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 the UK's leading Triple Net Lease REIT, with a sector-focused strategy on logistics, convenience, healthcare, and entertainment.

• Net contracted rent rose from £145m to £340m, with sector-leading income metrics and a disciplined approach to capital allocation and ongoing portfolio pruning.

• 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 rose 20.6% to £177.1m; EPRA earnings up 20.3% to £121.6m; EPRA EPS up 5.4% to 10.9p.

• Dividend per share increased 7.4% to 10.2p, marking the ninth consecutive year of growth; FY25 dividend target set at 12p, up 17.6%.

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

• EPRA NTA per share at 191.7p, down 3.6%, mainly due to merger-related costs.

• LTV stable at 33.2%; weighted average debt maturity 5.4 years; cost of debt 3.9% (fully hedged).

Outlook and guidance

• Q1 2025 dividend set at 2.85p, up 18.8% year-over-year; targeted FY 2025 dividend of 12p, a 17.6% increase.

• Embedded reversion of £23m in rental growth expected over the next two years.

• EPRA cost ratio expected to improve to 8% in FY2025 as cost synergies from mergers are realized.

• Market environment seen as stabilizing, with falling inflation and swap rates expected to improve liquidity.

• Continued focus on reshaping and simplifying the portfolio, prioritizing income growth and operationally strong assets.