LondonMetric (LMP) has announced plans to raise £100m by placing new shares with institutional investors, equivalent to 6.7 per cent of its outstanding share capital. The proceeds will be used to fund a pipeline of already identified acquisitions, including five “long income” assets that include a sale and leaseback deal with an online retailer and a portfolio of urban logistics warehouses.
The logistics property group has collected 92 per cent of rent due by 1 April and short-term rental concessions are agreed or being finalised on a further 4 per cent. Rent reviews and new lettings boosted rental income by 4 per cent on a like-for-like basis, while acquisitions meant overall annual contracted income rose by a third. Urban logistics now accounts for 35 per cent of the portfolio, compared with just over a quarter in 2019, and management continued to sell down mega-distribution warehouses to just 15 per cent of total assets.
Management expects to declare a fourth-quarter dividend of 2.3p a share alongside the full-year results in June, which would take total dividend payments in respect of FY2020 to 8.3p, up on 8.2p a share the prior year. That is below forecasts of 8.5p a share by analysts at Panmure Gordon.
