Logistics pays dividends for LondonMetric

LondonMetric Property has reported strong income growth in full year results that show the company’s weighting to logistics reaching 64%.

The company reported 5% growth in EPRA earnings per share to 8.2p and 1.4% growth in EPRA NAV per share to 149.8p.

The performance was driven by 4.6% like-for-like income growth and 3.8% ERV growth. The value of the portfolio also nudged up 1.7% to £1,534m.

LondonMetric has benefited from its increasing exposure to logistics, which has grown from less than half the portfolio two years ago to 64%.

Andrew Jones, chief executive of LondonMetric, said the company would continue to grow its logistics portfolio, as part of its strategy to deliver strong and growing income returns.

“We value income more highly than perhaps others do and we did years ago,” he said. “The only surprise is how few companies embrace the ethos of what a REIT is supposed to be rather than carrying on the same real estate strategies in a different tax wrapper.”

Analysts at Peel Hunt said LondonMetric was “one of the few companies to report positive full-year NAV growth.”

“The premium to NAV of 8% is one of the highest in the sector but investors should concentrate on the 4.6% dividend yield, which is fully covered, growing and backed by one of the strongest income streams,” they said.


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