LondonMetric Property (LMP) AI Stock Analysis

• Market Cap: £4.60B
• Dividend Yield: 6.67%
• Average Volume (3M): 11.05M
• Price to Earnings (P/E): 11.6
• Beta (1Y): 0.93
• Revenue Growth: 95.26%
• EPS Growth: N/A
• Country: UK
• Employees: 47
• Sector: Real Estate
• Sector Strength: 52
• Industry: REIT - Diversified
• EPS (TTM): 0.09
• Shares Outstanding: 2,337,325,400
• 10 Day Avg. Volume: 10,948,459
• 30 Day Avg. Volume: 11,048,330
• PEG Ratio: 0.02
• Price to Book (P/B): 0.87
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 20.24
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: £235.00
• Price Target Upside: 18.75% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3

• Rating: 82 Outperform
• Price Target: ―

LondonMetric Property scores well across financial performance, technical analysis, and corporate events. The company's robust financial health and strategic corporate actions are significant strengths. Technical indicators show strong momentum, although caution is advised due to potential overbought conditions. The stock's reasonable valuation and high dividend yield further bolster its attractiveness.

Positive Factors

Earnings

LondonMetric has reported a year of exceptionally strong earnings growth with EPRA EPS up 21%, and the dividend correspondingly increased by 18%.

Portfolio Quality

The company has built a high quality portfolio with very long unexpired lease terms, effectively full occupancy at 99%, and 77% of the rent roll is subject to contractual rental uplifts.

Negative Factors

Macroeconomic Environment

LondonMetric's management continue to bring cheer to a sector that is otherwise battered and bruised by macroeconomic uncertainty.

Stock Valuation

LondonMetric's shares are trading at an 11% discount to current NTA, and on that basis are the most 'expensive' in our coverage universe, but this is with every good reason.

LondonMetric Property Business Overview & Revenue Model

Company Description

LondonMetric is a FTSE 250 REIT that owns one of the UK's leading listed logistics platforms alongside a diversified long income portfolio, with 16 million sq ft under management. It owns and manages desirable real estate that meets occupiers' demands, delivers reliable, repetitive and growing income-led returns and outperforms over the long term.

How the Company Makes Money

LondonMetric Property makes money primarily through rental income generated from its portfolio of logistics and retail properties. The company leases space to tenants under long-term agreements, providing a steady and predictable revenue stream. Additionally, LMP engages in property development, where it constructs new facilities or redevelops existing ones, which can create value through capital appreciation or higher rental income. The company may also buy and sell properties, realizing gains when market conditions are favorable. Strategic partnerships and joint ventures with other real estate entities or investors can also enhance its earning capabilities by sharing risks and accessing new opportunities. Overall, LMP's revenue model is driven by its ability to maintain high occupancy rates, strategic asset management, and effective capital allocation.

LondonMetric Property Financial Statement Overview

Summary

LondonMetric Property exhibits strong financial performance with growth in revenues and profitability. The balance sheet reflects a stable equity position, albeit with a moderate level of leverage. Cash flow management is effective, with strong free cash flow generation. Despite some historical volatility in net income, the overall financial health is robust, with good prospects for sustainable growth.

Income Statement

The company shows a strong gross profit margin and net profit margin, indicating efficient operations and profitability. There has been significant revenue growth over the years, with a notable 30.5% increase from 2023 to 2024. EBIT and EBITDA margins are also robust, suggesting healthy operational performance. However, fluctuations in net income, particularly the loss in 2023, indicate potential volatility.

Balance Sheet

The company maintains a solid equity position with an equity ratio of 60.8%. The debt-to-equity ratio is moderate at 0.54, showing a reasonable level of leverage. Return on equity has recovered to positive levels after a significant loss, indicating improving financial health. However, the high level of debt compared to equity could pose risks if not managed carefully.

