Business
Trading Update Ahead of Half Year Results
LondonMetric Property PLC reported strong rental income growth, anticipating a 14% increase in net rental income to £219 million for the six-month period ended September 30, 2025. The EPRA cost ratio is expected to reduce to 7.7%, with a target below 7.5%. Occupancy remained high at 98%, with average lease lengths of 17 years and rent collection at 99.4%. The first quarter dividend increased by 7% to 3.05 pence, with the same level expected for the second quarter. The company sold 25 assets for £185 million and has £100 million of sales under offer. M&A activity added £1.2 billion of assets, with further acquisitions of £83 million. They also added £9.4 million pa of contracted rent from 150 asset initiatives. Disclaimer*
About this update from Londonmetric Property Plc
[{"type":"text","content":"\n\n7 October 2025\n\nLONDONMETRIC PROPERTY PLC\nTRADING UPDATE AHEAD OF HALF YEAR RESULTS\nAhead of half year results on 20 November 2025, LondonMetric Property Plc (\"LondonMetric\") provides an update for the six-month period ended 30 September 2025 (\"period\").\n \nStrong rental income growth and dividend growth\nOur £7.4 billion NNN portfolio has continued to perform strongly following the acquisitions of Highcroft Investments and Urban Logistics REIT (\"ULR\"). Our efficient platform continues to demonstrate excellent income generation with a focus on reliable, predictable and growing rents, aligned to the strongest thematics.\nConsequently, we expect to report a 14% increase in our net rental income over the period to £219 million and a further reduction in our EPRA cost ratio to 7.7%. We continue to target a cost ratio below 7.5%.\nAt the end of the period, occupancy remained high at 98% with average lease lengths of 17 years, rent collection is at 99.4% and annualised like for like income growth was 5.2% (H1: 2.6%) helped by strong contractual and open market rent reviews. Income granularity has continued to improve with our top ten occupiers accounting for 33% of rent, down from 38% last year.\nOur confidence in delivering earnings growth has allowed us to increase the first quarter dividend by 7% to 3.05 pence, and we will declare the same level of dividend for the second quarter, putting us well on track for our eleventh year of dividend progression.\nInvestment activity focused on non-core disposals from M&A\nOver the period, LondonMetric has sold 25 assets for £185 million, in line with 31 March 2025 book values (acquisition values for ULR and Highcroft assets). 63 non-core LXi assets have now been sold for £273 million, representing almost 10% of the original LXi portfolio. \nSince our July trading update, eleven assets have been sold in ten transactions for £79.6 million:\n· Five former LXI assets sold for £55.6 million, the largest of which is a 125,000 sq ft Sainsbury's supermarket in Middlesbrough;\n· Five urban logistics assets in the Midlands, Newcastle, Perth and Bedford sold for £21.3 million, three of which are former ULR assets with a weighted average term certain of two years; and\n· A Wickes DIY store in ...