LONDONMETRIC PROPERTY PLC
(“LondonMetric” or the “Group” or the “Company”)
HALF YEAR RESULTS FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2024
Cementing our position as the UK’s leading Triple Net Lease REIT with material earnings and dividend growth from structurally supported portfolio
LondonMetric today announces its half year results for the six months ended 30 September 2024.
| Income Statement | H1 2025 | H1 2024 |
| Net rental income (£m) | 193.1 | 76.0 |
| EPRA earnings (£m) | 135.4 | 53.1 |
| IFRS reported profit (£m) | 163.8 | 81.0 |
| EPRA earnings per share (p) | 6.6 | 5.3 |
| IFRS earnings per share (p) | 8.0 | 8.0 |
| Dividend per share (p) | 5.7 | 4.8 |
| Balance Sheet | H1 2025 | H1 2024 |
| EPRA net tangible assets (NTA)(£m) | 4,002.3 | 3908.9 |
| IFRS net assets (£m) | 4,053.9 | 3,969.5 |
| EPRA NTA per share (p) | 195.7 | 191.7 |
| IFRS net assets per share (p) | 198.8 | 195.2 |
Focus on winning sectors and transformational M&A drives rents, earnings and dividend growth
- Net rental income increased 154% to £193.1m.
- EPRA earnings up 155% to £135.4m, +26.5% on a per share basis.
- Sector leading EPRA cost ratio at 7.6%, – 400bps since year end.
- Dividend increased 18.8% to 5.7p, 117% covered by earnings.
- Q2 dividend declared today of 2.85p, in line with 12p dividend target for full year.
Portfolio returns driven by reliable, repetitive and growing income
- Total property return +4.0%, capital value growth +1.1%, ERV growth +1.3%.
- Like for like income growth 1.7% (3.5% annualised) driving valuation uplift of £40.9m.
- EPRA NTA per share of 195.7p (+2.1%).
- IFRS reported profit of £163.8m (30 September 2023: £81.0m).
- Total accounting return of 4.9% (30 September 2023: 2.8%).
Reshaping portfolio to align to structurally supported sectors of logistics, convenience, healthcare and entertainment
- Portfolio value of £6.2bn (31 March 2024: £6.0bn), logistics represents 45% of portfolio, targeting 50% by year end.
- £193.3m acquired in period comprising 19 logistics assets, £10m acquired post period end with £116m under offer.
- £155.4m disposed (mainly LXi and CTPT assets), 21 assets sold post period end for £78.4m with £86m under offer.
Activity continues to enhance portfolio quality, strengthening long and strong income characteristics
- Occupancy of 99%, WAULT of 19 years (18 years to first break) and gross to net income ratio of 99%.
- Contractual rental uplifts on 78% of income, 42% of income subject to annual reviews.
- 87% of portfolio EPC A-C rated, 3.3MWp of solar PV added in period, with 3MWp of near term potential.
Occupational activity added £7.7m pa contracted income
- Rent reviews +17% on five yearly equivalent basis, including market reviews +44%.
- Income uplift expected over next 18 months of £26m, 21% embedded reversion on logistics.
Strong financial position provides flexibility and optionality
- FTSE 100 status with scale providing better access to capital as well as external growth and consolidation opportunities.
- Extended maturity on £275m, added/extended £447m of hedging, actively engaged on new £175m facility.
- LTV of 33.8% with weighted average debt maturity of 4.8 years and cost of debt at 4.0% (100% hedged).
Andrew Jones, Chief Executive of LondonMetric, commented:
“Following the transformational LXi deal, we have further cemented our position as the UK’s leading triple net real estate income investor. The benefits of our actions are evidenced by the portfolio’s exceptional income characteristics, our sector leading EPRA cost ratio of 7.6% and our strong financial performance in the period which saw earnings per share grow by 26%.
“Our £6.2 billion portfolio is aligned to the strongest thematics of logistics, convenience, hospitality and healthcare, and is invested in mission critical real estate with high occupier contentment. Importantly, our transactional capabilities, greater scale and strong shareholder alignment is ensuring our portfolio is constantly re-shaping, with £234 million of lower growth disposals and £203 million of high quality acquisitions year to date. This activity along with further external growth and consolidation opportunities that are presenting themselves is supporting our target to grow our logistics exposure to 50% by year end.”
“Our all-weather portfolio with guaranteed rent growth, greater scale and a well positioned balance sheet underpins our earnings growth and our ability to deliver a tenth year of dividend progression and maintain our path to dividend aristocracy. After all, we continue to believe that income compounding is the eighth Wonder of the World – the secret ingredient that creates wealth over time.”