“The additional £1.2 billion of assets we have added through M&A in the half year period has further established LondonMetric as the UK’s leading triple net lease REIT. Our investment in the winning sectors and assets through our low cost and efficient platform continues to deliver strong income and attractive rental growth.”
Chief Executive
Highlights
Focus on best assets in winning sectors drives rents, earnings and dividend
- Net rental income increased 14.6% to £221.2m, 3 months’ contribution from Urban Logistics REIT (‘ULR’) takeover
- EPRA earnings up 9.7% to £148.6m, +1.5% on a per share basis to 6.7p (+28% over two years)
- Sector leading EPRA cost ratio at 7.7%
- Dividend increased 7.0% to 6.1p, 111% covered by earnings, including Q2 dividend declared today of 3.05p
Delivering reliable, repetitive and growing income
- Total property return of 3.3% (50bps outperformance of MSCI), yields flat and ERV growth of 0.9%
- Like for like annualised income growth of 5.2% (6 months: +2.6%), generating valuation uplift of £29.1m
- EPRA NTA per share up 0.2% to 199.5p
- IFRS reported profit of £130.3m (H1 2025: £163.8m)
- Total accounting return +4.1% (+3.3% including M&A costs)
Portfolio aligned to strongest thematics and mission critical assets
- Portfolio value of £7.4bn (2025: £6.2bn) with logistics weighting increasing from 46% to 54%
- £1,298.9m acquired in period (91% urban logistics) including ULR assets, £55.4m acquired post period end
- £185.3m disposed in period, £26.3m sold post period end
Activity enhancing portfolio quality and strength of income
- WAULT of 16.4 years, gross to net income ratio of 98.5% and occupancy at 98.1% reflecting addition of ULR assets
- Contractual rental uplifts on 67% of income, down from 77%
- Top ten occupiers represent 33% of rent, down from 38%
- Asset management activity added £10m pa of net contracted income
- Rent reviews +18% on five yearly equivalent basis, with logistics market reviews +27% (5% CAGR)
- Income uplift expected over next 18 months of £28m, 16% embedded reversion on logistics
- 91% of portfolio EPC A-C rated with 2.5MWp of solar PV added
Scale delivering economies of opportunities and enhancing our debt structure
- Successfully completed further £1.2bn of accretive M&A
- LTV at 35.1%, debt maturity of 4.2 years and cost of debt at 4.1%
- £730m of new unsecured debt facilities signed and £724m of secured facilities repaid year to date
- Benefitting from greater debt optionality, credit rating and liquidity in shares