Londonmetric Property Share Discussion Threads

[speedsgh] 23/5/2019 12:10

Recommended Cash and Share Offer for A&J Mucklow -

[petewy] 23/5/2019 09:57

Results look OK

[skyship] 05/4/2019 13:28

Warehouses are certainly the favourite sector at the moment; but can that fact possibly sustain a 15% NAV PREMIUM (!) and a yield of just 4%? These are so over-valued its unreal...and actually rather bizarre.

[petewy] 07/1/2019 09:55

LondonMetric announces the disposal of three distribution warehouses for £24.3 million to various buyers, reflecting a blended NIY of 5.4%. The sale price achieved is 4% above book value.
Is this a good deal or are they selling off the family Wakefield silver?

[skyship] 02/12/2018 17:01

Interims showed the NAV up to 172p. Still on a premium, so not surprising to see the share price under pressure. With only a 4.65% yield the share price likely to continue lower...

[skyship] 19/11/2018 14:31

Martlesham Heath, Ipswich...will be interesting to see who the Buyer is.

[skinny] 19/11/2018 12:08

19 Nov 2018 Peel Hunt Add 186.90 190.00 Reiterates

19 Nov 2018 Liberum Capital Hold 186.90 180.00 Reiterates

28 November 2018 Half Year Results Announcement

[skinny] 19/11/2018 12:08

LondonMetric Property Plc ("LondonMetric") announces that it has sold its retail park in Martlesham Heath, Ipswich, for £22.0 million, reflecting a NIY of 5.2%.

The 48,000 sq ft retail park was acquired in 2013 for £10.4 million. LondonMetric has executed a number of asset management initiatives during its ownership, which have helped attract new retailers such as Hobbycraft, Mountain Warehouse, Card Factory, Shoe Zone and Poundland, whilst existing tenant M&S, recently extended its foodhall to 20,000 sq ft on a new 15 year lease.

The park is fully let off average rents of £25.70 psf with a weighted average lease term of 12 years to expiry and 10 years to first break.

The property has generated a profit on cost of 40% and an ungeared return of 13% pa. The sale is to a long-term investor and reflects a premium to March 2018 book value.

Andrew Jones, Chief Executive of LondonMetric, commented:

"Whilst demand for physical retail assets continues to polarise rapidly, investor appetite for long and strong income remains healthy. The sale is in line with our strategy of divesting our last remaining operational retail assets upon completion of their business plans. We retain three retail parks within our direct portfolio reflecting 5% of our assets.

"Our investments will continue to target high quality opportunities within the logistics and convenience sectors where income certainty is greater and income growth prospects are superior."

[skyship] 14/11/2018 14:09

Having drifted back to 175p at mid-October, LMP has since shown surprising strength recovering back up to 189p. This reflects their good move out of Retail; but at 189p now looking overpriced again...


free stock charts from uk.advfn.com

[speedsgh] 30/5/2018 15:09

Interesting to compare LMP with BBOX...

BBOX @ 148.3p
LMP @ 192p

BBOX yield on forecast dividend of 6.70p = 4.5%
LMP yield on current dividend of 7.90p = 4.1%
(LMP yield on guesstimated dividend of 8.15p in FY19 = 4.2%)

BBOX trades at 4.3% premium to 142.24p EPRA NAV (as at 31/12/17)
LMP trades at 16.2% premium to 165.2p EPRA NAV (as at 31/3/18)

[skyship] 30/5/2018 09:48

LMP @ 192p.
==========

NEGATIVES:

# Yield on increased dividend of 7.9p = 4.1%

# NAV PREMIUM at increased NAV of 165.2p = 14%

POSITIVES:

# Cost of debt @ 2.8% (tho' debt maturity relatively short @ 4.8yrs)

# WAULT of 12.4 years & only 6% of income expiring within 3 yrs


LMP continues to sustain an unlikely share price due to institutional support. Expect recent rise to unravel back to 180p...

