LondonMetric to raise dividend after 'strong' rent collection
By Josh White
Date: Thursday 02 Jul 2020
(Sharecast News) - LondonMetric Property said on Thursday that 95% of advance rental payments due up to 24 June had been collected, or was being collected monthly.
The FTSE 250 company reported that a further 3% was expected to be received "imminently", while the remaining 2% was in discussions - less than half of which was expected to be forgiven.
It said the proportion of rental income that was received monthly in advance, instead of quarterly, remained unchanged at 18%.
On the distribution portfolio, 97% of rent had been collected or was being collected monthly, alongside 95% of rent for the long income portfolio.
In light of that "strong" rent collection, and in line with its progressive dividend policy, the company said it was intending to increase its first quarterly dividend for the financial year ending 31 March 2021.
The dividend would be announced at the end of August, and paid in early October, the board said.
LondonMetric also said it had now completed on £54.5m of disposals, comprising two distribution warehouses in Doncaster, let to Next and DFS, as well as an Audi car dealership in Cheltenham, which was acquired through the Mucklow portfolio.
Those transactions had been announced previously, and were subject to delayed completion, with the three assets having a weighted average unexpired lease term of six years.
"Our high levels of rent collection for this quarter continue to reflect both the strength and resilience of the portfolio and our deep occupier relationships," said chief executive officer Andrew Jones.
"It is particularly encouraging that rent collection of 95% compares favourably with the last quarter where, at the same stage in April, the equivalent number was 85%.
"This strong performance, along with the rapid deployment of the proceeds of our equity raise, gives us the confidence to announce our intention to increase our first quarterly dividend."
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