LondonMetric Property Plc: Company Overview
LondonMetric Property Plc is a UK-based Real Estate Investment Trust (REIT) focused on owning and managing commercial property that generates long-term, reliable income. As of March 2025, the company manages a £6.2 billion portfolio and collects over £340 million in annual rent. Its business centres on a Triple Net Lease (NNN) model, where tenants are responsible for most property costs, allowing LondonMetric to maintain a lean and efficient operation.
Core Strategy
LondonMetric invests in what it calls “mission-critical” real estate—properties that are essential to its tenants’ operations. These are typically in sectors with strong long-term demand, such as logistics, convenience retail, healthcare, and leisure.
The company is reshaping its portfolio by selling older or less aligned properties and reinvesting in urban logistics—warehouses located near major population centres. These are in high demand due to the rise of e-commerce and the need for faster delivery networks.
Financial Highlights for FY2025
- Net Rental Income: Increased by 123% to £390.6 million.
- EPRA Earnings Per Share: Up 21% to 13.1p.
- Dividend: Rose 18% to 12.0p per share, continuing a ten-year streak of dividend growth.
- Loan to Value: Improved to 32.7%, showing balance sheet strength.
- Rent Collection: Very strong at 99.5%, with high-quality tenants and strict credit controls.
- EPRA Cost Ratio: Reduced to 7.8%, one of the lowest in the sector, thanks to merger efficiencies.
Portfolio Strategy
LondonMetric sold £342 million worth of non-core assets, including pubs, offices, and care homes. It reinvested £343 million into higher-growth sectors—mainly logistics. Logistics now make up 46% of the portfolio, a share expected to grow to 55% with planned acquisitions.
The logistics properties, especially urban warehouses, benefit from structural trends like online shopping and supply chain automation. Some rental reviews in this sector led to uplifts as high as 48%.
The company’s properties are 98% occupied, with an average lease length of 18.5 years. Most leases include automatic rent increases, helping income keep up with inflation.
Top Tenants
LondonMetric has around 350 tenants. Its largest include:
- Ramsay Health Care – 11.3% of rent
- Merlin Entertainments – 9.4%
- Travelodge – 6.3%
Environmental and Social Goals
LondonMetric is committed to reducing emissions and improving energy performance. Its goal is net zero carbon emissions across its portfolio by 2050. By 2027, it aims to reach net zero for emissions directly under its control. As of March 2025, 92% of its properties meet energy efficiency ratings of A to C, up from 85% the year before.
The company has installed solar power systems on several properties and is expanding this further. It also works closely with tenants to monitor and reduce shared emissions, especially given its triple net lease model.
Governance and Risk
LondonMetric has a diverse and experienced board and closely monitors risks like changes in interest rates, tenant defaults, and property values. It also takes cybersecurity seriously and has made improvements to its IT infrastructure.
After acquiring LXi REIT in 2024, the company took steps to integrate systems, bring accounting in-house, and align risk processes. These actions have helped reduce potential integration issues.
Future Outlook
LondonMetric sees long-term opportunity in sectors it calls “beds, sheds, and breads”—housing, logistics, and essential retail. It plans to keep growing through selective acquisitions, including proposed deals with Highcroft Investments and Urban Logistics REIT.
The company believes its scale gives it better access to low-cost financing, and its conservative balance sheet provides resilience against market shocks. It expects to continue increasing dividends and delivering predictable income growth over time.
LondonMetric Property Plc – Key Financial Information Overview
| Financial Metric | Year Ended 31 March 2025 | Year Ended 31 March 2024 | Year Ended 31 March 2023 |
|---|---|---|---|
| Income Statement Highlights (IFRS & EPRA) | |||
| Net rental income (£m) | 390.6 , | 175.3 , | N/A1 |
| EPRA earnings (£m) | 268.0 , | 121.6 , | N/A1 |
| IFRS reported profit (£m) | 347.9 , | 118.7 , | -506.3 |
| Administrative costs (£m) | (27.1) | (19.7) | N/A1 |
| Net finance costs (£m) | (97.1) | (37.4) | N/A1 |
| Balance Sheet Highlights (IFRS & EPRA) | |||
| IFRS net assets (£m) | 4,123.9 , | 3,969.5 , | 1,995.2 , |
| EPRA net tangible assets (NTA) (£m) | 4,071.0 , | 3,908.9 , | N/A1 |
| Gross debt (£m) | 2,073.2 , | 2,087.4 , | N/A1 |
| Cash (£m) | 81.2 , | 111.9 , | N/A1 |
| Investment properties (£m) | 6,383.9 | 6,232.2 | N/A1 |
| Total property portfolio value (£bn) | 6.2 , | 6.0 , | 3.0 |
| Cash Flow Statement Highlights | |||
| Net cash from operating activities (£m) | 316.9 , | 123.1 , | N/A1 |
| Net cash (used in)/from investing activities (£m) | (7.9) , | 206.1 , | N/A1 |
| Net cash used in financing activities (£m) | (339.7) , | (249.9) , | N/A1 |
