LondonMetric ups dividend after strong rent collection

LondonMetric increased its dividend as the property company reported strong rent collection and higher revenue in the first half.

Earnings on an EPRA basis rose 20% to £42.3m in the six moths to the end of September as net rental income rose to £61.3m from £54.9m. EPRA earnings per share rose 4% to 4.75p.

Rent collection was "strong" during the Covid-19 crisis with 98% of third-quarter rents received with 1% deferred. The FTSE 250 property group increased its first-half dividend by 5% to 4.2p a share.

While other property companies have struggled during the coronavirus emergency LondonMetric has done well because of its concentration on warehouses and long-term leases to businesses such as food retailers and DIY that are less exposed to changes in consumer habits.

Andrew Jones, chief executive, said: "Covid-19 has accelerated a number of structural changes which are having a profound and permanent impact on real estate.

"Logistics and grocery have been clear beneficiaries of the pandemic, as businesses have sought to future proof their operations in response to the seemingly unstoppable rise in e-commerce penetration and respond to changes in the way we live and shop. With both near term and longer-term drivers underpinning our portfolio, our long held sector conviction calls continue to be reaffirmed and support our strong outperformance."