LondonMetric has reported a 21% hike in its net asset value to £1.7bn for the year ended 31 March.
The increase was led by strong performance in logistics, healthcare and grocery real estate.
The company reported NAV per share up 12% to 190.3p, with jumps in net rental income and profit and a portfolio valuation of £2.6bn.
Distribution makes up two-thirds of the portfolio, followed by long income at 24%, retail parts at 3% and offices at 2%.
Chief executive Andrew Jones said: “Our £2.6bn portfolio has weathered the storm in fine shape, evidenced by very strong rent collection, continued earnings growth and significant valuation uplift, all of which are as a result of longer term decisions to align to winning trends.
“The urban logistics sector, where we have now amassed over £1bn of assets, has been our main conviction call for a number of years and is enjoying truly exceptional demand/supply dynamics, results in material jumps in years.”
Over the year the portfolio delivered a total return of 13.4%, vastly outperforming the IPD index of 1.2%. Distribution delivered 18.3%, LondonMetric said this was led by urban and regional. It compares to 0.3% in offices and 3.8% in retail parks.
LondonMetric reported occupation at 98.7%, with net rental income up 6% to £123.3m.
The portfolio net initial yield is 4.6%, with an equivalent yield of 5.1% and like-for-like valuation yield compression of 27 bps over the year.
“We think that pricing has further to travel and therefore, together with its strong income characteristics, we are optimistic about the portfolio’s future performance,” said Jones. “After all, time creates wealth.”
He added that quality assets and growing income positions the company well “as we progress toward our ambition of becoming a dividend aristocrat”.
To send feedback, e-mail emma.rosser@eg.co.uk or tweet @EmmaARosser or @EGPropertyNews