[speedsgh] 30/5/2018 07:58

Dividend

The Company has continued to declare quarterly dividends and has offered shareholders a scrip alternative to cash payments. In the year to 31 March 2018 the Company paid the third and fourth quarterly dividends for 2017 and the first two quarterly dividends for 2018 at a total cost of £51.4 million or 7.6p per share as reflected in note 7 to the financial statements. The Company issued 4.8 million ordinary shares in the year under the terms of the Scrip Dividend Scheme, which reduced the cash dividend payment by £8.0 million to £43.4 million.

The first two quarterly payments for the current year of 1.85p per share were paid as Property Income Distributions (PIDs) in the year. The third quarterly payment of 1.85p was paid as a PID in April 2018 and the Company has proposed a fourth quarterly payment of 2.35p payable on 11 July 2018, of which 1.7p per share will be a PID, to shareholders on the register on the record date of 8 June 2018. The total dividend payable for 2018 has increased 5.3% to 7.9p, comprising a PID of 7.25p and an ordinary dividend of 0.65p.

[speedsgh] 30/5/2018 07:52

Final Results -

Income Statement
· EPRA earnings up 15.9% to £59.1m, up 3.7% on a per share basis
· Net rental income up 10.8% to £90.6m1, reflecting full benefit of equity raise and portfolio activity
· Reported profit of £186.0m driven by £121.6m1 revaluation surplus, reflecting a 7.1% valuation uplift

Dividend increased 5.3% to 7.9p, 108% dividend cover
· Fourth quarterly interim dividend declared of 2.35p

Balance Sheet
· EPRA NAV per share up 10.3% to 165.2p (2017: 149.8p)
· Portfolio valued at £1,842.0m1 with a 28bps equivalent yield compression
· Total Property Return of 13.7% against IPD All Property of 10.1%
· Total Accounting Return of 15.5%

Distribution weighting increased to 69%
· Distribution acquisitions of £306.4m at 5.9% yield
· Regional distribution sales of £88.2m at 5.3% yield
· Urban logistics grown to 45 assets, representing 29% of our end to end logistics portfolio
· Non distribution disposals of £163.4m, including sale of our last office investment
· Long income, convenience and leisure acquisitions of £78.5m at 6.2% yield

Income growth from asset management
· £3.1m pa income uplift from rent reviews and lettings. New leases signed with WAULT of 15.2 years
· £1.3m pa income uplift PPE, including four distribution rent reviews and lettings at 28% above passing
· 4.3% LFL income growth and 3.1% ERV growth

Short cycle developments creating future long income at attractive yields
· 1.0m sq ft in construction or pipeline at 6.5% yield on cost, of which 0.3m sq ft completed post year end
· Detailed terms on 350,000 sq ft at our Bedford development, underwriting a 7.0% yield on cost

Portfolio metrics reflect our focus on long income, contractual uplifts and low operational requirements
· WAULT of 12.4 years with only 6% of income expiring within three years
· 50.3% of income subject to contractual uplifts, 98.7% gross to net income ratio

Finances strengthened and improved
· Debt maturity of 4.8 years
· Average cost of debt fallen from 3.5% to 2.8%
· Cancellation and recouponing of interest rate swaps with short payback period
· EPRA cost ratio reduced to 15%

Andrew Jones, Chief Executive of LondonMetric, commented:

"Our objective of generating a repetitive and growing income stream continues to deliver strong returns, aided by our purposeful alignment towards modern shopping habits.

"Today's world is complex and increasingly dynamic. The impact of digital evolution and ongoing shifts in consumer shopping habits is being felt more than ever in the retail sector. Whilst the virtual tills are ringing, the physical ones are not. Many will tell you that we are entering the final act. We are not and there will be value destruction in parts of retail.

"Our early anticipation of these shifts and the global search for income led to our pivot towards distribution and long income assets which more accurately cater for modern shoppers' needs. Five years on from the merger that created LondonMetric, the Company and its shareholders continue to see the benefits of this focused strategy.

"Economic compounding is the essence of long term value creation. Our adoption of this principle, together with our occupier intelligence and property relationships has been instrumental in our success. Whilst we can never be totally immune, we believe that this approach gives us a competitive advantage to navigate these changing times, allows us to increase our earnings and, in turn, grow our dividends."

