LondonMetric lifts dividend as rental income jumps 14pc

(Sharecast News) - Real estate investment trust LondonMetric Property said on Tuesday that it had delivered strong rental and dividend growth in the six months ended 30 September, supported by recent acquisitions and resilient portfolio performance. LondonMetric expects to report a 14% rise in net rental income to £219m, with its EPRA cost ratio falling to 7.7%, as it continues to target sub-7.5% levels. Occupancy remained high at 98%, with average lease lengths of 17 years and rent collection at 99.4%. Annualised like-for-like income growth accelerated to 5.2%, up from 2.6% in the first half.

LondonMetric said its £7.4bn triple-net portfolio continued to perform well following the acquisitions of Highcroft Investments and Urban Logistics REIT, with income granularity improving-its top ten occupiers now account for 33% of rent, down from 38% last year.

As a result, the FTSE 100-listed group raised its first-quarter dividend by 7% to 3.05p, and will declare the same payout for Q2, marking its eleventh consecutive year of dividend progression.

During the period, LondonMetric sold 25 assets for £185m, in line with book value, and has now disposed of £273m of non-core LXi assets, representing nearly 10% of the original portfolio. A further £100m of sales were currently under offer.

As of 0835 BST, LondonMetric shares were down 0.16% at 182p.

Reporting by Iain Gilbert at Sharecast.com