Londonmetric Property Plc · LSE:LMP
Londonmetric Property — H1 2025 Earnings Presentation
28 slides from Londonmetric Property's earnings presentation, Nov 26, 2024
Slide 1: Half Year Results
Half Year Results Half Year Ended 30 September 2024 www.londonmetric.com
Slide 2: Agenda
AGENDA Highlights Financial Review Property Review Outlook Q&A 2
Slide 3: Overview
Overview Reliable, repetitive and growing income driving strong performance • Cementing our position as the UK’s leading NNN income REIT Rent reviews and regears – LXi takeover delivering cost synergies and earnings progression +17.5% – Exceptional income characteristics, earnings per share up 26.5%
Slide 4: Financial Highlights
Financial Highlights Half Year to 30 Sept 2024 Income Statement Sept 2024 Sept 2023 Change Net contracted rent EPRA Earnings £135.4m £53.1m +155.0% £345.6m Up from £159.0m in Sept 23 EPRA Earnings (pps) 6.64p 5.25p +26.5% Dividend cover Dividend (pps) 5.7p 4.8p +18.8% 117% 100% cash cover Balance Sh
Slide 5: Financial Review
LONDONMETRIC [ay PROPERTY PLC FINANCIAL REVIEW
Slide 6: Income Statement
Income Statement 30 Sept 2024 30 Sept 2023 Change Net rental income Net rental income £193.1m £76.0m +154% Up £117.1m Administrative costs £(12.9)m £(8.6)m Income leakage Net Finance costs £(45.4)m £(16.3)m 1.1% EPRA Earnings £135.4m £53.1m +155.0% Mar 24: 1.0% EPRA Earnings (pps) 6.64p 5.25p +26.5%
Slide 7: Balance Sheet
Balance Sheet 30 Sept 2024 31 March 2024 Property portfolio1 £6,156.8m £6,003.4m Cash £85.5m £111.9m Revaluation1 +£40.9m Debt £(2,155.3)m £(2,087.4)m Fair value of derivatives £23.4m £32.6m EPRA NTA pps Other net liabilities2 £(84.8)m £(119.0)m +2.1% IFRS Equity Shareholders’ Funds £4,025.6m £3,941
Slide 8: Debt Metrics
Debt Metrics Continued disciplined approach to capital structure 30 Sept 2024 31 March 2024 Floating rate debt3 Gross Debt £2,155m £2,087m Fully hedged Until April 2027 Total debt facilities £2,748m £2,790m Hedging 100.0% 100.0% Extended maturity on RCF Average maturity1 4.8 years 5.4 years £275 mil
Slide 9: Financing
Financing Diversified sources of funding and significant flexibility Debt maturity profile (£m) New banking arrangement 900 Drawn Undrawn Further £175m RCF 800 Actively engaged 700 369 FY 26 refinancing 600 Full optionality 500 Varied funding sources incl. sales 400 205 Available cash and debt Activ
Slide 10: Contracted Income Progression (£m)
Contracted Income Progression (£m)1 2 3 1. Net contracted rental income, net of income strip and head lease payments 2. On an exchange basis 10 3. Anticipated uplift in rent to March 2026 from asset management
Slide 11: Delivering Long Term Shareholder Returns
Delivering Long Term Shareholder Returns EPRA Earnings Dividend Total Property Return Total Shareholder Return (pps) (pps) 1 (rebased to 100)2,3 (rebased to 100)2,4 12.0 13.0 350 400 H1 H2 H1 H2 Dividends 11.0 12.0 11.0 Share price 10.0 350 300 9.0 10.0 9.0 8.0 300 8.0 250 7.0 7.0 6.0 250 6.0 5.0 5.
