LondonMetric has posted a 4.1% rise in EPRA net asset value per share during the six months to 30 September, alongside a revaluation surplus of £51m.
Portfolio value increased by 4.3%, with 0.9% ERV growth. This was driven by a 3.5% uplift from its distribution assets, alongside 4.5% growth in urban logistics.
Distribution accounted for 72% of the landlord’s portfolio during the six months, up from 69% in March. It acquired £92.5m of urban logistics in the period, which has increased its urban logistics platform to £486m. Following disposals, retail parks account for 5% of the portfolio.
The landlord also noted it had seen more interest for extra warehouse space for storage to minimise any disruption caused by Brexit.
It said: “While the distribution sector will never be immune from the potential fallout from a disorderly departure from the EU, there is growing evidence that occupiers are intensifying their search for additional distribution space both to increase near-term storage capacity as well as longer-term solutions to maximise the efficiency of their global supply chains in a post-Brexit environment.”
Net rental income grew by 5.8% to £47.1m in the six months, compared with the same period in the previous year.
Its reported profit stayed broadly flat at £79.3m, while EPRA earnings were up 7.3% to £30.9m.
The dividend increased by 2.7% to 3.8p, 117% covered by earnings, and a second quarterly interim dividend of 1.9p was declared.
Andrew Jones, chief executive of LondonMetric, said: “Our alignment towards logistics and convenience assets together with the portfolio’s sustainable and growing income has delivered another strong performance.
“As the real estate markets polarise further, we continue to refine the portfolio to ensure that it remains fit for purpose and outperforms. Our exposure to structurally supported sectors has grown further as we enthusiastically embrace the logistics market buoyed by the ongoing shift from bricks to clicks, constrained supply and rising occupier demand.
“In a yield tranquil environment, asset selection as well as sector calls are increasingly paramount to providing income certainty, income growth and capital enhancement.”
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