Cash Flow

Strong free cash flow growth and positive operating cash flow to net income ratio indicate good cash generation capability. Free cash flow has increased consistently, demonstrating effective capital management. However, consistency in free cash flow to net income ratio needs to be monitored, especially given the previous net losses.

Breakdown	TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement
Total Revenue	297.80M	178.00M	136.40M	133.20M	122.20M	113.40M
Gross Profit	294.50M	176.30M	134.90M	131.20M	119.90M	111.50M
EBITDA	263.85M	161.70M	119.10M	116.20M	110.20M	93.90M
Net Income	201.50M	118.70M	-506.30M	734.50M	257.30M	-5.70M
Balance Sheet
Total Assets	6.60B	6.48B	3.08B	3.66B	2.63B	2.42B
Cash, Cash Equivalents and Short-Term Investments	85.50M	111.90M	32.60M	51.30M	51.40M	81.80M
Total Debt	2.41B	2.12B	1.02B	1.03B	842.70M	932.60M
Total Liabilities	2.55B	2.51B	1.08B	1.09B	888.70M	979.90M
Stockholders Equity	4.03B	3.94B	1.97B	2.56B	1.73B	1.43B
Cash Flow
Free Cash Flow	199.00M	117.30M	84.90M	54.20M	60.50M	42.30M
Operating Cash Flow	199.20M	123.10M	101.80M	105.20M	86.10M	60.40M
Investing Cash Flow	-22.80M	195.70M	500.00K	-377.10M	-53.00M	-214.90M
Financing Cash Flow	-98.40M	-249.90M	-121.00M	271.80M	-63.50M	215.70M

LondonMetric Property Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 197.90
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:LMP, the sentiment is Neutral. The current price of 197.9 is below the 20-day moving average (MA) of 201.40, above the 50-day MA of 195.92, and above the 200-day MA of 185.08, indicating a neutral trend. The MACD of 1.50 indicates Positive momentum. The RSI at 45.79 is Neutral, neither overbought nor oversold. The STOCH value of 31.66 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for GB:LMP.

LondonMetric Property Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
LMP	82 Outperform	£4.60B	11.60	8.66%	6.67%	95.26%	―
SGRO	68 Neutral	£9.11B	15.07	5.18%	6.00%	-9.88%	―
BLND	63 Neutral	£3.65B	10.39	6.14%	4.30%	-20.83%	―
HMSO	60 Neutral	£1.42B	―	-2.09%	51.18%	6.08%	―
Sector *	59 Neutral	C$1.24B	0.83	-8.20%	5.11%	9.89%	-25.14%
LAND	47 Neutral	£4.46B	11.27	6.13%	6.09%	-1.73%	―

LondonMetric Property Corporate Events

LondonMetric Property Announces Director’s PCA Share Acquisition

LondonMetric Property Plc announced a transaction involving the acquisition of ordinary shares by Sue McGann, the wife of Director Martin McGann, who is considered a Person Closely Associated (PCA). The shares were acquired through the reinvestment of dividends, with the transactions occurring on various dates from August 2023 to April 2025. This acquisition reflects ongoing confidence in the company’s performance and potential for growth, impacting the total holding to 3,134,686 shares, which could influence stakeholder perspectives on the company’s market position.

Spark’s Take on GB:LMP Stock

According to Spark, TipRanks’ AI Analyst, GB:LMP is a Outperform.

LondonMetric Property scores well across financial performance, technical analysis, and valuation. The company’s robust financial health, strategic corporate actions, and attractive dividend yield contribute significantly to the overall score. Technical indicators suggest strong momentum, though the stock is currently overbought. Recent corporate activities further bolster its growth prospects.

To see Spark’s full report on GB:LMP stock, click here.

LondonMetric Director Increases Stake Through Dividend Reinvestment

LondonMetric Property PLC announced a transaction involving the purchase of ordinary shares by Non-Executive Director Suzy Neubert, following the reinvestment of dividends. This transaction reflects ongoing confidence in the company’s performance and aligns with its strategy to enhance shareholder value through strategic investments.