| Net (decrease)/increase in cash and cash equivalents (£m) | (30.7) , | 79.3 , | N/A1 |
| Key Performance Indicators (KPIs) | |||
| EPRA earnings per share (p) | 13.1 | 10.9 | 10.3 , |
| EPRA net tangible assets per share (p) | 199.2 | 191.7 | 198.9 |
| Dividend per share (p) | 12.0 | 10.2 | 9.5 |
| Total accounting return (%) | 9.7 | 1.3 | -20.2 |
| Total property return (%) | 8.3 | 4.7 | -12.0 , |
| Loan to value (LTV) (%) | 32.7 | 33.2 | 32.8 |
| Cost of debt (%) | 4.0 | 3.9 | 3.4 |
| Average debt maturity (years) | 4.7 | 5.4 | 6.0 |
| EPRA cost ratio (including vacant property costs) (%) | 7.8 | 11.6 | 11.7 , |
| Occupancy (%) | 98.1 | 99.4 | 99.1 |
| WAULT (years) | 18.5 | 19.4 | 11.9 |
| Like for like income growth (%) | 4.2 | 5.5 | 5.0 |
| EPRA vacancy rate (%) | 1.9 | 0.6 | 0.9 |
| EPC rating (A-C) (%) | 92 | 85 | 90 |
| Total shareholder return (%) | -4.0 | 22.1 | -33.1 |
| Assets (number) | 537 | 572 | 281 |
| Area (m sq ft) | 25.3 | 25.8 | 16.5 |
| Rent collected in the year (%) | 99.5 | N/A1 | N/A1 |
| 1Detailed breakdowns for these specific line items are not consistently provided for FY2023 in the summarized financial statements within the provided excerpts. However, overall IFRS Reported Profit and various KPIs are available for FY2023. | |||
Explanation and Details from the Sources:
- Financial Year Ended 31 March 2025 was an “exceptional year” for LondonMetric, reflecting the first full year for the enlarged group following the successful integration of the LXi and CTPT acquisitions. The company reported a significant 123% increase in Net Rental Income to £390.6 million and a 21% increase in EPRA earnings per share to 13.1p. This led to an 18% increase in dividend per share to 12.0p, marking the tenth consecutive year of dividend progression. The dividend for FY25 was 109% covered by EPRA earnings and 107% covered on a cash basis.
- Balance Sheet and Debt Position: The Group’s financial position was strengthened, reflected by a 3.9% increase in IFRS net assets to £4,123.9 million and EPRA NTA per share to 199.2p. The Loan to Value (LTV) ratio improved to 32.7% (from 33.2% in FY24), and the company maintained 100% hedging on its drawn debt. LondonMetric also secured an investment grade Fitch credit rating of BBB+, enhancing its debt optionality and access to capital markets.
- Portfolio Activity: The company sold £342 million across 72 non-core assets (including former LXi and CTPT properties) and reinvested £343 million into 32 new investments, with logistics representing 87% of acquisitions. This strategy aims to align the portfolio more closely with “winning assets” and structurally supported sectors.
- Income Growth and Efficiency: Occupier initiatives added £15.3 million per annum of rent and delivered a 4.2% like-for-like income growth across the portfolio. The company maintains a sector-leading EPRA cost ratio of 7.8%, reflecting merger synergies and cost control.
- Sustainability Initiatives: LondonMetric finalized its Net Zero Pathway in 2025, targeting net zero across its portfolio by 2050, including tenant emissions. Short-term goals include achieving net zero for Scope 1 and 2 emissions (direct control) by 2027. The EPC rating of the portfolio (A-C) improved to 92%.
- Future Outlook: LondonMetric expects dividend growth to continue, guiding to a 5.3% increase in its first quarterly dividend for FY26. The company is actively pursuing further M&A opportunities, with proposed acquisitions of Highcroft Investments Plc and Urban Logistics REIT Plc expected to increase its portfolio to £7.4 billion and its logistics weighting to 55%, aiming for further earnings accretion. The Board’s viability statement assesses the Group’s prospects over a three-year period to 31 March 2028, based on a rolling financial business plan and detailed budgets.
Word on the Street: Investor Sentiment Around LondonMetric
LondonMetric Property Plc (LMP) continues to attract strong interest from retail investors, with many following recent developments closely and comparing the stock with peers in the commercial property sector. Here’s a summary of what investors are saying:
Confidence in Long-Term Income
Many investors view LMP as a reliable, income-focused REIT. It’s often compared to more capital-growth-oriented players like British Land (BLND) and Landsec (LAND). While those competitors are seen as having potential for long-term recovery and capital appreciation, LMP is praised for its strong dividend track record and exposure to logistics, which gives it a more bond-like profile. Investors describe it as “inflation-linked income with stability.”
Positive Reception to the LXi and SHED Mergers
There’s ongoing discussion about the integration of LXi REIT and the proposed acquisition of Urban Logistics REIT (ticker: SHED). While some express concern about the complexity and timing of merging large portfolios, the general view is that these deals are strategically sound. Shareholders are optimistic that the enlarged group will deliver stronger earnings and increase its weighting to high-growth logistics.
