LondonMetric Property plc has sold a 22,000 sq. ft. retail development in Berkhamsted let to M&S Simply Food and Costa Coffee at a price equivalent to an initial yield of 4.5%; is getting £15.2m for its Odeon Multiplex in Huddersfield (an initial yield of 6.1%); and is selling three DFS warehouse units in Ashby, Droitwich and Bury St. Edmunds for £17.1m (an initial yield of 7.8%). At the same time it is buying a 152,000 sq. ft Royal mail distribution depot in Rotherham for £10.3m (an initial yield of 6.0%).
In its results for the year ended 31 March 2014, LondonMetric Property plc announced that its EPRA NAV rose by 11.0% over the year as its property portfolio was revalued upwards by 8.5%. It is maintaining its dividend at 7.0p per share. Overall its total return on property was 17.0% which compares well to the IPD index return of 13.4%. Occupancy rose to 99.6% from 94.5%.
The period was a busy one for the portfolio with sales totalling £568m outweighing purchases of £406m. On the back of this and the revaluation surplus, the Loan to Value ratio fell to 32% from 43% and the weighted average cost of debt fell to 3.9% from 4.0%. The portfolio is now more focused on their core markets of out-of-town retail and distribution and as yields on properties sold were lower than those of properties acquired, the rent roll has increased, improving dividend cover.