LondonMetric Property Plc ("LondonMetric" or the "Group" or the "Company") FULL YEAR RESULTS FOR THE YEAR ENDED 31 MARCH 2025 Our activity has driven strong earnings and dividend growth, and we are delivering on our aim to further consolidate our position as the UKs leading Triple Net Lease REIT LONDONMETRIC PROPERTY PLC ("LondonMetric" or the "Group" or the "Company") FULL YEAR RESULTS FOR THE YEAR ENDED 31 MARCH 2025 Our activity has driven strong earnings and dividend growth, and we are delivering on our aim to further consolidate our position as the UKs leading Triple Net Lease REIT LondonMetric today announces its full year results for the year ended 31 March 2025. Income Statement FY 2025 FY 2024 Net rental income (£m) 390.6 175.3 EPRA earnings (£m) 268.0 121.6 IFRS reported profit (£m) 347.9 118.7 EPRA earnings per share (p) 13.1 10.9 IFRS earnings per share (p) 17.1 10.6 Dividend per share (p) 12.0 10.2 Balance Sheet FY 2025 FY 2024 EPRA net tangible assets (£m) 1 4,071.0 3,908.9 IFRS net assets (£m) 4,123.9 3,969.5 EPRA NTA per share (p) 199.2 191.7 IFRS net assets per share (p) 202.4 195.2 1. Further details on alternative performance measures can be found in the Financial Review and definitions can be found in the Glossary Focus on winning sectors and delivering on M&A drives rents, earnings and dividend growth · Net rental income increased 123% to £390.6m · EPRA earnings up 120% to £268.0m, +20.7% on a per share basis · Sector leading EPRA cost ratio at 7.8% · Dividend increased 17.6% to 12.0p, 109% covered by earnings, including Q4 dividend declared today of 3.3p · Continued dividend progression with expected 5.3% increase in Q1 2026 dividend to 3.0p (Q1 25: 2.85p) Strong returns driven by reliable, repetitive and growing income · Total property return of 8.3% (200bps outperformance of MSCI), income return 5.7% and ERV growth 3% · Like for like income growth of 4.2% drives valuation uplift of £106.0m · EPRA NTA per share of 199.2p (+3.9%) · IFRS reported profit of £347.9m (2024: £118.7m) · Total accounting return of 9.7% (2024: 1.3%) Portfolio aligned to strongest thematics · Portfolio value of £6.2bn (2024: £6.0bn) with logistics weighting at 46% · £343m acquired in year (87% logistics) · £342m disposed (£214m were former LXi and CTPT assets), further £63 million sold post year end Activity continues to enhance portfolio quality, strengthening long and strong income characteristics · WAULT of 18.5 years, gross to net income ratio of 99% and occupancy at 98% (99% post year end activity) · Contractual rental uplifts on 77% of income, 40% of income subject to annual reviews · Occupational activity added £15.3m pa contracted income · Rent reviews +17% on five yearly equivalent basis with market reviews +40% · Income uplift expected over next two years of £27m, 18% embedded reversion on logistics assets · 92% of portfolio EPC A-C rated (up from 85%) with 3.6MWp of solar PV added and 2.6MWp of near-term potential Scale delivering economies of opportunities and greater access to capital · Unlocked M&A with Urban Logistics REIT Plc and Highcroft Investments Plc adding £1.2bn of assets · Extended maturity on £975m of debt and new debt facilities of £525m (with post year end activity) · LTV at 32.7%, debt maturity of 4.7 years and cost of debt at 4.0% (100% hedged following £489m of hedging activity) · BBB+ credit rating in year increases options for future financings Andrew Jones, Chief Executive of LondonMetric, commented: "This has been a remarkable year for LondonMetric. Our NNN income model has delivered exceptional earnings and dividend per share growth of 21% and 18% respectively. We have integrated the £3 billion of assets acquired through the LXi takeover, transacted on over £680 million of sales and acquisitions, and delivered strong rental growth from 340 asset management initiatives. "We have every reason to be optimistic about our relentless expansion and the opportunities available from our highly scalable platform. In an environment where scale is essential, our £6 billion portfolio is set to grow by a further £1 billion through M&A activity which will add to our urban logistics exposure, our strongest conviction call sector for rental growth." "Our strong performance and execution reflect over ten years of building up the right portfolio aligned to the strongest sectors, with the best team and the strongest relationships, all underpinned by unemotional capital allocation, overhead efficiency and a resolute focus on income and growth. With ten years of dividend progression under our belt, our all-weather portfolio is more capable than ever of delivering reliable, repetitive and growing income, and we remain firmly on track to achieving dividend aristocracy." For