LondonMetric Property Plc

Reported hard numbers were strong across the board. Net rental income was GBP 455.3 million, up 16.6%; EPRA earnings were GBP 305.3 million, up 13.9%; and EPS was 13.45p, up 2.4%. The dividend for the year was 12.45p per share, up 3.8%, and Q1 FY27 dividend was announced at 3.15p, up 3.3%. EPRA NTA was 200.6p per share, total accounting return was 6.9% (7.7% excluding exceptional items), and the portfolio value was GBP 7.6 billion. Management said full-year net rental income included GBP 60 million from Urban Logistics and Highcroft, GBP 13 million from other acquisitions, and was offset by GBP 23 million of rent loss from disposals. Rent collection was 99.7%, gross-to-net income leakage was 1.4%, administrative overhead was GBP 30.2 million, net finance costs were GBP 124 million, cash was GBP 143 million, gross debt was almost GBP 3 billion, LTV was 36.7%, net debt-to-EBITDA was 7.5x, interest cover was 3.8x, and drawn debt was 99.8% hedged. Guidance/comments pointed to no material increase in finance costs over the next 2 years, only GBP 200 million of debt expiring over the next 2 years, undrawn facilities of GBP 500 million, and a goal of increasing the rent roll to over GBP 480 million with GBP 38.3 million of short-term reversion by 2028 plus GBP 11 million from letting vacant assets.

Andrew Jones framed the business as a triple-net, income-compounding model focused on mission-critical assets, low leakage, and predictable cash generation. He repeatedly emphasized that “income is sanity” and said the company prefers to own assets where it can be a price setter rather than a price taker, especially in logistics, grocery, and other structurally supported sectors. His tone was confident and expansive, with clear enthusiasm for scale, asset recycling, and opportunistic capital deployment through M&A, sale-and-leasebacks, and development funding.

Martin McGann focused on the financial quality of the results and the balance sheet. He cited net rental income of GBP 455.3 million, EPRA earnings of GBP 305.3 million, overheads of GBP 30.2 million, and net finance costs of GBP 124 million versus GBP 97 million last year, noting the increase reflected a larger debt base after acquisitions. He highlighted strong cash generation and resilience: 99.7% rent collection, 108% dividend cover, full cash cover, GBP 143 million of cash, 36.7% LTV, 7.5x net debt-to-EBITDA, 3.8x interest cover, and 99.8% hedged debt. He also stressed financing execution, including GBP 1.2 billion of new facilities, a GBP 500 million A- public bond at a 4.69% coupon, and GBP 1.5 billion of refinancing that reduced the average margin by 49 basis points to 105%, with no material finance cost increase expected over the next 2 years.

Analysts probed whether the strong rent uplifts could eventually hurt tenant retention; management said affordability is most relevant in London, but not yet showing up as a broader problem, and that logistics rents are usually a smaller share of occupiers’ costs than in retail. Another question focused on leverage, with one analyst pointing to lower U.S. net debt-to-EBITDA norms; McGann replied that he prefers a “6 in front” and expects disposals to help bring the ratio down from 7.5x. Questions also addressed scale and acquisitions, and management said growth still comes from compounding via many smaller, accretive deals, with opportunities in listed M&A, sale-and-leasebacks, pension fund disposals, and development funding. On convenience grocery, Jones said it remains attractive because rents are relatively low, assets are new and well-located, and yields can offer attractive arbitrage versus funding costs.