LondonMetric Property (GB:LMP)
LSE:LMP
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LondonMetric Property
(LSE:LMP)
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Rating:70Outperform
Price Target:
207.00 p
▲(4.39% Upside)
Action:Reiterated
Date:05/22/26
The score is supported primarily by attractive valuation (low P/E and high yield) and a generally constructive earnings update highlighting resilient income and dividend growth. It is held back by fundamental risk factors—especially the recent leverage increase and weaker latest-year free cash flow growth—while technical indicators are neutral to slightly negative.
Positive Factors
Strong portfolio focus (logistics & convenience retail)
Scale and a strategic tilt to logistics/last‑mile and convenience retail, expanded through material acquisitions, delivers diversified, contract‑driven income. Structural demand for urban logistics and long leases supports steady occupancy, recurring cashflows and resilience across cycles.
Negative Factors
Material increase in leverage and gross debt
A sizable rise in gross debt and a net debt/EBITDA around 7.5x increases financial leverage and sensitivity to valuation or rate shocks. Elevated gearing reduces covenant headroom, may necessitate asset disposals to degear, and constrains strategic optionality if markets turn unfavourable.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong portfolio focus (logistics & convenience retail)
Scale and a strategic tilt to logistics/last‑mile and convenience retail, expanded through material acquisitions, delivers diversified, contract‑driven income. Structural demand for urban logistics and long leases supports steady occupancy, recurring cashflows and resilience across cycles.
Read all positive factors
LondonMetric Property (LMP) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£4.42B
Dividend Yield6.67%
Average Volume (3M)6.31M
Price to Earnings (P/E)14.5
Beta (1Y)0.93
Revenue Growth17.12%
EPS Growth-23.84%
CountryUK
Employees47
SectorReal Estate
Sector Strength53
IndustryREIT - Diversified
Share Statistics
EPS (TTM)0.13
Shares Outstanding2,344,782,000
10 Day Avg. Volume5,980,678
30 Day Avg. Volume6,310,205
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
£222.40Price Target Upside12.15% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering6
EPS Forecast (FY)0.14
Revenue Forecast (FY)£484.25M
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 primarily makes money by owning properties and leasing them to tenants under long-term contracts, generating recurring rental income that supports dividends and reinvestment. Key revenue and value drivers include: (1) Contracted rents...
LondonMetric Property Earnings Call Summary
Earnings Call Date:May 21, 2026
(Q4-2026)
| % Change Since: |
Next Earnings Date:Nov 19, 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
Positive
198.30
Price Trends
184.98
Positive
188.83
Positive
184.93
Positive
Market Momentum
0.58
Negative
60.69
Neutral
65.76
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:LMP, the sentiment is Positive. The current price of 198.3 is above the 20-day moving average (MA) of 183.53, above the 50-day MA of 184.98, and above the 200-day MA of 184.93, indicating a bullish trend. The MACD of 0.58 indicates Negative momentum. The RSI at 60.69 is Neutral, neither overbought nor oversold. The STOCH value of 65.76 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 |
|---|---|---|---|---|---|---|---|
75 Outperform | £4.28B | 9.08 | 7.73% | 5.85% | 15.13% | 29.40% | |
71 Outperform | £165.02M | 12.94 | 7.33% | 7.43% | -10.95% | -30.09% | |
70 Outperform | £4.42B | 14.52 | 6.29% | 6.67% | 17.12% | -23.84% | |
68 Neutral | £4.88B | 14.28 | 5.29% | 6.34% | 7.21% | -13.23% | |
67 Neutral | £224.75M | 7.60 | 9.81% | 6.64% | 8.12% | 163.48% | |
65 Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% | |
60 Neutral | £364.13M | 14.32 | 7.51% | 5.15% | -5.46% | -27.41% |
* Real Estate Sector Average
GB:LMP
LondonMetric Property
189.20
-1.23
-0.64%
GB:AEWU
AEW UK REIT
104.00
6.43
6.59%
GB:BLND
British Land Company plc
417.60
63.51
17.94%
GB:LAND
Land Securities Group plc REIT
657.00
65.85
11.14%
GB:SREI
Schroder Real Estate ate ate Investment
45.95
-5.41
-10.53%
GB:PCTN
Picton Property Income
71.30
-4.93
-6.46%
LondonMetric Property Corporate Events
Business Operations and StrategyM&A TransactionsRegulatory Filings and Compliance
LondonMetric Confirms Compliance With Post-Offer Commitments After Highcroft Takeover
Positive
May 21, 2026
LondonMetric Property has confirmed that it has complied with the post-offer intentions it set out when launching its recommended all-share acquisition of Highcroft Investments. The deal, completed via a scheme of arrangement that became effective...
