LondonMetric Property (LMP) AI Stock Analysis

• Market Cap: £3.74B
• Dividend Yield: 6.09%
• Average Volume (3M): 6.99M
• Price to Earnings (P/E): 17.1
• Beta (1Y): 1.03
• Revenue Growth: 95.26%
• EPS Growth: N/A
• Country: UK
• Employees: 47
• Sector: Real Estate
• Sector Strength: 71
• Industry: REIT - Diversified
• EPS (TTM): 0.11
• Shares Outstanding: 2,055,250,000
• 10 Day Avg. Volume: 7,796,689
• 30 Day Avg. Volume: 6,992,501
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 20.83
• Price to Cash Flow (P/CF): N/A
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: 209.67p
• Price Target Upside: 15.14% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

LondonMetric Property demonstrates strong financial performance with effective cash flow management and a robust balance sheet. The stock's valuation metrics are attractive, supported by a high dividend yield. Recent corporate events further bolster prospects by enhancing income streams and financial stability. Technical indicators suggest caution, but strategic corporate moves provide confidence in long-term growth.

Positive Factors

Earnings Growth

LondonMetric's merger activities have driven exceptionally strong earnings growth, with aggregate EPRA earnings up 155% and up 26.5% on a per share basis.

Market Position

LondonMetric has gained FTSE-100 membership, providing greater equity market liquidity, lower debt costs, and economies of scale, evidenced by a low EPRA cost ratio of 7.6%.

Mergers and Acquisitions

LondonMetric is continuing to grow via M&A, augmenting its already strong internally-generated growth potential with the announcement that it is to buy Highcroft Investments in an all-share deal valuing the company at £43.8m.

Negative Factors

Valuation

LondonMetric's shares are trading at an 11% discount to current NTA, and on that basis are the most 'expensive' in our coverage universe, but this is with every good reason.

LondonMetric Property Business Overview & Revenue Model

Company Description

LondonMetric Property (LMP) is a UK-based real estate investment trust (REIT) that specializes in the acquisition, development, and management of logistics and retail-focused properties. The company focuses on owning and managing high-quality logistics and distribution centers, big box retail parks, and convenience retail properties across the United Kingdom. LMP aims to deliver sustainable income and capital growth through strategic asset management and development activities.

How the Company Makes Money

LondonMetric Property makes money primarily through rental income generated from its portfolio of logistics and retail properties. The company leases space to tenants under long-term agreements, providing a steady and predictable revenue stream. Additionally, LMP engages in property development, where it constructs new facilities or redevelops existing ones, which can create value through capital appreciation or higher rental income. The company may also buy and sell properties, realizing gains when market conditions are favorable. Strategic partnerships and joint ventures with other real estate entities or investors can also enhance its earning capabilities by sharing risks and accessing new opportunities. Overall, LMP's revenue model is driven by its ability to maintain high occupancy rates, strategic asset management, and effective capital allocation.

LondonMetric Property Financial Statement Overview

Summary

LondonMetric Property shows strong financial performance with significant revenue growth and robust profitability margins. The balance sheet is stable with a solid equity position, although there is moderate leverage that requires careful management. Cash flow generation is strong, supporting effective capital management and future growth prospects.

Income Statement

The company shows a strong gross profit margin and net profit margin, indicating efficient operations and profitability. There has been significant revenue growth over the years, with a notable 30.5% increase from 2023 to 2024. EBIT and EBITDA margins are also robust, suggesting healthy operational performance. However, fluctuations in net income, particularly the loss in 2023, indicate potential volatility.

Balance Sheet

The company maintains a solid equity position with an equity ratio of 60.8%. The debt-to-equity ratio is moderate at 0.54, showing a reasonable level of leverage. Return on equity has recovered to positive levels after a significant loss, indicating improving financial health. However, the high level of debt compared to equity could pose risks if not managed carefully.

Cash Flow

Strong free cash flow growth and positive operating cash flow to net income ratio indicate good cash generation capability. Free cash flow has increased consistently, demonstrating effective capital management. However, consistency in free cash flow to net income ratio needs to be monitored, especially given the previous net losses.

Breakdown
Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
178.00M	136.40M	133.20M	122.20M	113.40M
	Gross Profit
176.30M	134.90M	131.20M	119.90M	111.50M
	EBIT
161.30M	124.80M	115.70M	109.50M	93.20M
	EBITDA
161.70M	119.10M	116.20M	110.20M	93.90M
	Net Income Common Stockholders
118.70M	-506.30M	734.50M	257.30M	-5.70M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
111.90M	32.60M	51.30M	51.40M	81.80M
	Total Assets
6.48B	3.08B	3.66B	2.63B	2.42B
	Total Debt
2.12B	1.02B	1.03B	842.70M	932.60M
	Net Debt
2.01B	984.30M	974.70M	791.30M	850.80M
	Total Liabilities
2.51B	1.08B	1.09B	888.70M	979.90M
	Stockholders Equity
3.94B	1.97B	2.56B	1.73B	1.43B
Cash Flow		Free Cash Flow
117.30M	84.90M	54.20M	60.50M	42.30M
	Operating Cash Flow
123.10M	101.80M	105.20M	86.10M	60.40M
	Investing Cash Flow
195.70M	500.00K	-377.10M	-53.00M	-214.90M
	Financing Cash Flow
-249.90M	-121.00M	271.80M	-63.50M	215.70M