Spark’s Take on GB:LMP Stock

According to Spark, TipRanks’ AI Analyst, GB:LMP is a Outperform.

LondonMetric Property scores well across financial performance, technical analysis, and valuation. The company’s robust financial health, strategic corporate actions, and attractive dividend yield contribute significantly to the overall score. Technical indicators suggest strong momentum, though the stock is currently overbought. Recent corporate activities further bolster its growth prospects.

To see Spark’s full report on GB:LMP stock, click here.

LondonMetric Proposes Acquisition of Urban Logistics REIT

LondonMetric Property PLC has made a non-binding proposal to acquire Urban Logistics REIT Plc, offering a mix of cash and shares. The acquisition aims to provide Urban Logistics shareholders with benefits such as exposure to a larger portfolio, better financing access, and improved liquidity. However, the proposal is subject to certain conditions, and there is no certainty that an offer will be made.

Spark’s Take on GB:LMP Stock

According to Spark, TipRanks’ AI Analyst, GB:LMP is a Outperform.

LondonMetric Property demonstrates strong financial performance with effective cash flow management and a robust balance sheet. The stock’s valuation metrics are attractive, supported by a high dividend yield. Recent corporate events further bolster prospects by enhancing income streams and financial stability. Technical indicators suggest caution, but strategic corporate moves provide confidence in long-term growth.

To see Spark’s full report on GB:LMP stock, click here.

LondonMetric Sells £40 Million in Logistics Assets to Reinvest in Core Sectors

LondonMetric Property Plc has announced the sale of £40.4 million worth of mature and non-core urban warehousing assets, achieving a net initial yield (NIY) of 4.3%. The strategic and opportunistic sales, which include warehouses in London, Birmingham, and Aberdeen, align with book values and have delivered a profit on cost of 30% and an ungeared internal rate of return (IRR) of 10%. The proceeds from these sales will be reinvested into core sectors with superior income and rental growth prospects, strengthening LondonMetric’s focus on high-performing assets.

LondonMetric Property PLC Announces Additional Share Listing

LondonMetric Property PLC announced the issuance of 7,141,579 ordinary shares as part of its scrip dividend scheme, following the declaration of a third quarterly interim dividend of 3.0 pence per share. These shares will be admitted to trading on the London Stock Exchange on April 11, 2025, increasing the company’s issued share capital to 2,055,249,995 shares. This move is expected to enhance liquidity and provide shareholders with an alternative to cash dividends, potentially impacting shareholder interest and market perception.

LondonMetric Announces Acquisition of Highcroft Investments

LondonMetric Property PLC has announced a recommended all-share acquisition of Highcroft Investments PLC, a UK REIT with a portfolio focused on logistics and retail warehousing. The acquisition, valued at approximately £43.8 million, offers Highcroft shareholders a significant premium and the opportunity to remain invested in a larger, more liquid company with a strong track record of dividend growth. The acquisition is expected to be earnings accretive and provide Highcroft shareholders with benefits such as exposure to a diverse portfolio, better financing access, and a strong income profile.

LondonMetric Achieves BBB+ Investment Grade Rating from Fitch

LondonMetric Property Plc has been assigned a BBB+ investment grade rating by Fitch Ratings, with a stable outlook and a senior unsecured rating of A-. This rating reflects the company’s significant scale, strong balance sheet, and alignment with sectors that generate reliable and growing income. The rating is expected to provide LondonMetric with greater flexibility for future debt issuances and the ability to secure more attractive financing rates.

LondonMetric Directors Maintain Commitment Despite Share Sale

LondonMetric Property Plc announced that Prestbury Management Holdings Limited, associated with its Non-Executive Directors Nick Leslau and Sandy Gumm, sold over 26 million shares following the expiry of a lock-up period post the LXi takeover. Despite the sale, both directors remain committed long-term shareholders, with Mr. Leslau holding approximately 1.3% of the company’s issued share capital.

