LondonMetric reports strong full-year earnings growth, eyes dividend boost

Published 20/05/2025, 08:04
© Vuk Valcic / SOPA Images/Sipa US via Reuters Connect

Investing.com -- LondonMetric delivered a strong increase in full-year earnings, underscoring the strength of its triple net lease strategy, disciplined capital allocation, and increasing focus on logistics.

For the year ended 31 March 2025, net rental income rose 123% to £390.6 million, driven by the full-year impact of the LXi REIT and CT Property Trust acquisitions.

EPRA earnings more than doubled to £268.0 million, while earnings per share rose 20.7% to 13.1p. IFRS profit reached £347.9 million.

The annual dividend was raised 17.6% to 12.0p per share and is 109% covered by earnings, the company said. 

LondonMetric reported a total property return of 8.3%. The EPRA net tangible assets (NTA) per share increased by 3.9% to 199.2p. Portfolio valuation rose by £106 million, underpinned by like-for-like income growth of 4.2%.

The group increased its logistics weighting to 46% after £297 million of logistics acquisitions, and expects this to rise to 55% following the planned acquisitions of Urban Logistics REIT and Highcroft.

Logistics assets saw rent reviews settled at 19% above previous levels, with urban logistics open market reviews up 48%. Urban logistics delivered a 7.6% property return and 4.7% ERV growth.

Asset sales totaled £342 million, largely from non-core LXi and CTPT holdings. Disposals were reinvested into higher-quality assets, supporting long-term income growth. The long income portfolio remains stable at £3.2 billion and contributed an 8.6% total property return.

Looking ahead, the company expects further rental growth and guides to a 5.3% increase in the Q1 FY26 dividend. 

"Looking forward, we will benefit from collecting additional income from our highly reversionary logistics assets as well as the guaranteed uplifts on our long income assets with an additional £27 million of rental uplift expected over the next two years from the existing portfolio," LondonMetric said in the release.

 

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