Strong portfolio performance drives reported profits to £159.5 million
Revaluation surplus of £118.4 million, uplift of 23% on 2014
18.8% property return from retail and distribution portfolio outperformed IPD by 220 bps
Portfolio valued at £1.4 billion, an increase of 14.8% over the year
Strong growth in earnings and NAV
Gross rental income increased 19.5% to £74.0 million (including joint ventures)
EPRA earnings 55% higher at £40.9 million and EPRA EPS up 57% to 6.6p per share
EPRA NAV per share increased 16% to 140.6p
Total accounting return 21.7% up 520 bps
Dividend
Proposed final dividend of 3.5p per share bringing total dividend for the year to 7.0p per share. Additional special dividend of 2.0p per share reflecting exceptional gains secured on the redevelopment and sale of Carter Lane
Dividends are payable on 20 July 2015 to shareholders on the register as at close of business on 12 June 2015
Increase in contracted rental income of 10% to £85.6 million underpins prospects for progressive dividends
Significant investment activity totalling £597.6 million
Acquired 20 assets totalling £308.9 million at a NIY of 6.2%
Disposals of £288.7 million at a 5.2% NIY including the £138.8 million sale of One Carter Lane
Distribution portfolio now totals £656.9 million representing 47% of the total portfolio
£57.0 million of post year end transactions including three of the five M&S convenience food store acquisitions that we announced separately today
Asset management activity delivered rental income uplift of £2.6 million
50 occupier transactions secured across 2.6 million sq ft
Like for like income growth of 2.9%
12.4% above previous passing rent and 6.6% above ERV
Investment portfolio well positioned
99.7% occupancy rate and increase in WAULT to 13.1 years from 12.7 years in 2014
Only 1.8% of rent due to expire in next 5 years
Increased security and quality of income and 44% of rental income subject to fixed uplifts
3.1 million sq ft of developments
Islip and Warrington distribution developments covering 1.8 million sq ft to complete within 4-5 months
1.1m sq ft of conditional distribution schemes consisting of 750,000 sq ft at Bedford and 300,000 sq ft at Stoke; expect to add further distribution developments
Effectively financed
Loan to value of 36% at year-end (FY 2014: 32%)
Increased operational flexibility under the 7 year £196 million Helaba debt facility and, post year end, with the £400 million unsecured facility
Undrawn facilities currently total £154.5 million, debt maturity has increased to 6.2 years and average cost of debt has fallen to 3.4%
Patrick Vaughan, Chairman of LondonMetric, commented:
"The strong performance over the past year is the result of our ability to align the business to the winning segments within retail, specifically distribution and convenience shopping. Distribution is now our largest sector and this will increase as our existing and pipeline developments progress.
"Our portfolio continues to grow and we have taken advantage of a strong property market to sell some institutional assets recently at very attractive prices which, whilst delivering strong total returns, has tempered our earnings growth in the short term. Having firmly underwritten our dividend, the quality of our portfolio ensures that our dividend policy will be progressive.
"We have strong occupier relationships that create a real point of difference for us and continue to provide exciting investment opportunities. We are well positioned financially and we remain alert, active and engaged on keeping the portfolio fit for the future."
Andrew Jones, Chief Executive of LondonMetric, commented:
"The changes to the occupier landscape which we have previously highlighted have continued unabated. Consumers are increasingly indifferent to the way they shop. They are keen to use their mobiles and the internet as well as physically shopping. This is having a profound effect on the real estate requirements of the retailers.
"Their requirements are for better distribution infrastructure to meet consumers' appetite for next day or, increasingly, same day delivery, whilst reducing the number of physical shops that they need. You only have to dwell on the recent commentary about 'right sizing retailing', which has swept up such giants of retail as Tesco, B&Q and Homebase, to realise its significance.
"In the face of this ever changing environment we will continue to align our assets closely to the needs of retailers, and remain rational and disciplined in our stock selection and capital allocation."