LondonMetric Property Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 182.10
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:LMP, the sentiment is Positive. The current price of 182.1 is above the 20-day moving average (MA) of 179.79, above the 50-day MA of 182.00, and below the 200-day MA of 186.62, indicating a neutral trend. The MACD of 0.02 indicates Negative momentum. The RSI at 53.07 is Neutral, neither overbought nor oversold. The STOCH value of 70.94 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:LMP.

LondonMetric Property Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
LMP	78 Outperform	£3.74B	17.10	6.48%	6.09%	95.26%	―
SGRO	71 Outperform	£8.53B	14.11	5.18%	4.64%	-9.88%	―
BLND	65 Neutral	£3.52B	19.35	3.17%	6.47%	-30.83%	―
Sector *	61 Neutral	$4.24B	15.87	-3.65%	12.20%	6.29%	-21.37%
LAND	52 Neutral	£3.95B	37.48	1.61%	7.50%	-1.73%	―
HMSO	51 Neutral	£1.12B	―	-2.09%	6.56%	6.08%	―

LondonMetric Property Corporate Events

LondonMetric Proposes Acquisition of Urban Logistics REIT

LondonMetric Property PLC has made a non-binding proposal to acquire Urban Logistics REIT Plc, offering a mix of cash and shares. The acquisition aims to provide Urban Logistics shareholders with benefits such as exposure to a larger portfolio, better financing access, and improved liquidity. However, the proposal is subject to certain conditions, and there is no certainty that an offer will be made.

Spark’s Take on GB:LMP Stock

According to Spark, TipRanks’ AI Analyst, GB:LMP is a Outperform.

LondonMetric Property demonstrates strong financial performance with effective cash flow management and a robust balance sheet. The stock’s valuation metrics are attractive, supported by a high dividend yield. Recent corporate events further bolster prospects by enhancing income streams and financial stability. Technical indicators suggest caution, but strategic corporate moves provide confidence in long-term growth.

To see Spark’s full report on GB:LMP stock, click here.

LondonMetric Sells £40 Million in Logistics Assets to Reinvest in Core Sectors

LondonMetric Property Plc has announced the sale of £40.4 million worth of mature and non-core urban warehousing assets, achieving a net initial yield (NIY) of 4.3%. The strategic and opportunistic sales, which include warehouses in London, Birmingham, and Aberdeen, align with book values and have delivered a profit on cost of 30% and an ungeared internal rate of return (IRR) of 10%. The proceeds from these sales will be reinvested into core sectors with superior income and rental growth prospects, strengthening LondonMetric’s focus on high-performing assets.

LondonMetric Property PLC Announces Additional Share Listing

LondonMetric Property PLC announced the issuance of 7,141,579 ordinary shares as part of its scrip dividend scheme, following the declaration of a third quarterly interim dividend of 3.0 pence per share. These shares will be admitted to trading on the London Stock Exchange on April 11, 2025, increasing the company’s issued share capital to 2,055,249,995 shares. This move is expected to enhance liquidity and provide shareholders with an alternative to cash dividends, potentially impacting shareholder interest and market perception.

LondonMetric Announces Acquisition of Highcroft Investments

LondonMetric Property PLC has announced a recommended all-share acquisition of Highcroft Investments PLC, a UK REIT with a portfolio focused on logistics and retail warehousing. The acquisition, valued at approximately £43.8 million, offers Highcroft shareholders a significant premium and the opportunity to remain invested in a larger, more liquid company with a strong track record of dividend growth. The acquisition is expected to be earnings accretive and provide Highcroft shareholders with benefits such as exposure to a diverse portfolio, better financing access, and a strong income profile.

LondonMetric Achieves BBB+ Investment Grade Rating from Fitch

LondonMetric Property Plc has been assigned a BBB+ investment grade rating by Fitch Ratings, with a stable outlook and a senior unsecured rating of A-. This rating reflects the company’s significant scale, strong balance sheet, and alignment with sectors that generate reliable and growing income. The rating is expected to provide LondonMetric with greater flexibility for future debt issuances and the ability to secure more attractive financing rates.

LondonMetric Directors Maintain Commitment Despite Share Sale

LondonMetric Property Plc announced that Prestbury Management Holdings Limited, associated with its Non-Executive Directors Nick Leslau and Sandy Gumm, sold over 26 million shares following the expiry of a lock-up period post the LXi takeover. Despite the sale, both directors remain committed long-term shareholders, with Mr. Leslau holding approximately 1.3% of the company’s issued share capital.

