LondonMetric - Trading update ahead of full year results
Trading update ahead of full year results
At this time of uncertainty caused by COVID-19, LondonMetric's primary focus is to keep its people safe, maintain close working relationships with its occupiers and ensure that its financings can comfortably withstand a further deterioration in economic conditions.
Our strategic decisions and actions over the past few years have aligned the portfolio to structurally supported sectors that continue to offer superior growth prospects, as well as assets that are underpinned by high intrinsic values. These actions mean we have built a highly desirable and resilient portfolio that is c.99% occupied and let on long leases to a diverse range of occupiers across multiple industries. With c.70% of our portfolio in logistics, this warehousing space provides our occupiers with operationally critical infrastructure.
Our operational and financial performance to date has been strong. EPRA Earnings for FY 2020 are anticipated to be in line with expectations and our third quarter dividend of
In respect of advanced quarterly rental payments that were due by 1 April, 85% has been collected, 7% is expected to be received shortly and on a further 4% we are in advanced discussions on short term rental concessions in return for compensatory asset management initiatives.
Unsurprisingly, some of our customers are experiencing unprecedented short term disruption to their business models, which is putting enormous pressure on the robustness and sustainability of their cash flows. Therefore, through our occupier-led strategy we are actively assisting those that are being materially impacted by providing proportionate assistance. Some companies are also seeking help with short term cash flows to improve liquidity. Consequently, following conclusion of current occupier discussions, we expect that 17% of our rent will be paid monthly compared to 13% previously.
Clearly this will have some impact on our short term cashflows. However, where any liability is deferred, it still remains due and so we will expect compensation by way of lease extensions, removal of break clauses or additional payments in the future.
Our financial position was strengthened in the second half of the financial year by
Over the same period, we acquired
We have no debt maturing during this financial year and, as at
We recently strengthened our debt profile through a new
Looking forward, it is still too early to assess the full impact of COVID-19 on both the wider economy and the real estate industry. The tectonic plates have undoubtedly shifted for most businesses and whilst we expect them to realign back, for many, they are unlikely to return to exactly where they started.
We enjoy excellent relationships with our stakeholders which, combined with our long experience, financing structure and significant resources means we are well placed to deal with the current disruption and emerge with a stronger portfolio and deeper occupier relationships.
For further information, please contact:
Tel: +44 (0) 20 7484 9000
Tel: +44 (0) 20 3727 1000
LondonMetric is a
This information is provided by RNS, the news service of the
Quick facts: LondonMetric Property PLC
Market Cap: £1.99 billion
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