A focus on “winning sectors” and M&A activity has seen LondonMetric more than double its net rental income in the six months ended 30 September.
Net rental income reached £193.1m in the six-month period, up by 154% on the £76m achieved in the same period in 2023. Like-for-like income growth was up by 1.7%.
Chief executive Andrew Jones said: “Following the transformational LXi deal, we have further cemented our position as the UK’s leading triple net real estate income investor.
“Our all-weather portfolio with guaranteed rent growth, greater scale and a well-positioned balance sheet underpins our earnings growth and our ability to deliver a tenth year of dividend progression and maintain our path to dividend aristocracy.”
He added: “After all, we continue to believe that income compounding is the eighth Wonder of the World – the secret ingredient that creates wealth over time.”
The value of the LondonMetric portfolio grew to £6.2bn during the period, up from £6bn at 30 March. Logistics currently comprises 45% of the portfolio, but the group has plans to grow this to 50% before the year end.
During the period under review, LondonMetric bought £193.3m of assets and disposed of £155.4m of properties, mainly from its acquired LXi and CTPT portfolios. It has a further £116m of assets under offer to buy and £86m to sell.
“Our £6.2bn portfolio is aligned to the strongest thematics of logistics, convenience, hospitality and healthcare, and is invested in mission-critical real estate with high occupier contentment,” said Jones. “Importantly, our transactional capabilities, greater scale and strong shareholder alignment is ensuring our portfolio is constantly re-shaping, with £234m of lower growth disposals and £203m of high-quality acquisitions year to date.”
Occupancy across the portfolio remained high at 99%.
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