Expanded LondonMetric posts sharp earnings growth
By Josh White
Date: Tuesday 20 May 2025
(Sharecast News) - LondonMetric Property posted a sharp rise in annual earnings and dividends on Tuesday, as rental income surged following strategic acquisitions and active portfolio management.
For the year ended 31 March, EPRA earnings more than doubled to £268m, while net rental income rose 123% to £390.6m.
The FTSE 100 company increased its dividend by 17.6% to 12p per share, with a further rise to 3p announced for the first quarter of 2026.
It reported IFRS profit of £347.9m, up from £118.7m a year earlier, and a total property return of 8.3%, outperforming the MSCI benchmark by 200 basis points.
EPRA net tangible assets per share grew 3.9% to 199.2p, and total accounting return reached 9.7%.
Like-for-like rental income rose 4.2%, contributing to a valuation uplift of £106m.
LondonMetric added £1.2bn of assets through the acquisitions of Urban Logistics REIT and Highcroft Investments, while maintaining a logistics weighting of 46% across its £6.2bn portfolio.
The company emphasised its secure income profile, with a weighted average unexpired lease term of 18.5 years, 98% occupancy, and 77% of rental income subject to contractual uplifts.
Net debt stood at 32.7% loan-to-value, with the cost of debt at 4% and fully hedged.
The group noted that it retained a BBB+ credit rating and said it expected further income growth, particularly from embedded reversion in logistics assets.
"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," said chief executive officer Andrew Jones.
"We have integrated the £3bn of assets acquired through the LXi takeover, transacted on over £680m 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."
Jones said that in an environment where scale was "essential", the company's £6bn portfolio was set to grow by a further £1bn through merger and acquisition activity which would add to the company's urban logistics exposure - its "strongest conviction" call sector for rental growth.
"Our strong performance and execution reflect over 10 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 10 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."
At 0911 BST, shares in LondonMetric Property were up 0.67% at 195.3p.
Reporting by Josh White for Sharecast.com.
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