LondonMetric Property PLC (LON:LMP) saw its first-half profit fall reflecting a reduced property revaluation and changes in fair value of derivatives, but the firm still raised its interim dividend.
The FTSE 250-listed property management company saw its reported profit slip to £79.3mln for the six months to 30 September 2018, slightly down on the £79.6mln recorded a year earlier.
READ: Hammerson drives another nail into the coffin of retail parks
The firm said a property revaluation was the largest single profit contributor at £51.0mln, but that was £1.8mln less than the comparative revaluation a year ago.
The group also recorded a £400,000 loss on the fair value of its derivatives, against a £10.6mln gain the year before.
LondonMetric’s net rental income rose by £47.1mln, up from £44.5mln a year earlier as a focus on logistics and convenience assets paid off.
The group said that while "wider markets are uncertain" and "a lot of the easy money has been made" it is not pessimistic enough to be defensive.
It added: "We have made some sound decisions and are well positioned with a fit for purpose portfolio.”
Brexit boost to space
The firm also said it was seeing more interest from companies for additional distribution space to store products, which could help avoid any disruptions in supply chains ahead of Brexit.
It pointed out: "There is growing evidence that occupiers are intensifying their search for additional distribution space both to increase near term storage capacity as well as longer term solutions to maximise the efficiency of their global supply chains in a post Brexit environment.”
The firm said it will pay a second quarterly dividend of 1.9p per share, bringing the total payout for the first-half of 3.8p, up from 3.7p last year.
In late morning trading, LondonMetric shares were up 0.2% at 186.80p.