Slide 12: Property Review
LONDONMETRIC [ay PROPERTY PLC PROPERTY REVIEW
Slide 13: The UK's leading NNN REIT
The UK’s leading NNN REIT Full occupancy, exceptional income with longevity and certainty of income growth • Macro trends shape capital allocation decisions to the right thematics Logistics exposure Winning sectors • Aligned to evolving consumer behaviour 45% Conviction sector Occupancy Strongest •
Slide 14: Aligned to structurally supported sectors
Aligned to structurally supported sectors Prioritising asset selection, patience and strong conviction Value1 NIY2 EY WAULT ERVg CVg3 TPR3 30 Sept 2024 (£m) (%) (%) (Years) (%) (%) (%) Convenience, Logistics 2,779 4.7 5.8 12 2.6 1.0 3.4 15.7% Convenience 967 5.8 6.3 13 2.4 0.7 3.8 Logistics, Healthc
Slide 15: Disposals
Disposals Focused on non core, poorer quality and low growth assets • 55 disposals YTD for £234m Offices & Training Centre Retail & Large Food – 3% premium to book, 7.3% NIY – £150m LXi assets now sold at c.4% above acquisition price Other 8% Care homes & Office & car show rooms training centres 13%
Slide 16: Acquisitions
Acquisitions Reinvesting into higher quality assets with better income credentials & higher growth • Buy rather than build strategy Pensions Funds Occupiers / SLBs • 20 acquisitions YTD for £203m – 5.9% NIY growing to 6.7% – 19 logistics assets for £193m • Opportunities from various sellers Develope
Slide 17: Asset Management
Asset Management 166 asset management initiatives in H1 adding £7.7m pa rent Rent reviews (139): +£5.7m pa Like for like income (annualised) – Contractual reviews1: +16% +3.5% +1.7% in six months – Open market reviews: +44% Occupancy +99.0% Lettings & regears (27): +£2.0m pa March 24: 99.4% – WAULT
Slide 18: Actively Improving Asset Quality
Actively Improving Asset Quality Delivering assets fit for the future and playing our part in decarbonisation • Ensuring fit for purpose and desirable real estate • Occupier led approach ensuring retention and partner of choice Adding amenities, upgrading assets & addressing net zero Occupier led pr
Slide 19: Outlook
Outlook All weather and scalable NNN portfolio delivering exceptional income, certainty of income growth and dividend progression • Macro events continue to influence investor sentiment – Gilt rate and swap rate continue to heavily disrupt investment market – Continued interest rate cuts and deceler
Slide 20: Appendices
LONDONMETRIC [ay PROPERTY PLC APPENDICES
Slide 21: Portfolio Metrics
Portfolio Metrics Net Contractual Valuation Revaluation MSCI WAULT Contracted Rent Average Area (Share) Surplus/(Deficit) CVg2,4 Occupancy NIY1 (years) Rent Reviews Rent As at 30 September 2024 (m sq ft) (£m) (£m) (%) (%) (%) (%) Expiry Break (£m) (%) (£psf) Mega distribution 2.4 314.0 2.9 0.9 1.2 1
Slide 22: Investment Strategy
Investment Strategy Focused on thematics, mission critical assets and strong occupiers • Disruptive technologies driving modern shopping habits Distribution • Continued occupational and investment demand • Logistics is our leading sector & strongest conviction call • Economic & generational shifts d
Slide 23: Distribution Portfolio
Distribution Portfolio Aligned to a structurally supported sector enjoying favourable demand/supply dynamics Urban Regional Mega Value £2,779m FY 24: £2,563m Occupancy 98.2% FY 24: 99.4% WAULT 11.8 years • Value: £1,743.6m • Value: £721.2m • Value £314.0m FY 24: 12.4 years • £84.6m rent (£9.20 psf)
Slide 24: Long Income Portfolio
Long Income Portfolio Assets with long, reliable income and contractual uplifts, generating strong property returns Entertainment & Leisure Convenience Healthcare & Education Value £3,223m Contractual Uplifts Theme parks (45%) – Consists of Thorpe Park, Foodstores (46%) – 47 assets let at an average
Slide 25: Income certainty & growth
Income certainty & growth Warrington WAULT: 18.8 years Inflation capture through contractual rent reviews CPI. 0 - 3 y, Our index linked (RPI/CPI) reviews have 100% RPI Linked 6.3% a range of collars and caps typically 1% 90% 4 - 10 y, to 4% over a five-year period: 80% >20 y, 31.0% 18.5% • At 16% i
Slide 26: Top Assets and Occupiers
Top Assets and Occupiers Top 10 Assets – 20% of value Ramsay Rivers Hospital, Sawbridgeworth Alton Towers Park Thorpe Park, Egham Bedford Link, Bedford £6.2bn Primark, T2, Islip Ramsay Rivers Hospital, Sawbridgeworth Bedford Link, Bedford Great Bear, Dagenham Portfolio Great Bear, Dagenham Value Ram
Slide 27: Environmental
Environmental GRESB 2 Star rating: Overview Net Zero Carbon (‘NZC’) Score: 73, >peer average Our focus is on minimising the 1. Our Operations environmental impact of our business, LMP Energy consumption maximising energy efficiency of assets & We have made good progress in minimising our own emissio
Slide 28: Debt Facilities & 'Income strip' financial liability
Debt Facilities & ‘Income strip’ financial liability Lender Facility Drawn1 Maturity2 Debt cost3 Expiry (£m) (£m) (years) (%) Unsecured RCF (2021) Syndicate 225.0 140.0 1.6 Variable 2026 Unsecured RCF (2021) Wells Fargo 175.0 55.0 1.6 Variable 2026 Unsecured RCF (2022) Syndicate 275.0 180.0 3.1 Vari
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