Londonmetric Property (LMP) H2 2024 earnings summary

Executive summary

• Completed transformational mergers with LXi REIT and CT Property Trust, doubling the portfolio to £6.0bn and creating a leading UK triple net REIT focused on logistics, convenience, healthcare, and entertainment.

• Net contracted rent rose from £145m to £340m, with sector-leading income metrics and a focus on structurally supported sectors.

• Achieved 20.6% growth in net rental income and 20.3% increase in EPRA earnings, supporting a 7.4% dividend increase and strong dividend cover.

• Portfolio repositioned to 54% long income and 43% logistics, with logistics expected to exceed 50% next year.

• Maintained high occupancy (99.4%) and WAULT of 19.4 years, with 79% of income benefiting from contractual uplifts.

Financial highlights

• Net rental income up 20.6% to £177.1m; EPRA earnings up 20.3% to £121.6m; EPRA EPS 10.9p, up 5.4%.

• Dividend per share increased 7.4% to 10.2p; Q1 2025 dividend of 2.85p (+18.8% YoY); FY25 dividend target 12p (+17.6%).

• EPRA NTA per share at 191.7p, down 3.6% due to merger costs; LTV stable at 33.2%.

• IFRS profit of £118.7m, reversing a prior year loss of £506.3m.

• Total property return of 4.7%, outperforming the MSCI/IPD All Property Index by 570 bps.

Outlook and guidance

• Market environment stabilizing as inflation falls, but debt costs remain high; swap rates need to fall for full liquidity to return.

• Dividend progression expected to continue, targeting a tenth consecutive year and a 12p per share dividend for FY2025.

• Portfolio reshaping underway, focusing on operationally strong assets in logistics and long income sectors.

• Visibility on £23m of rental uplifts over the next two years from rent reviews and regears.