Annual Report
and Accounts
2026
Where
income
compounds
Strategic report 01
Introduction 01
Our competitive strengths 04
Chair’s statement 08
Performance highlights 2026 09
At a glance 10
Chief Executive Q&A 12
How we create value 14
Chief Executive’s review 15
Our markets 22
Key performance indicators 24
Property review 26
Financial review 39
Responsible Business and ESG review 48
TCFD Recommendation
& Alignment
63
Risk management and
internal controls
70
A review of our principal risks 75
Going concern and viability 85
Governance 87
Chair’s introduction 88
Governance overview 90
Board leadership
and Company purpose
Board of Directors 92
Senior Leadership Team 94
Our purpose, values
and culture
95
How we monitor culture 96
Board activities in the year 98
Section 172 Statement 99
Stakeholders 100
Division of responsibilities
Governance framework 102
Leadership roles and responsibilities 103
Committee Reports
Nomination Committee report 104
Audit Committee report 111
Remuneration Committee report 118
Report of the Directors 149
Directors’ Responsibilities Statement 152
Financial statements 153
LondonMetric is a FTSE
100 real estate company
that owns £7.6 billion of
structurally supported assets.
Delivering reliable, repetitive
and growing income.
Learn more about our business at
londonmetric.com
£432m
Net contracted rent per annum
37m
Square feet of property
Strategic report Governance Financial statements
LondonMetric Property Plc Annual Report and Accounts 2026
Our aim is to build on
our position as the UK’s
leading Triple Net Lease
(NNN) REIT.
Our purpose is to become
the UK’s most enduring real
estate partner delivering
dependable income.
The UK’s
leading Triple
Net Lease REIT
Our focus is to execute a
simple, low cost Triple Net
Lease (NNN) model.
Investing in quality
We focus on mission critical real estate
in structurally supported sectors that
has enduring occupier appeal. We are
constantly evolving the portfolio
to ensure our assets are fit for the future.
Maintaining a disciplined approach
Our disciplined, low cost and responsible
management approach leverages
our expertise to benefit from our
strong relationships.
Delivering dependable returns
This allows us to generate reliable,
repetitive, and growing income to pay
a progressive dividend and reinforces
our position as the UK’s leading Triple
Net Lease REIT.
Read more on page 14
Strategic report Governance Financial statements
LondonMetric Property Plc Annual Report and Accounts 2026
1
2013–17
Repositioning to
logistics & convenience
Material repositioning of portfolio
out of retail parks, offices and
residential into logistics, which grew
from 40% of portfolio to 62%, and
convenience retail.
Portfolio: £1.5bn
£8bn
Portfolio value
6x
Portfolio growth since 2013
£12bn
Transactional activity since 2013
Over a decade
of momentum
Since 2013, our NNN portfolio has grown
significantly and has been repositioned to
benefit from macro and structural trends.
2013
Established
LondonMetric established through
the £830m merger of London &
Stamford and Metric Property.
Portfolio: £1.2bn
£54m
Net contracted rent pa
#12
UK REIT (by market cap)
Strategic report Governance Financial statements
LondonMetric Property Plc Annual Report and Accounts 2026
2
2018–22
Urban logistics pivot
Portfolio shifted away from large
box logistics into smaller urban
logistics warehousing. The
£0.4bn takeover of Midlands
based A&J Mucklow Group Plc in
2019 accelerated our push into
urban logistics.
Portfolio: £3.6bn
2023–26
Doubling of portfolio through M&A
Transacted on four further M&A deals adding
£4.4bn of assets across the urban logistics,
convenience, entertainment and healthcare
sectors to create the UK’s leading NNN REIT.
Scale allowed us to obtain an A- credit rating
and complete an inaugural £0.5bn bond issue
in 2025.
Portfolio: £7.6bn
This momentum
provides LondonMetric
with a clear advantage
created by our
Scale, Agility
and Performance.
2026
Read about our competitive
strengths on the following pages
£432m
Net contracted rent pa
#2
UK REIT (by market cap)
78%
Dividend growth since 2013
Strategic report Governance Financial statements
LondonMetric Property Plc Annual Report and Accounts 2026
3
Our competitive strengths
Scale
£500m
Unsecured bond issued
at 4.69% all in cost
£7.6bn
Portfolio
7.7%
EPRA cost ratio (sector leading)
Where scale
generates advantage
Scale is a core driver of competitive advantage.
It enables us to compete against the largest
real estate investors for larger and more varied
opportunities, while our efficient operating
platform delivers economies of scale that
enhance returns.
Our size also provides access to deeper
and more cost‑effective sources of capital,
particularly in the debt markets.
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LondonMetric Property Plc Annual Report and Accounts 2026
4
Our competitive strengths continued
Agility
54
Employees
327
Occupier initiatives in the year
£1.9bn
Investment activity in the year
Where agility
creates opportunity
We have built and retained a highly capable,
best‑in‑class team of 54 employees with
deep property expertise and strong, trusted
stakeholder relationships.
Our culture is defined by collaboration,
integrity, hard work and an entrepreneurial
mindset, with clear alignment of interests and
delegated responsibility.
This streamlined and empowered structure
enables us to act quickly, remain flexible and
respond decisively to capture opportunities
efficiently as they arise.
Strategic report Governance Financial statements
LondonMetric Property Plc Annual Report and Accounts 2026
5
Our competitive strengths continued
EPRA earnings
(pence per share)
Dividend
(pence per share)
Total property return
(rebased to 100)
Total shareholder return
(rebased to 100)
2026
13.5
2026
12.5
2026
334
2026
327
2013
100
2013
100
2013
7.0
Performance
Where income compounds
to deliver long-term
shareholder value
LondonMetric has an outstanding track record.
Our high conviction, low cost, NNN business
model and unrelenting focus on generating
reliable, repetitive and growing income
underpins this long‑term performance.
246% 78% 234% 227%
2013
3.9
Strategic report Governance Financial statements
LondonMetric Property Plc Annual Report and Accounts 2026
6
£16m Ocado warehouse sale
In the year, we sold an Ocado
warehouse in Leyton which we
previously acquired in 2020 for £12m.
