 2,074 –

Past due 31 – 90 days 1,050 – 1,255 –

More than 90 days 402 (349) 835 (647)

63,356 (349) 95,748 (647)

CompanyNot past due 431,730 – – –

431,730 – – –

The Group’s historical experience in the collection of accounts receivables falls within the recorded allowances.

The Group believes that no additional credit risk beyond the amounts provided for collection losses is inherent in

the Group’s trade receivables, based on historical payment behaviours and the security deposits held.

The majority of the trade receivables are mainly from tenants that have good credit records with the Group. The

allowance account in respect of trade receivables is used to record impairment losses unless the Group is satisfi ed

that no recovery of the amount owing is possible; at that point the amounts are considered irrecoverable and are

written off against the fi nancial asset directly.

(c) The movement in allowances for doubtful debts in respect of loans and receivables during the year is as follows:

Group Company2011 2010 2011 2010

US$’000 US$’000 US$’000 US$’000

At April 1 647 523 – –

Impairment loss recognised 216 124 – –

Impairment loss utilised (532) – – –

Effect of movements in exchange rates 18 – – –

At March 31 349 647 – –

13 Financial derivatives

Group2011 2010

US$’000 US$’000

Financial derivative assetsInterest rate swaps – 33

Financial derivative liabilitiesInterest rate swaps (non-current) 10,426 16,652

Interest rate swaps (current) 14,682 16,077

25,108 32,729




14 Cash and cash equivalents

Group Company2011 2010 2011 2010

US$’000 US$’000 US$’000 US$’000

Fixed deposits with fi nancial institutions 10,063 100,300 – –

Cash at bank 1,549,830 311,721 924,367 –

Cash and cash equivalents in the statement of

cash fl ows 1,559,893 412,021 924,367 –

The effective interest rates relating to fi xed deposits with fi nancial institutions at the balance sheet date ranged from

0.03% to 0.40% (2010: 0.04% to 0.66%) per annum. Interest rates reprice at intervals of one to twelve months.

15 Share capital

Company2011 2010

No. of shares No. of shares’000 ’000

Fully paid ordinary shares, with no par value:At April 1 * *

Sub-division of ordinary shares, via share split 366,071 –

Issue of shares 4,229,524 *

At March 31 4,595,595 *

* Less than 1,000 shares

Pursuant to the Extraordinary General Meeting held on 24 September 2010, each of the two ordinary shares in the capital

of the Company were sub-divided into 183,035,676 shares and allocated to its immediate holding company.

On 18 October 2010, pursuant to the Master Restructuring Agreement, the shareholders’ loans and intercompany

advances from related parties of US$1,143,000,000 were capitalised by way of an issue and allocation of 817,648,000

new ordinary shares in the capital of the Company. Simultaneously, the Company acquired the entire share capital of JLP

1, JLP 2, JLP 3 and GLPH by way of an issue and allotment of 1,567,139,000 new ordinary shares in the capital of the

Company. In connection with the acquisition of GLPH from Reco Logistics Management and SMG, the Company issued

and allocated 31,583,000 new ordinary shares to GLP Associate Benefi ts Co. Ltd. for the benefi t of eligible employees.

On 18 October 2010, pursuant to its initial public offering, the Company issued an additional 1,724,249,000 new ordinary

shares in the capital of the Company at the issue price of S$1.96 (equivalent to approximately US$1.51) per share for an

aggregated proceeds of US$2,608,989,000. Listing and professional fees directly attributable to the issue of ordinary

shares of US$101,774,000 are recognised as a deduction from equity, net of any tax effects.

On 5 January 2011, the Group acquired 53.1% equity interest in Airport City Development Co., Ltd. for an aggregate

consideration of approximately RMB2,483,000,000 (equivalent to approximately US$368,800,000) to be settled by way

of cash and ordinary shares of the Company. On 12 January 2011, 88,905,000 new ordinary shares in the capital of the

Company was issued as share consideration for the acquisition.

The holders of ordinary shares are entitled to receive dividends as declared from time to time and are entitled to one vote

per share at meetings of the Company. All shares rank equally with regard to the Company’s residual assets.



15 Share capital (cont’d)

Capital management

The Group’s objectives when managing capital are to build a strong capital base so as to sustain the future developments

of its business and to maintain an optimal capital structure to maximise shareholder’s value. The Group defi nes “capital”

as including all components of equity plus loans from its immediate holding company and related corporations with no

fi xed terms of repayment.

The Group’s capital structure is regularly reviewed and managed with due regard to the capital management practices of

the group to which the Company belongs. Adjustments are made to the capital structure in light of changes in economic

conditions, regulatory requirements and business strategies affecting the Group.

The Group also monitors capital using a net debt to equity ratio, which is defi ned as net borrowings divided by total equity

(including non-controlling interests).

Group2011 2010

US$’000 US$’000

Gross borrowings 3,692,167 3,380,580

Less: Cash and cash equivalents (1,559,893) (412,021)

Net debt 2,132,274 2,968,559

Total equity 6,984,115 2,342,419

Net debt to equity ratio 0.31 1.27

The Group seeks to strike a balance between the higher returns that might be possible with higher levels of borrowings

and the liquidity and security afforded by a sound capital position.

There were no changes in the Group’s approach to capital management during the year.

Except for the requirement on the maintenance of statutory reserve fund by subsidiaries incorporated in the PRC, there

are no externally imposed capital requirements.

16 Reserves

Group Company2011 2010 2011 2010

US$’000 US$’000 US$’000 US$’000

Capital reserve 78,242 83,036 – –

Equity compensation reserve 1,347 – 1,347 –

Currency translation reserve 352,887 142,255 – –

Hedging reserve (252) – – –

Fair value reserve (6,428) – – –

Other reserve (699,778) 1,040,102 – –

Retained earnings 951,453 300,829 67,287 (9,541)

677,471 1,566,222 68,634 (9,541)

The capital reserve comprises mainly capital contributions from the immediate holding company and the Group’s share

of the statutory reserve of its PRC-incorporated subsidiaries. Subsidiaries incorporated in the PRC are required by the

Foreign Enterprise Law to contribute and maintain a non-distributable statutory reserve fund whose utilisation is subject to

approval by the relevant PRC authorities.




16 Reserves (cont’d)

The equity compensation reserve comprises the cumulative value of employee services received for the issue of the

shares under the Company’s Performance Share Plan and Restricted Share Plan.

The currency translation reserve comprises all foreign exchange differences arising from the translation of the fi nancial

statements of foreign operations, as well as from the translation of liabilities that hedge the Company’s net investment in a

foreign operation.

The hedging reserve comprises the effective portion of the cumulative net change in the fair value of cash fl ow hedging

instruments related to hedged transactions that have not yet occurred.

The fair value reserve comprises the cumulative net change in the fair value of available-for-sale fi nancial assets until the

investments are derecognised or impaired.

Other reserve comprises the pre-acquisition reserves of those common control entities that were acquired as part of the

Japan Reorganisation and GLPH Reorganisation.

17 Non-controlling interests

Group2011 2010

US$’000 US$’000

Preferred equity – 697,856

Share of net assets of non-controlling shareholders 364,948 78,341

364,948 776,197

Preferred equity relates to the preference shares issued by subsidiaries of JLP 1, JLP 2 and JLP 3 to certain subsidiaries

of GIC Realty, net of transaction costs and cumulative dividends payable to holders of these preference shares. The

holders of the preference shares are entitled to a dividend that would be paid on a cumulative and non-participation basis

at an amount ranging from 2.0% to 4.0% per annum of the principal value of the preference shares. The preference

shares are redeemable and dividends are payable only at the discretion of the subsidiaries. The preference shareholders’

residual interest in the subsidiaries is limited to the principal amount of the preference shares.

In connection with the Master Restructuring Agreement, on 18 October 2010, the preferred equity held by certain

subsidiaries of GIC Realty were redeemed and a wholly-owned subsidiary of the Group subscribed for new preferred

equity in replacement thereof.

Share of net assets of non-controlling shareholders pertains to non-controlling shareholders of the Group’s subsidiaries in

the PRC.

18 Loans and borrowings

Group Company2011 2010 2011 2010

US$’000 US$’000 US$’000 US$’000

Non-current liabilitiesSecured bank loans 618,209 304,549 – –

Secured bonds 2,093,068 2,172,728 – –

Unsecured bank loans 43,823 187,554 – 170,000

2,755,100 2,664,831 – 170,000



18 Loans and borrowings (cont’d)

Group Company2011 2010 2011 2010

US$’000 US$’000 US$’000 US$’000

Current liabilitiesSecured bank loans 198,778 35,605 – –

Secured bonds 733,875 532,448 – –

Unsecured bank loans 4,414 147,696 – 143,600

937,067 715,749 – 143,600

(a) Secured and unsecured bank loans

The secured bank loans are secured by mortgages on the borrowing subsidiaries’ investment properties with a

carrying amount of US$2,413,228,000 (2010: US$709,210,000) (Note 4).

The effective interest rates for bank borrowings (taking into account the effects of interest rate swaps) ranged from

1.10% to 6.60% (2010: 0.68% to 5.95%) per annum.

Maturity of bank loans:

Group Company2011 2010 2011 2010

US$’000 US$’000 US$’000 US$’000

Within 1 year 203,192 183,301 – 143,600

From 1 to 5 years 521,051 408,865 – 170,000

After 5 years 140,981 83,238 – –

After 1 year 662,032 492,103 – 170,000

865,224 675,404 – 313,600

Analysis of bank loans by geographic regions:

PRC 592,183 268,359 – –

Japan 273,041 93,445 – –

Singapore – 313,600 – 313,600

865,224 675,404 – 313,600

(b) Secured bonds

The bonds are issued by certain subsidiaries of JLP 1, JLP 2, and JLP 3 and are fully secured by investment

properties with carrying amounts of US$5,595,253,000 (2010: US$5,097,836,000) (Note 4) owned by these

subsidiaries.

The effective interest rates as at 31 March 2011 for secured bonds (taking into account the effects of interest rate

swaps) ranged from 1.00% to 2.67% (2010: 1.04% to 2.67%) per annum.