[skyship] 30/11/2017 17:13

speedsgh - There has been a raft of hi-yielding REITs listing over the past 3/4 years; and not all of them sport top quality management. So one does need to be selective. I assume your interest in the Aberdeen one is mainly for a bit of Euro allocation.

I never hold propcos / REITs trading at a premium to NAV. My current sector holdings are as follows:

# EPIC - at NAV & 5%YLD

# LSR (for the liquidation) - c25% discount

# RDI - c15%Disc. & 7.2%YLD

# RGL - c6%Disc. & 7.2%YLD

# RLE - c14%Disc. & 5%YLD

# HCFT - c19%Disc. & 5%YLD

[speedsgh] 30/11/2017 13:18

SKYSHIP - Yes, I always take a quiet BB as a +ve sign.

Unfortunately no LMP profits to bank as I have never held. Currently have exposure through BBOX. I like the sector but, as you say, 15% premium is rather rich.

LMP somewhat out of kilter with BBOX.

LMP - current 178.5p offer = 14.6% premium to 155.7p NAV (as at 30/9/17)
BBOX - current 145.4p offer = 9.1% premium to 133.3p NAV (as at 30/6/17)

Assume you have seen upcoming IPO of Aberdeen Standard European Logistics Income plc? Same sector but with geographical diversification. Am looking at taking some in the IPO.

Publication of Prospectus (20/11/17) -

[skyship] 29/11/2017 17:08

speedsgh - a quiet B/B tends to be a good sign :)

SMP - share price at 180p - NAV of 155.7p - Yield of 4.1%

There is no doubt that SMP is an impressive operation, as evidenced by May's placing of 63m shares at 152p - a 2p premium to the then NAV. However, at this stage of the property cycle a 15% NAV PREMIUM is rather absurd.

Having seen NRR fall back over recent days, I view it as highly likely SMP too will unravel that premium over the next few weeks, certainly unravel the surprising strength of the past 4weeks. With the often quite high NAV discounts across the sector, why should any new money support SMP @ 180p?

IMO now is a very good time to bank profits and perhaps switch horses within the sector.

[speedsgh] 29/11/2017 10:57

Half-Year Report -

EPRA earnings up 14% to £28.8m, (up 5% on a per share basis)
· Net rental income up 12% to £44.5m1 reflecting deployment of equity raise and portfolio activity
· Reported profit of £79.6m driven by £52.8m1 revaluation surplus reflecting a 3.2% uplift

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%

Distribution weighting increased to 67.4%; targeting 75%+
· Distribution acquisitions of £171m at 6.0% yield, further investment announced separately today
· Regional distribution sale of £49m at 5.0% yield, further regional disposal PPE
· Urban logistics grown to 40 assets, representing over 25% of our end to end logistics portfolio
· Non distribution disposals of £131m, including sale of our last office
· Long income and convenience acquisitions of £65m at 6.4% yield

Continued income growth from asset management activity
· £2.3m pa income uplift from rent reviews and lettings. New leases signed with WAULT of 14.3 years
· £1.8m pa of income from letting activity PPE, including £1.0m of terms agreed at our Crawley and Frimley developments
· In H1, achieved 2.7% like for like income growth and 1.8% ERV growth, 4.9% on urban logistics

Short cycle developments creating future long income at attractive yields
· 0.8m sq ft under construction in H2 at a yield of 6.2%, 84% pre-let
· 0.7m sq ft development pipeline at a 7.0% yield, including our Bedford development

Portfolio metrics reflect our focus on long income, contractual uplifts and low operational requirements
· Occupancy of 99.4%, WAULT of 12.4 years and only 3.5% of income expiring within three years
· 48.4% of income is subject to contractual uplifts and 98.7% gross to net income ratio

Finances strengthened and improved
· Debt maturity increased to 5.3 years and LTV at 34% (FY 17: 30%)
· Average cost of debt fallen to 3.0% from 3.5% with marginal cost at 1.8%
· EPRA cost ratio reduced to 15% from 17%

Andrew Jones, Chief Executive of LondonMetric, commented:

"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."

