Neil Woodford-backed LondonMetric snaps up three warehouses in a £24m deal as its full-year rental income rises

 
Shruti Tripathi Chopra
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Neil Woodford is the founding partner of Woodford Investment Management

LondonMetric's shares nudged up one per cent this morning after the FTSE 250 retail space developer revealed that its net rental income rose five per cent to £82m in the year to 31 March 2017.

The real estate investment trust (REIT), which is one of the key property investments made by star fund manager Neil Woodford, also signed a £24m deal for three warehouses in the UK.

Read more: Revealed: The nine property giants Neil Woodford is putting his money on

The figures

LondonMetric's portfolio was valued at £1.54bn. Distribution accounted for 64 per cent of the total portfolio while retail parks were down to 13 per cent.

The property giant's EPRA [European Public Real Estate Association] earnings, a measure to calculate profit after taxation attributable to shareholders of a company for European REITs, were up five per cent at £51m or 8.2p per share.

LondonMetric snapped up three warehouses in Coventry, Huyton and Crawley for £24m. It added that the logistics space wil soon represent over 70 percent of its investment.

What LondonMetric said:

Andrew Jones, chief executive of LondonMetric, said:

"On top of political and economic uncertainty, the world continues to be transformed by technological innovation and continuing social change. This is having a profound impact on real estate. The tectonic plates in retail are shifting and the industry is experiencing radical disruption driven by these trends.

“Retailers are closing marginal stores and investing in ‘flagship’ destinations and new supply chains to service ever-increasing online sales and consumer expectations. Retailers are prioritising distribution and fulfilment ahead of their stores, which is why we have repositioned LondonMetric’s portfolio from retail into logistics. Logistics will soon represent more than 70 per cent of our investments as our urban logistics portfolio grows further and our short cycle developments complete."

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