Maturity of secured bonds:

Group2011 2010

US$’000 US$’000

Within 1 year 733,875 532,448

From 1 to 5 years 2,061,920 2,172,728

After 5 years 31,148 –

After 1 year 2,093,068 2,172,728

2,826,943 2,705,176




19 Other non-current liabilities

Group2011 2010

US$’000 US$’000

Security deposits received 113,619 113,004

Payable for acquisition of investment properties 12,176 11,703

125,795 124,707

20 Trade and other payables

Group Company2011 2010 2011 2010

US$’000 US$’000 US$’000 US$’000

Trade payables 5,775 5,565 – –

Accrued development expenses 189,980 65,024 – –

Accrued operating expenses 22,411 14,803 2,734 2

Advance rental received 49,466 32,058 – –

Security deposits received 31,488 11,170 – –

Amounts due to:

- subsidiaries (non-trade) – – 329 –

- immediate holding company (non-trade) – 599,004 – 599,004

- related corporations (trade) – 5,889 – –

- related corporations (non-trade) – 563,425 – –

- non-controlling interests (trade) 408 – – –

- non-controlling interests (non-trade) 16 – – –

Loan from a jointly-controlled entity 13,282 – – –

Dividends payable 2,428 64,810 – –

Interest payable 9,502 9,297 – 475

Consideration payable for acquisition of subsidiaries 66,803 – – –

Deposits received and accrued expenses for disposal

of investment properties 109,034 – – –

Other payables 26,061 9,161 171 –

526,654 1,380,206 3,234 599,481

The non-trade amounts due to subsidiaries, immediate holding company, related corporations and non-controlling

interests are unsecured, interest-free and are repayable on demand.

The loan from a jointly-controlled entity is unsecured, repayable within 1 year and has an effective interest rate as at 31

March 2011 of 5.94% (2010: Nil%) per annum.

Other payables relate principally to retention sums, advance payments received and amounts payable in connection with

capital expenditure incurred.



21 Equity compensation benefi ts

GLP Share Plans

The Company currently has share-based incentive plans, comprising the GLP Performance Share Plan (“GLP PSP”) and

the GLP Restricted Share Plan (“GLP RSP”, together with GLP PSP, hereinafter referred to as the “GLP Share Plans”),

whereby performance shares have been conditionally awarded to the employees of the Company. The GLP Share Plans

are administered by the Company’s Compensation Committee comprising Mr. Ang Kong Hua, Dr. Seek Ngee Huat and

Dr. Dipak Jain.

Performance Share Plan

This relates to compensation costs of the GLP PSP refl ecting the benefi ts accruing to certain employees of the Group.

Awards under the GLP PSP represent the right of a participant to receive fully paid shares free of charge, upon the

achievement of prescribed performance conditions within the time period prescribed by the Compensation Committee.

Awards are released once the performance conditions specifi ed on the date on which the award is to be granted have

been achieved. There is no vesting period beyond the performance achievement periods. As at 31 March 2011, no

awards have been granted under the GLP PSP.

Restricted Share Plan

This relates to compensation costs of the GLP RSP refl ecting the benefi ts accruing to certain employees of the Group

and directors of the Company over the service period to which the performance criteria relate. Awards under the GLP

RSP represent the right of a participant to receive fully paid shares free of charge. Awards granted under the GLP RSP

will be subject to vesting periods but, unlike awards granted under the performance share plan, will not be subject to

performance targets. As at 31 March 2011, no awards have been granted under the GLP RSP.

Pursuant to a resolution passed by the then sole shareholder of the Company on 24 September 2010, each non-

executive director is entitled to receive a share value award equal to US$35,000 per annum as at 31 March 2011.

On a pro-rata basis, from commencement of service on 24 September 2010, the share value award attributable to each

non-executive director is US$18,000. Actual grants have not yet been made as the Compensation Committee is fi nalising

the terms and conditions of all share grants under the GLP Share Plans. It is presently contemplated that shares to

be awarded to the executive directors will be divided evenly between the GLP RSP and GLP PSP and shares to be

awarded to non-executive directors would under the GLP PSP. The fi nal terms and conditions recommended by the

Compensation Committee and approved by the Board will ultimately determine the precise makeup and terms of the

grants issued.

22 Revenue

Group2011 2010

US$’000 US$’000

Rental and related income 472,006 413,467

Management fee income 1,859 –

Dividend income from subsidiaries – –

473,865 413,467




23 Other income

Group2011 2010

US$’000 US$’000

Government grant 2,686 311

Utility income 2,946 2,321

Others 3,186 1,991

8,818 4,623

24 Net fi nance costs

GroupNote 2011 2010

US$’000 US$’000

Interest income on:

- fi xed deposits 645 509

- loan to subsidiaries – –

- loan to non-controlling interests 16 39

- others 140 1,012

Interest income 801 1,560

Amortisation of transaction costs of bonds (6,149) (4,892)

Interest expenses on:

- bonds (50,224) (50,042)

- bank loans (25,835) (16,550)

- loan from a related corporation (1,601) (529)

- loan from a jointly-controlled entity (735) –

Total borrowing costs (84,544) (72,013)

Less: Borrowing costs capitalised in investment properties 4 1,947 168

Net borrowing costs (82,597) (71,845)

Foreign exchange gain 14,919 13,327

Changes in fair value of fi nancial derivatives 11,335 (3,510)

Net fi nance costs recognised in profi t or loss (55,542) (60,468)



25 Profi t/(loss) before income tax

The following items have been included in arriving at profi t/(loss) before income tax:

Group2011 2010

US$’000 US$’000

(a) Staff costs Wages and salaries (10,329) (768)

Contributions to defi ned contribution plans, included in wages and salaries (1,295) (141)

Share-based expenses (1,347) –

(b) Other expenses Loss on disposal of subsidiaries and jointly-controlled entities – (27,680)

Negative goodwill on acquisition of subsidiaries 351 –

Non-operating income/(expenses) 351 (27,680)

Depreciation of plant and equipment (568) (35)

Amortisation of intangible assets (1,555) –

Operating expenses arising from investment properties # (92,921) (88,199)

Impairment loss on trade and other receivables (216) (124)

Operating lease expense (1,614) (209)

Management fees:

- Asset management (9,551) (24,547)

- Investment management (5,269) (9,137)

- Property management (1,039) (1,417)

Non-audit fees paid to:

- Auditors of the Company ## (165) –

- Other auditors (1,629) –

# Include property-related expenses, wages and salaries, asset management fees and property management fees.

## Professional fees paid to auditors of the Company and other auditors in connection with the initial public offering of

the Company of US$1,950,000 and US$280,000 respectively, were recognised as a deduction from equity.




26 Income tax expense

Group2011 2010

US$’000 US$’000

Current taxCurrent year 3,298 2,223

Withholding tax 8,312 6,781

11,610 9,004

Deferred taxOrigination and reversal of temporary differences 73,434 12,633

85,044 21,637

Reconciliation of expected to actual income taxProfi t/(loss) before income tax 807,475 (128,043)

Less: Share of results of jointly-controlled entities (56,461) (31,984)

Profi t/(loss) before share of results of jointly-controlled entities and income tax 751,014 (160,027)

Income tax using Singapore tax rate of 17% 127,672 (27,205)

Effect of tax rates in foreign jurisdictions (25,813) 31,915

Net income not subjected to tax (34,111) (2,451)

Non-deductible expenses 5,994 11,579

Deferred tax assets not recognised 4,003 4,997

Recognition of previously unrecognised tax losses (1,146) (204)

Withholding tax on dividend income from foreign subsidiaries 8,312 3,006

Others 133 –

85,044 21,637

27 Earnings/(Loss) per share

(a) Basic earnings/(loss) per share

The basic earnings/(loss) per share for the years ended 31 March 2011 and 2010 was based on the profi t/(loss)

attributable to ordinary shareholder of US$706,062,000 and US$(176,685,000) and a weighted average number of

ordinary shares outstanding of 3,011,777,000 and 1,743,357,000 respectively, calculated as follows:

Group2011 2010

US$’000 US$’000

Profi t/(Loss) attributable to ordinary shareholders 706,062 (176,685)



27 Earnings/(Loss) per share (cont’d)

(a) Earnings/(loss) per share (cont’d)

Weighted average number of ordinary shares

GroupNumber of

sharesNumber of

shares2011 2010(’000) (’000)

Issued ordinary shares at April 1 * *

Sub-division of ordinary shares, via a share split 366,071 366,071

Issue of ordinary shares during the year 1,268,420 -

Issue of ordinary shares for the acquisition of entities under common control 1,377,286 1,377,286

Weighted average number of shares at March 31 3,011,777 1,743,357

* Comprising 2 ordinary shares

For purposes of preparing the fi nancial statements for the year ended 31 March 2010, the weighted average

number of shares as at 31 March 2010 includes the shares issued to effect the acquisition of interests in

common control entities pursuant to the Japan Reorganisation and GLPH Reorganisation, on the basis that the

reorganisations had occurred as of the beginning of the earliest period presented.

There were no potential dilutive ordinary shares in existence for the year ended 31 March 2010.

