LondonMetric announces its annual results – LondonMetric (LMP) is a Real Estate Investment Trust (REIT) that specialises in distribution, convenience and long income property. LMP is a constituent of the FTSE 250. It focuses on strong and growing income and adding value through asset management initiatives and short cycle developments. LondonMetric has 14 million sq ft under management.
The company has released its annual results for the year ended 31 March 2018.
Headlines
Income Statement
- EPRA earnings up 15.9% to £59.1m, up 3.7% on a per share basis
- Net rental income up 10.8% to £90.6m, reflecting full benefit of equity raise and portfolio activity
- Reported profit of £186.0m driven by £121.6m revaluation surplus, reflecting a 7.1% valuation uplift
Dividend increased 5.3% to 7.9p, 108% dividend cover
- Fourth quarterly interim dividend declared of 2.35p
Balance Sheet
- EPRA NAV per share up 10.3% to 165.2p (2017: 149.8p)
- Portfolio valued at £1,842.0m with a 28bps equivalent yield compression
- Total Property Return of 13.7% against IPD All Property of 10.1%
- Total Accounting Return of 15.5%
Distribution weighting increased to 69%
- Distribution acquisitions of £306.4m at 5.9% yield
- Regional distribution sales of £88.2m at 5.3% yield
- Urban logistics grown to 45 assets, representing 29% of our end to end logistics portfolio
- Non distribution disposals of £163.4m, including sale of our last office investment
- Long income, convenience and leisure acquisitions of £78.5m at 6.2% yield
Income growth from asset management
- £3.1m pa income uplift from rent reviews and lettings. New leases signed with WAULT of 15.2 years
- £1.3m pa income uplift on property, plant and equipment, including four distribution rent reviews and lettings at 28% above passing
- 4.3% like-for-like income growth and 3.1% ERV growth
Short cycle developments creating future long income at attractive yields
- 1.0m sq ft in construction or pipeline at 6.5% yield on cost, of which 0.3m sq ft completed post year end
- Detailed terms on 350,000 sq ft at the company’s Bedford development, underwriting a 7.0% yield on cost
Portfolio metrics reflect our focus on long income, contractual uplifts and low operational requirements
- WAULT of 12.4 years with only 6% of income expiring within three years
- 50.3% of income subject to contractual uplifts, 98.7% gross to net income ratio
Finances strengthened and improved
- Debt maturity of 4.8 years
- Average cost of debt fallen from 3.5% to 2.8%
- Cancellation and recouponing of interest rate swaps with short payback period
- EPRA cost ratio reduced to 15%
LMP : LondonMetric announces its annual results