REG - LondonMetric - TRADING UPDATE AHEAD OF FULL YEAR RESULTS

Londonmetric PropertyAnnouncement

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RNS Number : 6519A  LondonMetric Property PLC  16 April 2026

16 April 2026

LONDONMETRIC PROPERTY PLC

TRADING UPDATE AHEAD OF FULL YEAR RESULTS

Ahead of the Company's full year results on 21 May 2026, LondonMetric Property
Plc ("LondonMetric") provides a trading update for the year ended 31 March
2026.

 

Strong rental income growth and dividend growth

Our £7.6 billion NNN portfolio has continued to perform well following the
successful integration of Urban Logistics REIT ("ULR") and our ongoing
investment and asset management activity. Our efficient platform is
underpinned by the strongest thematics across the real estate sector and is
generating excellent income returns.

At the year end, our key metrics remained strong with a c.16% increase in our
net rental income to over £450 million, occupancy at 98%, average lease
lengths of 17 years and 4.2% like for like income growth. Our rent reviews
delivered an average uplift of 19%* with logistics open market reviews
delivering an uplift of 38%. Our sector leading EPRA cost ratio continued to
fall over the year to 7.7% and we expect it to reduce further.

With strong confidence in delivering future sustainable income growth, we
expect to report a full year dividend per share increase of 4% to 12.45 pence,
our eleventh year of progression.

Investment activity

Our non-core disposals continue to progress well. Over the financial year, we
sold 57 assets for £318 million at a blended NIY of 5.7% and with a WAULT of
12.5 years. These sales were in line with prevailing book values and included
41 former LXi REIT and ULR assets, which netted £171 million.

We have now sold 72 LXi REIT assets for £298 million, (11% of the original
portfolio) and 17 ULR assets for £55 million (5% of the original
portfolio).

Since our last update to the market, we have sold a further 20 assets for £57
million comprising:

·      11 urban logistics assets with a WAULT of four years, sold for
£31.0 million, nine of which were former ULR assets;

·      Five Travelodge hotels, sold for £17.2 million; and

·      Four convenience/DIY assets, sold for £9.0 million, including a
drive thru sold at a 4.2% NIY.

Over the year, we made 35 direct investments totalling £333 million, with a
WAULT of 33 years and at a blended NIY of 5.5% which rises to c.6.1% over the
next five years. This is in addition to the £1.2 billion of assets acquired
through M&A.

More recently we have acquired ten assets for £79 million comprising:

·      Four modern Premier Inn hotels (570 bedrooms) with a WAULT of 22
years, acquired for £47.8 million, reflecting a blended NIY of 5.6%. The
majority were acquired through a sale and leaseback and all are guaranteed by
Whitbread PLC with CPI linked rent reviews;

·    A 106,000 sq ft recently developed logistics unit in Irlam, Greater
Manchester, acquired for £12.1 million; and

·    A further £19.1 million of assets, including the c.300-bedroom Crown
Plaza hotel at Manchester Airport.

 

Asset management activity

Operationally, our portfolio continues to perform well and occupier demand
remains strong. Over the year, c.£16.5 million pa of contracted rent was
added from 327 asset initiatives:

·    258 rent reviews added c.£11 million pa of rent with average uplifts
of 19%*. Logistics reviews delivered an average uplift of 21% (open market:
+38%); and

·      69 lettings and regears added c.£6 million pa of rent, 16 of
which were former ULR assets adding £2 million pa.  These deals had a WAULT
of ten years and regears delivered an average rental uplift of 23%.

Financing activity

LondonMetric has continued to proactively strengthen and diversify its funding
position over the year by refinancing £1.5 billion of debt, raising new debt
of £1.2 billion and repaying £1.1 billion.

This activity included a £500 million debut senior unsecured bond issue in
December 2025, rated A- by Fitch, which extended debt maturity and broadened
access to the public debt markets at an attractive rate of 4.69%. It also
included the refinancing of £1.5 billion of unsecured bank facilities in
March 2026, which introduced longer‑dated term loans and revolving credit
facilities, reduced margins and commitment fees.

As at the year end, LondonMetric's average drawn debt maturity was 4.4 years
with only £0.2 billion of debt expiring over the next two years, which will
be met from sales and/or c.£0.5 billion of undrawn debt facilities. We remain
confident that we can manage our finance costs to ensure they do not increase
materially over the next few years.

 

Andrew Jones, Chief Executive of LondonMetric, commented:

"Despite macro uncertainty, volatile bond yields and reduced liquidity, we
have continued to improve the quality of the portfolio with some excellent
disposals and acquisitions.

 

"Our all-weather portfolio continues to deliver excellent income growth as we
benefit from our alignment to the winning sectors. We are reaping the rewards
of this strategy, and it is wonderfully comforting to see our rental income
flowing and growing to record levels. This continued income compounding is
enabling us to deliver our eleventh consecutive year of dividend
progression."

 

* weighted average uplift above previous passing rent on a five yearly
equivalent basis.

 

For further information, please contact:

LondonMetric Property Plc

Andrew Jones / Martin McGann / Gareth Price

Tel: +44 (0) 20 7484 9000

FTI Consulting

Dido Laurimore / Andrew Davis

Tel: +44 (0) 20 3727 1000

londonmetric@fticonsulting.com

 

About LondonMetric Property Plc

LondonMetric is the UK's leading triple net lease REIT with an £8 billion
portfolio aligned to structurally supported sectors of logistics, convenience,
healthcare, entertainment and leisure. It owns and manages desirable real
estate that meets occupiers' demands, delivers reliable, repetitive and
growing income-led returns and outperforms over the long term.

Further information is available at www.londonmetric.com

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