further information, please contact: LONDONMETRIC PROPERTY PLC: +44 (0)20 7484 9000 Andrew Jones (Chief Executive) Martin McGann (Chief Financial Officer) Gareth Price (Investor Relations) FTI CONSULTING: +44 (0)20 3727 1000 Dido Laurimore Richard Gotla Andrew Davis Meeting and audio webcast An analysts meeting will be held at 9.00am today and a live audio webcast will be available at the below link. An on demand recording will also be available from the same link shortly after the meeting: https://brrmedia.news/LMP_FY_24/25 Notes to editors LondonMetric Property Plc is the UKs leading triple net lease REIT with a £6 billion portfolio aligned to structurally supported sectors of logistics, healthcare, convenience, entertainment and leisure. It owns and manages desirable real estate that meets occupiers demands, delivers reliable, repetitive and growing income-led returns and outperforms over the long term. Further information is available at www.londonmetric.com. Neither the content of LondonMetrics website nor any other website accessible by hyperlinks from its website are incorporated in, or form part of this announcement nor, unless previously published by means of a recognised information service, should any such content be relied upon in reaching a decision to acquire, continue to hold, or dispose of shares in LondonMetric. This announcement may contain certain forward-looking statements with respect to LondonMetrics expectations and plans, strategy, management objectives, future developments and performance, costs, revenues and other trend information. These statements and forecasts involve risk and uncertainty because they relate to future events and circumstances. There are a number of factors which could cause actual results or developments to differ materially from those expressed or implied by these forward-looking statements and forecasts. Certain statements have been made with reference to forecast price changes, economic conditions and the current regulatory environment. Any forward-looking statements made by or on behalf of LondonMetric speak only as of the date they are made. LondonMetric does not undertake to update forward-looking statements to reflect any changes in LondonMetrics expectations with regard thereto or any changes in events, conditions or circumstances on which any such statement is based. Nothing in this announcement should be construed as a profit forecast. Past share price performance cannot be relied on as a guide to future performance. Alternative performance measures: The Group financial statements are prepared in accordance with IFRS where the Groups interests in joint ventures and non-controlling interests are shown as single line items on the income statement and balance sheet. Management reviews the performance of the business principally on a proportionately consolidated basis, which includes the Groups share of joint ventures and excludes non-controlling interests on a line by line basis. Alternative performance measures are financial measures which are not specified under IFRS but are used by management as they highlight the underlying performance of the Groups property rental business and are based on the EPRA Best Practice Recommendations (BPR) reporting framework which is widely recognised and used by public real estate companies. Chairs statement It has been another exceptional year for LondonMetric having successfully integrated the LXi and CTPT acquisitions, completed over 100 investment transactions and 340 occupier initiatives, advanced additional M&A opportunities and debt refinancings, and strengthened the team. Our activity is delivering on our aim to further consolidate our position as the UKs leading Triple Net Lease REIT. Our income metrics remain sector leading as we strengthen and grow the portfolios rental income and extract efficiencies and the wider potential from our scalable platform. We continue to reshape the portfolio to ensure that it is aligned to mission critical real estate in structural supported sectors with attractive income growth prospects. Our financial results for the year to 31 March 2025 were outstanding and reflect the first full year for the enlarged group. Net rental income was up 123% to £390.6 million, whilst our EPRA earnings per share increased by 21% to 13.1p, a 236% increase from the 3.9p at the time of our formation in 2013 (an 11% compounded annual growth rate). This has allowed us to increase our dividend per share for the tenth year, up 18% on 2024 to 12.0p and 109% covered by EPRA earnings per share. We expect dividend growth to continue and are guiding to a 5.3% increase in our first quarterly dividend for FY26 to 3.0p (Q1 25: 2.85p). Over the year, our portfolios valuation increased