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LondonMetric Property
(LSE:LMP)
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Rating:69Neutral
Price Target:
211.00 p
▲(11.64% Upside)
Action:Downgraded
Date:08/22/26
The score is driven primarily by solid (but not pristine) financial performance—good revenue growth and positive cash generation, tempered by earnings volatility, higher leverage, and weaker recent free-cash-flow growth. The earnings call supports the outlook with strong operating execution and well-covered, growing dividends, while technical indicators are only neutral and do not show strong near-term momentum. Valuation is a positive contributor due to the moderate P/E and high dividend yield.
Positive Factors
Strong rental income growth
Robust rental income growth indicates effective portfolio expansion and asset management. Its recurring nature supports earnings visibility, while continued leasing activity can sustain income growth beyond the current reporting period.
Negative Factors
Higher leverage and debt burden
The debt increase raises financial risk and limits flexibility if property values weaken or financing costs rise. Management expects disposals to reduce leverage, but execution is required before balance-sheet risk materially improves.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong rental income growth
Robust rental income growth indicates effective portfolio expansion and asset management. Its recurring nature supports earnings visibility, while continued leasing activity can sustain income growth beyond the current reporting period.
Read all positive factors
LondonMetric Property (LMP) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£4.32B
Dividend Yield6.86%
Average Volume (3M)6.19M
Price to Earnings (P/E)14.2
Beta (1Y)0.96
Revenue Growth17.12%
EPS Growth-23.84%
CountryUK
Employees54
SectorReal Estate
Sector Strength53
IndustryREIT - Industrial
Share Statistics
EPS (TTM)0.13
Shares Outstanding2,350,984,100
10 Day Avg. Volume5,444,699
30 Day Avg. Volume6,190,265
Financial Highlights & Ratios
PEG Ratio-0.59
Price to Book (P/B)0.87
Price to Sales (P/S)8.87
P/FCF Ratio17.43
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
£217.33Price Target Upside14.99% Upside
Rating ConsensusHold
Number of Analyst Covering3
EPS Forecast (FY)0.14
Revenue Forecast (FY)£481.51M
LondonMetric Property Business Overview & Revenue Model
Company Description
LondonMetric Property Plc, a prominent FTSE 250 Real Estate Investment Trust (REIT), specialises in owning and managing a substantial portfolio of commercial properties across the UK. This includes one of the nation's premier listed logistics plat...
How the Company Makes Money
LondonMetric makes money primarily by owning and operating commercial real estate that produces recurring rental income. Its key revenue and value drivers include: (1) Contracted rental income: The core earnings stream comes from rent paid by tena...
LondonMetric Property Earnings Call Summary
Earnings Call Date:May 21, 2026
(Q4-2026)
| % Change Since: |
Next Earnings Date:Nov 24, 2026
Earnings Call Sentiment Positive
The call presented a largely positive operational and financial performance: strong portfolio growth (including material acquisitions), robust net rental income and EPRA earnings growth, disciplined asset management with significant rent uplifts, exceptional rent collection and a progressive dividend backed by good coverage. The group also strengthened its funding profile and hedging. Key negatives were higher net finance costs and gross debt from acquisition activity, one‑off exceptional charges that reduced reported returns, increased leverage metrics (net debt/EBITDA up to 7.5x), and a challenging macro/interest‑rate environment that creates valuation and execution risk. Management expects disposals and active asset management to mitigate gearing and vacancy over time.Positive Updates
Portfolio Growth and Strategic Acquisitions
Portfolio grew c.23% over the year; added £1.5bn to portfolio value (c.£1.2bn from the Urban Logistics and Highcroft acquisitions). Total portfolio value now c.£7.6bn.
Negative Updates
Higher Net Finance Costs and Increased Gross Debt
Net finance costs rose to £124m from £97m, reflecting larger average drawn debt balances. Gross debt increased to almost £3.0bn from just over £2.0bn the prior year; average drawn debt c.£500m higher year‑on‑year.
Read all updates
Q4-2026 Updates
Positive
Negative
Portfolio Growth and Strategic Acquisitions
Portfolio grew c.23% over the year; added £1.5bn to portfolio value (c.£1.2bn from the Urban Logistics and Highcroft acquisitions). Total portfolio value now c.£7.6bn.
