LondonMetric swings to profit after solid first half

23rd Nov 2023 07:57

(Sharecast News) - FTSE 250-listed real estate group LondonMetric Property raised its interim dividend after a solid first half in which it swung to a profit on the back of a revaluation of its portfolio.

The company, which owns a logistics platform and grocery-led long income portfolio, said its IFRS reported profit was £81m in the six months to 30 September, compared with a loss of £243.4m the year before.

The first half saw a £27.6m positive revaluation of investment properties, compared with a negative £291.7m last year.

Net rental income improved to £76m, up 7.8% from £70.5m a year earlier, with occupancy standing at 99%. It also saw contractual rental uplifts on 59% of its portfolio.

The company lifted its first-half dividend to 4.8p per share, from 4.6p previously, which was 109% covered by earnings. It added that it expected "continued dividend progression" for the full year supported by earnings.

Chief executive Andrew Jones said the portfolio "is in great shape and its alignment to well positioned triple net income assets has helped to deliver a positive set of financial results, further increasing our net rental income, earnings per share and covered dividend.

"This puts us on track for a ninth consecutive year of dividend progression; a performance that puts us in a rarefied club."

The stock was more or less flat following the results, with shares down 0.1% at 180.4p by 0834 GMT.