LondonMetric Property Plc (LSE:LMP) reported an increase of more than 8% in net rental income to approximately £240 million for the six months ended 30 September 2026, supported by acquisitions, rent reviews and asset management activity.
The UK-listed real estate investment trust (REIT) recorded 5.8% growth in like-for-like annualised rental income, while rent collection reached 99.3% during the period.
The company also announced a further increase in its dividend, continuing its policy of progressive shareholder distributions.
LondonMetric said earnings remained in line with analysts’ expectations, supported by income from its existing property portfolio and the contribution of acquisitions, including Urban Logistics REIT and Picton.
The group continued to adjust its property holdings through £185 million of disposals and £424 million of acquisitions, primarily involving logistics and long-let convenience assets.
Net Rental Income Exceeds £240 Million
LondonMetric reported net rental income of approximately £240 million for the first half of its financial year, representing growth of more than 8% compared with the corresponding period.
Like-for-like annualised rental income increased by 5.8%, reflecting rental growth within the existing portfolio.
The company maintained a rent collection rate of 99.3%, supported by its portfolio of income-producing properties.
LondonMetric attributed its rental income performance to high occupancy, long lease terms and rent reviews, alongside contributions from previously acquired assets.
The integration of Urban Logistics REIT, acquired in the previous year, and the Picton takeover contributed to the group’s expanded property portfolio.
The company said its earnings performance remained consistent with analysts’ expectations for the period.
£424 Million of Acquisitions and £185 Million of Disposals
LondonMetric continued its programme of portfolio recycling during the six months to September.
The company completed £424 million of property acquisitions, concentrating investment on logistics and long-let convenience assets.
These purchases were accompanied by £185 million of disposals involving properties identified as non-core to the group’s portfolio strategy.
The disposals were completed at book value, according to the company.
The transactions form part of LondonMetric’s approach to reallocating capital towards properties that meet its investment criteria, including lease duration, rental income characteristics and occupier demand.
Further acquisitions and lettings remained under offer at the end of the reporting period.
Asset Management Generates £11.8 Million in Additional Annual Rent
LondonMetric reported that asset management initiatives generated £11.8 million of additional annual rental income.
These activities included rent reviews and other measures intended to increase income from existing properties.
The company continues to manage its portfolio through lease arrangements, rental adjustments and selective investment activity.
Its property holdings are concentrated in logistics, healthcare, convenience, entertainment and leisure sectors.
The group operates a triple net lease investment model, under which tenants typically assume responsibility for specified property operating costs, including maintenance, insurance and taxes, depending on the relevant lease terms.
This structure forms part of LondonMetric’s focus on long-term contracted rental income.
Portfolio Valuation Remains Stable
LondonMetric reported that its property portfolio valuation remained broadly unchanged during the period.
The company also highlighted higher interest rate swap costs, reflecting the financing environment affecting its operations.
Despite these costs, the group maintained its portfolio valuation while continuing to complete acquisitions and disposals.
LondonMetric’s property platform is valued at approximately £8 billion and includes assets across several commercial property sectors.
The company continues to focus on properties with long lease terms and established rental income streams.
Dividend Increased as Earnings Remain in Line With Expectations
LondonMetric announced a further increase in its dividend for the reporting period, extending its record of progressive distributions.
The company said its earnings remained in line with analysts’ expectations and indicated that its prospective dividend was fully covered.
The supplied update does not specify the latest dividend per share or the percentage increase from the previous period.
LondonMetric continues to pursue income growth through rent reviews, asset management and investment in long-let properties.
The company ended the six-month period with approximately £240 million in net rental income, 5.8% like-for-like annualised rental growth and 99.3% rent collection.
Its near-term activities include completing further lettings and potential acquisitions while continuing to manage its existing property portfolio and financing arrangements.
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