LondonMetric Property Sees Strong Income Growth

LondonMetric Property Plc (LON: LMP) has signaled a robust performance for the six-month period ending September 30, 2025, projecting a 14% increase in net rental income to £219 million.

The trading update has been released ahead of the company's full half-year results on November 20, 2025.

The company's £7.4 billion NNN portfolio, bolstered by the acquisitions of Highcroft Investments and Urban Logistics REIT (ULR), continues to generate reliable and growing rental income.

LondonMetric is also making strides in cost efficiency, expecting a reduction in its EPRA cost ratio to 7.7%, with a target of falling below 7.5%.

Occupancy rates remain high at 98%, with an average lease length of 17 years and rent collection at an impressive 99.4%. Annualized like-for-like income growth reached 5.2%, a significant increase from the first half's 2.6%, fueled by strong contractual and open market rent reviews.

The company has also improved income granularity, with the top ten occupiers now accounting for 33% of rent, down from 38% last year.

LondonMetric's confidence in delivering earnings growth is reflected in a 7% increase in the first quarter dividend to 3.05 pence. The company intends to declare the same dividend for the second quarter, positioning it well for its eleventh consecutive year of dividend progression.

Investment activity during the period focused on disposals of non-core assets from the M&A deals. LondonMetric sold 25 assets for £185 million, aligning with book values as of March 31, 2025.

The company's M&A activity has added £1.2 billion of assets, with a further £83 million acquired. An additional £65 million of acquisitions are currently under offer, and LondonMetric remains engaged in investment opportunities, including sale and leasebacks, development fundings, portfolios, and M&A.

Asset management initiatives are generating attractive rental growth. Since March 31, 2025, LondonMetric has added £9.4 million per annum of contracted rent from 150 asset initiatives, up from £3.0 million per annum reported in early July.

Rent reviews were settled on 122 assets, adding £6.3 million p.a. of rent at an average uplift of 18% above previous passing rent on a five-yearly equivalent basis.

LondonMetric has refinanced debt, replacing secured debt inherited from M&A with similar-costing unsecured debt with extended terms. The company repaid £349 million of former LXi facilities secured against private hospitals and a £170 million ULR secured term loan and RCF. These repayments were partly funded through a new £180 million unsecured three-year term loan and a new £150 million US private placement.