Read all positive updates
Company Guidance
Guidance from the call emphasised continued dividend growth, resilient income and stable near‑term finance costs: the board announced a Q1 FY27 dividend of 3.15p (up 3.3%) and a full‑year dividend of 12.45p (up 3.8%) with 108% cover and full cash cover, and reiterated intent to keep growing dividends; contracted rent roll stood at £432.1m (including £75.1m from Urban Logistics/Highcroft and £16.6m from asset management) and management expects to add £38.3m of short‑term reversion by 2028 plus c.£11m from letting vacant assets to push the rent roll to in excess of £480m, supporting forecast rental growth of c.4.3% p.a. (urban logistics just over 5% p.a.); near‑term operating metrics remain strong with net rental income £455.3m (up 16.6%), EPRA earnings £305.3m (up ~14%) / EPRA EPS 13.45p, EPRA NTA 200.6p, like‑for‑like income +4.2% (added £16.6m), rent collection 99.7%, gross‑to‑net leakage 1.4%, vacancy ~1.2m sqft, average uplift on reviews/renewals 19% (open market +33%; urban logistics open market +38%), and total property/ accounting returns ~7.1%/6.9% (7.7% excl. one‑offs); balance sheet guidance: portfolio value £7.6bn, LTV 36.7%, net debt/EBITDA 7.5x (target <8.5x and expected to reduce with disposals), interest cover 3.8x, drawn debt 99.8% hedged, average cost of debt ~4%, debt maturity 4.4 years (5.2 incl. options), only £200m maturing in next 2 years, undrawn facilities £500m and cash £143m, so finance costs are not expected to increase materially over the next two years.LondonMetric Property Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
67
Positive
Cash Flow
63
Positive
| Breakdown | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2022 | Mar 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 464.60M | 396.70M | 178.00M | 133.20M | 122.20M |
| Gross Profit | 456.20M | 391.80M | 176.30M | 131.20M | 119.90M |
| EBITDA | 461.70M | 468.30M | 161.70M | 116.20M | 110.20M |
| Net Income | 295.70M | 347.90M | 118.70M | 734.50M | 257.30M |
Balance Sheet | |||||
| Total Assets | 8.16B | 6.61B | 6.48B | 3.66B | 2.63B |
| Cash, Cash Equivalents and Short-Term Investments | 143.40M | 41.80M | 111.90M | 51.30M | 51.40M |
| Total Debt | 2.99B | 2.10B | 2.12B | 1.03B | 842.70M |
| Total Liabilities | 3.42B | 2.48B | 2.51B | 1.09B | 888.70M |
| Stockholders Equity | 4.71B | 4.09B | 3.94B | 2.56B | 1.73B |
Cash Flow | |||||
| Free Cash Flow | 236.30M | 284.00M | 117.30M | 54.20M | 60.50M |
| Operating Cash Flow | 260.30M | 316.90M | 123.10M | 105.20M | 86.10M |
| Investing Cash Flow | -328.50M | -7.90M | 195.70M | -377.10M | -53.00M |
| Financing Cash Flow | 130.40M | -339.70M | -249.90M | 271.80M | -63.50M |
LondonMetric Property Technical Analysis
Negative
189.00
Price Trends
188.76
Negative
185.40
Negative
185.51
Negative
Market Momentum
-1.51
Positive
36.50
Neutral
17.24
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:LMP, the sentiment is Negative. The current price of 189 is above the 20-day moving average (MA) of 188.05, above the 50-day MA of 188.76, and above the 200-day MA of 185.51, indicating a bearish trend. The MACD of -1.51 indicates Positive momentum. The RSI at 36.50 is Neutral, neither overbought nor oversold. The STOCH value of 17.24 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:LMP.
LondonMetric Property Peers Comparison
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
70 Outperform | £165.66M | 16.65 | 5.76% | 7.66% | -3.39% | -59.21% | |
69 Neutral | £4.32B | 14.16 | 6.29% | 6.86% | 17.12% | -23.84% | |
68 Neutral | £4.91B | 14.41 | 5.29% | 6.22% | 7.21% | -13.23% | |
67 Neutral | £4.28B | 9.09 | 7.73% | 5.55% | 15.13% | 29.40% | |
65 Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% | |
61 Neutral | £208.12M | 14.83 | 4.68% | 8.25% | 7.06% | -54.80% | |
60 Neutral | £367.71M | 14.46 | 4.93% | 4.88% | -5.46% | -27.41% |
* Real Estate Sector Average
GB:LMP
LondonMetric Property
183.00
13.38
7.89%
GB:AEWU
AEW UK REIT
104.40
8.47
8.82%
GB:BLND
British Land Company plc
416.80
95.42
29.69%
GB:LAND
Land Securities Group plc REIT
662.50
151.38
29.62%
GB:SREI
Schroder Real Estate ate ate Investment
43.50
-1.25
-2.80%
GB:PCTN
Picton Property Income
72.50
2.16
3.07%
LondonMetric Property Corporate Events
Business Operations and StrategyDividends
LondonMetric lifts Q1 dividend and offers scrip alternative
Positive
Aug 20, 2026
LondonMetric Property has declared a first quarterly interim dividend for FY 2026/27 of 3.15 pence per ordinary share, paid as a Property Income Distribution. The payout marks a 3.3% increase on the prior year’s first quarter dividend and co...
Business Operations and StrategyM&A Transactions
LondonMetric and Schroder REIT launch £404m all-share bid for Picton
Positive
Jul 31, 2026
LondonMetric Property and Schroder Real Estate Investment Trust have agreed a recommended all-share offer to acquire Picton Property Income via a Guernsey court-sanctioned scheme of arrangement, valuing Picton at about £404 million with a 7% ...