A rent review in 2023 increased the rent
by over 60%, significantly above our
underwrite. The asset delivered a strong
performance, ahead of business plan.
Strategic report Governance Financial statements
LondonMetric Property Plc Annual Report and Accounts 2026
7
We are delivering on our aim to further
consolidate our position as the UK’s
leading Triple Net Lease REIT.
Delivering another year of
attractive income returns
Alistair Elliott
Chair
Chair’s statement
It has been another very busy year for LondonMetric with
£1.2 billion of assets added from M&A activity, 92 investment
transactions, 327 occupier initiatives and £3.8 billion of
debt activity.
Our results for the year built on the strong performance delivered
in the previous year, during which EPRA earnings per share
(‘EPRA EPS’) and dividend per share increased by 21% and 18%
respectively. In the year to 31 March 2026, net rental income
was up 16.6% to £455.3 million, whilst our EPRA EPS increased
by 2.4% to 13.5p, a 246% increase from 3.9p at the time of our
formation in 2013 (a 10% compounded annual growth rate).
This has allowed us to increase our dividend per share for the
eleventh year running, up 3.8% to 12.45p and 108% covered
by EPRA EPS. We expect dividend growth to continue and are
guiding to a 3.3% increase in our first quarterly dividend for FY27
to 3.15p.
Our strong income performance helped deliver another year
of attractive returns, with a total property return of 7.1% (a
170bps outperformance of MSCI All UK Property) and a total
accounting return of 6.9% (7.7% excluding M&A related and
exceptional costs).
We have proactively strengthened and diversified our debt over
the year by refinancing £1.5 billion of debt facilities, raising new
debt of £1.2 billion and repaying £1.1 billion. This activity included a
£500 million debut senior unsecured bond issue, which extended
debt maturity at attractive rates and broadened access to the
public debt markets. We remain in a very strong financing position
with a blended cost of debt of 4.0%, average debt maturity of
4.4 years, an LTV of 36.7% and £0.5 billion of undrawn facilities.
Our exceptional team is working tirelessly to build an even
stronger business that can continue to deliver earnings and
dividend growth over the long term. Our enlarged scale and highly
efficient business model will continue to offer up a wide variety of
further opportunities for growth.
On behalf of the Board and on his retirement from LondonMetric
may I offer my sincere thanks to Valentine Beresford for all he
has contributed to the business over the years. Whilst our overlap
has been a relatively short one, it is clear that his impact has been
significant, not least overseeing several hundred million pounds
of successful transactions during recent challenging market
conditions. Crucially, he leaves the business with a strong team to
continue to build momentum.
Finally, having seen first hand the enormous commitment that
has been made, I would like to thank all of our team and the Board
for their hard work and dedication over the past year. I remain
genuinely excited by the prospects for the Company.
Strategic report Governance Financial statements
LondonMetric Property Plc Annual Report and Accounts 2026
8
Performance highlights 2026
Alternative performance measures
The Group financial statements are prepared in accordance with IFRS. Alternative
performance measures are financial measures not specified under IFRS but are used by
management as they highlight the performance of the Group’s property rental business
and are based on the EPRA Best Practice Recommendations (‘BPR’) reporting framework.
These alternative performance measures aid the comparability of financial information
across public real estate companies and are widely adopted.
The alternative performance metrics and financial results reflected in the Strategic report
and on this page reflect the EPRA BPR reporting framework. Further details, definitions
and reconciliations between EPRA measures and the IFRS financial statements can be
found in note 8 to the financial statements, Supplementary notes i to vii and xviii and in
the Glossary.
£295.7m
IFRS reported profit (for equity shareholders)
£52.2m
EPRA EPS
13.5p
2.4%
7.7%
EPRA cost ratio
10bps
12.45p
Dividend per share
3.8%
£4,732.9m
IFRS net assets
14.8%
4.4 yrs
Average debt maturity
0.3 yrs
16.9 yrs
WAULT
1.6 yrs
4.0%
Cost of debt
unchanged
7.1%
Total property return
120bps
200.6p
EPRA net tangible assets per share
0.7%
36.7%
Loan to value ratio
400bps
13.1
13.5
10.9
2025
2026
2024
199.2
200.6
191.7
2025
2026
2024
4.0
4.0
3.9
2025
2026
2024
12.0
12.45
10.2
2025
2026
2024
8.3
7.1
4.7
2025
2026
2024
4.7
4.4
5.4
2025
2026
2024
7.8
7.7
11.6
2025
2026
2024
18.5
16.9
19.4
2025
2026
2024
347.9
295.7
118.7
2025
2026
2024
32.7
36.7
33.2
2025
2026
2024
4,123.9
4,732.9
3,969.5
2025
2026
2024
LondonMetric Property Plc Annual Report and Accounts 20269
Strategic report Governance Financial statements
LondonMetric is the UK’s leading Triple
Net Lease REIT with a portfolio aligned to
structurally supported sectors of logistics,
convenience, entertainment & leisure and
healthcare.
A high quality
mission critical
portfolio
Assets
680
27%
2025: 537
Occupancy
97.7%
40bps
2025: 98.1%
Sq ft
36.6m
45%
2025: 25.3m
WAULT
16.9 yrs
1.6 yrs
2025: 18.5 yrs
Net contracted rent
£432m
27%
2025: £340m
EPC rating A-B
60%
200bps
2025: 58%
Geographic weighting
(by value)
London and South East40.5%
23.7%
10.4%
8.6%
6.6%
5.6%
4.6%
Midlands
North West
North East
South West
East of England
Other
Portfolio by sector
£4,024m £1,540m £1,055m £921m £81m
Logistics
52.8%
Entertainment & leisure
20.2%
Convenience
13.8%
Other
1.1%
Healthcare
12.1%
Long incomeLogistics
At a glance
LondonMetric Property Plc Annual Report and Accounts 202610
Strategic report Governance Financial statements
Delivering on
our different
stakeholder needs
54
Employees
4MWp
Solar capacity added in year
94%
Employees enjoy working
at LondonMetric
35%
Top ten occupiers
Proportion of net contracted rent
7.7%
EPRA cost ratio
Our stakeholders are critical to our success.
