7th Oct 2025 10:21
(Alliance News) - LondonMetric Property PLC on Tuesday said it expects to raise its second-quarter dividend following asset sales and higher rental income in the first half.
The London-based real estate investment trust plans to declare a second-quarter dividend of "the same level" as the first quarter. Back in August, it declared a first-quarter dividend of 3.05 pence per share, up 7.0% from 2.85p a year previous. The second-quarter dividend last year also was 2.85p.
For the six months that ended September 30, LondonMetric reported improved net rental income, which is estimated to have grown nearly 14% to GBP219 million from GBP193.1 million a year prior.
LondonMetric shares traded flat at 182.30 pence on Tuesday morning in London.
The firm cited its triple net lease assets and focus on "reliable, predictable and growing rents". It estimated the NNN portfolio's value at GBP7.4 billion as of Tuesday, with new acquisitions Highcroft Investments and Urban Logistics REIT having closed in the first half of financial 2026.
LondonMetric said of Urban Logistics: "Following a seamless transition, we are close to fully integrating their systems onto our platform. We have already internalised many of the finance functions including rent collection and expect to complete the exercise by end of the calendar year."
LondonMetric estimated mergers and acquisitions added around GBP1.2 billion in assets in the first half, with GBP65 million in acquisitions currently under offer. LondonMetric also expects to report a reduced EPRA cost ratio of 7.7% for the first half, though its target remains below 7.5%.
Disposals of 25 non-core assets totalled around GBP185 million, of which GBP79.6 million took place after the firm's July trading update, and it currently has a further GBP100 million in assets up for sale, LondonMetric said.
Around 10% of the LXi portfolio has been sold for GBP273 million, with LondonMetric adding that it has repaid GBP349 million in former LXi debt facilities against its private hospitals with most at a 5.4% cost of debt. Repayment of a GBP170 million Urban Logistics loan came at a 5.7% cost. The refinancing was funded via a GBP180 million loan and GBP150 million US private placement, with GBP700 million in debt facilities available as of Tuesday.
Occupancy at the end of September was 98% with an average 17-year lease length, rent collection stood at 99,% and annualised like-for-like income growth at 5.2%, up from 2.6% the previous year. The proportion of rent from top ten occupiers has reduced to 33% from 38% on-year.
LondonMetric said it has added GBP9.4 million per annum in contracted rent since the end of March, up from GBP3.0 million at the start of July through a combination of rent reviews, lettings and regearings.
LondonMetric added that it expects planning consent for a new M&S store in Blackpool "shortly", with three other stores under construction and a new distribution site in Avonmouth on schedule to complete next summer.
The company will publish interim results on November 20.
By Holly Munks, Alliance News reporter
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