Highlights

  • Net rental income rose 14.6% to GBP 221.2m in first half, boosted by contributions from the Urban Logistics REIT acquisition.
  • EPRA earnings increased 9.7% to GBP 148.6m, with the dividend lifted 7% to 6.1p.
  • Portfolio value expanded to GBP 7.4bn, with logistics assets now accounting for 54% of the estate.

LondonMetric Property plc (LSE:LMP) has released its half-year results for the six months to 30 September 2025, reporting higher rental income, increased earnings and further expansion of its logistics-focused portfolio. The company said its positioning in key sectors continued to support income growth, valuation gains and an increased dividend.

Rental Income Growth Backed by Logistics Expansion

Net rental income climbed 14.6% to GBP 221.2m, supported by a three-month contribution from the Urban Logistics REIT (ULR) acquisition. EPRA earnings reached GBP 148.6m, up 9.7%, equating to 6.7p per share. This represents a 28% increase over two years. The Group also reported a sector-leading EPRA cost ratio of 7.7%.

The dividend for the period was raised 7% to 6.1p, covered 111% by earnings. A second-quarter dividend of 3.05p was declared alongside the results.

Consistent Income Performance

LondonMetric delivered a total property return of 3.3%, 50bps ahead of the MSCI benchmark. Yields remained unchanged and estimated rental value (ERV) growth reached 0.9%. Like-for-like annualised income rose 5.2%, contributing to a valuation uplift of GBP 29.1m.

EPRA net tangible assets (NTA) per share edged up 0.2% to 199.5p. IFRS reported profit for the half year was GBP 130.3m, compared with GBP 163.8m a year earlier. The total accounting return for the period was 4.1%, or 3.3% when including M&A costs.

Portfolio Scale Increases with Logistics at the Core

The Group’s portfolio was valued at GBP 7.4bn at the period end, up from GBP 6.2bn last year, with logistics weighting rising from 46% to 54%. Total acquisitions reached GBP 1.3bn during the period, 91% of which were in urban logistics, including the ULR assets. A further GBP 55.4m was deployed after the period end.

Disposals totalled GBP 185.3m in the half year, with GBP 26.3m completed post-period.

Income Profile Supported by Long Leases and Reviews

The portfolio achieved a weighted average unexpired lease term (WAULT) of 16.4 years and a gross-to-net income ratio of 98.5%. Occupancy stood at 98.1%. Contractual rental uplifts covered 67% of income, while the top ten occupiers accounted for 33% of rent, down from 38%.

Asset management initiatives added GBP 10m per year of contracted income. Rent reviews delivered an 18% uplift on a five-year equivalent basis, with logistics reviews up 27%. Embedded reversion is expected to increase income by GBP 28m over the next 18 months, with 16% reversion within the logistics portfolio.

Environmental metrics also progressed, with 91% of the portfolio rated EPC A–C and 2.5MWp of solar PV added.

Debt Structure Enhanced by Increased Scale

LondonMetric completed GBP 1.2bn of further M&A and continued to reshape its debt structure. Loan-to-value (LTV) stood at 35.1%, with an average debt maturity of 4.2 years and a cost of debt of 4.1%.

The Group signed GBP 730m of new unsecured debt facilities and repaid GBP 724m of secured facilities year-to-date. Management said the business is benefitting from greater debt flexibility, an improved credit rating and increased liquidity in its shares.

LMP shares were trading at GBX 186.10 per share during the trading session on 20 November 2025.