We look to deliver on the needs of our occupiers,
investors, people, advisors and communities.
8.8/10
Occupier recommendation
score
Ramsay Health Care 9.1%
Merlin Entertainments 7.8%
Travelodge 4.9%
Premier Inn 3.3%
Booker 2.2%
M&S 1.9%
Great Bear 1.6%
Tesco 1.5%
Primark 1.4%
Amazon 1.3%
At a glance continued
Annual Report and Accounts 202611LondonMetric Property Plc
Strategic report Governance Financial statements
Q
How would you describe LondonMetric and
what is distinctive about its NNN lease model?
LondonMetric is a high conviction Triple Net Lease REIT focused
on generating secure, growing income from mission critical real
estate. Our business is simple and highly efficient, designed to
convert rental income into sustainable earnings and deliver a
well covered, progressive dividend to shareholders.
Our NNN lease structure ensures the occupier bears the
vast majority of property operating costs, allowing 99%
of rent collected to flow through to earnings. This delivers
exceptionally strong margins and limits volatility. Importantly,
we are not just collecting rent – we compound income over
the long term by avoiding vacancy risk, occupier fragility and
speculative development.
We have fully embraced the attractiveness of the NNN model,
and this combination of income continuity and growth is the
foundation of our strategy.
Q
What is LondonMetric’s investment strategy?
We invest in mission critical real estate within sectors supported
by long term structural trends, with one primary financial
objective: to deliver reliable income with guaranteed future
income growth.
Our portfolio is aligned to macro trends of digitalisation,
convenience and experiences through our main focus on
logistics, convenience retail, entertainment and hospitality.
We acquire high quality assets at reasonable prices, partner with
strong occupiers with high occupier contentment, and apply
conservative leverage to amplify returns.
Our assets are held for the long term to drive compounding
returns. In short, LondonMetric is where income compounds.
Q&A
A conversation
with Andrew Jones
Chief Executive
Strategic report Governance Financial statements
LondonMetric Property Plc Annual Report and Accounts 2026
12
Q
How has M&A supported the delivery
of this strategy?
Our four recent M&A transactions have been an important enabler
of earnings growth and operational efficiency through economies
of scale, and scale has delivered a competitive advantage.
These public takeovers have increased our portfolio from
£3.0 billion in 2023 to £7.6 billion today, materially strengthening
exposure to our highest conviction sectors. The takeover of Urban
Logistics REIT Plc (‘ULR’) in June 2025 significantly increased
our weighting to urban logistics – a sector we regard as central to
future income growth.
M&A has also enhanced our income granularity, diversification
and reversionary potential. Less than a year into our ownership of
ULR, we are already unlocking material rental growth through our
occupier relationships and best in class team.
Q
How are you managing the portfolio in a difficult
real estate market?
We manage the portfolio with a clear focus on resilience and
relevance. By concentrating on structurally supported sectors and
mission critical assets, we avoid assets where income growth is
uncertain or capital expenditure risk is rising.
We look to avoid the losers by actively disposing of weaker
assets and sectors where we lack occupier leverage or long term
tailwinds. During the year, we sold £318 million of properties,
including £173 million previously inherited through recent M&A.
Our philosophy is straightforward: run the winners and
sell the losers. This disciplined approach underpins our all
weather portfolio and reinforces our long term income
compounding strategy.
Q
How does market uncertainty create
opportunities and why is scale a
competitive advantage?
Periods of uncertainty favour well capitalised, disciplined
investors. We remain thoughtful, deliberate and disciplined
when it comes to capital allocation, and our size, patience and
diversification make us a safe proposition.
Whilst scale can make life a little harder for our activity to move
the needle, it does broaden our access to opportunities and
improve execution certainty. Today, we are seeing exciting
opportunities emerge from pension fund rebalancing, constrained
development finance and occupiers seeking sale and leaseback
solutions to release capital back into their businesses.
Scale also delivers meaningful cost efficiency, as evidenced by
our recent refinancings and sector leading EPRA cost ratio of 7.7%.
Our operating leverage is clear: in the year, our dividend payments
were nine times total overheads.
Scale, efficiency, liquidity and hard work position LondonMetric to
continue creating long term value.
Our approach to income compounding
and management’s strong share ownership
culture ensures that we remain alert,
focused but always disciplined.
Chief Executive Q&A continued
M&S letting at Luton – Occupational activity
in the year was healthy and is helping to
maintain our sector leading income metrics
and deliver attractive income growth.
In Luton, we let a former Homebase store
to M&S on a new 15 year lease at a rent
53% higher than previously passing.
7.7%
Sector leading EPRA cost ratio
Convenience shopping is
one of the structural trends,
with time an increasingly
valuable commodity
Strategic report Governance Financial statements
LondonMetric Property Plc Annual Report and Accounts 2026
13
How we create value
As the UK’s leading Triple Net Lease REIT, our low operating costs and portfolio alignment
to structurally supported sectors generates dependable long term income growth.
We focus on structurally
supported real estate sectors
of logistics, convenience,
healthcare, entertainment
& leisure and assets that
are fit for purpose and that
can deliver sustainable and
growing income returns.
We constantly look to
improve the quality and
desirability of our assets.
We work closely with our
occupiers to deliver real
estate solutions that will help
their businesses thrive and
that provide us with greater
income growth certainty.
We have a highly talented,
motivated and agile team.
We promote a culture of
empowerment, inclusion
and collaboration. It is
our team’s skills and their
relationships that make
us a partner of choice.
Income is central to our
investment approach.
Our ultimate priority is to
pass on income generated
from our assets to our
shareholders in the form
of a well covered and
progressive dividend.
