- LondonMetric reported a fall in first-half profits despite a rise in net rental income lifting earnings growth. The company also announced that it had tabled a £414.7m offer to buy A&J Mucklow Group.

'We believe that today's announcement of the recommended offer for Mucklow is a natural next step for the Company,' the company said.

'With a highly complementary portfolio focused on the outperforming urban logistics sector along with asset management opportunities, which play to LondonMetric's strengths and experience, we believe this transaction creates a compelling combination, which will offer attractive shareholder returns both today and in the years to come.'

For the 12 months ended 30 March, pre-tax profits fell to £119.5m from £186.1m a year earlier, while net rental income was up 3.5% to £93.8m boosting earnings -- stated as EPRA net asset value per share – to 174.9p a share, up 5.9% from a year earlier. 

Portfolio distribution increased by 6.8%, driven by a revaluation surplus of £64.4m, representing a 3.6% uplift, according to the company.

The portfolio delivered a total property return of 5.4%, significantly outperforming the IPD All Property return of 3.3%, the company said.

The dividend was increased by 3.8% to 8.2p a share.

'These results again demonstrate that our pivot into distribution was the right strategy to ensure that we could deliver reliable, repetitive and growing income-led returns that will outperform over the long term.  Over the six years since our merger, we have delivered a total shareholder return of 156% and significantly outperformed the FTSE 350 Real Estate Super Sector of 57%,' said Andrew Jones, Chief Executive of LondonMetric.

At 9:44am: [LON:LMP] LondonMetric Property share price was -2.2p at 203.6p

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