LondonMetric Property (LON: LMP) shares are down a modest 0.1% so far on Monday after the company revealed that net rental income rose more than 8% to c.£240m in the six months to the 30th of September 2026. The UK-listed property landlord cited last year’s acquisition of Urban Logistics REIT (ULR), high occupancy and strong rent review and leasing activity in a trading update.
Rent reviews, where leases reset to current market levels, lifted rents by an average 17% on a five-yearly equivalent basis, adding £7.9m a year. Logistics reviews added £3.2m at a 24% uplift. Annualised like-for-like income growth was 5.8%, or 2.9% over the six months.
Annual net contracted rent now stands at £452m, up from £432m at the start of the period. Rent collection was 99.3% and occupancy 97.4%, despite vacancy inherited from the recent Picton Property takeover.
The five-year swap rate rose about 50 basis points over the period, yet valuations were flat. The company links that to strong income growth and its alignment to the best sectors.
Property professionals are watching interest rates like traders but, despite elevated swap rates and reduced liquidity, we have continued to execute excellent disposals and reinvestments.
Andrew Jones, chief executive of LondonMetric
The first-quarter dividend was raised 3.3% to 3.15p, and LondonMetric expects the same for the second quarter, putting it on track for a twelfth consecutive year of dividend progression. The company says that, on analysts’ dividend-per-share consensus of 12.8p for FY27, the prospective, fully covered dividend yield is 7.1%.
The company also said it is firmly on track to meet consensus EPRA earnings per share of 13.9p for FY27, which it says would be an increase of almost 40% over five years.
LondonMetric sold £185m of assets across 36 properties at a blended net initial yield of 6.6%, in line with book values at the 31st of March. It has now sold £563m of former LXi and ULR assets in total.
Acquisitions came to £424m, including £307m through Picton, of which 83% was logistics warehouses, and £117m of direct property bought at a 6.5% net initial yield. Further deals are under offer, including foodstore development fundings pre-let to Lidl, M&S, Tesco and Waitrose.
Half-year results are due on the 24th of November 2026.