Invest in quality assets in
winning sectors
Low cost
and responsible
asset management
Leverage our expertise
and strong relationships
Deliver reliable,
repetitive and
growing income
Our key
stakeholders
are critical to
our success
Generating
value and long
term returns
Dividend growth in year,
our eleventh consecutive
year of progression
+4%
Our people
Our occupiers
Our local
communities
Our investors
Our contractors
& advisors
Total accounting return
+7%
Like for like income growth
+4%
Our strategy drives our income growth and value creation
Own Manage Collaborate Generate
Read more about our
performance on page 26
Read more on our
stakeholders page 55
Strategic report Governance Financial statements
LondonMetric Property Plc Annual Report and Accounts 2026
14
Chief Executive’s review
Generate income
We appreciate the benefit of long term
income compounding
We continue to believe – now more than ever – that income
and income growth are the defining characteristics of long
term returns.
The true power of investment lies in the compounding of
income, with a relentless focus on the quantity, quality and
timing of cash returned to shareholders. Compounding is often
misunderstood and rarely appreciated, yet it is one of the most
powerful forces in investing.
Our approach to compounding is simple. It is not flashy, and it
is frequently overlooked, but we apply it with conviction. It is a
‘slow cook’ strategy that rewards patience and consistency – an
approach suited to those prepared to get rich slowly. In the early
years it can appear unexciting, which is why many abandon
it in favour of short term or speculative strategies. Over time,
however, growth builds upon growth, and the outcomes
become increasingly compelling.
Informed by the success of NNN REITs in the US, we have
fully embraced the REIT structure, recognising its exceptional
strengths. In the UK, this is reinforced by the full repairing
and insuring (‘FRI’) lease structure, under which tenants are
responsible for repairs, maintenance and insurance – in many
respects mirroring the NNN model.
However, we think about NNN differently. For us, NNN means:
• No income leakage from repairs, maintenance, operating
costs, insurance or taxes;
• No vacancy risk, instead long WAULTs secured against strong
occupiers; and
• No deployment of capital into direct developments that
promise future returns while quietly absorbing years of
opportunity cost from uncertainty over planning, letting and/
or project delivery. For us, that is not investing – it is gambling,
where hope substitutes for rationality.
We believe that reliable, predictable and growing income from
the strongest property sectors remains one of the most under
recognised attractions of real estate investing – and a critical
driver of sustained compounding.
For us, the principle is as simple as ABC: always be compounding.
Our portfolio income metrics are sector leading
and we are highly efficient
Our portfolio’s income metrics are best in class. Our annual net
contracted rent of £432 million benefits from a long WAULT
of 17 years, high occupancy of 98% and an exceptional gross
to net income ratio of 99%. With 69% of income subject to
contractual rental uplifts and strong reversionary potential
across our logistics assets, the portfolio offers high visibility and
certainty of income growth. This is evidenced by its like for like
income growth of 4.2% over the year and an equivalent yield of
6.4%, some 110bps higher than the topped up NIY.
We remain laser focused on cost control with our sector leading
EPRA cost ratio – an area that continues to be underestimated
across the listed REIT sector, as reflected in the elevated
cost ratios still borne by many peers. Tight management of
property costs and overheads, using AI to further improve
our NNN efficiencies, delivers the operating margins required
to compound long term earnings and drive dividend growth.
Our scale has also allowed us to benefit from improved
financing costs as demonstrated in the year by the attractive
4.7% all-in rate on our bond issue and the 49bps margin saving
on our refinancing activity. Cost discipline and reduced debt
costs serve the bottom line just as effectively as rental growth
serves the top line.
We believe that NNN income compounding represents the
most effective way to invest: low cost, high quality income,
delivered reliably and efficiently, without the distractions of
excessive activity, large organisations or binary risk taking.
In that context, we remain equally focused on avoiding the
other ABC: arrogance, bureaucracy and complacency.
Our approach focuses
on delivering strong
income-led total returns
to shareholders through
four strategic pillars.
£432m
Net contracted rent pa
4.2%
Like for like income growth in the year
Andrew Jones
Chief Executive
Strategic report Governance Financial statements
LondonMetric Property Plc Annual Report and Accounts 2026
15
Chief Executive’s review continued
Own desirable real estate
Our strategy is to own quality assets
in winning sectors
Our investment thesis is rooted in allocating capital where it is
best treated – sectors supported by enduring structural trends
rather than short term cycles. This requires constant awareness,
intellectual honesty and a willingness to pivot when facts change.
As a high conviction NNN investor, we distinguish between what
is structural from what is cyclical when deploying capital.
Our thematic approach has aligned the portfolio with powerful
macro trends, including digitalisation, the increasing value of
time, and the growing importance of experiences. As a result,
we have concentrated our investments in the winning sectors of
logistics, convenience retail, entertainment and hospitality.
Within these sectors, we prioritise mission critical assets
which are relevant in an increasingly AI driven world, and
where occupiers stay longer, invest more and pay higher rents.
With 64% of the portfolio in London, the South East and the
Midlands, our assets benefit from strong underlying land values,
persistent demand and constrained supply. When the wind
is at your back, you are more likely to be a price setter than a
price taker.
We seek to acquire quality assets, apply conservative leverage
and hold them for extended periods to generate sustainable
returns. Time is the ally of a great portfolio. We describe this
discipline as the three Cs: collect income, allow it to compound,
and watch yields on cost compress.
Our focus on compounding – rather than simply growing assets
under management – ensures discipline: spending is easy whilst
investing is difficult. Buying low quality assets cheaply is not our
strategy; such assets often over distribute, dilute equity value
and introduce unnecessary risk and complexity. Accordingly,
we will exit weaker investments with shorter leases and capital
expenditure requirements that are likely to grow faster than
rental income. We would rather pay a fair price for a wonderful
asset than a wonderful price for a fair one.
This philosophy explains why we have avoided office
investments. Offices fail our NNN test: they suffer from
accelerating obsolescence, technological disruption, changing
occupier preferences, rising sustainability costs and shortening
leases. It is difficult to maintain a long term relationship with
offices – their appeal fades, they require continual capital to
remain relevant, demand weakens as newer alternatives emerge
and values can erode quickly.
