Londonmetric Property Plc (LON:LMP) has provided an update on trading ahead of its AGM later today.
Our £7.6 billion NNN portfolio continues to perform well, with our highly efficient platform underpinned by the strongest real estate thematics and attractive income growth.
Disposals across 26 assets accounted for £96.7 million of investment activity and the company has a further £23 million of sales under offer. Acquisitions totalled £42.5 million across five assets and an additional £48 million of purchases are in solicitors hands, adding high quality assets to its food store and drive-thru portfolios.
This activity has maintained sector leading income metrics with average lease lengths at 17 years and occupancy increasing to 98.3% from 97.7% at the start of the financial year.
Since the announcement on 16 June 2026 regarding the Proposed Offer for Picton Property Income Limited, all parties have had further discussions with shareholders, are progressing due diligence, which is advancing well, and finalising the relevant transaction documentation to enable the Consortium to announce a firm intention to make an offer pursuant to Rule 2.7 of the Code.
The disposal activity continues to progress well and the company has sold £97 million so far this financial year with a further £23 million of sales under offer. Most of the assets sold were previously acquired through recent M&A, and the disposals are in line with 31 March 2026 book values as well as acquisition prices.
Since the last investment update on 21 May, the company has sold a further 14 assets for £47.3 million at a NIY of 6.6%, comprising:
· Nine Travelodge hotels, sold for £37.4 million, reducing the Travelodge portfolio to 44 hotels with further assets under offer;
· A vacant former Urban Logistics REIT warehouse in Braintree, sold for £4.8 million;
· A short-let urban logistics asset in Acton, sold for £2.8 million; and
· Former Highcroft retail assets in Oxford, sold for £2.3 million.
Acquisitions so far this financial year total £42.5 million at a yield of 5.9% and comprise four previously announced forward funded food store developments, and a recently acquired McDonald’s drive-thru at Birmingham Fort retail park. A further four food store forward fundings are in legals totalling £48.4 million which have been pre-let to Lidl, Waitrose and two to Tesco.
Asset management activity
Occupier demand remains strong across the portfolio with new leasing activity reducing vacancy to 1.7%. Since the start of the financial year, the company has secured £6.7 million pa of additional contracted rent from 72 asset initiatives:
· 49 rent reviews added £4.3 million, reflecting average uplifts of 16% above previous passing rent on a five yearly equivalent basis. Logistics reviews delivered an average uplift of 23% with open market logistics reviews 48% higher; and
· 23 lettings and regears added £2.4 million, signed with a WAULT of 11 years and with regears delivering an average uplift of 26% (logistics: +36%). At Melton Mowbray, a new 20 year letting has been signed on 140,000 sq ft at a rent of £0.8 million pa, and terms are close to being agreed for a new 15 year letting on a further 150,000 sq ft also at a rent of £0.8 million pa.
In addition, lettings in legals will add another £1.4 million pa of rental income and mostly relate to vacant units.
Andrew Jones, Chief Executive of LondonMetric, commented:
“We continue to enhance our all-weather portfolio by maximising our income quality, granularity and growth.
“Our disposal activity of non-core assets remains strong, with c.£100 million of sales since the start of the financial year, and we are re-investing into quality NNN assets across the convenience food sector let to very strong occupiers. Furthermore, rent reviews, renewals and lettings continue to deliver significant rental growth, further improving our sector leading portfolio metrics.
“Our time is increasingly focused on the wider investment opportunity set. Whilst the market remains tight for quality opportunities, we are seeing a greater number of attractive deals, particularly across development fundings and asset sales from pension funds.”
