LondonMetric annual profit triples amid LXi merger, logistics growth

LondonMetric Property PLC on Tuesday said its annual profit nearly tripled, as the real estate investment trust reaped the rewards of a growing logistics portfolio and its merger with LXi REIT PLC.

Pretax profit jumped to £352.8 million in the financial year that ended March 31 from £120.0 million the year before. In addition to the LXi acquisition, this was driven by strong rental income growth and a positive property revaluation of £106.0 million, compared with a 7.5 million loss in financial 2024.

Revenue more than doubled to £396.7 million from £178.1 million, while net rental income surged to £390.6 million from 175.3 million.

LondonMetric declared a total dividend of 12.0 pence per share for the year, up 18% from 10.2p the year before, noting this marked its 10th consecutive annual increase. It expects to pay a first-quarter dividend of 3.0p for the current financial year, up 5.3% from 2.85p a year before.

Chief Executive Andrew Jones said LondonMetric integrated around £3 billion of assets from its LXi takeover and completed over £680 million of sales and acquisitions in the past year.

LondonMetric completed its all-share merger with LXi REIT PLC in March last year in a deal that valued LXi at £1.9 billion.

‘Our £6 billion portfolio is set to grow by a further £1 billion through M&A activity, which will add to our urban logistics exposure - our strongest conviction call sector for rental growth,’ he said.

LondonMetric said recent acquisitions have increased its logistics weighting to 46%, and post-year end deals will likely push that to around 55%. The company also noted progress in ESG initiatives, including raising the proportion of EPC A-C rated properties to 92%.

Looking ahead, LondonMetric said it remains focused on delivering reliable and growing income and sees opportunities to expand further via strategic disposals and reinvestments.

LondonMetric shares were up 1.2% to 196.30 pence on Tuesday in London.

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