(b) Diluted earnings/(loss) per share

The diluted earnings/(loss) per share for the years ended 31 March 2011 and 2010 was based on the profi t/(loss)

attributable to ordinary shareholder of US$706,062,000 and US$(176,685,000) and a weighted average number of

ordinary shares outstanding of 3,012,667,000 and 1,743,357,000 respectively, calculated as follows:

Group2011 2010

US$’000 US$’000

Profi t/(Loss) attributable to ordinary shareholders 706,062 (176,685)

Weighted average number of ordinary shares (diluted)

GroupNumber of

sharesNumber of

shares2011 2010(’000) (’000)

Weighted average number of ordinary shares (basic) 3,011,777 1,743,357

Weighted average number of unissued ordinary shares from:

- Shares under the GLP Share Plans 890 –

Weighted average number of ordinary shares (diluted) at March 31 3,012,667 1,743,357




28 Notes to the statement of cash fl ows

(a) Acquisition of subsidiaries

(i) The list of subsidiaries acquired during the year ended 31 March 2011 is as follows:

Name of subsidiariesDate

acquired

Equity interestacquired

%

Vailog (Kunshan) Storage Co., Ltd. April 2010 90.0

Shanghai Weiluo Storage Service Co., Ltd. April 2010 90.0

Global Logistic Properties Holdings Ltd. October 2010 100.0

Tianjin Trade Year Investment Co., Ltd. January 2011 100.0

Beijing Handa Investment Co., Ltd. January 2011 87.6

Airport City Development Co., Ltd. January 2011 53.1

Beijing Airport Bluesky Property Management Co., Ltd. January 2011 53.1

Beijing Shidai Hangtong International Logistics Co., Ltd. January 2011 53.1

Xiamen Jade Logistics Investment Co., Ltd. March 2011 99.0

Effects of acquisitions

The cash fl ow and the net assets of subsidiaries acquired during the year ended 31 March 2011 are

provided below:

Recognised values on

acquisitionUS$’000

Investment properties 1,180,639

Jointly-controlled entities 173

Deferred tax assets 5,061

Plant and equipment 4,427

Intangible assets 47,500

Other non-current assets 85,304

Trade and other receivables 26,747

Cash and cash equivalents 23,249

Trade and other payables (278,431)

Current tax payable (1,345)

Loans and borrowings (268,972)

Deferred tax liabilities (127,937)

Other non-current liabilities (85,573)

Non-controlling interests (269,272)

Net assets acquired 341,570

Positive goodwill on acquisition of subsidiaries 443,230

Negative goodwill on acquisition of subsidiaries (351)

Total purchase consideration 784,449

Purchase consideration satisfi ed in shares (558,653)

Purchase consideration payable (66,803)

Purchase consideration satisfi ed in cash (158,993)

Cash of subsidiaries acquired 23,249

Cash outfl ow on acquisition of subsidiaries (135,744)



28 Notes to the statement of cash fl ows (cont’d)

(a) Acquisition of subsidiaries (cont’d)

(i) The list of subsidiaries acquired during the year ended 31 March 2011 is as follows: (cont’d)

The total related acquisition costs for the above-mentioned subsidiaries amounted to US$784,449,000.

From the dates of acquisitions to 31 March 2011, the above-mentioned acquisitions contributed net profi t

of US$241,000 to the Group’s results for the year, before accounting for fi nancing costs attributable to the

acquisitions. If the acquisitions have occurred on 1 April 2010, management estimates that consolidated

revenue would have been US$477,310,000 and consolidated profi t for the year would have been

US$722,076,000.

(ii) The list of subsidiaries acquired during the year ended 31 March 2010 is as follows:

Name of subsidiariesDate

acquired

Equity interestacquired

%

Misato Two Pte Ltd April 2009 100.0

Misato Two Logistics SPC April 2009 100.0

GLP Guangzhou Warehousing Co., Ltd. April 2009 100.0

Effects of acquisitions

The cash fl ow and the net assets of subsidiaries acquired during the year ended 31 March 2010 are

provided below:

Recognised values on

acquisitionUS$’000

Investment properties 147,721


Cash and cash equivalents 1,810

Trade and other payables (3,862)


Deferred tax liabilities (2,275)


Net assets acquired 67,530

Purchase consideration (67,530)

Cash of subsidiaries acquired 1,810

Cash outfl ow on acquisition of subsidiaries (65,720)

The total related acquisition costs for the above-mentioned subsidiaries amounted to US$67,530,000

and were fully satisfi ed by cash. From the dates of acquisitions to 31 March 2010, the above-mentioned

acquisitions contributed net profi t of US$20,371,000 to the Group’s results for the year, before accounting

for fi nancing costs attributable to the acquisitions. If the acquisitions have occurred on 1 April 2010,

management estimates that consolidated revenue would have been US$413,744,000 and consolidated

loss for the year would have been US$162,534,000.




28 Notes to the statement of cash fl ows (cont’d) (b) Disposal of subsidiary

(i) Details of subsidiary disposed during the year ended 31 March 2010 are as follows:

Name of subsidiaryDate

disposed

Equity interestdisposed

%

Shenzhen Yuanshengli Management Co., Ltd. August 2009 60.0

Effects of disposal

The cash fl ow and the net assets of the subsidiary disposed during the year ended 31 March 2010 are

provided below:

Recognised values on disposalUS$’000

Jointly-controlled entities 90,075


Cash and cash equivalents 250

Trade and other payables (718)



Net assets disposed 40,180

Disposal consideration 12,500

Cash of subsidiary disposed (250)

Cash infl ow on disposal of subsidiary 12,250

From 1 March 2009 to date of disposal, the above subsidiary contributed net loss of US$1,174,000 to the

Group’s results for the year. The subsidiary did not record any revenue during the period.

29 Operating segments

The Group has two reportable segments, representing its operations in the PRC and Japan, which are managed

separately due to the different geographical locations. The Group’s Chief Operating Decision Maker reviews internal

management reports on these segments on a quarterly basis, at a minimum, for strategic decisions making, performance

assessment and resources allocation purposes.

Performance of each reportable segment is measured based on segment revenue and segment earnings before net

interest expense, income tax, and excluding changes in fair value of investment properties held by subsidiaries and

jointly-controlled entities (“EBIT excluding revaluation”). EBIT excluding revaluation is used to measure performance as

management believes that such information is the most relevant in evaluating the results of these segments relative to

other entities that operate within the logistic industry. Segment assets and liabilities are presented net of inter-segment

balances.

Segment results include items directly attributable to a segment as well as those that can be allocated on a reasonable

basis. There are no transactions between reportable segments.

Segment assets and liabilities include items directly attributable to a segment as well as those that can be allocated on a

reasonable basis.



29 Operating segments (cont’d)

Information regarding the Group’s reportable segments is presented in the tables below.

Information about reportable segments

PRC Japan Others Total 2011 2010 2011 2010 2011 2010 2011 2010

Group US$’000 US$’000 US$’000 US$’000 US$’000 US$’000 US$’000 US$’000

Revenue and expensesExternal revenue 88,140 61,491 385,725 351,976 – – 473,865 413,467

EBIT excluding

revaluation 57,489 3,931 346,447 280,044 (16,751) 1,240 387,185 285,215

Changes in fair value of

investment properties

held by subsidiaries 189,190 89,932 267,123 (458,938) – – 456,313 (369,006)

Share of changes in fair

value of investment

properties (net of

income tax) held

by jointly-controlled

entities 39,624 21,141 – – – – 39,624 21,141

EBIT 286,303 115,004 613,570 (178,894) (16,751) 1,240 883,122 (62,650)

Net interest expense (19,268) (9,890) (53,434) (49,926) (2,945) (5,577) (75,647) (65,393)

Profi t/(loss) before tax 267,035 105,114 560,136 (228,820) (19,696) (4,337) 807,475 (128,043)

Income tax (expense)/

benefi t (56,553) (33,315) (28,070) 11,678 (421) – (85,044) (21,637)

Profi t/(loss) after tax 210,482 71,799 532,066 (217,142) (20,117) (4,337) 722,431 (149,680)

Assets and liabilitiesInvestment properties 2,911,095 1,269,533 6,167,207 5,259,440 – – 9,078,302 6,528,973

Jointly-controlled entities 372,433 325,838 – 822 – (11,191) 372,433 315,469

Other segment assets 830,319 222,201 496,422 330,738 922,260 – 2,249,001 552,939

Reportable segment

assets 4,113,847 1,817,572 6,663,629 5,591,000 922,260 (11,191) 11,699,736 7,397,381

Loans and borrowings (592,183) (268,359) (3,099,984) (2,798,621) – (313,600) (3,692,167) (3,380,580)

Other segment liabilities (710,801) (171,287) (308,822) (903,614) (3,831) (599,481) (1,023,454) (1,674,382)

Reportable segment

liabilities (1,302,984) (439,646) (3,408,806) (3,702,235) (3,831) (913,081) (4,715,621) (5,054,962)

Other informationDepreciation and

amortisation (1,514) (35) (6,758) (4,892) – – (8,272) (4,927)

Impairment losses

on assets (6,644) (124) – – – – (6,644) (124)

Interest income 648 1,444 107 116 46 – 801 1,560

Capital expenditure* 996,565 127,453 7,516 73,862 – – 1,004,081 201,315

* Capital expenditure includes acquisition, development expenditure and borrowing costs capitalised in investment properties,

acquisition of plant and equipment and interests in subsidiaries, jointly-controlled entities and non-controlling interests.




30 Financial risk management

The Group has exposure to the following risks from its use of fi nancial instruments:

credit risk

liquidity risk

market risk

This note presents information about the Group’s exposure to each of the above risks, the Group’s objectives, policies and

processes for measuring and managing risk, and the Group’s management of capital. Further quantitative disclosures are

included throughout these fi nancial statements.

(a) Risk management framework

The Group has a system of controls in place to create an acceptable balance between the costs of risks occurring

and the cost of managing the risks. Risk management policies and guidelines are reviewed regularly to refl ect

changes in market conditions and the Group’s activities.

(b) Credit risk

Credit risk is the risk of fi nancial loss resulting from the failure of a customer or a counterparty to meet its

contractual obligations. Financial transactions are restricted to counterparties that meet appropriate credit criteria

that are approved by the Group and are being reviewed on a regular basis. In respect of trade receivables, the

Group has guidelines governing the process of granting credit and outstanding balances are monitored on an

ongoing basis. Concentration of credit risk relating to trade receivables is limited due to the Group’s many varied

customers. These customers are engaged in a wide spectrum of activities and operates in a variety of markets.

Exposure to credit risk

The carrying amount of fi nancial assets represents the maximum credit exposure. The maximum exposure to

credit risk at the reporting date was:

Group Company2011 2010 2011 2010

US$’000 US$’000 US$’000 US$’000

Loans and receivables (non-current

and current) 80,721 107,995 431,730 –

Cash and cash equivalents 1,559,893 412,021 924,367 –

1,640,614 520,016 1,356,097 –

The maximum exposure to credit risk for fi nancial assets at the reporting date by geographic region is as follows:

Group Company2011 2010 2011 2010

US$’000 US$’000 US$’000 US$’000

PRC 387,899 205,113 – –

Japan 325,498 314,903 – –

Singapore 927,217 – 1,356,097 –

1,640,614 520,016 1,356,097 –



30 Financial risk management (cont’d)

(c) Liquidity risk

Liquidity risk is the risk that the Group will not be able to meet its fi nancial obligations as they fall due. The Group

actively manages its debt maturity profi le, operating cash fl ows and the availability of funding so as to ensure that

all refi nancing, repayment and funding needs are met. The Group maintains a level of cash and cash equivalents

deemed adequate by management to meet the Group’s working capital requirement. In addition, the Group

strives to maintain available banking facilities at a reasonable level to its overall debt position.

