LondonMetric Property PLC

LondonMetric Property PLC (LSE: LMP), an FTSE 100-listed UK Real Estate Investment Trust (REIT), specializes in property development and investment. Its operations are segmented into four divisions: Offices, Development, Distribution, and Residential. The group's portfolio of subsidiaries includes LondonMetric Management Limited and LSI Developments Limited, among others. This Report covers the Key Recommendation Rationale, Conclusion, and Recommendation on the stock.

Key Recommendation Rationale – Sell at GBX 195.30

• Resistance near Current levels: LMP’s stock price has approached Resistance (R1) which was stated in the previous report on 23 September 2025 therefore, there can be a possibility of a decline from resistance levels. Considering the market conditions and the price action, it is prudent to exit the stock.
• Rising Exposure to Lower-Term Leases Through Acquired Assets - While the portfolio overall shows long average lease lengths, some of the recently acquired assets—particularly from Urban Logistics REIT—have noticeably shorter lease terms. For instance, three of the five urban logistics assets sold during the period had a weighted average term certain of just two years. This shift could potentially dilute the long-income profile that has traditionally appealed to risk-averse investors, especially if such shorter-term assets remain in the portfolio rather than being sold or re-let on longer leases.
• Debt Replacement Strategy May Limit Long-Term Cost Savings - Although LondonMetric has refinanced inherited debt with instruments offering longer maturities and some cost efficiencies, the all-in cost of the new private placement (5.3%) closely matches the higher-cost LXi facilities it replaced. Additionally, while the new term loan is described as having a "materially lower" cost than the 5.7% ULR facility, precise figures aren't provided. This raises some uncertainty around the true scale of savings being achieved, especially in a rising interest rate environment where future refinancing could become more expensive..

Valuation Methodology: Price/ Earnings Approach

Share Price Chart  

LMP Daily Technical Chart, Source - Refinitiv 

Conclusion

LMP is expected to trade at a discount, considering Debt Replacement Strategy May Limit Long-Term Cost Savings and fears of global slowdown. For conducting the valuation, the following peers have been considered - British Land Company PLC (LSE: BLND), SEGRO PLC (LSE: SGRO) and others.

Given its current trading levels, Rising Exposure to Lower-Term Leases, recent rally in the share price, relative valuation, and associated risks, it is prudent to exit the stock at the current levels. Hence, a ‘Sell’ recommendation is given on the stock at the Current Market Price of GBX 195.30 as of 22 October 2025 at 08:45 AM GMT+1.

Note 1: Past performance is not a reliable indicator of future performance.

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is 22 October 2025. The reference data in this report has been partly sourced from REFINITIV.

Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned as per the Valuation and or the technical levels provided has been achieved and is subject to the factors discussed above.

Note 4: Target Price refers to a price level which the stock is expected to reach as per the relative valuation method and/or technical analysis taking into consideration both short-term and long-term scenario.

Note 5: ‘Kalkine reports are prepared based on the stock prices captured either from the London Stock Exchange (LSE) and/or REFINITIV. Typically, both sources (LSE and or REFINITIV) may reflect stock prices with a delay which could be a lag of 15-20 minutes. There can be no assurance that future results or events will be consistent with the information provided in the report. The information is subject to change without any prior notice.’

Note 6: Dividend Yield may vary as per the stock price movement.