Our compounding model simply requires discipline and the
avoidance of unforced errors. In short, we succeed by staying
the course and following the money – mindful always that it is
management’s capital alongside shareholders’.
See more about macro and structural trends impacting
real estate on page 22
£1.5bn
Acquired in the year (including M&A)
£0.3bn
Sold in the year
Our activity has focused on further M&A,
non core disposals and reinvestment
Our M&A activity added £1.2 billion of quality assets through the
acquisitions of ULR and Highcroft Investments plc (‘Highcroft’).
We successfully acquired businesses that were no longer well
suited to the listed market and out of favour with investors,
who are increasingly focused on scale, relevance and liquidity.
Whilst we continue to assess further M&A opportunities, these
have become fewer. In conjunction with Schroder Real Estate
Investment Trust Limited (‘SREIT’), we continue to progress our
recently proposed offer for Picton Property Income Limited.
Alongside M&A, we have acquired strategic positions in two
listed property companies through our 11% holding in SREIT
and 15% holding in Value and Indexed Property Income
Trust PLC.
Limited competition in the direct market allowed us to
progress £333 million of other investment opportunities in
the year including sale and leasebacks, development fundings
and acquisitions arising from fund expiries and pension
fund liquidations.
These acquisitions were largely funded through £318 million
of non core and mature asset disposals, primarily former ULR
and LXi assets at prices in line with our underwritten values.
Despite constrained market liquidity, our low average disposal
lot size of £6 million has been a clear advantage and allowed us
to transact efficiently by accessing a broader and deeper pool of
buyers, including private investors, family offices, local authority
pension funds and owner occupiers.
Strategic report Governance Financial statements
LondonMetric Property Plc Annual Report and Accounts 2026
16
Our investment activity has increased our logistics
exposure, focusing on urban logistics
The logistics sector remains attractive, underpinned by strong
structural tailwinds including continued growth in online sales,
ongoing investment in more efficient and resilient supply chains
and increased warehouse automation.
We continue to believe that urban logistics is the most compelling
sub-sector, offering the strongest demand/supply imbalance
and the greatest potential for income growth. New supply
remains constrained by elevated development costs and the
ongoing loss of urban warehousing to higher value alternative
land uses. At the same time, occupier demand remains granular
and resilient, driven by businesses seeking to operate closer to
customers, reduce delivery times, improve fulfilment accuracy
and to meet consumer expectations for speed and convenience.
These dynamics continue to support robust rental growth in
urban locations.
The acquisition of ULR materially accelerated our ambition to
grow further exposure to urban logistics, adding £1.1 billion of
warehousing. Together with other acquisitions, including those
completed through the Highcroft takeover, logistics exposure
increased from 46% to 53% of the portfolio over the year.
Take up of UK logistics warehousing increased during 2025
and this higher level of leasing activity continued into the first
quarter of 2026. However, elevated levels of activity have
not materially reduced vacancy, which remains at c.6-7%
nationally. Vacancy remains pronounced in the mid box segment
(100,000–400,000 sq ft), where speculative development
has added to supply. By contrast, our vacancy in this size bracket
remains significantly lower at c.3%, largely relating to former
ULR warehouses.
During the year, we disposed of £137 million of logistics assets,
focusing on poorer geographies and on lower quality buildings
with weaker rental growth prospects, higher vacancy risk and
increasing capital expenditure requirements. £55 million of
disposals related to former ULR assets, and we also took the
opportunity to reduce our multi-let exposure, reflecting strong
investor demand for this product.
Over the year, the logistics portfolio delivered a strong total
property return of 7.0% and recorded ERV growth of 2.6%, with
urban logistics again delivering strong open market rent review
settlements at 38% ahead of previous levels. The logistics portfolio
remains highly reversionary, providing clear visibility of future
income growth. With construction costs up nearly 40% since
Covid, rents will need to rise materially to make new development
viable, reinforcing the attractive outlook for well located assets.
53%
Weighting to logistics
+38%
Uplift on urban logistics
rent reviews (open market)
We continue to believe that
urban logistics is the most
attractive sub-sector with the
greatest demand/supply tension
and income growth potential.
Chief Executive’s review continued
Logistics
Own desirable real estate continued
Strategic report Governance Financial statements
LondonMetric Property Plc Annual Report and Accounts 2026
17
Chief Executive’s review continued
Compelling rationale for LondonMetric
Strong progress on disposals and asset management of ULR assets
Takeover of
Urban Logistics
REIT Plc (‘ULR’)
In June 2025, LondonMetric acquired Urban
Logistics REIT Plc for £0.7 billion equity value
through a recommended share and cash offer.
The transaction continued our consolidation
of smaller externally managed property
vehicles which:
1. owned highly complementary assets
2. traded at material discounts and were
sub-scale for investors
3. offered material economies of scale
4. had investor support for a sale, increasing the
chances of a successful outcome
LondonMetric was seen as the natural buyer of
ULR and there was a strong overlap between
shareholders of both companies which helped
to ensure high levels of shareholder support.
The price offered at the time of announcement
implied an EPRA NTA discount of 3% and a 22%
premium to the ULR’s undisturbed share price
prior to the deal.
Following the acquisition, ULR’s shareholders
represented 11% of the enlarged share register.
Four ULR employees have transferred over
to LondonMetric.
£4 million sale of a 62,000 sq ft
unit let to XPO for less than two
years in Hinkley.
Regear of a 195,000 sq ft
property in Haverhill let to the
Culina Group, where the rent
increased by c.20%.
£55m of disposals
Once the deal completed we
commenced the sell down of
ULR assets that we felt were
higher risk, particularly those
that were shorter let and offered
less income certainty. In the
year, we sold 17 ULR assets for
£55 million, with a WAULT of
four years.
£3m of rent added
In the year, we added
£2.6 million of income from asset
management initiatives on ULR
assets including six lettings and
ten regears.
Chief Executive’s review continued
Benefitting from greater scale Scaling our urban logistics platform Enhancing future earnings
Market capitalisation
£4.4bn
Urban logistics assets added
£1.1bn
Reversionary potential
+£14m
The ULR acquisition has increased
LondonMetric’s scale, firmly establishing it
as a top three UK REIT and consolidating
its position as the UK’s leading NNN REIT.
