A UK triple-net, inflation-linked income machine—built through disciplined mega-M&A and urban logistics reversion—still priced at a discount.
Overview
LondonMetric Property Plc is positioned as the UK’s leading example of a scaled triple-net (NNN) REIT, owning a high-quality £7.4bn portfolio across ~680 assets with very high occupancy (~98.1%) and long income visibility (WAULT ~16.4 years). The company has been transformed through major consolidation—especially the LXi and Urban Logistics transactions—creating a two-engine portfolio split between Logistics (~54%) and Long Income (~44%), spanning urban warehouses, convenience retail parks, private hospitals, theme parks, and budget hotels. The NNN model drives best-in-class income conversion (gross-to-net ~98.5%) and supports sector-leading efficiency (EPRA cost ratio 7.7%). Financial results show strong rental income growth (H1 FY26 net rental income £221.2m, +14.6% YoY), dividend progression (11 consecutive years; H1 dividend +7%), and a conservative balance sheet (LTV ~35%) enhanced by a £1.5bn refinancing in March 2026. Shares around £1.85 trade below EPRA NTA (~£1.995), offering a ~7% forward yield while investors wait for rate clarity and realization of embedded logistics reversion.