StockMarketWire.com - LondonMetric's net rental income rose 12% to £44.5m inthe six months to the end of September, reflecting deployment of its equity raise and portfolio activity.

EPRA earnings rose 14% to £28.8m, (up 5% on a per share basis) and the reported profit of £79.6m compared with loss of £13.1m last time was driven by a £52.8m revaluation surplus reflecting a 3.2% uplift.

Other highlights:

- Dividend increased 3% to 3.7p, 114% dividend cover

* Second quarterly interim dividend declared of 1.85p

-EPRA NAV up 4% to 155.7p (FY 17: 149.8p)

* Portfolio valued at £1,705m1, topped up NIY of 5.2%

* Total property return of 6.1% compared to IPD All Property of 5.0%

* Total accounting return of 6.6%

Chief executive Andrew Jones said: 'Our primary goal is to allocate capital into those sectors of real estate that will generate high quality, sustainable income growth from structural changes and management actions.

'Today, almost 70% of our portfolio is allocated to the distribution sector with the balance mainly invested in long income and convenience retail; both areas that are benefiting from the changes taking place in consumer shopping habits.

'Our decision a number of years ago to pivot into these winning sectors was driven by the impact of technology on shopper behaviour.

'We were early movers into both these sectors and this is reflected in our strong financial numbers. We have performed across every key financial measure, increasing our income, earnings, profits, dividend and NAV whilst maintaining our strong portfolio metrics.

'The desperate search for yield globally is continuing to drive investor demand for income backed real estate. Our approach of patiently collecting and compounding our income remains front and centre of our strategy, and this is exactly what a REIT was designed to do.'

LondonMetric also announced the acquisition of two logistics warehouses for £47.6 million, reflecting a blended NIY of 5.0% rising to a minimum of 5.6% after five years.

The average lease length is over 18 years.

At Ollerton in Nottinghamshire, LondonMetric has agreed to acquire a 364,000 sq ft regional warehouse let to Clipper Logistics plc on a 20 year lease, at a rent of £5.04 psf, subject to annually payable RPI uplifts of between 2 - 4%.

At Speke, LondonMetric has acquired a new 132,000 sq ft regional logistics warehouse let to Gefco, on a new 15 year lease, at a rent of £5.17 psf subject to five yearly RPI linked reviews of between 2 - 4%.










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