The Group’s main sources of long-term funding have been capital contributions and loans and advances from

the immediate holding company and related corporations and borrowings from fi nancial institutions. The Group

has in the past met its cash obligations requirements from such capital contributions, loans and advances and

borrowings and also from cash fl ows generated from operating activities.

Following the completion of the corporation reorganisations and listing of the Company on the SGX-ST, certain

loans and advances from the immediate holding company and related corporations were converted into ordinary

share capital, and consequently, the Group’s borrowings comprised mainly borrowings from fi nancial institutions.

Management believes that this will help to mitigate the Group’s liquidity risk, improve its working capital and

enhance the Group’s ability to tap on additional borrowings from fi nancial institutions to meet fi nancing needs.

As at 31 March 2011, the Group has unutilised credit facilities amounting to US$65,923,000 (2010:

US$14,350,000).

The following are the contractual maturities of fi nancial liabilities, including interest payments and excluding the

impact of netting agreements:

Cash fl ows

GroupCarrying amount

Contractual cash fl ows

Within1 year

From1 to 5 years

After 5 years

US$’000 US$’000 US$’000 US$’000 US$’000

2011Non-derivative fi nancial liabilitiesBank loans 865,224 976,215 239,152 595,579 141,484

Secured bonds 2,826,943 2,892,322 762,599 2,097,920 31,803

Trade and other payables* 602,983 603,251 477,456 44,564 81,231

4,295,150 4,471,788 1,479,207 2,738,063 254,518

Derivative fi nancial liabilitiesInterest rate swaps 25,108 28,304 14,667 13,517 120

4,320,258 4,500,092 1,493,874 2,751,580 254,638

2010Non-derivative fi nancial liabilitiesBank loans 675,404 742,219 197,297 454,599 90,323

Secured bonds 2,705,176 2,770,657 562,064 2,208,593 –

Trade and other payables* 1,472,855 1,472,855 1,348,148 44,921 79,786

4,853,435 4,985,731 2,107,509 2,708,113 170,109

Derivative fi nancial liabilitiesInterest rate swaps 32,729 35,941 15,080 20,861 –

4,886,164 5,021,672 2,122,589 2,728,974 170,109





(c) Liquidity risk (cont’d)

Cash fl ows

CompanyCarrying amount

Contractual cash fl ows

Within1 year

From1 to 5 years

After 5 years

US$’000 US$’000 US$’000 US$’000 US$’000

2011Non-derivative fi nancial liabilitiesTrade and other payables 3,234 3,234 3,234 – –

2010Non-derivative fi nancial liabilitiesBank loans 313,600 317,863 146,707 171,156 –

Trade and other payables 599,481 599,481 599,481 – –

913,081 917,344 746,188 171,156 –

* Excludes advance rental received.

(d) Market risk

Market risk is the risk that changes in market prices, such as foreign exchange rates and interest rates, will affect

the Group’s income. The objective of market risk management is to manage and control market risk exposures

within acceptable parameters, while optimising the return.

Currency risk

The Group operates mainly in the PRC and Japan. Other than the respective functional currency of the Group’s

subsidiaries, the foreign currency which the Group has exposure to is the US Dollar.

The Group maintains a natural hedge, wherever possible, by borrowing in the currency of the country in which the

investment is located. Foreign exchange exposures in transactional currencies other than the functional currencies

of the operating entities are kept to an acceptable level.

In relation to its overseas investments in foreign subsidiaries whose net assets are exposed to currency translation

risk and which are held for long term investment purposes, the differences arising from such translation are

captured under the foreign currency translation reserve. These translation differences are reviewed and monitored

on a regular basis.




(d) Market risk (cont’d)

Currency risk (cont’d)

The Group’s and Company’s exposures to foreign currencies as at 31 March 2011 and 31 March 2010 are as

follows:

GroupUnited States

DollarJapanese

YenSingapore

DollarHong Kong

DollarChinese

RenminbiUS$’000 US$’000 US$’000 US$’000 US$’000

2011Financial assetsCash and cash equivalents 147,121 135,943 31,518 108 –

Available-for-sale investments – – – 62,689 –

147,121 135,943 31,518 62,797 –

Financial liabilities Trade and other payables – – – – (66,803)

Net fi nancial assets/ (liabilities) 147,121 135,943 31,518 62,797 (66,803)

2010Financial assetsCash and cash equivalents 42,813 – – – –

Financial liabilities Trade and other payables (261,313) – – – –

Net fi nancial liabilities (218,500) – – – –

CompanyJapanese

YenSingapore

DollarUS$’000 US$’000

2011Financial assetsCash and cash equivalents 133,962 31,518

Net fi nancial assets 133,962 31,518

2010Financial assetsCash and cash equivalents – –

Net fi nancial assets – –






Currency risk (cont’d)

Sensitivity analysis

A 10% strengthening of US Dollar against the respective functional currencies of the subsidiaries at the reporting

date would have increased/(decreased) profi t before tax by the amounts shown below. The analysis assumes that

all other variables, in particular interest rates, remain constant.

Group Company2011 2010 2011 2010

US$’000 US$’000 US$’000 US$’000

US Dollar(1) 14,712 (21,850) – –

Japanese Yen(2) 13,594 – 13,396 –

Singapore Dollar(2) 3,152 – 3,152 –

Hong Kong Dollar(2) 6,280 – – –

Chinese Renminbi(2) (6,680) – – –

(1) As compared to functional currency of Renminbi

(2) As compared to functional currency of US Dollar

A 10% weakening of US Dollar against the respective functional currencies of the subsidiaries at the reporting date

would have the equal but opposite effect on the above currencies to the amounts shown above, on the basis that

all other variables remain constant.

Interest rate risk

The Group’s interest rate risk arises primarily from the interest-earning fi nancial assets and interest-bearing fi nancial

liabilities.

The Group manages its interest rate exposure by maintaining a mix of fi xed and variable rate borrowings. Where

necessary, the Group hedges a portion of its interest rate exposure within the short to medium term by using

interest rate derivatives.

At 31 March 2011, the Group has interest rate swaps, with an aggregate notional contract amount of

US$2,202,162,000 (2010: US$2,776,941,000), which pays fi xed interest rates ranging from 0.59% to 1.84%

(2010: 0.29% to 1.84%) per annum and receives a variable rate equal to the Swap Offer Rate on the notional

amounts. The Group has designated certain interest rate swaps with an aggregate notional contract amount of

US$61,542,248 (2010: US$Nil) as cash fl ow hedges. The aggregate fair value of interest rate swaps held by the

Group as at 31 March 2011 is a net liability of US$25,108,000 (2010: US$32,696,000); of which, the fair value of

interest rate swaps designated as cash fl ow hedges is a net liability of US$261,097 (2010: US$Nil).





Interest rate risk (cont’d)

At the reporting date, the interest rate profi le of interest-bearing fi nancial liabilities (after taking into account the

effects of the interest rate swaps) are as follows:

Group Company

Carrying amount

Principal/notional amount

Carrying amount

Principal/notional amount

US$’000 US$’000 US$’000 US$’000

2011Fixed rate instrumentsLoans and borrowings 60,186 60,336 – –

Loan from a jointly controlled entity 13,282 13,282 – –

73,468 73,618 – –

Variable rate instrumentsLoans and borrowings 3,631,981 3,644,459 – –

2010Fixed rate instrumentsLoans and borrowings 53,560 53,939 – –

Variable rate instrumentsLoans and borrowings 3,327,020 3,358,899 313,600 322,305

Fair value sensitivity analysis for fi xed rate instruments

The Group does not account for any fi xed rate fi nancials assets and liabilities at fair value through the profi t or loss.

Therefore a change in interest rates at the reporting date would not affect profi t or loss.

Cash fl ow sensitivity analysis for variable rate instruments

A change of 100 basis points in interest rates at the reporting date would have increased/(decreased) profi t before

tax by the amounts shown below. This analysis assumes that all other variables, in particular foreign currency

rates, remain constant.

Group Company100 bp

Increase100 bp

Decrease100 bp

Increase100 bp

DecreaseUS$’000 US$’000 US$’000 US$’000

2011Loans and borrowings (36,445) 36,445 – –

Cash fl ow sensitivity (net) (36,445) 36,445 – –

2010Loans and borrowings (33,589) 33,589 (3,223) 3,223

Cash fl ow sensitivity (net) (33,589) 33,589 (3,223) 3,223





(e) Fair value

The carrying amounts of the Group’s fi nancial instruments carried at cost or amortised cost are not materially

different from their fair values as at 31 March 2011 and 2010 except as follows:

Carrying amount Fair value

Carrying amount Fair Value

2011 2011 2010 2010US$’000 US$’000 US$’000 US$’000

Group

Liabilities carried at amortised costLoans and borrowings 3,692,167 3,704,795 3,380,580 3,412,838

Company

Liabilities carried at amortised costLoans and borrowings – – 313,600 322,305

The following methods and assumptions have been used to estimate the fair values of the Group’s fi nancial

instruments:

Financial derivatives

The fair values of interest rate swaps are based on broker quotes.

Loans and borrowings

Fair value is calculated based on the present value of future principal and interest cash fl ows, discounted at the

market rate of interest at the reporting date.

Available for sale investments

The fair value are based on quoted bid prices where available, without any deduction for transaction costs with

the exception of those equity securities which are not traded in an active market. The fair value of such security is

determined using a valuation technique.

Other fi nancial assets and liabilities

The carrying amounts of fi nancial assets and liabilities with a maturity of less than one year (including trade and

other receivables, cash and cash equivalents, and trade and other payables) are assumed to approximate their fair

values because of the short period to maturity. All other fi nancial assets and liabilities are discounted to determine

their fair values.

Where discounted cash fl ow techniques are used, estimated future cash fl ows are based on management’s best

estimates and the discount rate is a market-related rate for a similar instrument at the balance sheet.