This has helped to enhance our access
to capital and further improved our
competitive position to pursue further
investment opportunities.
The takeover added £1.1 billion of urban
logistics warehousing in our highest
conviction call sector. The 130 assets
across c.10 million sq ft added c.£65
million per annum of rent with a WAULT
of eight years. 63% of assets were located
in London and the South East and the
portfolio offers significant potential to
drive rents higher.
The deal is expected to deliver earnings
accretion over two years by capturing
external and internal opportunities,
recycling assets, accessing larger
development fundings, capturing
embedded rental reversion and delivering
economies of scale.
LondonMetric Property Plc Annual Report and Accounts 202618
Strategic report Governance Financial statements
Our long income assets are benefitting
from structural tailwinds
Our long income portfolio represents 46% of total assets and is
aligned with structurally supported sectors of convenience retail,
entertainment and leisure, and healthcare. These sectors benefit
from long term shifts in consumer behaviour and demographics,
as spending increasingly pivots towards convenience, experiences
and improved healthcare provision. Supportive demand/supply
dynamics, together with high replacement metrics, ensure these
assets are mission critical locations for our occupiers.
The portfolio is let to strong operators and benefits from inflation
protection and compelling income compounding characteristics.
It delivered a total property return of 7.2% over the year, with
occupancy of 99%, a long dated WAULT of 23 years, a topped up
net initial yield of 5.6% and an equivalent yield of 6.7%.
Across long income markets, investor demand for high quality
long income assets has remained strong. While we were outbid
on several opportunities, we successfully added £306 million of
high quality investments in the year, predominantly within the
hotel sector. Acquisitions included 18 Premier Inn hotels – largely
through sale and leaseback transactions with Whitbread PLC
– alongside a further 18 convenience investments.
We have also continued to sell non core and mature long
income assets where pricing exceeded our assessment of fair
value. Total long income disposals amounted to £146 million
and comprised primarily former LXi assets, including larger food
stores, smaller hotels, car parks, pubs and care homes.
Read more on our long income sub-sectors on page 23
Working with Premier Inn
Relationships with our occupiers are
particularly critical to our success, allowing us
to unlock attractive acquisitions.
We have a strong relationship with Premier Inn
and in the year we helped them to monetise a
package of high quality hotels through sale and
leaseback transactions.
They saw us as a trusted partner to deliver on
a phased acquisition process which required
significant coordination. 17 hotels were
acquired by LondonMetric for £161 million
through the sale and leaseback process, let
for 30 years with CPI linked rent reviews.
Premier Inn now represents 3.3% of our total
rent, which is up from 1.1% in 2025.
Read more on the acquisition on page 33
Chief Executive’s review continued
46%
Long income weighting
£306m
Long income acquisitions
in the year
Long income
Convenience Entertainment
& leisure
Healthcare
£161m
Sale & leasebacks
with Premier Inn
3.3%
Premier Inn’s rent
as a proportion of
our total rent
Case study
Own desirable real estate continued
LondonMetric Property Plc Annual Report and Accounts 202619
Strategic report Governance Financial statements
Case study
Chief Executive’s review continued
Manage & enhance responsibly
£74m
M&S Forward funding
+£16.6m
Added annual rent from occupier initiatives
Our activity is growing our income and
improving asset quality
Our strong occupier relationships enable us to maintain
continuous insight into occupier contentment and future
demand. During the year, 327 occupier initiatives generated
an additional £16.6 million of annualised rent, delivering like
for like income growth of 4.2%. Lettings and lease regears
were completed with an average WAULT of ten years, adding
£5.7 million of rent, while rent reviews contributed a further
£10.9 million, representing a 19% rental uplift on a five yearly
equivalent basis.
We have continued to work closely with our partners.
In particular, we recently completed three pre-let M&S store
developments in Weymouth, Luton and Largs and expect to
shortly complete the development of a 390,000 sq ft M&S
distribution facility in Avonmouth
alongside another M&S
food store in Ludlow. We have a number of further M&S food
stores under development or planned.
Looking ahead, we are well positioned to benefit from income
growth through the capture of reversion across logistics and
contracted uplifts within long income. We expect an additional
£38 million of rental uplift from the portfolio over the next two
years, supplemented by a further £11 million of uplift potential
from the letting of current vacancies. With our assumption that
the Company’s finance costs can remain broadly stable over
the next few years, this rental growth is expected to translate
directly into earnings.
Embedding sustainability remains a core focus. We see
ourselves as responsible stewards of under invested or lower
quality assets, where capital investment can materially improve
buildings. Over the year, the proportion of assets rated EPC A–B
rose from 58% to 60%, while solar capacity rose from 8MWp
to 12MWp, with a number of further PV schemes expected in
the near term. We have also updated our Net Zero pathway
following significant changes to our portfolio in the year.
We continue to diversify our income
and align to strong operators
Our activity during the year has improved both the
diversification and granularity of our portfolio income,
reducing the proportion of rent accounted for by our
three largest occupiers - Ramsay Health Care, Merlin
Entertainments and Travelodge - from 27% to 22%.
Through investment and asset management, we have
meaningfully increased exposure to the next tier of high
quality occupiers. Tesco and Booker combined now represent
3.7% of rent (2025: 2.5%), Premier Inn represents 3.3%
(2025: 1.1%) and M&S represents 1.9% (2025: 0.9%).
Actively managing occupier concentration remains a
core priority and we continue to engage proactively to
further reduce rental exposure to our largest occupiers.
Merlin remains a key occupier and, notwithstanding
headwinds experienced globally last year, it continues to
invest heavily in its UK estate, with major new attractions
underway at Alton Towers and Thorpe Park.
We also take significant comfort from Merlin’s distinctive
ownership structure and the strength of its shareholder base,
comprising KIRKBI (the LEGO family office and a 47.5%
shareholder), CPPIB, Blackstone and the Wellcome Trust - a
group of long term, well capitalised investors that provides
strong alignment and financial backing.
