LONDONMETRIC PROPERTY PLC (“LondonMetric” or the “Group” or the “Company”) HALF YEAR RESULTS FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2017 Income focused strategy and sector calls delivering sector outperformance LondonMetric today announces its half yearly results for the six months ended 30 September 2017. Six months to Six months to Income Statement 30 Sept 2017 30 Sept 2016 Net rental income (£m) 1 44.5 39.7 EPRA Earnings (£m) 28.8 25.3 EPRA EPS (p) 4.2 4.0 Dividend per share (p) 3.7 3.6 Reported Profit/(Loss) (£m) 79.6 (13.1) Balance Sheet 30 Sept 2017 31 March 2017 EPRA NAV per share (p) 155.7 149.8 IFRS net assets (£m) 1,063.9 1,006.9 LTV (%) 1,2 34 30 1 Including share of Joint Ventures. Further details on Alternative Performance Measures and the presentation of financial information can be found in the Finance Review and definitions can be found in the Glossary. 2 Including cash from deferred sales EPRA earnings up 14% to £28.8m, (up 5% on a per share basis) Net rental income up 12% to £44.5m 1 reflecting deployment of equity raise and portfolio activity Reported profit of £79.6m driven by £52.8m 1 revaluation surplus reflecting a 3.2% uplift Dividend increased 3% to 3.7p, 114% dividend cover Second quarterly interim dividend declared of 1.85p EPRA NAV up 4% to 155.7p (FY 17: 149.8p) Portfolio valued at £1,705m 1 , topped up NIY of 5.2% Total Property Return of 6.1% compared to IPD All Property of 5.0% Total Accounting Return of 6.6% Distribution weighting increased to 67.4%; targeting 75%+ Distribution acquisitions of £171m at 6.0% yield, further investment announced separately today Regional distribution sale of £49m at 5.0% yield, further regional disposal PPE Urban logistics grown to 40 assets, representing over 25% of our end to end logistics portfolio Non distribution disposals of £131m, including sale of our last office Long income and convenience acquisitions of £65m at 6.4% yield Continued income growth from asset management activity £2.3m pa income uplift from rent reviews and lettings. New leases signed with WAULT of 14.3 years £1.8m pa of income from letting activity PPE, including £1.0m of terms agreed at our Crawley and Frimley developments In H1, achieved 2.7% like for like income growth and 1.8% ERV growth, 4.9% on urban logistics Short cycle developments creating future long income at attractive yields 0.8m sq ft under construction in H2 at a yield of 6.2%, 84% pre-let 0.7m sq ft development pipeline at a 7.0% yield, including our Bedford development Portfolio metrics reflect our focus on long income, contractual uplifts and low operational requirements Occupancy of 99.4%, WAULT of 12.4 years and only 3.5% of income expiring within three years 48.4% of income is subject to contractual uplifts and 98.7% gross to net income ratio Finances strengthened and improved Debt maturity increased to 5.3 years and LTV at 34% (FY 17: 30%) Average cost of debt fallen to 3.0% from 3.5% with marginal cost at 1.8% EPRA cost ratio reduced to 15% from 17% LondonMetric Property Plc 1
Andrew Jones, Chief Executive of LondonMetric, commented: “ Our primary goal is to allocate capital into those sectors of real estate that will generate high quality, sustainable income growth from structural changes and management actions. “Today, almost 70% of our portfolio is allocated to the distribution sector with the balance mainly invested in long income and convenience retail; both areas that are benefiting from the changes taking place in consumer shopping habits. Our decision a number of years ago to pivot into these winning sectors was driven by the impact of technology on shopper behaviour. “We were early movers into both these sectors and this is reflected in our strong financial numbers. We have performed across every key financial measure, increasing our income, earnings, profits, dividend and NAV whilst maintaining our strong portfolio metrics. “The desperate search for yield globally is continuing to drive investor demand for income backed real estate. Our approach of patiently collecting and compounding our income remains front and centre of our strategy, and this is exactly what a REIT was designed to do. ” For further information, please contact: LONDONMETRIC PROPERTY PLC: +44 (0)20 7484 9000 Andrew Jones (Chief Executive) Martin McGann (Finance Director) Gareth Price (Investor Relations) FTI CONSULTING: +44 (0)20 3727 1000 Dido Laurimore /Tom Gough /Richard Gotla Meeting and audio webcast A meeting for investors and analysts will be held at 11.00 am today at FTI Consulting. A conference call dial- in is available for the meeting: +44 (0)330 336 9411 (Participant Passcode: 9115416). For the live webcast see: http://webcasting.brrmedia.co.uk/broadcast/59fa055494ea4f7c5e31b384 An on demand recording will be available shortly after the meeting from the same link and also from: http://www.londonmetric.com/investors/reports-and-presentations Notes to editors LondonMetric is a FTSE 250 REIT (ticker: LMP) that specialises in distribution, convenience and long income property. It focuses on strong and growing income and adding value through asset management initiatives and short cycle developments. LondonMetric has 13 million sq ft under management. Further information is available at www.londonmetric.com Neither the content of LondonMetric’s website nor any other website accessible by hyperlinks from LondonMetric’s 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 as to whether or not to acquire, continue to hold, or dispose of shares in LondonMetric. Forward looking statements: This announcement may contain certain forward-looking statements with respect to LondonMetric’s 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 events and depend upon circumstances that may occur in the future. 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 LondonMetric’s 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. LondonMetric Property Plc 2
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