BlackRock Adjusts Holdings in LondonMetric Property

LondonMetric Property PLC has announced a change in its major holdings, with BlackRock, Inc. adjusting its voting rights in the company. As of March 11, 2025, BlackRock holds a total of 7.34% of voting rights, a slight decrease from the previous 7.41%. This adjustment in holdings reflects BlackRock’s strategic positioning and may influence LondonMetric’s shareholder dynamics and future decision-making processes.

LondonMetric Offers Scrip Dividend Alternative for Third Quarterly Dividend

LondonMetric Property PLC has announced a third quarterly interim dividend of 3.0 pence per Ordinary Share, payable on 11 April 2025. Shareholders have the option to receive this dividend in the form of new Ordinary Shares instead of cash, with the Scrip Calculation Price set at 177.3 pence per share. This move allows shareholders to potentially increase their shareholding in the company, reflecting LondonMetric’s commitment to providing flexible dividend options and enhancing shareholder value.

BlackRock Adjusts Stake in LondonMetric Property

LondonMetric Property PLC has announced a change in its major holdings, with BlackRock, Inc. adjusting its voting rights. As of February 28, 2025, BlackRock’s total voting rights in LondonMetric have decreased slightly from 7.5% to 7.41%. This adjustment reflects a minor shift in BlackRock’s investment position, which may have implications for the company’s shareholder dynamics and influence within the real estate sector.

BlackRock Adjusts Stake in LondonMetric Property PLC

LondonMetric Property PLC announced a change in major holdings as BlackRock, Inc. adjusted its voting rights in the company. The notification indicates that BlackRock’s voting rights attached to shares increased to 5.58%, while voting rights through financial instruments decreased to 1.92%, maintaining a total of 7.5%. This adjustment reflects BlackRock’s strategic positioning in LondonMetric, potentially impacting shareholder dynamics and influencing future corporate decisions.

LondonMetric Boosts Annual Rental Income by £13.2 Million

LondonMetric Property Plc has announced an increase of £13.2 million in annual rental income from recent occupational activities, including 122 lettings, regears, and rent reviews. Key transactions include significant uplifts in urban logistics warehouses and convenience lettings, as well as a regear at Warwick Castle. The company has also secured additional income through rent reviews, reflecting a strong demand for its high-quality assets and supporting its capital allocation decisions.

LondonMetric Property Boosts Annual Rental Income by £13.2 Million

LondonMetric Property Plc has announced an increase in annual rental income by £13.2 million through 122 lettings, regears, and rent reviews since September 2024. This includes significant transactions in urban logistics, convenience lettings, and a regear at Warwick Castle, reflecting strong occupational demand and supporting the company’s capital allocation decisions. The company aims to maintain high occupancy rates and deliver an additional £26 million in rent by March 2026.

LondonMetric Announces Increased Quarterly Dividend

LondonMetric Property PLC has announced a third quarterly interim dividend of 3.0 pence per Ordinary Share, marking a 5.3% increase from the previous quarter and a 25% increase from the same period last year. This dividend, paid as a Property Income Distribution, aligns with the company’s progressive dividend policy and targets a full-year dividend of 12.0 pence per share, reflecting a 17.6% rise from the previous year, indicating strong financial performance and commitment to shareholder returns.

BlackRock Adjusts Voting Rights in LondonMetric Property

LondonMetric Property PLC has announced a change in its major holdings, with BlackRock, Inc. adjusting its voting rights in the company. As of February 21, 2025, BlackRock’s total voting rights in LondonMetric have decreased slightly to 7.5%, down from a previous 7.77%. This change reflects a reallocation of voting rights through shares and financial instruments, potentially impacting stakeholder dynamics and market perceptions of LondonMetric’s shareholder structure.

LondonMetric Property to Announce Full Year Results on 20 May 2025

LondonMetric Property has announced that it will release its full year results for the period ending 31 March 2025 on 20 May 2025. The company plans to hold an in-person presentation for analysts on the same day, along with a live webcast for broader access. This announcement is significant as it provides stakeholders with key financial insights and strategic direction, potentially impacting its market positioning and investor relations.

LondonMetric Property Appoints New Chief Investment Officer with Strategic Share Awards

LondonMetric Property PLC has announced that Darren Richards has begun his role as Chief Investment Officer. As part of his compensation package, Richards acquired 82,051 ordinary shares and was granted share awards under the company’s Long Term Incentive Plan to offset losses from his previous employment. These shares will vest between 2025 and 2027, subject to various performance metrics, indicating a strategic focus on long-term growth and shareholder value.

LondonMetric Executes £124 Million in Strategic Property Transactions

LondonMetric Property Plc announced the sale of ten non-core properties for £74.2 million, achieving a NIY of 6.9%, and the acquisition of seven properties for £50.1 million, expected to yield a NIY of 7.2% over five years. These transactions reflect LondonMetric’s strategy of divesting from non-core assets while reinvesting in high-quality properties with strong rental growth prospects, thereby enhancing its portfolio and solidifying its market position.