(e) Fair value (cont’d)

Interest rates used for determining the fair value

Interest rates used to discount estimated cash fl ows, when applicable, are based on the government yield curve at

the reporting date plus an adequate credit spread, and were as follows:

Group Company2011 2010 2011 2010

% % % %

Loans and borrowings 1.00 – 6.60 0.68 – 5.95 – 0.68

Fair value hierarchy

The table below analyses fi nancial instruments carried at fair value, by valuation method. The different levels have

been defi ned as follows:

Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities

Level 2: inputs other than quoted prices included within Level 1 that are observable for the asset or liability,

either directly (i.e., as prices) or indirectly (i.e., derived from prices)

Level 3: inputs for the asset or liability that are not based on observable market data (unobservable inputs)

Level 1 Level 2 Level 3 Total$’000 $’000 $’000 $’000

Group2011Available-for-sale investments 62,689 – – 62,689

Interest rate swaps – (25,108) – (25,108)

2010Interest rate swaps – (32,696) – (32,696)





(f) Accounting classifi cations and fair values

Fair values versus carrying amounts

Note

Fair value – hedging

instrumentsLoans and receivables

Available-for-sale

Other fi nancial liabilities

Totalcarrying amount

Fair value

US$’000 US$’000 US$’000 US$’000 US$’000 US$’000

Group2011Available-for-sale equity

securities 10 – – 62,689 – 62,689 62,689

Other non-current assets1 11 – 17,714 – – 17,714 17,714

Trade and other

receivables1 12 – 63,007 – – 63,007 63,007

Cash and cash equivalents 14 – 1,559,893 – – 1,559,893 1,559,893

– 1,640,614 62,689 – 1,703,303 1,703,303

Secured loans 18 – – – (816,987) (816,987) (819,507)

Unsecured loans 18 – – – (48,237) (48,237) (48,237)

Secured bonds 18 – – – (2,826,943) (2,826,943) (2,837,051)

Other non-current liabilities 19 – – – (125,795) (125,795) (125,795)

Interest rate swaps 13 (252) – – (24,856) (25,108) (25,108)

Trade and other payables2 20 – – – (477,188) (477,188) (477,188)

(252) – – (4,320,006) (4,320,258) (4,332,886)

1 excludes prepayments

2 excludes advance payment received

Note

Loans and

receivables



Fair value

US$’000 US$’000 US$’000 US$’000

Group2010Other non-current assets1 11 12,894 – 12,894 12,894

Trade and other receivables1 12 95,101 – 95,101 95,101

Interest rate swaps 13 33 – 33 33

Cash and cash equivalents 14 412,021 – 412,021 412,021

520,049 – 520,049 520,049

Secured loans 18 – (340,154) (340,154) (340,154)

Unsecured loans 18 – (335,250) (335,250) (335,250)

Secured bonds 18 – (2,705,176) (2,705,176) (2,705,176)

Other non-current liabilities 19 – (124,707) (124,707) (124,707)

Interest rate swaps 13 – (32,729) (32,729) (32,729)

Trade and other payables2 20 – (1,348,148) (1,348,148) (1,348,148)

– (4,886,164) (4,886,164) (4,886,164)

1 excludes prepayments

2 excludes advance payment received




(f) Accounting classifi cations and fair values (cont’d)

Note

Loans and

receivables



Fair value

US$’000 US$’000 US$’000 US$’000

Company2011Trade and other receivables 12 431,730 – 431,730 431,730

Cash and cash equivalents 14 924,367 – 924,367 924,367

1,356,097 – 1,356,097 1,356,097

Trade and other payables 20 – (3,234) (3,234) (3,234)

– (3,234) (3,234) (3,234)

2010Trade and other payables 20 – (599,481) (599,481) (599,481)

– (599,481) (599,481) (599,481)

31 Commitments

The Group had the following commitments as at the balance sheet date:

(a) Operating lease commitments

(i) Operating lease rental payable

Future minimum lease payments for the Group on non-cancellable operating leases are as follows:

Group Company2011 2010 2011 2010

US$’000 US$’000 US$’000 US$’000

Lease payments payable:

- Within 1 year 1,975 151 403 –

- After 1 year but within 5 years 1,364 79 915 –

3,339 230 1,318 –

(ii) Operating lease rental receivable

Future minimum lease rental receivable for the Group on non-cancellable operating leases from investment

properties are as follows:

Group2011 2010

US$’000 US$’000

Lease rentals receivable:

- Within 1 year 452,416 406,404

- After 1 year but within 5 years 1,147,930 1,199,157

- After 5 years 624,310 1,040,839

2,224,656 2,646,400




31 Commitments (cont’d) (b) Other commitments

Group Company2011 2010 2011 2010

US$’000 US$’000 US$’000 US$’000

Commitments in relation to share capital of

subsidiaries due but not provided for 57,701 71,851 – –

Commitments in relation to share capital of

subsidiaries not yet due and not provided for 124,286 91,550 – –

Development expenditure contracted but

not provided for 128,221 91,204 – –

Capital contribution of jointly-controlled entities 7,165 7,165 – –

32 Signifi cant related party transactions

Remuneration of key management personnel

Key management personnel of the Company are those persons having the authority and responsibility for planning,

directing and controlling the activities of the Company. The members of the executive committee of the Company are

considered key management personnel of the Company.

The key management personnel compensation included as part of staff costs for those key management personnel

employed by the Group are as follows:

Group2011 2010

US$’000 US$’000

Salaries, bonuses, contributions to defi ned contribution plans and other benefi ts 5,114 3,737

In addition to the related party information disclosed elsewhere in the fi nancial statements, there were the following

signifi cant related party transactions which were carried out in the normal course of business on terms agreed between

the parties during the fi nancial year:

Group2011 2010

US$’000 US$’000

Jointly-controlled entitiesAsset management fees paid/payable (9,469) (19,768)

Investment management fees paid/payable (5,269) (3,954)

Property management fees paid/payable (1,039) (1,417)

Development fees paid/payable* (8,637) (5,609)

Associates of intermediate holding companyOperating lease expenses paid/payable 2,433 3,145

Consultancy fees paid/payable 63 –

A company in which two directors of the Company have substantial fi nancial interestsReimbursement of offi ce expenses and allocation of expenses associated with the

listing of the Company 533 –

* Capitalised in investment properties



33 Signifi cant investments

Details of signifi cant subsidiaries are as follows:

Direct/Indirect jointly-controlled entities/subsidiaries of the Group

Principalactivities

Country of incorporation and place of business

Effective interest held by

the Group2011 2010

% %

Japan Logistic Properties 1 Private Limited and its jointly-controlled

entities/subsidiaries:

Investment holding Japan 100 100

Shinkiba Logistics SPC Property investment Japan 100 100

Urayasu Logistics SPC Property investment Japan 100 100

Shinsuna Logistics SPC Property investment Japan 100 100

Tatsumi Logistics SPC Property investment Japan 100 100

Narita Logistics SPC Property investment Japan 100 100

Tokyo Logistics SPC Property investment Japan 100 100

Urayasu Two Logistics SPC Property investment Japan 100 100

Tokai Logistics SPC Property investment Japan 100 100

Fukusaki Logistics SPC Property investment Japan 100 100

Narashino Logistics SPC Property investment Japan 100 100

Hachioji Logistics SPC Property investment Japan 100 100

Kazo Logistics SPC Property investment Japan 100 100

Funabashi Logistics SPC Property investment Japan 100 100

Osaka Logistics SPC Property investment Japan 100 100

Yokohama Logistics SPC Property investment Japan 100 100

Kasukabe Logistics SPC Property investment Japan 100 100

GLP Urayasu Two YK Property management Japan 100 100

Japan Logistic Properties 2 Pte Ltd and its jointly-controlled



Amagasaki Logistic SPC Property investment Japan 100 100

Amagasaki Two Logistic SPC Property investment Japan 100 100

Sakai Logistic SPC Property investment Japan 100 100

Cosmos SPC Property investment Japan 100 100

Atsugi SPC Property investment Japan 100 100

Fukaehama Logistic SPC Property investment Japan 100 100

Funabashi Two Logistic SPC Property investment Japan 100 100

Hayashima Two Logistic SPC Property investment Japan 100 100

Hirakata Logistic SPC Property investment Japan 100 100

Hirakata Two Logistic SPC Property investment Japan 100 100

Seishin Logistic SPC Property investment Japan 100 100




33 Signifi cant investments (cont’d)


Principalactivities



the Group2011 2010

% %

Japan Logistic Properties 2 Pte Ltd (cont’d)

Koshigaya Two Logistic SPC Property investment Japan 100 100

Maishima One Logistic SPC Property investment Japan 100 100

Maishima Two Logistic SPC Property investment Japan 100 100

Narashino Two Logistic SPC Property investment Japan 100 100

Narita Two Logistic SPC Property investment Japan 100 100

Hayashima Logistic SPC Property investment Japan 100 100

Okegawa Logistic SPC Property investment Japan 100 100

Misato Logistic SPC Property investment Japan 100 100

Sendai Logistic SPC Property investment Japan 100 100

Sugito Logistic SPC Property investment Japan 100 100

Tokyo Two Logistic SPC Property investment Japan 100 100

Tomiya Logistic SPC Property investment Japan 100 100

Tomisato Logistic SPC Property investment Japan 100 100

Urayasu Three Logistic SPC Property investment Japan 100 100

Sugito Two Logistic SPC Property investment Japan 100 100

Tosu One Logistic SPC Property investment Japan 100 100

Tsumori Logistic SPC Property investment Japan 100 100

Iwatsuki SPC Property investment Japan 100 100

Komaki Logistic SPC Property investment Japan 100 100

Koriyama One Logistic SPC Property investment Japan 100 100

Kiyama Logistic SPC Property investment Japan 100 100

Akishima Logistic SPC Property investment Japan 100 100

Yachiyo Logistic SPC Property investment Japan 100 100

Hakozaki Logistic SPC Property investment Japan 100 100

Tosu Five Logistic SPC Property investment Japan 100 100

Koshigaya Three Logistic SPC Property investment Japan 100 100

Misato Two Logistic SPC Property investment Japan 100 100

Japan Logistic Properties 3 Pte Ltd and its jointly-controlled



Azalea SPC Property investment Japan 100 100





Principalactivities



the Group2011 2010

% %

CLH Limited and its jointly-controlled


Investment holding Cayman Islands 100 100

GLP Pujin Development Co., Ltd. Property investment PRC 100 100

Zhongbao Logistics Co., Ltd. Property investment PRC 100 100

Shanghai GLP Chapu Development

Co., Ltd.

Property investment PRC 100 100

GLP Puyun Warehousing Services Co., Ltd. Property investment PRC 100 100

GLP Guangzhou Bonded Development

Co., Ltd.


GLP Beijing Airport Logistics Development

Co., Ltd.


GLP Foshan Logistics Co., Ltd. Property investment PRC 100 100

GLP Hangzhou Logistics Development

Co., Ltd.


