LondonMetric chief executive Andrew Jones has heralded a 16% rise in net rental income as a result of the REIT’s focus on “winning sectors” in the face of challenging macro conditions, ahead of its full-year results next month.
Andrew Jones, chief executive, LondonMetric
The REIT’s £7.6bn triple net portfolio produced £450m in net rental income over the financial year, while occupancy stands at 98%.
Average lease lengths stand at 17 years and income has grown 4.2% on a like-for-like basis. Rent reviews have delivered an average uplift of 19%, with logistics open-market reviews bringing a 38% uplift.
Jones said: “Despite macro uncertainty, volatile bond yields and reduced liquidity, we have continued to improve the quality of the portfolio with some excellent disposals and acquisitions.
“Our all-weather portfolio continues to deliver excellent income growth as we benefit from our alignment to the winning sectors. We are reaping the rewards of this strategy, and it is wonderfully comforting to see our rental income flowing and growing to record levels.
“This continued income compounding is enabling us to deliver our 11th consecutive year of dividend progression.”
Over the financial year, LondonMetric has sold 57 assets for £318m at a blended net initial yield of 5.7% and a weighted average unexpired lease term of 12.5 years.
The REIT has now sold 72 assets acquired in its 2024 merger with LXi REIT for £298m, accounting for 11% of the original portfolio, and 17 assets from its 2025 acquisition of Urban Logistics REIT for £55m, totalling 5% of the original portfolio.
Over the year, LondonMetric made 35 direct investments totalling £333m, in addition to the £1.2bn of assets acquired through mergers and acquisitions.
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