Londonmetric Property Share Discussion Threads

[rovi70] 28/1/2025 10:39

Slow slow and slow we go

[pyufak] 18/1/2025 17:07

Jones said in the Nov statement 'it takes two to tango' so need a willing seller.

I'd love to see LMP merge with SHED (which I also own) just because I think scale is everything going forward

[nickrl] 15/1/2025 21:31

@EI sorry meant they could be ready to hoover up another IT laggard

[essentialinvestor] 15/1/2025 09:52

Acquisition announced with the disposals Nick.

[nickrl] 15/1/2025 09:40

LMP doing well in offloading assets from the two ITs they acquired and looks like have Mucklow squared off with offices gone so maybe ready to go shopping again.

[essentialinvestor] 19/12/2024 20:46

Yes it's a fair point, however for this purpose I don't calculate on (expected) future dividends.

The yield currently sits at 5.81%, so 6% is
not that far off.

[mpage] 19/12/2024 17:20

CEO has already pencilled in a 12p total div for this year - that's 6.75% this afternoon.

[essentialinvestor] 19/12/2024 14:52

Market may want a 6% yield here,
as mentioned last week.

[essentialinvestor] 19/12/2024 00:16

Would expect the sector to be hit hard at the open, gilt yield movements beginning to hang heavy in the air like a dulling wine.

[nickrl] 18/12/2024 22:52

Thats a reasonable director buy 100k shares

[williamcooper104] 17/12/2024 10:51

Yep - sell of is driven by gilts falling out of bed Today's wage growth was a bit of a shocker and that's before we get the 6.7% min wage growth and there's more public sector pay deals that haven't been reflected in the data

[mpage] 17/12/2024 10:33

It might. Back in the mid-90s to mid-2000s a 6%DY for a diversified property co was par for the course even if the CE was not highly adept and very good at talking up his book.

I suspect that the share price is largely reacting to 5yr gilt yields (thanks Rachel) to maintain the ERP and perhaps starting to price in the possibility of an economic downturn. It's happening to lots of similar assets - nothing co specific.

Once the div reaches 12p I'm telling myself to expect(wetted finger in the air)around 5%pa div growth thereafter. At 180p that's a DY of 6.6% plus 5%pa - so a simple Gordon Growth Model says total long-term return of c. 11%pa. Frankly, that seems perfectly reasonable for a property company. With LMP we get a FTSE 100 company, actively managed by a pragmatic CEO who takes a long-term view.

There is a baby version of LMP called Picton Property Income - slower moving, opertes at a much smaller scale but is also self-managed (and well managed) and no stamp duty on share purchases. The kicker here is a low-cost long-term debt c. 3.7% for around 7 years. Shares trade at quite a wide discount to NAV.

[essentialinvestor] 13/12/2024 11:40

Segro now on a 19% discount to NAV.

LMP at the current share price yields significantly more than SGRO, however unlike Segro, it's not a specialist.

Might the market want a 6% yield on LMP?
it's a possibility.

[essentialinvestor] 10/12/2024 14:39

Added a small amount.

Main possible 2025 headwind is IF the yields on UK gilts begin to tick higher again - that's not factoring in wider equity market moves.

Segro looking particularly weak.

[wsm812] 10/12/2024 10:34

PMorgan cuts LondonMetric to 'neutral' (overweight) - price target 226 (235) pence

I'd take 235p right now!

[essentialinvestor] 07/12/2024 11:18

I would agree the short term upside is limited, however what you get from LMP is a nicely growing dividend and an astuteness of management decisions - at least to this point.

LMP lends itself less to a trading stock, at this stage in it's development.

I've highlighted the possibility of a SHED bid, by LMP, for a number of months now.

[skyship] 07/12/2024 11:00

Upside limited as they are likely to use their expensive paper to acquire SHED.

[essentialinvestor] 05/12/2024 19:18

rovi, XD today.

[rovi70] 05/12/2024 13:19

so much for the Midas touch

[pyufak] 26/11/2024 07:23

Class act - really solid set of results. I was sceptical EI but clearly comments saying looking for further acquisitions - discounted; externally managed high quality portfolios the target. Just knocking out the management fee (6m for Shed for example) and moving internally a decent win before discounts. I’m a happy holder for income and will continue to be so.

[essentialinvestor] 22/11/2024 16:36

Falling gilt yields (I'm guessing they've turned) should keep LMP in the UKX.

[essentialinvestor] 22/11/2024 13:43

SHED next in line for the LMP treatment..?.

It's not a question of if, but when they will acquire again.

Trading so close to NAV, they can also issue shares to buy off market, if they so choose.