Working with M&S at Avonmouth
The 390,000 sq ft logistics development
was acquired for £74.0 million pre-let to
M&S on a 20 year lease with five yearly rent
reviews linked to CPI.
The highly specified and BREEAM Excellent
warehouse will be a key facility for M&S’s
food distribution business and incorporate
chilled, ambient and frozen products.
The building, located in Avonmouth, is
expected to complete in summer 2026
and LondonMetric has received a funding
coupon of 5.5% during the development.
LondonMetric Property Plc Annual Report and Accounts 202620
Strategic report Governance Financial statements
Chief Executive’s review continued
Outlook
• Leverage scale to drive
new investments
• Continue to sell down non
core assets
• Maintain logistics exposure
at c.50% or greater
of portfolio
• Continue to drive earnings
growth through initiatives
• Improve the strength,
granularity and
diversification of income
• Improve sustainability of
our assets to help deliver
on our Net Zero target
• Employ partner of choice
mindset, collaborating
with all stakeholders
• Maintain high occupier
and employee
satisfaction levels
• Drive further efficiencies
• Minimise gross to net
income leakage
• Bring our actions together
to deliver dependable
and growing NNN
cash flows to pay a
progressive dividend
Our NNN income model is delivering strong income and above
average rental growth through a low cost, highly efficient
platform. We believe this represents the right way to invest.
In today’s environment, scale and efficiency are essential, and
our relentless expansion gives us every reason to be optimistic.
Our M&A activity has enhanced liquidity in our shares,
broadened our access to high quality investment opportunities
and delivered meaningful economies of scale. As the most
active consolidator in the sector over recent years, this
discipline has helped propel the Company into the FTSE 100.
While further opportunities may arise, we will not pursue
growth for its own sake; we will deploy equity only where it adds
high quality and accretive assets to our all weather portfolio.
Our position as one of the largest and most efficient REITs
is no accident. It reflects years of building the right portfolio,
exercising financial prudence, making difficult decisions when
easier alternatives existed, and assembling a high calibre team.
As the world has changed, we have consistently pivoted,
informed by macroeconomic forces, evolving consumer
behaviour and demand/supply dynamics.
Technological innovation continues to disrupt behaviour,
including our own. We therefore remain agile, adapting as real
estate demand patterns shift, and are careful to avoid legacy
sectors. After all, no matter the quality of insight or how hard
the work, the macro forces always outrun the micro.
To ensure the portfolio remains fit for the future - supported
by best in class occupier relationships - we will continue
to refine its quality and income. This includes selectively
reducing exposure to certain sub-sectors, ex-growth assets
and individual credits. Logistics and convenience remain
our strongest convictions for income growth, while evolving
consumer behaviour continues to offer opportunities for rental
progression across other structurally supported sectors.
As owners of the business, our interests are fully aligned with
those of our shareholders. We remain focused on our mission:
to operate, execute and allocate capital with discipline and
ruthless efficiency. We are on a clear path towards dividend
aristocracy, grounded in the belief that income compounding is
one of the true wonders of investing – the essential ingredient
and rocket fuel of long term wealth creation.
Generate
Expertise and relationships
We continue to benefit from our
strong team and its relationships
We work closely with all stakeholders to deliver long
term benefits for our investors, occupiers, people,
local communities, contractors, suppliers and advisors.
Strong occupier relationships are central to LondonMetric’s
success and our March 2026 annual occupier survey again
demonstrated high levels of satisfaction. Occupiers rated
us an average of 8.8 out of 10 for their willingness to
recommend LondonMetric as a landlord (2025: 8.7).
Employee engagement also remains consistently high. In our
2026 employee survey, 94% of colleagues said they enjoy
working for the Company (2025: 96%). Strong economic
alignment between our people and the Company’s
performance underpins a genuine ownership culture and
reinforces disciplined property and financial decision making.
With increased scale and activity, LondonMetric continues
to be an exciting and dynamic place to work, creating new
opportunities for development and progression. As a growing
business, we remain focused on investing in our people and
planning thoughtfully for succession.
Valentine Beresford’s retirement at the end of the year
marked a poignant moment for the Company. However,
the promotion of Will Evers to sole Head of Investment
was a natural and long planned transition. Alongside Will,
Darren Richards (Chief Investment Officer), Mark Stirling
(Asset Director) and Andrew Smith (Strategy Director) form
an exceptionally experienced property leadership team,
supported by a deep and talented wider organisation.
8.8/10.0
Landlord recommendation score
Future priorities
Collaborate
Manage
Own
LondonMetric Property Plc Annual Report and Accounts 202621
Strategic report Governance Financial statements
Technology continues to
disrupt real estate
Technology continues to reshape consumer
behaviour in how we work, shop and live with
profound consequences for real estate.
Adoption of online shopping continues
its upward trajectory increasing demand
for logistics warehousing to store, move
and manufacture goods. As consumer
expectations rise for faster delivery, so the
need for better urban logistics increases.
Data centres also offer growth prospects but
remain a complex sector with availability of
power a major constraint.
Operational retail property has suffered as
consumers pivot further towards an omni-
channel model, resulting in significant value
erosion across many parts of physical retail.
Offices are also impacted by technological
disruption as well as other headwinds such as
accelerating obsolescence, changing occupier
preferences, rising sustainability costs and
shortening leases.
The economic outlook
remains highly uncertain
The global economic outlook remains
highly uncertain, with elevated geopolitical
risk continuing to influence markets.
The escalation of conflict in the Middle East
has renewed volatility in energy markets and
reintroduced inflationary pressures, pushing
bond yields and swap rates materially higher
once again.
In the UK, the outlook remains uncertain.
Weak economic growth, political uncertainty,
a softening labour market and declining
consumer confidence all point to interest
rates remaining higher for longer. That said,
we continue to believe the consumer is
in reasonably good shape: employment
remains high, wage growth continues to
outpace inflation and household balance
sheets are relatively robust.