Business Operations and StrategyDividendsFinancial DisclosuresPrivate Placements and Financing
LondonMetric boosts income, logistics weighting and extends dividend growth streak
Positive
May 21, 2026
LondonMetric Property reported a 16.6% rise in net rental income to £455.3 million and a 13.9% increase in EPRA earnings to £305.3 million for the year to 31 March 2026, aided by nine months’ contribution from its Urban Logistics R...
Business Operations and StrategyM&A Transactions
LondonMetric and Schroder REIT line up all-share bid for Picton Property Income
Positive
May 12, 2026
LondonMetric Property and Schroder Real Estate Investment Trust have agreed key financial terms for a non-binding, all-share offer to acquire Picton Property Income in a consortium deal. Picton shareholders would receive LondonMetric and SREIT sha...
Business Operations and StrategyDividendsFinancial DisclosuresPrivate Placements and Financing
LondonMetric boosts rental income, reshapes portfolio and lifts dividend for eleventh year
Positive
Apr 16, 2026
LondonMetric Property reported strong operational performance ahead of its full-year results, with net rental income up about 16% to more than £450 million, occupancy at 98% and average lease lengths of 17 years, underpinned by robust logisti...
DividendsPrivate Placements and FinancingRegulatory Filings and Compliance
LondonMetric to Issue New Shares Under Scrip Dividend Scheme
Neutral
Apr 13, 2026
LondonMetric Property has confirmed the issuance of 375,711 new ordinary shares under its scrip dividend scheme, in connection with a third quarterly interim dividend of 3.05 pence per share declared in March and payable on 17 April 2026. The new ...
Business Operations and StrategyM&A Transactions
LondonMetric and SREIT Weigh Possible All-Share Bid for Picton
Positive
Mar 24, 2026
LondonMetric Property and Schroder Real Estate Investment Trust have formed a consortium to explore a possible all-share offer for Picton Property Income, following Picton’s announcement of a formal sale process. The proposal, submitted on 4...
Business Operations and StrategyDividends
LondonMetric Sets Scrip Price for Third Quarterly Dividend
Positive
Mar 19, 2026
LondonMetric Property has declared a third quarterly interim dividend of 3.05 pence per ordinary share, payable on 17 April 2026 to shareholders on the register as of 13 March. The company continues to position itself as a stable income vehicle in...
Business Operations and StrategyPrivate Placements and Financing
LondonMetric refinances £1.5bn debt to cut costs and extend maturities
Positive
Mar 19, 2026
LondonMetric Property has refinanced £1.5 billion of unsecured term loans and revolving credit facilities through a £1.3 billion syndicated facility and a £200 million bilateral facility, replacing nearly all unsecured debt maturing...
Dividends
LondonMetric Declares Third Quarterly Property Income Dividend
Positive
Mar 5, 2026
LondonMetric Property has declared a third quarterly interim dividend of 3.05 pence per ordinary share, to be paid as a Property Income Distribution. The payout, scheduled for mid-April 2026 with an ex-dividend date in mid-March, aligns with the c...
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.