BlackRock Adjusts Holdings in LondonMetric Property

LondonMetric Property PLC has announced a change in its major holdings, with BlackRock, Inc. adjusting its voting rights in the company. As of March 11, 2025, BlackRock holds a total of 7.34% of voting rights, a slight decrease from the previous 7.41%. This adjustment in holdings reflects BlackRock’s strategic positioning and may influence LondonMetric’s shareholder dynamics and future decision-making processes.

LondonMetric Offers Scrip Dividend Alternative for Third Quarterly Dividend

LondonMetric Property PLC has announced a third quarterly interim dividend of 3.0 pence per Ordinary Share, payable on 11 April 2025. Shareholders have the option to receive this dividend in the form of new Ordinary Shares instead of cash, with the Scrip Calculation Price set at 177.3 pence per share. This move allows shareholders to potentially increase their shareholding in the company, reflecting LondonMetric’s commitment to providing flexible dividend options and enhancing shareholder value.

BlackRock Adjusts Stake in LondonMetric Property

LondonMetric Property PLC has announced a change in its major holdings, with BlackRock, Inc. adjusting its voting rights. As of February 28, 2025, BlackRock’s total voting rights in LondonMetric have decreased slightly from 7.5% to 7.41%. This adjustment reflects a minor shift in BlackRock’s investment position, which may have implications for the company’s shareholder dynamics and influence within the real estate sector.

BlackRock Adjusts Stake in LondonMetric Property PLC

LondonMetric Property PLC announced a change in major holdings as BlackRock, Inc. adjusted its voting rights in the company. The notification indicates that BlackRock’s voting rights attached to shares increased to 5.58%, while voting rights through financial instruments decreased to 1.92%, maintaining a total of 7.5%. This adjustment reflects BlackRock’s strategic positioning in LondonMetric, potentially impacting shareholder dynamics and influencing future corporate decisions.

LondonMetric Boosts Annual Rental Income by £13.2 Million

LondonMetric Property Plc has announced an increase of £13.2 million in annual rental income from recent occupational activities, including 122 lettings, regears, and rent reviews. Key transactions include significant uplifts in urban logistics warehouses and convenience lettings, as well as a regear at Warwick Castle. The company has also secured additional income through rent reviews, reflecting a strong demand for its high-quality assets and supporting its capital allocation decisions.

LondonMetric Property Boosts Annual Rental Income by £13.2 Million

LondonMetric Property Plc has announced an increase in annual rental income by £13.2 million through 122 lettings, regears, and rent reviews since September 2024. This includes significant transactions in urban logistics, convenience lettings, and a regear at Warwick Castle, reflecting strong occupational demand and supporting the company’s capital allocation decisions. The company aims to maintain high occupancy rates and deliver an additional £26 million in rent by March 2026.

LondonMetric Announces Increased Quarterly Dividend

LondonMetric Property PLC has announced a third quarterly interim dividend of 3.0 pence per Ordinary Share, marking a 5.3% increase from the previous quarter and a 25% increase from the same period last year. This dividend, paid as a Property Income Distribution, aligns with the company’s progressive dividend policy and targets a full-year dividend of 12.0 pence per share, reflecting a 17.6% rise from the previous year, indicating strong financial performance and commitment to shareholder returns.

BlackRock Adjusts Voting Rights in LondonMetric Property

LondonMetric Property PLC has announced a change in its major holdings, with BlackRock, Inc. adjusting its voting rights in the company. As of February 21, 2025, BlackRock’s total voting rights in LondonMetric have decreased slightly to 7.5%, down from a previous 7.77%. This change reflects a reallocation of voting rights through shares and financial instruments, potentially impacting stakeholder dynamics and market perceptions of LondonMetric’s shareholder structure.