Londonmetric Property Plc · LSE:LMP
Londonmetric Property — FY2025 Earnings Presentation
31 slides from Londonmetric Property's earnings presentation, May 20, 2025
Slide 1: Full Year Results
Full Year Results Year Ended 31 March 2025 www.londonmetric.com
Slide 2: Disclaimer
Disclaimer The information contained in this presentation in respect of LondonMetric Property Plc (the “Company”) and communicated during any delivery of this presentation whether orally or in writing, including the talks given by the presenters, any question and answer session and any document or m
Slide 3: Agenda
AGENDA Highlights and M&A Financial Review Property Review Outlook & Focus Q&A 3
Slide 4: Overview
Overview Reliable, repetitive and growing income driving strong performance • The UK’s leading NNN income REIT Portfolio – Earnings per share up 21%, exceptional income characteristics £6.2bn – Dividend progression of 18% EY: 6.3% – Cost synergies captured, sector leading EPRA cost ratio of 7.8% Ren
Slide 5: Financial Highlights
Financial Highlights Full Year to 31 March 2025 Income Statement March 2025 March 2024 Change Net rental income £390.6m EPRA Earnings £268.0m £121.6m +120.4% Up from £175.3m EPRA Earnings (pps) 13.1p 10.9p +20.7% Dividend progression Dividend (pps) 12.0p 10.2p +17.6% 10 years Q1 26: +5.3% expected B
Slide 6: Recommended Offer for Urban Logistics REIT
Recommended Offer for Urban Logistics REIT Excellent transaction, growing our urban logistics and supporting our triple net strategy Consolidates LondonMetric’s 1 position as the UK’s Leading £4.5bn Triple Net REIT Market Cap2 Offer value £699m Combined £7.3bn Portfolio 0.5612 shares & 42.8p cash 2
Slide 7: Significantly upweighting our logistics
Significantly upweighting our logistics £7.3bn combined structurally supported portfolio materially increasing logistics exposure LondonMetric1 Urban Logistics REIT2 Pro Forma Other Other 2% 1% Entertainment Entertainment & Leisure & Leisure 21% 18% Logistics 46% Logistics £6.2bn £1.1bn Healthcare 1
Slide 8: Financial Review
LONDONMETRIC [ay PROPERTY PLC FINANCIAL REVIEW
Slide 9: Income Statement
Income Statement 31 March 31 March Change Net rental income 2025 2024 +123% Net rental income £390.6m £175.3m +122.8% Full year benefit of LXi Administrative costs £(27.1)m £(19.7)m Income leakage Net Finance costs £(97.1)m £(37.4)m 1.2% Mar 24: 1.0% EPRA Earnings £268.0m £121.6m +120.4% EPRA cost r
Slide 10: Balance Sheet
Balance Sheet 31 March 2025 31 March 2024 Revaluation Property portfolio1 £6,155.3m £6,003.4m +£106.0m Cash £81.2m £111.9m Debt £(2,073.2)m £(2,087.4)m EPRA NTA pps +3.9% Fair value of derivatives £23.7m £32.6m Other net liabilities £(92.8)m £(119.0)m Total accounting return IFRS Equity Shareholders
Slide 11: Debt Metrics
Debt Metrics Continued disciplined approach to capital structure 31 March 2025 31 March 2024 Credit rating Gross Debt £2,073m £2,087m BBB+ Increases options for financings Total debt facilities £2,922m £2,790m New facility Hedging 100.0% 100.0% £175 million Signed in year Average maturity1 4.7 years
Slide 12: Financing
Financing Diversified sources of funding and significant flexibility Debt maturity profile (£m)1 Additional RCFs signed PPE £350 million 900 JPMorgan & Lloyds Drawn Undrawn PPE 800 Access to debt markets 700 Full optionality 600 - Varied funding sources 408 200 500 Two RCFs signed Available cash and
Slide 13: Net Contracted Income Progression
Net Contracted Income Progression (£m) 500 14.4 451.2 450 63.3 400 27.0 373.5 350 340.4 6.1 300 250 200 150 100 50 0 1 2 Mar-25 Highcroft M&A LMP Income Mar-27 Current 3 Reversion 4 Proforma growth (2yrs) 1. As reported in Highcroft year end results 2. Expected income growth on LondonMetric’s existi
Slide 14: Delivering Long Term Shareholder Returns
Delivering Long Term Shareholder Returns EPRA Earnings Dividend Total Property Return Total Shareholder Return (pps) (pps) (rebased to 100)1,2 (rebased to 100)1,3 14.0 13.0 350 400 Dividends 13.0 12.0 12.0 Share price 11.0 350 11.0 300 10.0 10.0 9.0 300 9.0 8.0 250 8.0 7.0 7.0 250 6.0 6.0 5.0 200 5.
