LondonMetric hails logistics expansion as first-half rental income grows

(Sharecast News) - Real estate group LondonMetric reported a double-digit increase in net rental income over the first half, as solid underlying growth was bolstered by new acquisitions, with logistics sites now making up more than half of its overall portfolio value. Net rental income totalled £221.2m over the six months to 30 September, up 14.6% over last year, LondonMetric reported on Wednesday.

Results were helped by three months of contributions from the Urban Logistics REIT business that was purchased this summer, while like-for-like annualised income growth came in at 5.2%.

EPRA earnings rose 9.7% to £148.6m, with earnings per share up 1.5% at 6.7p. Meanwhile, the interim dividend was raised 7.0p to 6.1p, which was 111% covered by earnings.

By the end of the half, LondonMetric's portfolio was valued at £7.4bn, up from £6.2bn at the end of the previous financial year.

The logistics weighting of the overall portfolio increased from 46% to 54%, helped by the £1.30bn of assets acquired during the period, 91% of which were in the urban logistics category.

"Logistics remains our strongest conviction for income growth but we remain attracted to other sectors as evolving consumer behaviour continues to provide a strong tailwind for further rental progression," said chief executive Andrew Jones.

LondonMetric shares were down 0.9% at 187.2p in early deals in London.