LondonMetric Property Plc reports strong earnings and dividend growth

LondonMetric Property Plc (LON:LMP) has announced its full year results for the year ended 31 March 2025.

1.        Further details on alternative performance measures can be found in the Financial Review and definitions can be found in the Glossary

Focus on winning sectors and delivering on M&A drives rents, earnings and dividend growth

·      Net rental income increased 123% to £390.6m

·      EPRA earnings up 120% to £268.0m, +20.7% on a per share basis

·      Sector leading EPRA cost ratio at 7.8%

·      Dividend increased 17.6% to 12.0p, 109% covered by earnings, including Q4 dividend declared today of 3.3p

·      Continued dividend progression with expected 5.3% increase in Q1 2026 dividend to 3.0p (Q1 25: 2.85p)

Strong returns driven by reliable, repetitive and growing income

 ·     Total property return of 8.3% (200bps outperformance of MSCI), income return 5.7% and ERV growth 3%

·     Like for like income growth of 4.2% drives valuation uplift of £106.0m
·     EPRA NTA per share of 199.2p (+3.9%)
·     IFRS reported profit of £347.9m (2024: £118.7m)

·     Total accounting return of 9.7% (2024: 1.3%)

Portfolio aligned to strongest thematics

·      Portfolio value of £6.2bn (2024: £6.0bn) with logistics weighting at 46%

·      £343m acquired in year (87% logistics)

·      £342m disposed (£214m were former LXi and CTPT assets), further £63 million sold post year end

Activity continues to enhance portfolio quality, strengthening long and strong income characteristics

·      WAULT of 18.5 years, gross to net income ratio of 99% and occupancy at 98% (99% post year end activity)    

·      Contractual rental uplifts on 77% of income, 40% of income subject to annual reviews

·      Occupational activity added £15.3m pa contracted income

·      Rent reviews +17% on five yearly equivalent basis with market reviews +40%

·      Income uplift expected over next two years of £27m, 18% embedded reversion on logistics assets

·      92% of portfolio EPC A-C rated (up from 85%) with 3.6MWp of solar PV added and 2.6MWp of near-term potential

Scale delivering economies of opportunities and greater access to capital 

·      Unlocked M&A with Urban Logistics REIT Plc and Highcroft Investments Plc adding £1.2bn of assets

·      Extended maturity on £975m of debt and new debt facilities of £525m (with post year end activity)

·      LTV at 32.7%, debt maturity of 4.7 years and cost of debt at 4.0% (100% hedged following £489m of hedging activity)

·      BBB+ credit rating in year increases options for future financings

Andrew Jones, Chief Executive of LondonMetric Property Plc, commented:

“This has been a remarkable year for LondonMetric. Our NNN income model has delivered exceptional earnings and dividend per share growth of 21% and 18% respectively. We have integrated the £3 billion of assets acquired through the LXi takeover, transacted on over £680 million of sales and acquisitions, and delivered strong rental growth from 340 asset management initiatives.

“We have every reason to be optimistic about our relentless expansion and the opportunities available from our highly scalable platform. In an environment where scale is essential, our £6 billion portfolio is set to grow by a further £1 billion through M&A activity which will add to our urban logistics exposure, our strongest conviction call sector for rental growth.”

“Our strong performance and execution reflect over ten years of building up the right portfolio aligned to the strongest sectors, with the best team and the strongest relationships, all underpinned by unemotional capital allocation, overhead efficiency and a resolute focus on income and growth. With ten years of dividend progression under our belt, our all-weather portfolio is more capable than ever of delivering reliable, repetitive and growing income, and we remain firmly on track to achieving dividend aristocracy.”