[speedsgh] 31/5/2017 16:44

Final Results -

> EPRA earnings of £51m or 8.2p per share, up 5%
> Dividend increased 3% to 7.5p for year, 109% dividend cover in year
> EPRA NAV of 149.8p (FY 16: 147.7p)
> Distribution weighting up to 64% following post period end activity, retail parks down to 13%
> Strong income growth across the portfolio
> Short cycle development activity creating future long income and capital growth
> Portfolio metrics reflect income longevity, contractual uplifts and occupier contentment
> Finances strengthened and diversified by private debt placement and equity placing

Andrew Jones, Chief Executive of LondonMetric, commented:
"On top of political and economic uncertainty, the World continues to be transformed by technological innovation and continuing social change. This is having a profound impact on real estate. The tectonic plates in retail are shifting and the industry is experiencing radical disruption driven by these trends.

"Retailers are closing marginal stores and investing in 'flagship' destinations and new supply chains to service ever-increasing online sales and consumer expectations. Retailers are prioritising distribution and fulfilment ahead of their stores, which is why we have repositioned LondonMetric's portfolio from retail into logistics. Logistics will soon represent more than 70% of our investments as our urban logistics portfolio grows further and our short cycle developments complete.

"In a low interest rate environment, investors are increasingly searching for reliable and repetitive income streams. Compounding our income returns is central to our strategy as we embrace the very purpose of a REIT. Our logistics focus has enhanced our portfolio's income characteristics and we believe that it is these structural calls that will help define the real estate winners."

[skinny] 23/3/2017 11:15

Liberum Capital Hold 155.30 155.00 155.00 Reiterates

[speedsgh] 23/3/2017 11:14

PLACING TO FUND ACQUISITIONS AND DEVELOPMENTS -

· Proposed Placing to raise approximately £97 million of gross proceeds (based on the closing share price on 22 March 2017). The Placing will enable the Company to accelerate its portfolio alignment towards distribution by:

o increasing its exposure to the attractive returns available from last mile distribution; and

o building out three new developments following material progress on pre-lettings, as announced separately today.

· The Net Proceeds will be used to fund committed and potential investments and new developments that amount to c.£100 million:

o £42 million to fund distribution developments at Dagenham, Stoke and Crawley, totalling 560,000 sq ft, at an anticipated yield on cost of 6.2%

o £28 million to fund recently completed distribution investments acquired at a blended net initial yield of 5.9% and a reversionary yield of 6.4%

o £30 million to fund a pipeline of last mile and regional distribution investments.

· The Company expects to deploy c.75% of the Net Proceeds within six months. The Placing is expected to be earnings per share accretive following completion of the three developments, which is expected to occur over a 9 to 12 month period.

· The Company's progressive and covered quarterly dividend policy remains unchanged, and the Placing is complementary to its unsecured credit facility where the marginal cost on further debt drawn is 1.5%.

Andrew Jones, Chief Executive Officer of LondonMetric, commented:
"Our increased commitment to last mile acquisitions and short cycle distribution developments, together with a healthy pipeline of further opportunities, will support our plans to grow our distribution exposure to at least 70% within a year. Earlier this week, we secured two further last mile acquisitions and today we have announced major pre-lettings to Eddie Stobart and Michelin, alongside the letting to Amazon. These transactions highlight the compelling market opportunities that exist and we expect to deploy raised funds at pace, leading to accretive earnings whilst maintaining a progressive and fully covered dividend.

"Structural trends in consumer behaviour and shopping patterns are continuing to drive demand for distribution, from last mile facilities to mega sheds, but supply remains constrained. For those with market access and knowledge, investments in the sector are able to create long-term, reliable income. At LondonMetric, we have 99.6% occupancy and our assets are backed by some of the biggest retailers and logistics groups."

[speedsgh] 01/6/2016 14:11

ANNUAL RESULTS FOR THE YEAR ENDED 31 MARCH 2016 -

LondonMetric: Full year results 2016, CEO interview -

[skyship] 01/6/2016 10:11

4.5% yield and a 10% premium to EPRA NAV.

Traded sideways for 16months and unlikely to move ahead for another 16months with that premium continuing to overhang the share price

[rickyvader] 01/6/2016 07:31

Nice trading update.

[speedsgh] 26/4/2016 14:31

LondonMetric Acquires £16 Million Of Assets -