Annual Report and
Accounts 2023
Real
estate for
reliable
inc ome
Strategic report
01
An overview, purpose and strategy
Our purpose 1
Performance highlights 10
Chair’s statement 11
At a glance 12
Our strategic priorities 14
Chief Executive’s review 15
The world around us 22
Creating value
Our markets 24
Business model 28
Key performance indicators 30
A review of our performance
Property review 32
Financial review 46
Our sustainability performance
Responsible Business
and ESG review 54
TCFD Recommendation
and Alignment 77
A review of our risk
Risk management
and internal controls 82
Risk management update 86
A review of our principal risks 88
Going concern and viability 100
Governance
102
Governance overview 102
At a glance 104
Board leadership and
Company purpose
Chair’s introduction 106
Board of Directors 108
Management team 110
Our cultural framework 112
The Board in action 115
Section 172 Statement 118
Board meetings
and attendance 120
Division of responsibilities
Leadership framework 121
Leadership roles
and responsibilities 122
Nomination
Committee report 124
Audit Committee report 132
Remuneration
Committee report 139
Report of the Directors 171
Directors’ Responsibilities
Statement 174
Financial statements
175
Independent Auditor’s report 176
Group financial statements 182
Notes forming part of the
Group financial statements 186
Company financial statements 208
Notes forming part of the
Company financial statements 210
Supplementary information 215
Glossary 222
Notice of Annual
General Meeting 224
Financial calendar 232
Shareholder information 232
LondonMetric
is a FTSE 250 business that owns one of
the UK’s leading listed logistics platforms
alongside a grocery-led long income portfolio.
We own £3bn of assets across 16.5m sq ft and
generated £147m net rental income in the year.
Governance
Own Manage Collaborate Generate
Our purpose
Own desirable real
estate that meets
occupiers’ needs.
Manage and enhance
responsibly to improve
our assets and help
occupiers thrive.
Maximise our expertise
and relationships to
build on our position
as partner of choice.
Generate reliable,
repetitive and
growing income-led
total returns.
10.33p
EPRA Earnings per share
-£506.3m
IFRS reported loss
9.5p
Dividend for the year, with cover of 109%
£2.0bn
IFRS net assets
£147m
Net rental income
198.9p
EPRA Net Tangible Assets per share
102-174
Governance
175-232
Financial statements
1
LondonMetric Property Plc Annual Report and Accounts 2023
1-101
Strategic report
Portfolio aligned
to macro trends
& structural
tail winds
Disciplined investment
strategy to ensure
portfolio remains fit
for purpose
We are continually
upscaling the quality
of the portfolio to
ensure it remains
fit for purpose and
can deliver strong
income growth.
Valentine Beresford
Investment Director
Own desirable real estate.
Our investment strategy is
focused on owning quality
assets in the winning sectors
that are underpinned by
strong and growing income.
Our focus on distribution and long income
Own
£3.0bn
portfolio of assets, 73% of which is
invested in logistics assets, primarily
focused on urban logistics
Desirable
assets
43.1%
30.0%
23.8%
Urban logistics
Regional & mega logistics
Long income
An overview, purpose and strategy
2
LondonMetric Property Plc Annual Report and Accounts 2023
102-174
Governance
175-232
Financial statements
1-101
Strategic report
Own the right
assets in the right
locations with high
residual values
Create enduring
occupier appeal
What we're doing
• Aligning portfolio to urban areas
• Selling mature/non core assets
where strong income and/or
income growth is less certain
• Reacting to bids for our assets
where the price offered exceeds
our own expectations
• Positioning the Company to
be ready to take advantage
of future opportunities
43%
Urban logistics exposure
as a proportion of our portfolio
£273m
Disposals in year
£120m
Acquisitions in the year
Ensuring our assets are fit
for purpose and will deliver
income growth
View all of our properties
on our interactive map
londonmetric.com/portfolio
Why it's important to us
Our focus on the macro trends and how they
define the winners and losers in real estate has
served us well over the years and continues to
influence where we invest our capital.
We continue to prioritise asset selection, patience and strong
conviction in the structural tailwinds of our preferred sectors.
When you choose real estate for its quality and location,
you are more likely to be a price setter than a price taker
as occupiers will need you more, you can attract quality
companies at higher rental levels and be more confident
of future rental growth.
102-174
Governance
175-232
Financial statements
3
LondonMetric Property Plc Annual Report and Accounts 2023
1-101
Strategic report
Manage and enhance
responsibly. Securing and
enhancing our strong income
metrics as well as improving
the quality and sustainability
of our assets.
Manage
1.1m sq ft
of lettings and regears
signed during the year
Improving
and upgrading
10 years
WAULT on lettings and regears
in the year
167
Occupier initiatives undertaken
in the year delivering 5.0% like
for like income growth
An overview, purpose and strategy
4
LondonMetric Property Plc Annual Report and Accounts 2023
102-174
Governance
175-232
Financial statements
1-101
Strategic report
+£7.8m
Additional income from
lettings and rent reviews in year
+0.7m
Sq ft of BREEAM Very Good
developments completed in the year
Why it's important to us
The period of very low interest rates is over.
Therefore, investors will be more focused on delivering
growth opportunities from both the macro and structural
shifts but also asset management initiatives that can deliver
higher levels of income as well as improve the quality of
buildings to generate higher occupier contentment.
Learn more on page 24
What we’re doing
• Strengthening our income through
extending lease lengths and signing
new leases with long WAULTs
• Upgrading the quality and
sustainability of assets through
development, refurbishment and
environmental improvements,
often in conjunction with occupiers
• Capturing rental growth embedded
in the portfolio
Learn more on page 34
Our buildings need to
meet increasingly higher
occupier expectations
102-174
Governance
175-232
Financial statements
5
LondonMetric Property Plc Annual Report and Accounts 2023
1-101
Strategic report