GLP Shanghai Jiading Development

Co., Ltd.


GLP Beijing Majuqiao Logistics Development

Co., Ltd.


GLP Songjiang Development Co., Ltd. Property investment PRC 100 100

Shanghai Minhang GLP Development

Co., Ltd.


GLP (Qingdao) Airport International Logistics

Development Co., Ltd.


GLP (Qingdao) Qianwan Harbor International

Logistics Development Co., Ltd.


GLP (Qingdao) JiaoNan International Logistics



GLP Nanjing Jiangning Development

Co., Ltd.


GLP (Guangzhou) Baopu Development

Co., Ltd.


GLP Jiaxing Development Co., Ltd. Property investment PRC 100 100

GLP Chongqing Development Co., Ltd. Property investment PRC 100 100

GLP Wuxi Logistics Development Co., Ltd. Property investment PRC 100 100

GLP Fengmin Development Co., Ltd. Property investment PRC 100 100

GLP (Tianjin) Industry Development Co., Ltd. Property investment PRC 100 100

GLP Chenghua Development Co., Ltd. Property investment PRC 100 100

GLP Changsha Development Co., Ltd. Property investment PRC 100 100

GLP Fengjia Development Co., Ltd. Property investment PRC 100 100

GLP Fengsong Development Co., Ltd. Property investment PRC 100 100






Principalactivities



the Group2011 2010

% %CLH Limited (cont’d)

Ningbo Gangrui Warehousing Co., Ltd. Property investment PRC 100 100

Ningbo Haichuang Logistics Co., Ltd. Property investment PRC 100 100

GLP Xujing Logistics Co., Ltd. Property investment PRC 100 100

Pushun Logistics Park Development

Co., Ltd.


Qingdao Shuangyi Logistics Co., Ltd. Property investment PRC 100 100

Tianjin Puqing Logistics Co., Ltd. Property investment PRC 100 100

GLP (Ningbo Beilun) Warehousing Co., Ltd. Property investment PRC 100 100

GLP Jiashan Pujia Logistics Co., Ltd. Property investment PRC 100 100

GLP Pumin Logistics Co., Ltd. Property investment PRC 100 100

GLP Taicang Logistics Co., Ltd. Property investment PRC 100 100

GLP Chengdu Hi-Tech Co., Ltd. Property investment PRC 100 100

GLP Pujiang Logistics Co., Ltd. Property investment PRC 100 100

Shanghai Puchuan Logistics Co., Ltd. Property investment PRC 100 100

GLP Wanqing Logistics Co., Ltd. Property investment PRC 100 100

Jiangsu Beisheng Technology Co., Ltd. Property investment PRC 100 100

GLP Luoxin Logistics Co., Ltd. Property investment PRC 100 100

Beijing Jingcai Warehousing Co., Ltd. Property investment PRC -1 100

GLP Laogang Development Co., Ltd. Property investment PRC 100 100

GLP Guangzhou Warehousing Co., Ltd. Property investment PRC 100 100

Kunshan GLP Dianshanhu Logistics

Co., Ltd.


GLP Puting Logistics Co., Ltd. Property investment PRC 100 100

High-Tech Base (Shanghai) Machinery

Co., Ltd.


GLP Tianjin Development Co., Ltd. Property investment PRC 80 80

Beijing City Power Warehousing Co., Ltd. Property investment PRC 60 70

Zhuhai GLP – Gree Logistics Development

Co., Ltd.


Dalian GLP – Jifa Development Co., Ltd. Property investment PRC 60 60

Shen Yang GLP Jifa Logistics Development

Co., Ltd.


SZITIC Shenzhen Commercial Property

Co., Ltd.


GLP Kunshan Puqiao Logistics Co., Ltd. Property investment PRC –1 100

GLP Suzhou Development Co., Ltd. Property investment PRC 502 502

Shanghai Lingang GLP International Logistics







Principalactivities



the Group2011 2010

% %

CLH Limited (cont’d)

Shenzhen GLP – Yantian Port Logistics

Co., Ltd.


Shanghai Lingang GLP Warehousing &

Logistics Development Co., Ltd.


Suzhou GLP Wangting Development

Co., Ltd.


Suzhou Industrial Park Genway Factory

Building Industrial Development Co., Ltd.


Suzhou Industrial Park Sucai Property

Co., Ltd.

Property investment PRC –3 502

Suzhou Industrial Park Genway Factory

Property Management Co., Ltd.

Property management PRC 502 502

GLP Tianjin Pugang Logistics Development

Co., Ltd.

Property investment PRC 1004 –

GLP Tianjin Pujia Logistics Development

Co., Ltd.


Kunshan Puxing Logistics Development

Co., Ltd.


GLP Shenyang Punan Logistics Facilities

Co., Ltd.


GLP (Hangzhou) Warehousing Co., Ltd. Property investment PRC 1004 –

Langfang GLP Warehousing Co., Ltd. Property investment PRC 1004 –

Zhongshan GLP Logistics Co., Ltd. Property investment PRC 1004 –

Vailog (Kunshan) Storage Co., Ltd. Property investment PRC 905 –

Shanghai Weiluo Storage Service Co., Ltd. Property investment PRC 905 –

Tianjin Trade Year Investment Co., Ltd. Property investment PRC 1005 –

Beijing Handa Investment Co., Ltd. Property investment PRC 87.595 –

Airport City Development Co., Ltd. Property investment PRC 53.145 –

Beijing Airport Bluesky Property Management

Co., Ltd.

Property management PRC 53.145 –

Beijing Shidai Hangtong International

Logistics Co., Ltd.

Property investment PRC 53.145 –

Beijing Airport Xinke Logistics Services., Ltd. Property investment PRC 23.915 –

Xiamen Jade Logistics Investment Co., Ltd. Property investment PRC 995 –

Global Logistic Properties Holdings Limited and its subsidiaries:

Investment holding and

property management

Cayman

Islands

1005 502

Global Logistic Properties Investment

Management (China) Co., Ltd.


Global Logistic Properties Inc. Property management Japan 1005 502

Global Logistic Properties Suzhou Share

Service Co., Ltd.






KPMG LLP is the auditor of all signifi cant Singapore-incorporated subsidiaries. Other member fi rms of KPMG International

are auditors of signifi cant foreign-incorporated subsidiaries. For this purpose, a subsidiary is considered signifi cant as

defi ned under the Singapore Exchange Limited Listing Manual if its net tangible assets represent 20% or more of the

Group’s consolidated net tangible assets, or if its pre-tax profi ts account for 20% or more of the Group’s consolidated

pre-tax profi ts.

Note:

1 Liquidated during the year ended 31 March 2011.

2 Jointly-controlled entities of the Group, and thus, equity-accounted by the Group during the year ended March 2011 and 2010.

3 Merged with Suzhou Industrial Park Genway Factory Building Industrial Development Co., Ltd. during the year ended 31 March

2011.

4 Incorporated during the year ended 31 March 2011.

5 Acquired during the year ended 31 March 2011.

34 Subsequent events

On 25 April 2011, the Company established a US$2,000,000,000 Euro medium term note programme (the “Programme”).

Under the Programme, the Company may from time to time issue notes (the “Notes”) denominated in any currency

agreed between the Issuer and the relevant dealer in various amounts and tenors. The Notes issued may be fi xed rate,

fl oating rate, dual currency, zero coupon or index-linked.

On 11 May 2011, the Company issued the following Notes:

i) Aggregate principal amount of RMB2,650,000,000 due in 2016 and bears fi xed interest of 3.375% per annum;

and

ii) Aggregate principal amount of RMB350,000,000 due in 2018 and bears fi xed interest of 4.000% per annum.

The Notes will constitute direct, unconditional, unsubordinated and unsecured obligations of the Company.

SHAREHOLDINGSTATISTICSAs of 6 June 2011


Number of Ordinary Shares in Issue

(excluding treasury shares)

: 4,595,594,664

Number of Treasury Shares held : Nil

Class of Shares : Ordinary

Voting Rights : One vote per share

Distribution of Shareholdings

Size of ShareholdingsNo. of

Shareholders % No. of Shares %

1 - 999 20 0.03 4,789 0.00

1,000 - 10,000 57,218 95.53 109,352,295 2.38

10,001 - 1,000,000 2,629 4.39 81,756,375 1.78

1,000,001 And Above 27 0.05 4,404,481,205 95.84

Total: 59,894 100.00 4,595,594,664 100.00

Twenty Largest Shareholders

No. Name No. of Shares %

1. DBS Nominees (Private) Limited 2,588,753,596 56.33

2. Citibank Nominees Singapore Pte Ltd 987,954,410 21.50

3. DBSN Services Pte Ltd 172,310,976 3.75

4. Morgan Stanley Asia (Singapore) Securities Pte Ltd 156,857,581 3.41

5. Raffl es Nominees (Pte) Ltd 143,127,036 3.11

6. United Overseas Bank Nominees Pte Ltd 96,430,170 2.10

7. HSBC (Singapore) Nominees Pte Ltd 84,038,208 1.83

8. Prosper Line Investments Limited 68,828,000 1.50

9. BNP Paribas Securities Services Singapore Pte Ltd 30,527,139 0.66

10. Great Ocean Overseas Holdings Limited 20,077,000 0.44

11. Bank Of Singapore Nominees Pte Ltd 11,105,862 0.24

12. DB Nominees (S) Pte Ltd 7,938,236 0.17

13. Nomura Singapore Limited 5,381,000 0.12

14. UOB Kay Hian Pte Ltd 4,347,000 0.09

15. BNP Paribas Nominees Singapore Pte Ltd 2,988,000 0.07

16. Royal Bank Of Canada (Asia) Ltd 2,716,000 0.06

17. DBS Vickers Securities (S) Pte Ltd 2,660,000 0.06

18. Phillip Securities Pte Ltd 2,569,000 0.06

19. Lee Seng Wee 2,500,000 0.05

20. OCBC Securities Private Ltd 2,348,000 0.05

Total: 4,393,457,214 95.60

SHAREHOLDING STATISTICS

As of 6 June 2011


Public Float

Approximately 39.6% of the Company’s shares are held in the hands of the public. Accordingly, the Company has complied with

Rule 723 of the Listing Manual of the SGX-ST.

