LondonMetric annual profit falls amid UK real estate uncertainty

Thu, 21st May 2026 09:27

(Alliance News) - LondonMetric Property PLC on Thursday reported lower annual profit despite higher rental income and revenue, as it warned macro uncertainty continues to weigh on UK real estate liquidity.

The London-based real estate investment trust said pretax profit for the year ended March 31 fell 16% to GBP297.1 million from GBP352.8 million a year earlier.

Revenue rose 17% to GBP464.6 million from GBP396.7 million, while net rental income increased to GBP455.3 million from GBP390.6 million.

LondonMetric said profit on revaluation of investment properties declined to GBP68.2 million from GBP106.0 million, while it booked a GBP3.6 million loss on revaluation of investments compared with a GBP900,000 gain a year before. The company also reported GBP16.3 million in acquisition costs and a GBP9.6 million goodwill impairment.

The company increased its total dividend by 3.8% to 12.45 pence per share from 12.00p, including a final dividend of 3.3p, unchanged year-on-year. EPRA earnings per share rose 2.4% to 13.5p from 13.1p.

Chief Executive Andrew Jones said the company had made progress in creating the UK's "largest and most efficient NNN REIT", despite ongoing macroeconomic uncertainty.

LondonMetric said the global economic outlook remains "highly uncertain", citing geopolitical tensions, higher bond yields and inflationary pressures. It added that liquidity in the UK property investment market remains constrained, particularly for transactions above GBP20 million.

The company said its portfolio grew to GBP7.6 billion during the year, with logistics exposure increasing to 53% from 46%, helped by the acquisition of Urban Logistics REIT PLC. It completed GBP1.55 billion of acquisitions and GBP318 million of disposals during the year.

The results come as LondonMetric Property PLC pursues a proposed all-share takeover of Picton Property Income Ltd, announced last week alongside Schroder Real Estate Investment Trust Ltd.

Under the indicative terms, Picton shareholders would receive 0.190 LondonMetric shares and 0.881 SREIT shares per Picton share, valuing Picton at around GBP403 million, or 78.2p per share.

The proposal represents a 7.0% premium to Picton's undisturbed share price, though it implies a discount of around 9% to Picton's last reported EPRA net tangible assets and a 5.6% discount to its December portfolio valuation.

LondonMetric shares were down 0.1% at 187.11 pence in London on Thursday morning. The wider FTSE 100 index was down 0.2%.

By Eva Castanedo, Alliance News reporter

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