Slide 15: Property Review
LONDONMETRIC [ay PROPERTY PLC PROPERTY REVIEW
Slide 16: Investment Strategy
Investment Strategy Focused on thematics, mission critical assets and strong occupiers • Disruptive technologies driving modern shopping habits Logistics • Logistics is our leading sector & strongest conviction call Entertainment • Economic/generation shift drive memories over material things & Leis
Slide 17: Aligned to structurally supported sectors
Aligned to structurally supported sectors Prioritising asset selection, patience and strong conviction Value1 NIY2 EY ERVg CVg3 TPR3 31 March 2025 (£m) (%) (%) (%) (%) (%) Convenience, Logistics 2,838 4.6 5.8 3.8 2.3 7.1 15.9% Entertainment & Leisure 1,298 5.8 7.6 n/a4 2.2 8.8 Healthcare, Logistics,
Slide 18: Disposal activity
Disposal activity Market sentiment improved but liquidity still affected by uncertain economic outlook and swap rates • Current swap rates continue to dictate real estate liquidity Five year swap rate • Healthy activity across the ‘winning’ sectors 380bps • Greatest liquidity for smaller lots sizes
Slide 19: Acquisition activity
Acquisition activity Increasing our logistics exposure, adding assets with stronger income growth prospects • Thematic investor, allocating to structurally supported sectors LMP Acquisition (FY25) • Logistics sector remains highly attractive, urban logistics our conviction call 32 assets • Market un
Slide 20: Asset Management
Asset Management £15.3m pa additional rent from occupier initiatives in year Like for like income growth Rent Reviews Lettings +4.2% 340 transactions Occupancy1 99% WAULT: 18.5 years Income growth expected Driving income growth Extending leases, adding amenities +£27m Over next two years • 272 revie
Slide 21: 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 markets – Continued interest rate cuts and decele
Slide 22: Our focus for FY26
Our focus for FY26 Full occupancy, exceptional income with longevity and certainty of income growth Winning • Logistics is our conviction sector, >50% exposure sectors • Convenience opportunities attractive, time an increasingly valuable commodity Strongest • Continue to sell non-core and mature ass
Slide 23: Appendices
LONDONMETRIC [ay PROPERTY PLC APPENDICES
Slide 24: Portfolio Metrics
Portfolio Metrics Net Index/ Valuation Revaluation MSCI WAULT Average Area Occupancy NIY4 Contracted fixed Rent (Share)1 Surplus/(Deficit) CVg2,3 (years) Rent reviews As at 31 March 2025 (m sq ft) (£m) (£m) (%) (%) (%) (%) Expiry Break (£m) (%) (£psf) Mega 2.4 315.1 3.3 1.1 1.6 100.0 4.6 14.8 14.8 1
Slide 25: Combined Metrics including Urban Logistics REIT
Combined Metrics including Urban Logistics REIT LondonMetric1 Urban Logistics REIT2 Combined Portfolio3 Portfolio Value £6.2bn £1.1bn £7.3bn Area (Sq Ft) 25.3m 10.1m 35.4m Contracted rent £340m £63m £403m Net initial yield7 5.1% 5.2% 5.1% Equivalent yield 6.3% 6.4% 6.3% WAULT (years) 18.5 7.6 16.8 O
Slide 26: Distribution Portfolio
Distribution Portfolio Aligned to a structurally supported sector enjoying favourable demand/supply dynamics Urban Regional Mega Value £2,838m FY24: £2,563m Occupancy 97.1% FY24: 99.4% WAULT 11.7 years • Value: £1,796.0m • Value: £726.8m • Value £315.1m FY 24: 12.4 years • £90.5m rent (£9.50 psf) •
Slide 27: Long Income Portfolio
Long Income Portfolio Assets with long, reliable income and contractual uplifts, generating strong property returns Entertainment & Leisure Convenience Healthcare & Education Value £3,207m Contractual Uplifts Theme parks – 47% of subsector Foodstores – 43% of subsector Hospitals – 85% of subsector 9
Slide 28: Top Assets and Occupiers
Top Assets and Occupiers Top 10 Assets – 21% of value Ramsay Rivers Hospital, Sawbridgeworth Alton Towers Park Bedford Link Thorpe Park, Egham £6.2bn Primark, T2, Islip Ramsay Rivers Hospital, Bedford Link, Great Bear, Portfolio Sawbridgeworth Bedford Dagenham Great Bear, Dagenham Value Ramsay Sprin
Slide 29: Income certainty & growth
Income certainty & growth Warrington WAULT: 18.5 years Inflation capture through contractual rent reviews 0-3y, Our index linked (RPI/CPI) reviews have 100% 5.0% a range of collars and caps, typically 1% RPI CPI 20y+, to 4% over a five-year period: 80% 28.7% 4-10y, • At 16% inflation (3% p.a.), over
Slide 30: Sustainability
Sustainability • Continue to upgrade our portfolio and work with occupiers on environmental initiatives • Conducted science based portfolio carbon analysis in year and set our Net Zero Pathway1,2 Our Net Zero Pathway EPC A-B: 58% (up from 52%) Solar installed: 8.1MWp (+3.6MWp in FY25) GRESB 2 Star r
Slide 31: Debt Facilities & Income strip financial liability
Debt Facilities & ‘Income strip’ financial liability Lender Facility (£m) Drawn (£m) 1 Maturity (yrs)2 Debt cost (%)3 Expiry Unsecured RCF (2021) Syndicate 225.0 145.0 1.1 Variable 2026 Unsecured RCF (2021) Wells Fargo 175.0 55.0 1.1 Variable 2026 Unsecured RCF (2022) Syndicate 275.0 135.0 2.6 Varia