Substantial Shareholders(As recorded in the Register of Substantial Shareholders as of 6 June 2011)

Name of Substantial Shareholders Direct % Deemed %

1. Recosia China Pte Ltd (1) 884,991,979 19.26 – –

2. Reco Platinum Pte Ltd (1) 353,695,075 7.70 – –

3. Reco Benefi t Private Limited (1) 897,816,512 19.54 – –

4. Recosia Pte Ltd (1) – – 2,326,356,817 50.62

5. Government of Singapore Investment Corporation

(Realty) Private Limited (2)

– – 2,326,356,817 50.62

6. GIC Real Estate Private Limited (3) – – 2,326,356,817 50.62

7. Government of Singapore Investment Corporation

Private Limited (4)

– – 2,326,356,817 50.62

8. Lone Pine Capital LLC (5) – – 328,521,000 7.15

Notes:

1 Recosia China Pte Ltd, Reco Platinum Pte Ltd, Reco Benefi t Private Limited and Reco Logistics Management Private Limited (“Reco

Logistics Management”) are wholly owned subsidiaries of Recosia Pte Ltd (“Recosia”). Reco Logistics Management holds 189,853,251

shares in the Global Logistic Properties Limited. All shares are registered in the name of DBS Nominees (Private) Limited.

2 Government of Singapore Investment Corporation (Realty) Private Limited (“GIC Realty”) is the holding company of Recosia. Accordingly,

by virtue of section 7 of the Companies Act, Cap. 50, GIC Realty is deemed to be interested in all the shares in which Recosia and its

subsidiaries have an interest in.

3 GIC Real Estate Private Limited (“GIC Real Estate”) manages the real estate investments which are held by GIC Realty, the holding

company of Recosia. Accordingly, by virtue of section 7 of the Companies Act, Cap. 50, GIC Real Estate is deemed to be interested in all

the shares in which GIC Realty and its subsidiaries have an interest in.

4 GIC Real Estate is a wholly owned subsidiary of Government of Singapore Investment Corporation Private Limited (“GIC”). Accordingly, by

virtue of section 7 of the Companies Act, Cap. 50, GIC is deemed to be interested in the shares that GIC Real Estate has an interest in.

5 Lone Pine Capital LLC is deemed to be interested in the shares registered in the name of the following investment funds:

(a) Lone Balsam, L.P

(b) Lone Cypress, Ltd.

(c) Lone Sequoia, L.P.

(d) Lone Spruce, L.P.

(e) Lone Kauri, Ltd.

(f) Lone Cascade, L.P.

(g) Lone Monterey Master Fund, Ltd.

(h) Lone Sierra, L.P

(i) Lone Dragon Pine, L.P.

(j) Lone Himalayan Pine Master Fund, Ltd.

NOTICE OFANNUAL GENERAL MEETING


NOTICE IS HEREBY GIVEN that the Annual General Meeting of GLOBAL LOGISTIC PROPERTIES LIMITED (the “Company”)

will be held at 10 Bayfront Avenue, Hibiscus Junior Ballroom 3613, Level 3, Marina Bay Sands, Sands Expo & Convention

Center, Singapore 018956 on Wednesday, 20 July 2011 at 11 a.m. for the following purposes:

AS ORDINARY BUSINESS

1. To receive and adopt the Directors’ Report and the Audited Financial Statements for the year ended 31 March 2011

together with the Auditors’ Report thereon. (Resolution 1)

2. To re-elect the following Directors of the Company, each of whom will cease to hold offi ce in accordance with Article 97 of

the Articles of Association of the Company and who, being eligible, will offer themselves for re-election:

(a) Mr. Ang Kong Hua (Resolution 2)

(b) Mr. Jeffrey Howard Schwartz (Resolution 3)

(c) Mr. Ming Z. Mei (Resolution 4)

(d) Dr. Seek Ngee Huat (Resolution 5)

(e) Mr. Tham Kui Seng (Resolution 6)

(f) Mr. Yoichiro Furuse (Resolution 7)

(g) Mr. Steven Lim Kok Hoong (Resolution 8)

(h) Dr. Dipak Jain (Resolution 9)

Mr. Ang Kong Hua will, upon re-election as a Director of the Company, remain as a member of the Audit Committee

and will be considered independent for the purposes of Rule 704(8) of the Listing Manual of the Singapore Exchange

Securities Trading Limited.

Mr. Tham Kui Seng will, upon re-election as a Director of the Company, remain as a member of the Audit Committee

and will be considered independent for the purposes of Rule 704(8) of the Listing Manual of the Singapore Exchange

Securities Trading Limited.

Mr. Steven Lim Kok Hoong will, upon re-election as a Director of the Company, remain as the Chairman of the Audit

Committee and will be considered independent for the purposes of Rule 704(8) of the Listing Manual of the Singapore

Exchange Securities Trading Limited.

3. To re-appoint Mr. Paul Cheng Ming Fun, a Director of the Company pursuant to Section 153(6) of the Companies Act,

Chapter 50, to hold offi ce from the date of this Annual General Meeting until the next Annual General Meeting.

[See Explanatory Note (i)] (Resolution 10)

Mr. Paul Cheng Ming Fun will, upon re-appointment as a Director of the Company, remain as a member of the Audit

Committee and will be considered independent for the purposes of Rule 704(8) of the Listing Manual of the Singapore

Exchange Securities Trading Limited.

4. To approve the payment of Directors’ fees of totalling approximately US$1,300,000 for the fi nancial year ending 31 March

2012. (2011: US$576,984). (Resolution 11)

NOTICE OF ANNUAL GENERAL MEETING


5. To re-appoint Messrs KPMG LLP as the Auditors to hold offi ce until the conclusion of the next Annual General Meeting

of the Company at a remuneration to be determined by the Directors of the Company upon the recommendation of the

Audit Committee. (Resolution 12)

6. To transact any other ordinary business which may properly be transacted at an Annual General Meeting.

AS SPECIAL BUSINESS

To consider and if thought fi t, to pass the following resolutions as Ordinary Resolutions, with or without any modifi cations:

7. Authority to issue shares

That authority be and is hereby given to the Directors of the Company to:

(a) (i) issue shares in the capital of the Company (“Shares”) whether by way of rights, bonus or otherwise; and/

or

(ii) make or grant offers, agreements or options (collectively, “Instruments”) that might or would require shares

to be issued, including but not limited to the creation and issue of (as well as adjustments to), warrants,

debentures or other instruments convertible into shares,

at any time and upon such terms and conditions and for such purposes and to such persons as the Directors of

the Company may in their absolute discretion deem fi t; and

(b) (notwithstanding the authority conferred by this Resolution may have ceased to be in force) issue shares in

pursuance of any Instrument made or granted by the Directors of the Company while this Resolution was in force,

provided that:

(1) the aggregate number of shares to be issued pursuant to this Resolution (including shares to be issued in

pursuance of the Instruments made or granted pursuant to this Resolution) does not exceed fi fty per centum

(50%) of the total number of issued shares (excluding treasury shares) in the capital of the Company (as calculated

in accordance with sub-paragraph (2) below), of which the aggregate number of shares to be issued other than on

a pro rata basis to shareholders of the Company (including shares to be issued in pursuance of the Instruments

made or granted pursuant to this Resolution) does not exceed twenty per centum (20%) of the total number of

issued shares (excluding treasury shares) in the capital of the Company (as calculated in accordance with sub-

paragraph (2) below);

(2) (subject to such manner of calculation as may be prescribed by the Singapore Exchange Securities Trading

Limited (“SGX-ST”)) for the purpose of determining the aggregate number of shares that may be issued under

sub-paragraph (1) above, the percentage of issued shares shall be based on the total number of issued shares

(excluding treasury shares) in the capital of the Company at the time this Resolution is passed, after adjusting for:

(a) new shares arising from the conversion or exercise of any convertible securities or share options or vesting

of share awards which are outstanding or subsisting at the time this Resolution is passed; and

(b) any subsequent bonus issue, consolidation or subdivision of shares;

(3) in exercising the authority conferred by this Resolution, the Company shall comply with the provisions of the Listing

Manual of the SGX-ST for the time being in force (unless such compliance has been waived by the SGX-ST) and

the Articles of Association for the time being of the Company; and

NOTICE OFANNUAL GENERAL MEETING


(4) (unless revoked or varied by the Company in a general meeting) the authority conferred by this Resolution shall

continue in force until the conclusion of the next Annual General Meeting of the Company or the date by which the

next Annual General Meeting of the Company is required by law to be held, whichever is earlier.

[See Explanatory Note (ii)] (Resolution 13)

8. Authority to issue shares under the GLP Performance Share Plan and GLP Restricted Share Plan

That approval be and is hereby given to the Directors of the Company to:

a) grant awards in accordance with the provisions of the GLP Performance Share Plan and/or the GLP Restricted

Share Plan (collectively the “Share Plans”); and

b) allot and issue from time to time such number of fully-paid ordinary shares in the capital of the Company as may

be required to be issued pursuant to the vesting of the awards granted or to be granted under the Share Plans,

provided always that the aggregate number of (i) new ordinary shares allotted and issued and/or to be allotted and issued,

and (ii) existing ordinary shares (including shares held in treasury) delivered and/or to be delivered, pursuant to the Share

Plans shall not exceed fi fteen per centum (15%) of the total number of issued shares (excluding treasury shares) in the

capital of the Company from time to time.

[See Explanatory Note (iii)] (Resolution 14)

By Order of the Board

Lynn Wan Tiew Leng

Yoo Loo Ping

Company Secretaries

Singapore

1 July 2011

Explanatory Notes:

(i) The Ordinary Resolution 10 proposed in item 3 above, is to re-appoint Mr. Paul Cheng Ming Fun, a Director of the Company who is over

70 years of age.

(ii) The Ordinary Resolution 13 in item 7 above, if passed, will empower the Directors of the Company to issue shares in the capital of the

Company, make or grant Instruments convertible into shares and to issue shares pursuant to such Instruments, up to a number not

exceeding, in total, 50% of the total number of issued shares (excluding treasury shares) in the capital of the Company, of which up to

20% may be issued other than on a pro rata basis to shareholders.

For determining the aggregate number of shares that may be issued, the percentage of issued shares will be calculated based on the

total number of issued shares (excluding treasury shares) in the capital of the Company at the time this Ordinary Resolution is passed,

after adjusting for (a) new shares arising from the conversion or exercise of any convertible securities or vesting of share awards which

are outstanding or subsisting at the time when this Ordinary Resolution is passed, and (b) any subsequent bonus issue, consolidation or

subdivision of shares.