by £106 million, reflecting our strong income performance which has enabled us to deliver an attractive total property return of 8.3%, a 200bps outperformance of MSCI All Property. EPRA NTA per share increased by 3.9% over the year which helped to generate a total accounting return of 9.7%. We have continued to strengthen and build flexibility into our debt structure. During the year we achieved a BBB+ credit rating which, together with our greater scale, is opening up wider sources of capital. We have put in place new debt facilities, extended existing debt facilities and added further hedging at attractive rates. Our debt metrics are in great shape with a debt maturity of five years, an average cost of debt of 4.0%, significant undrawn facilities and a conservative LTV at 33%. Looking ahead, our exceptional team is working tirelessly to build an even stronger business that can continue to deliver earnings and dividend growth over the long term. In the near term, we are hopeful of successfully concluding the acquisitions of Urban Logistics REIT and Highcroft Investments which would add £1.2 billion of assets and bring material benefits to all shareholders. Over the longer term, I am in no doubt that our enlarged scale and highly efficient business model will continue to offer up a wide variety of further opportunities for growth, both internally and externally through further M&A. I am very grateful to Andrew Livingston for the valuable contribution he has made as he retires from the Board after nine years. Kitty Patmore takes on the role of our designated workplace Non Executive Director. Whilst remaining on the Board, Robert Fowlds hands the Remuneration Committee Chair position to Suzy Neubert following a five year term. Finally, having seen at first hand the enormous commitment that has been made, I would like to thank all of our team and the Board for their hard work and dedication over the past year. I remain genuinely excited by the prospects for the Company. Chief Executive Q&A Q How would you describe LondonMetric? A LondonMetric is a high conviction triple net lease (NNN) real estate investment trust (REIT) invested in the strongest property sectors with the lowest cost of operations. It is a highly efficient model that delivers reliable, repetitive and growing income returns and allows us to pass our collected rent onto our shareholders by way of a well covered, progressive and quarterly dividend payment. Q What is your approach and key focus? A We focus on owning mission critical and key operating assets in the strongest sectors benefitting from macro tailwinds and evolving consumer behaviour. We buy smart, using our strong occupier relationships to give us a competitive edge in asset selection to ensure income longevity and growth, alongside value accretion. Our simple but highly effective approach has created an all weather portfolio that can navigate short term macro volatility. This underpins our dividend growth, which has increased this year by 18%, representing our tenth year of progression and putting us well on the path to dividend aristocracy. Q What is your investment thesis? A Our investment thesis is predicated on aligning the portfolio to the macro trends of digitalisation, time as a valuable commodity and experiences. Consequently, we have pivoted our investments to the winning real estate sectors of logistics, convenience shopping, entertainment and leisure. We look to acquire quality assets in structurally supported sectors at reasonable prices, with conservative leverage to amplify returns, and then we aim to hold them for a long time. This is referred to as the three Cs - collect income, allow it to compound and watch the yields on cost compress. Q Has your M&A activity delivered as expected? A Our transformational LXi deal in March 2024 has materially increased our scale and continues to deliver significant operational and financial benefits. We have successfully integrated the portfolio and the people and, alongside the acquisition of CTPT in 2023, we have achieved significant annual cost savings, improved our debt optionality and seen much increased liquidity in our shares. The benefits of these deals, our focused capital allocation and our incredible team has strengthened our portfolio, income growth prospects and sector leading cost metrics. Q How are you ensuring the portfolio remains fit for purpose? A Our focus on NNN income compounding and strong shareholder alignment is ensuring that we remain disciplined, rational and active, continually improving our portfolio, financing and net operating income. Over the year, we exchanged on £342 million of sales at <mark style="background-color:yellow">above</mark> prevailing book value. These were