Dividend Growth as a Key Attraction
LMP’s steady and growing dividend is one of the main reasons investors hold the stock. Several comments highlighted the recent dividend uplift as a vote of confidence from management, with the outlook for further increases reinforcing LMP’s appeal as a long-term income play.
Short-Term Price Movements Don’t Deter Long-Term Holders
Some investors noted that the share price has struggled to break through the 200p level. However, many see this as an opportunity to add on weakness. One poster remarked that it’s “tougher to get over two quid than Starmer telling the truth,” but added that they were still buying the dip due to the strength of the underlying business.
Comparison With Other Property Stocks
Users frequently compare LMP with BLND, LAND, and other real estate trusts. Some feel that LMP’s logistics focus gives it an edge in terms of future-proofing, especially against office-heavy portfolios that may need redevelopment. Others argue that if the wider property market recovers, NAV-focused companies could outperform LMP, but only if patient capital is willing to wait.
New Shares and Share Transfers
There was a flurry of posts around the technical side of receiving new LMP shares in exchange for SHED holdings, including issues with broker transfers and the timing of share credits. While these were mostly short-term operational concerns, it shows the active interest investors have in corporate actions and mergers.
Some Skepticism, But No Major Red Flags
Not all investors are fully convinced—one user warned that LMP was “overvalued” and preferred NewRiver REIT (NRR) due to its discount and higher yield. But this was a minority view, and even critics acknowledged the strength of LMP’s asset management and income profile.
Bottom Line
The general tone among investors is supportive. LMP is seen as a solid, well-managed REIT with a clear focus on reliable income and sector leadership in logistics. While the share price isn’t exciting in the short term, many holders are content collecting dividends and waiting for the market to revalue the stock higher over time.
Sentiment Snapshot: What People Are Saying About LondonMetric
Investor sentiment toward LondonMetric Property (LSE:LMP) is broadly positive right now, but there’s a mixed undercurrent worth noting. The company’s recent acquisitions and operational updates are getting a good reception, especially on social media and forums. But there’s also some caution building in response to wider market conditions and questions about longer-term profitability.
Forums: Confidence, Income Focus, and Comparisons
Across investor forums, LondonMetric is seen as one of the more reliable UK REITs. Posters consistently highlight its predictable income, logistics focus, and strategic acquisitions. There’s a strong view that LMP offers “bond-like” returns, ideal for investors looking for inflation-linked income rather than big capital gains.
Some investors are using short-term dips to add to their positions. Others are comparing LMP with British Land (BLND) and Landsec (LAND), suggesting that while those stocks might have more upside in a bull market, they come with more uncertainty due to heavier exposure to older offices and retail properties. One post summed it up like this: “LMP is for income and stability. LAND/BLND are for recovery plays.”
There was also chatter about the integration of Urban Logistics REIT (SHED), with shareholders comparing notes on when their new LMP shares arrived. These were short-term issues, but they show a high level of attention and engagement among retail holders.
What Analysts Are Saying
Barclays reinstated coverage on July 11 with an “Overweight” rating and a £2.25 price target. They called LMP a standout for income-focused investors, especially in a market where steady, inflation-linked cashflow is hard to find. That endorsement gives some weight to the bullish tone seen online.
Posts on X: Mostly Positive, But Selective
Recent posts on X (formerly Twitter) are upbeat. Accounts like @TickerOfficial and @peterproperty praised the £7.3 billion portfolio, rising rent roll, and strong demand in logistics. Some mentioned specific rent uplifts and pointed to ongoing growth in warehouse and distribution sectors.
But it’s worth noting that this kind of optimism tends to ignore bigger-picture risks. Most posts don’t mention the payout ratio, slowing income growth, or broader challenges facing the London Stock Exchange. The tone on X leans heavily toward highlights, not balance.
Market Headwinds in the Background
Despite the positive noise, not everyone is convinced. Yahoo Finance recently flagged that LMP’s net income has declined by nearly 9% over five years, compared to just 1.3% for the wider sector. Their three-year median payout ratio is 63%, which limits retained earnings—standard for REITs, but still a concern for growth investors.
More broadly, UK-listed property firms are still under pressure. The LSE has been losing listings, and the rise of private equity and new platforms like Aquis’s real estate market (Aram) are creating fresh competition. Macro risks like rate uncertainty, weak economic growth, and geopolitical tensions are keeping some institutional investors on the sidelines.
Bottom Line
Sentiment around LondonMetric is **cautiously optimistic**. The company is being praised for its focused strategy and consistent income, especially from logistics. Analysts back it. Retail investors are positive. But that enthusiasm is tempered by concerns about long-term profitability, limited reinvestment headroom, and external pressures on the UK property market.
Investors looking for steady income from a well-managed REIT may find LMP appealing. But those prioritising capital growth might pause, especially given the headwinds across the wider market.