(iii) Resolution 14 in item 8 above, if passed, will empower the Directors of the Company to offer and grant awards under the Share Plans in

accordance with the provisions of the Share Plans and to allot and issue from time to time such number of fully-paid shares as may be

required to be allotted and issued pursuant to the vesting of the awards under the Share Plans subject to the maximum number of shares

prescribed under the rules of the Share Plans. The aggregate number of (i) new ordinary shares allotted and issued and/or to be allotted

and issued, and (ii) the existing ordinary shares (including treasury shares) delivered and/or to be delivered, pursuant to awards granted

under the Share Plans is limited to 15% of the total number of issued shares (excluding treasury shares) in the capital of the Company

from time to time. Resolution 14 is independent from Resolution 13 and the passing of Resolution 14 is not contingent on the passing of

Resolution 13.

NOTICE OF ANNUAL GENERAL MEETING


Notes:

1. A member entitled to attend and vote at the Annual General Meeting (the “Meeting”) is entitled to appoint not more than two proxies to

attend and vote in his/her stead. A proxy need not be a member of the Company.

2. The instrument appointing a proxy must be deposited at the registered offi ce of the Company at 50 Raffl es Place, #32-01 Singapore Land

Tower, Singapore 048623 not less than forty-eight (48) hours before the time appointed for holding the Meeting.

This page has been intentionally left blank.

GLOBAL LOGISTIC PROPERTIES LIMITEDCompany Registration No. 200715832Z(Incorporated In Singapore)

PROXY FORM(Please see notes overleaf before completing this Form)

I/We,

of

being a member/members of GLOBAL LOGISTIC PROPERTIES LIMITED (the “Company”), hereby appoint:

Name NRIC/Passport No. Proportion of Shareholdings

No. of Shares %

Address

and/or (delete as appropriate)

Name NRIC/Passport No. Proportion of Shareholdings

No. of Shares %

Address

or failing him/her, the Chairman of the Meeting as my/our proxy/proxies to vote for me/us on my/our behalf at the Annual

General Meeting (the “Meeting”) of the Company to be held on Wednesday, 20 July 2011 at 11.00 a.m. at 10 Bayfront Avenue,

Hibiscus Junior Ballroom 3613, Level 3, Marina Bay Sands, Sands Expo & Convention Center, Singapore 018956 and at

any adjournment thereof. I/We direct my/our proxy/proxies to vote for or against the Resolutions proposed at the Meeting as

indicated hereunder. If no specifi c direction as to voting is given or in the event of any other matter arising at the Meeting and

at any adjournment thereof, the proxy/proxies will vote or abstain from voting at his/her discretion, as he/they will on any other

matter arising at the Meeting and at any adjournment thereof. The authority herein includes the right to demand or to join in

demanding a poll and to vote on a poll.

(Please indicate your vote “For” or “Against” with a tick [√] within the box provided.)

No. Resolutions For Against1 To receive and adopt the Directors’ Report and Audited Financial Statements for the year

ended 31 March 2011.

2 To re-elect Mr. Ang Kong Hua as a Director.

3 To re-elect Mr. Jeffrey Howard Schwartz as a Director.

4 To re-elect Mr. Ming Z. Mei as a Director.

5 To re-elect Dr. Seek Ngee Huat as a Director.

6 To re-elect Mr. Tham Kui Seng as a Director.

7 To re-elect Mr. Yoichiro Furuse as a Director.

8 To re-elect Mr. Steven Lim Kok Hoong as a Director.

9 To re-elect Dr. Dipak Jain as a Director.

10 To re-appoint Mr. Paul Cheng Ming Fun as a Director.

11 To approve Directors’ fees totalling approximately US$1,300,000 for the year ending 31

March 2012.

12 To re-appoint Messrs KPMG LLP as Auditors and to authorise the Directors to fi x their

remuneration.

13 To authorise the Directors to allot and issue shares in the capital of the Company and to

create and issue instruments and to allot and issue shares in the capital of the Company

in connection therewith pursuant to Section 161 of the Companies Act, Chapter 50 of

Singapore.

14 To authorise the Directors to allot and issue shares in the capital of the Company pursuant

to the GLP Performance Share Plan and GLP Restricted Share Plan.

Dated this day of 2011

Signature of Shareholder(s)

or, Common Seal of Corporate Shareholder

Total number of Shares in: No. of Shares(a) CDP Register

(b) Register of Members

IMPORTANT:

1. For investors who have used their CPF monies to buy Global Logistic Properties

Limited’s shares, this Annual Report is forwarded to them at the request of the

CPF Approved Nominees and is sent solely FOR INFORMATION ONLY.

2. This Proxy Form is not valid for use by CPF investors and shall be ineffective for all

intents and purposes if used or purported to be used by them.

3. CPF investors who wish to attend the Annual General Meeting as an observer

must submit their requests through their CPF Approved Nominees within the time

frame specifi ed. If they also wish to vote, they must submit their voting instructions

to the CPF Approved Nominees within the time frame specifi ed to enable them to

vote on their behalf.

Notes:

1. A member should insert the total number of ordinary shares in the Company (the “Shares”) held by him. If the member has Shares

entered against his name in the Depository Register (as defi ned in Section 130A of the Companies Act, Chapter 50 of Singapore), he

should insert that number of Shares. If the member has Shares registered in his name in the Register of Members, he should insert that

number of Shares. If the member has Shares entered against his name in the Depository Register and Shares registered in his name

in the Register of Members, he should insert the aggregate number of Shares entered against his name in the Depository Register

and registered in his name in the Register of Members. If no number is inserted, this form of proxy shall be deemed to relate to all the

Shares held by the member.

2. A member of the Company entitled to attend and vote at a meeting of the Company is entitled to appoint not more than two proxies to

attend and vote in his/her stead. A proxy need not be a member of the Company.

3. Where a member appoints more than one proxy, the appointments shall be invalid unless he/she specifi es the proportion of his/her

shareholding (expressed as a percentage of the whole) to be represented by each proxy. If no proportion or number of shares is

specifi ed, the fi rst named proxy may be treated as representing 100% of the shareholding and any second named proxy as an alternate

to the fi rst named.

4. The instrument appointing a proxy or proxies must be deposited at the registered offi ce of the Company at 50 Raffl es Place, #32-01

Singapore Land Tower, Singapore 048623 not less than 48 hours before the time appointed for the holding of the Meeting.

5. The instrument appointing a proxy or proxies must be executed under the hand of the appointor or of his attorney duly authorised in

writing. Where the instrument appointing a proxy or proxies is executed by a corporation, it must be executed either under its common

seal or under the hand of an offi cer or attorney duly authorised. Where the original instrument appointing a proxy or proxies is executed

by an attorney on behalf of the appointor, the original letter or power of attorney under which the instrument of proxy is signed or a

duly certifi ed copy of that letter or power of attorney (failing previous registration with the Company) shall be attached to the original

instrument of proxy and must be left at the registered offi ce, not less than 48 hours before the time appointed for the holding of the

Meeting or the adjourned Meeting at which it is to be used failing which the instrument may be treated as invalid.

6. A corporation which is a member may authorise by resolution of its directors or other governing body such person as it thinks fi t to act

as its representative at the Meeting, in accordance with Section 179 of the Companies Act, Chapter 50 of Singapore. The Company

shall be entitled to treat an original certifi cate under the seal of the corporation as conclusive evidence of the appointment or revocation

of appointment of a representative.

General:

The Company shall be entitled to reject the instrument appointing a proxy or proxies if it is incomplete, improperly completed or illegible or

where the true intentions of the appointor are not ascertainable from the instructions of the appointor specifi ed in the instrument appointing a

proxy or proxies. In addition, in the case of Shares entered in the Depository Register, the Company may reject any instrument appointing a

proxy or proxies lodged if the member, being the appointor, is not shown to have Shares entered against his name in the Depository Register

as at 48 hours before the time appointed for holding of the Meeting, as certifi ed by The Central Depository (Pte) Limited to the Company.

CORPORATE INFORMATION

REGISTEREd OFFICE50 Raffles Place#32-01 Singapore Land TowerSingapore 048623Tel: (65) 6536 5355Fax: (65) 6536 1360

bUSINESS AddRESS501 Orchard Road#16-02 Wheelock PlaceSingapore 238880Tel: (65) 6643 6388Fax: (65) 6643 6389 PLACE OF INCORPORATIONSingapore

COMPANY REGISTRATION NUMbER200715832Z

dATE OF INCORPORATION28 August 2007

bOARd OF dIRECTORS Ang Kong hua Independent Chairman

Jeffrey h. Schwartz Deputy Chairman of the Board, Chairman of the Executive Committee and Executive Director

Ming Z. Mei Chief Executive Officer and Executive Director

dr. Seek Ngee huat Non-Executive Director

Lim Swe Guan Alternate Director to Dr. Seek Ngee Huat

Tham Kui Seng Non-Executive Independent Director

Yoichiro Furuse Non-Executive Independent Director

Steven Lim Kok hoong Non-Executive Independent Director

dr. dipak Jain Non-Executive Independent Director

Paul Cheng Ming Fun Non-Executive Independent Director

COMPANY SECRETARIESLynn wan Tiew LengYoo Loo Ping

AUdITORSKPMG LLP 16 Raffles Quay #22-00 Hong Leong Building Singapore 048581 Partner in charge: Eng Chin Chin Date of Appointment: Financial year ended 31 March 2011

PRINCIPAL bANKERSBank of China Pudong BranchBank of Communications Shanghai Branch China Merchants Bank Shanghai BranchSumitomo Mitsui Banking Corporation Bank of Tokyo Mitsubishi UFJ, Ltd.

ShARE REGISTRARBoardroom Corporate & Advisory Services Pte. Ltd. 50 Raffles Place #32-01 Singapore Land Tower Singapore 048623

INVESTOR RELATIONSJames wuSenior Vice President Email: [email protected]

wEbSITEwww.GLProp.com

The initial public offering of Global Logistic Properties

Limited was sponsored by Citigroup Global Markets

Singapore Pte. Ltd. and J.P. Morgan (S.E.A.) Limited

(the “Joint Global Coordinators and Joint Issue

Managers”). The Joint Global Coordinators and

Joint Issue Managers assume no responsibility for the

contents of this Annual Report.

w w w . G L P r o p . c o m

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