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Annual Results

LondonMetric EPRA earnings up

31 May 2017 07:19

LondonMetric's net rental income rose by 5% to £82m in the year to the end of March and EPRA earnings increased to £51.0m from £48.5m.

Chief executive Andrew Jones said: "On top of political and economic uncertainty, the World continues to be transformed by technological innovation and continuing social change.

"This is having a profound impact on real estate. The tectonic plates in retail are shifting and the industry is experiencing radical disruption driven by these trends.

"Retailers are closing marginal stores and investing in 'flagship' destinations and new supply chains to service ever-increasing online sales and consumer expectations.

"Retailers are prioritising distribution and fulfilment ahead of their stores, which is why we have repositioned LondonMetric's portfolio from retail into logistics.

"Logistics will soon represent more than 70% of our investments as our urban logistics portfolio grows further and our short cycle developments complete.

"In a low interest rate environment, investors are increasingly searching for reliable and repetitive income streams.

"Compounding our income returns is central to our strategy as we embrace the very purpose of a REIT. Our logistics focus has enhanced our portfolio's income characteristics and we believe that it is these structural calls that will help define the real estate winners."

Highlights:

- Dividend increased 3% to 7.5p for year, 109% dividend cover in year

- EPRA NAV of 149.8p (FY 16: 147.7p)

The group also announced the acquisition of three separate urban logistic warehouses in Crawley, Coventry and Huyton for £23.9 million.

The purchase price reflects a blended yield of 6.0% and a reversionary yield of 6.8%. The WAULT is 11.7 years.

Story provided by StockMarketWire.com

Related Company: LMP

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