excellent sales and largely comprised non core LXi and CTPT assets. We will always look to deal from the bottom of the deck and exit weak sectors and poorer quality assets as quickly as possible. After all, when you own secondary assets time can quite often destroy wealth. The sales mainly comprised two oversized Asda food stores, a number of secondary offices and training centres, a large retail park, pubs, garden centres, gyms and hotels. We also sold eight urban logistics assets at very low yields of 4.6%, which is below our marginal cost of debt, and where we felt income growth was less certain. We continue to see good liquidity for our assets with £63 million sold post year end. Undoubtedly there will be some non core assets from our current M&A activity which we will look to quickly exit and recycle the proceeds. Q Whats happening in the world of Real Estate? A Sentiment in real estate continues to be adversely affected by elevated swap and ten year gilt rates, with recent macro events adding further to uncertainty. However, this is throwing up opportunities for well capitalised businesses - after all, market uncertainty can be the friend of investors looking for long term value. Polarisation between the winning and the losing sectors remains and we do not expect this to change for some time. The winning sectors of sheds, beds & breads continue to see good investor demand and transparent pricing, whilst the losing sectors continue to see muted growth and structural headwinds. For offices and shopping centres, occupancy, amenity and environmental costs will continue to weigh on net income and valuations. Q How are you positioned for the next year? A Recent activity is expected to see us materially increase our logistics weighting to 55%, in particular growing exposure to our key conviction sector of urban logistics, maintain a well positioned balance sheet and strong equity rating, and consolidate our FTSE 100 status. We will continue to capture strong income growth and, with further external growth and consolidation likely, we expect to further enhance our position as the leading UK NNN lease REIT. Chief Executives review As the UKs leading NNN REIT we aim to deliver reliable, repetitive and growing income We continue to believe that income and income growth are the defining characteristics of long term investment returns. We appreciate the true benefit of income compounding over the longer term, focusing on the quantity, quality and timing of when cash will be returned. Compounding is not intuitive and is often misunderstood and under appreciated. For us, it is as easy as ABC - always be compounding. The introduction of the REIT regime into the UK in 2007 was a pivotal moment that allowed the real estate sector an unbelievable advantage to compound income. Whilst others failed to pivot their strategies, we have embraced the REIT structure, fully understanding and appreciating the outstanding outcomes that it can produce. NNN income REITs that invest in quality assets in the strongest sectors and with high occupier contentment can deliver reliable income and growth, and are well placed to deliver long term compounded returns. This model has been highly successful in the US and is a scalable, low cost proposition that does not require great activity, people or risky decision making. We believe that this is the right way to invest: low cost, high quality, reliably and efficiently delivered. Our portfolio has an annual net contracted rent of £340 million and very strong income metrics with a WAULT of 18.5 years, occupancy at 98% and a gross to net income ratio of 99% which reflects our minimal property costs. With 77% of income subject to contractual rental uplifts and 40% subject to annual reviews, this is providing certainty of income growth, with like for like income growth delivered of 4.2% across the portfolio over the year. Our strategy is to own quality assets in winning sectors underpinned by strong income Our job is to allocate capital into sectors where it will be treated best by supporting existing trends and looking for new ones. There is no substitute for being aware, alert and always prepared to pivot. We are thematic investors who invest in structurally supported sectors benefitting from strong consumer tailwinds with high occupier contentment. After all, when you choose real estate where the wind is at your back, you are more likely to be a price setter than a price taker
| Year | Net rental income (£m) | EPRA earnings (£m) | IFRS reported profit (£m) | EPRA earnings per share (p) | IFRS earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|---|---|
| 2025 | 390.6 | 268.0 | 347.9 | 13.1 | 17.1 | 12.0 |
| 2024 | 175.3 | 121.6 | 118.7 | 10.9 | 10.6 | 10.2 |