LondonMetric saw its profit grow and the value of its portfolio increase slightly in the six-month period to 30 September 2023.
The REIT reported an IFRS profit of £81m, compared with a £234.4m loss in the same period last year, with its EPRA earnings up 5.8% to £53.1m.
Its net rental income increased 6.7% to £76.9m and the value of its portfolio rose to £3.2bn (31 March 2023: £3.0bn). During the reporting period, LondonMetric generated £157m from the disposal of assets and acquired the CT Property Trust portfolio for £285m.
Andrew Jones (pictured), chief executive of LondonMetric, said: “Financial markets continue to be defined by elevated interest rates and higher borrowing costs. This is severely impacting liquidity across the real estate sector and exacerbating a polarisation in performance. We expect this to continue with refinancings and redemptions putting further downward pricing pressure in legacy sectors. We are, however, more confident that structurally supported assets with better income security and positive rental trajectory will enjoy better price stability.
“Against this backdrop, we have continued to be active and opportunistic, looking to sell mature and non-core assets and remaining alert to quality opportunities that are being mis-priced by either the real estate or stock markets.
“As a result, our 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.
“Looking forward, we will continue to allocate capital to sectors that are benefiting from evolving consumer behaviours which provide an attractive tailwind for returns and dividend growth. We remain alert, interested and open minded to using our strong financial position to access new opportunities where the market is unfairly discounting and where our proactive approach can deliver growth and value.”
