- LMP.L
LondonMetric Property (LSE:LMP) has delivered a positive trading update ahead of its annual general meeting, reporting continued strength across its £7.6 billion triple net lease portfolio. The company said occupancy has improved to 98.3%, while the average unexpired lease term remains a robust 17 years, underlining resilient tenant demand across its logistics and convenience-focused assets.
Since 1 April 2026, LondonMetric has completed investment activity worth £139 million, comprising £96.7 million of property disposals and £42.5 million of acquisitions, with additional transactions currently in progress. Most of the assets sold originated from recent mergers and acquisitions and were disposed of broadly in line with their book values. Meanwhile, new purchases have focused on convenience food stores and drive-thru properties, further enhancing the overall quality of the portfolio.
Active asset management also continued to support earnings, generating an additional £6.7 million of contracted annual rental income through 72 separate initiatives, including rent reviews, lease renewals and new lettings. Rent reviews across the logistics portfolio produced particularly strong uplifts, while vacancy has fallen to just 1.7%. Additional lettings currently progressing through legal completion are expected to provide a further boost to rental income.
Management said the ongoing disposal of non-core properties and reinvestment into high-quality convenience retail assets occupied by financially strong tenants is improving both the quality and resilience of the REIT’s income stream. The company also highlighted a growing pipeline of investment opportunities, particularly in <a s presence in the UK income-focused property market, increase portfolio diversification and strengthen its position within the triple net lease sector.
LondonMetric’s outlook remains supported by an attractive valuation, including a relatively low price-to-earnings ratio and a strong dividend growth. However, higher leverage and weaker free cash flow growth over the latest financial year continue to represent key risks, while technical indicators remain broadly neutral to slightly negative.