Financial Disclosures
LondonMetric sets date for half-year results and analyst presentation
Neutral
Jul 15, 2026
LondonMetric Property has scheduled the release of its half year results for the six months to 30 September 2026 on Tuesday 24 November 2026. The company will host an in-person analyst presentation at 8:30 a.m. in London, supported by a live webca...
Business Operations and StrategyExecutive/Board Changes
LondonMetric Grants Additional Executive Share Awards Under New LTIP
Positive
Jul 14, 2026
LondonMetric Property is a U.K.-listed real estate investment trust focused on owning and managing income-producing commercial property assets. It aims to provide stable returns to shareholders, supported by performance-based incentives for its ma...
Business Operations and StrategyM&A Transactions
LondonMetric and Schroder Sweeten Possible All-Share Bid for Picton
Positive
Jul 10, 2026
LondonMetric Property is a U.K.-listed real estate investment trust focused on income-led property strategies, particularly logistics and distribution assets, while Schroder Real Estate Investment Trust invests across a diversified U.K. commercial...
Business Operations and StrategyStock BuybackShareholder Meetings
LondonMetric shareholders back all AGM resolutions, reinforcing capital and governance flexibility
Positive
Jul 9, 2026
LondonMetric Property reported that all resolutions put to shareholders at its latest annual general meeting were approved by poll, covering routine matters such as receiving the annual report and reappointing the auditor, as well as the re-electi...
Business Operations and StrategyFinancial DisclosuresM&A TransactionsShareholder Meetings
LondonMetric boosts income and portfolio quality amid active disposals and acquisitions
Positive
Jul 9, 2026
LondonMetric Property has reported a solid trading update ahead of its AGM, highlighting strong performance from its £7.6 billion triple net lease portfolio and sector‑leading income metrics. Average lease length stands at 17 years, whi...
Business Operations and StrategyDelistings and Listing ChangesDividendsRegulatory Filings and Compliance
LondonMetric adjusts scrip dividend listing as share capital rises
Positive
Jul 8, 2026
LondonMetric Property has corrected a previous announcement and confirmed that 6,202,047 new ordinary shares will be issued under its scrip dividend scheme in connection with the fourth quarterly interim dividend of 3.3 pence per share. These shar...
Delistings and Listing ChangesDividendsRegulatory Filings and Compliance
LondonMetric issues new shares under scrip dividend scheme
Neutral
Jul 1, 2026
LondonMetric Property has confirmed it will issue 6,202,407 new ordinary shares under its scrip dividend scheme, in connection with a fourth quarterly interim dividend of 3.3 pence per share payable on 9 July 2026. The new shares, each of 10 pence...
Business Operations and StrategyM&A TransactionsRegulatory Filings and Compliance
LondonMetric confirms compliance with post-offer commitments after Urban Logistics REIT takeover
Positive
Jun 23, 2026
LondonMetric Property has confirmed that it has complied with all its stated post-offer intentions following its recommended cash and share acquisition of Urban Logistics REIT. The transaction, implemented by scheme of arrangement and completed in...
Executive/Board Changes
LondonMetric Executives Receive 2023 LTIP Share Vesting
Neutral
Jun 18, 2026
LondonMetric Property has announced the vesting of 3,746,917 ordinary shares under its 2023 Long Term Incentive Plan on 17 June 2026, benefiting several directors and persons discharging managerial responsibilities. The awards included dividend en...
Business Operations and StrategyM&A Transactions
LondonMetric and Schroder REIT advance £396m all-share bid for Picton
Positive
Jun 16, 2026
LondonMetric Property and Schroder Real Estate Investment Trust have provided an update on their proposed all-share takeover of Picton Property Income, valuing Picton at about £396 million, or 76.9 pence per share, based on recent market pric...
Business Operations and StrategyDividends
LondonMetric sets scrip price for fourth-quarter dividend
Positive
Jun 11, 2026
LondonMetric Property has declared a fourth quarterly interim dividend of 3.3 pence per Ordinary Share, payable on 9 July 2026 to shareholders on the register as of 5 June 2026. Investors are being offered the choice to receive this dividend eithe...
Financial DisclosuresRegulatory Filings and ComplianceShareholder Meetings
LondonMetric Publishes 2026 Annual Report and Sets July AGM Date
Neutral
Jun 10, 2026
LondonMetric Property has published its Annual Report and Accounts for the year ended 31 March 2026, together with the Notice of Annual General Meeting and Form of Proxy, which have been sent to shareholders and made available on its website and v...
Business Operations and StrategyExecutive/Board Changes
LondonMetric grants performance-linked share awards to senior executives
Positive
Jun 4, 2026
LondonMetric Property has granted nil-cost options over 3,877,124 ordinary shares under its Long Term Incentive Plan for the financial year ended 31 March 2026. The awards, allocated to senior executives including Andrew Jones and other key direct...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.