LONDONMETRIC PROPERTY PLC (LondonMetric or the Group or the Company) - PDF document

LONDONMETRIC PROPERTY PLC (“LondonMetric” or the “Group” or the “Company”) HALF YEAR RESULTS FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2015 DISTRIBUTION STRATEGY DELIVERS NAV AND EARNINGS GROWTH LondonMetric today announces its half yearly results for the six months ended 30 September 2015. Half Year Half Year Full Year 30 September 2015 30 September 2014 31 March 2015 EPRA NAV per share (p) 146.6 128.8 140.6 EPRA Earnings (£m) 23.4 20.9 40.9 EPRA EPS (p) 3.7 3.4 6.6 Reported Profit (£m) 64.3 69.7 159.5 Revaluation Surplus 1 (£m) 47.2 52.3 118.4 Dividend per share (p) 3.5 3.5 7.0 1 Including share of joint ventures Valuation gains driven by development activity and market yield compression  EPRA NAV increased to 147p per share  Total property return of 7.0%  Total accounting return of 8.2% Earnings growth from portfolio activity and new developments  EPRA earnings increased 12% to £23.4 million or 3.7p per share  Rental income up 10% to £31.7 million (HY15: £28.9 million)  Contracted income up to £86.7 million pa (HY15: £83.0 million)  Like for like income growth of 2.1% and ERV growth of 2.7%  Interim dividend of 3.5p per share, 107% covered  Dividend progression at the full year £208 million investment activity, positive 80bps arbitrage  £87.8 million of acquisitions (NIY of 6.1%)  £120.0 million of disposals (NIY of 5.3%)  Two acquisitions post period end totalling £58.8 million, including the forward funding of a distribution warehouse in Warrington as announced today  £59.3 million development capex during first half (7.2% yield on cost on key developments) Significant developments delivered and planned  1.9 million sq ft of developments completed representing £11.7 million pa of rental income  0.7 million sq ft of developments on site at 6.2% yield on cost  1.4 million sq ft of pipeline developments High quality investment portfolio, strengthened through asset management  Portfolio valued at £1.5 billion (NIY of 5.5%)  Increase in WAULT to 13.4 years (FY15: 13.1 years)  99.9% occupancy rate with 48% of contracted rental income subject to uplifts  31 asset management deals delivered rental income uplift of £1.9 million at 5.2% above ERV Finances strengthened and capacity increased to deliver developments  Including proceeds from deferred sales, LTV of 37%  Debt maturity of 6.1 years and average cost of 3.5%. 95% of existing debt hedged  Undrawn facilities increased to £100.1 million post period end

Andrew Jones, Chief Executive of LondonMetric, commented: “Black Friday and Cyber Monday are timely reminders of the structural changes taking place in the retail sector as consumers continue to change the way they shop. The winning retailers this festive season - and forever more - will be those who can get products into consumers’ hands as quickly, reliably and efficiently as possible. “This is strengthening the demand dynamics for well -located distribution space as the growth in retailers’ omni channel s trategies continues to soak up constrained market supply. This increasing tension is leading to rental growth which supports our early move into retail logistics which is fast becoming the strongest sub-sector of the retail property market. "Conversely, many legacy retail assets look increasingly challenged as clicks erode bricks at an accelerating rate, continuing to expose over rented and over-sized store portfolios. “Market yield compression is slowing and assets across all sectors will need to demonstra te sustainability of income and growth to benefit from further valuation uplifts. Therefore, our focus continues to be centred on owning quality real estate with deep occupier appeal that can deliver future income and capital growth from increasing demand, asset management and development opportunities.” 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 Clare Glynn Meeting and audio webcast A meeting for investors and analysts will be held at 9.00am today at: Andaz Hotel, 40 Liverpool Street, London, EC2M 7QN. A conference call dial-in is available for the meeting: Telephone +44 (0)20 3427 1903. Confirmation Code: 2495239 A live audio webcast will also be available at http://webcasting.brrmedia.co.uk/broadcast/564c6cc8339befbb5946a687 An on demand recording will be available from the same link after the meeting and will also be available from the Company’s website http://www.londonmetric.com/investors/reports-and-presentations

Notes to editors: LondonMetric (ticker: LMP) aims to deliver attractive returns for shareholders through a strategy of increasing income and improving capital values. It invests across the UK in retail led distribution, out of town and convenience retail properties. It employs an occupier-led approach to property with a focus on strong income, asset management initiatives and short cycle development. Its portfolio is broadly split between distribution and retail with a total of 11.6 million sq ft under management. LondonMetric works closely with retailers, logistics providers and leisure operators to help meet their evolving real estate requirements. Further information on LondonMetric 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.