Trend towards convenience,
experiences and quality healthcare
Consumers increasingly value time, prioritise
experiences over material goods and seek
better quality healthcare. Real estate aligned
to these trends is structurally well supported.
Convenience retail benefits from demand
for better value and more convenient
store formats. Supported by lower online
penetration in food, smaller format
convenience grocery stores are seeing
particularly strong growth.
Hospitality and entertainment operators are
benefitting from economic and generational
shifts towards staycations and experiences,
supporting demand for budget hotels and
theme parks.
Healthcare is underpinned by strong demand
from an ageing and growing population.
UK private hospitals are well placed, driven
by rising NHS waiting lists and increasing
demand from private patients for better
quality healthcare.
Macro uncertainty impacting
liquidity for UK real estate
This latest macro uncertainty is prolonging
the sharp reduction in liquidity already seen
across the property investment market.
The impact has been most pronounced for
larger lot sizes above £20 million, where the
buyer universe has narrowed significantly,
with limited engagement from long only UK
institutions and US private equity investors.
New acquisition opportunities arise daily from
pension fund reallocations, balance sheet
management and strategic repositioning.
We dismiss most of these at first sight as they
fail to meet our strict investment criteria.
After all, whilst many people are rewarded for
activity, our approach can deliver attractive
returns generated through inactivity.
Structural
Macro
Macro events continue to impact the investment backdrop for real estate with structural
drivers continuing to provide strong support for certain sectors.
60%
Percentage of NEXT plc’s
UK sales online
445bps
Five year UK swap rates
+7%
Growth in M&S food sales
in 2025/26 (like for like)
-41%
UK real estate transaction
volumes in Q1 2026, compared
to five year average
Our markets
Strategic report Governance Financial statements
LondonMetric Property Plc Annual Report and Accounts 2026
22
Our markets continued
Our preferred sectors
Take up of logistics warehousing in 2025 was
22% above the prior year at 26 million sq
ft whilst speculative developments under
construction fell materially over the course
of 2025.
The first quarter of 2026 has seen healthy
take up of 5.3 million sq ft which helped to
marginally reduce the national vacancy rate to
below 7%.
The logistics sector’s structural tailwinds
remain strong from continued online
sales growth, investment in more efficient
and resilient supply chains and increased
warehouse automation. Macro events continue
to stress test supply chains and bring resilience
to the top of boards’ agendas.
We continue to believe that urban logistics
remains the most attractive sub-sector with
the greatest demand/supply tension and the
strongest rental growth.
+4% p.a.
Prime logistics rental growth in 2025
+28%
M&S target increase in food stores
6.5m people
Covered by private health insurance in the UK
195m p.a.
Hotel rooms booked in the UK
Logistics Convenience
Entertainment
& leisure
Healthcare
Convenience is a sector that is benefitting
from consumers increasingly seeing their time
as a more valuable commodity. In the best
locations, we are seeing good rental growth
for convenience assets that is comparable to
rental growth on urban logistics.
The store network remains integral to
retailers, and our convenience assets are well
located, stand-alone or cluster properties that
are fit for purpose, right sized and right rented.
Our convenience assets are let on long NNN
leases to grocers, discounters, home and DIY
operators with resilient business models that
are less exposed to the migration of shopping
online and offer omnichannel optionality in a
convenient format.
We have consciously avoided experiential
retail assets where rents are elevated, credits
can be weak and operational capex is high.
Roadside has been an area of focus for us,
particularly drive-thrus, with customers
requiring EV charging. We own a substantial
number of drive-thrus, let to occupiers such as
Costa, McDonald’s and Starbucks.
Entertainment and leisure continues to
benefit from the trend towards experiences
and growing preference for staycations.
We have continued to improve our hotel
portfolio and, since the LXi takeover, we have
sold 17 Travelodge hotels and reinvested in
larger, better located and stronger performing
Premier Inn hotels. UK budget hotels are well
placed, supported by resilient demand and
highly affordable price points. Cost conscious
consumers and businesses continue to drive
demand, sustaining high occupancy rates.
With limited new supply, strong brands and
efficient operating models, the sector can
offer reliable income with growth prospects.
Our theme park investments are proving to
be non-cyclical performers as consumers
prioritise experiences over things and are
showing an unwillingness to cut back on
discretionary spend in this area. Theme parks
also have significant barriers to entry in
the UK with large investment required to
maintain visitor appeal which adds to their
defensive characteristics.
Healthcare is underpinned by strong demand
drivers from an ageing and growing population
as well as improvements in technology, and
the real estate investment market in healthcare
has been particularly active over the last year.
UK private hospitals are well placed as a
result of long NHS waiting lists and increased
demand from patients treated through private
medical insurance as well as self-pay as they
seek better and faster care.
Development activity in the UK healthcare
market remains constrained, primarily
due to elevated construction costs and
planning restrictions.
LondonMetric Property Plc Annual Report and Accounts 202623
Strategic report Governance Financial statements
Key performance indicators
We continue to track eight key performance indicators (‘KPIs’) to monitor
the performance of the business. The KPIs are also used to determine how
Executive Directors and senior management are evaluated and remunerated.
Objective
Deliver long term shareholder returns Maximise long term
total accounting return
Maximise property portfolio returns Deliver sustainable
growth in EPRA earnings
KPI
Total shareholder return in the year (%)
-4.0
22.1
6.2
2025
2026
2024
Total accounting return (%)
9.7
6.9
1.3
2025
2026
2024
Total property return (%) EPRA earnings per share (p)
13.1
13.5
10.9
2025
2026
2024
Performance
Total Shareholder Return (‘TSR’), being the share
price movement together with the dividend,
delivered 6.2% growth in the year compared to
the FTSE 350 Real Estate Super Sector index
movement of -5.6%.
Since our merger in 2013 TSR has increased by
227%, over seven times that of the FTSE 350 Real
Estate Super Sector index movement of 32%.
Total Accounting Return (‘TAR’) of EPRA net
tangible assets per share movement together
with dividend paid in the year.
12 month TAR delivered a return of 6.9%.
The full calculation can be found in
Supplementary note viii.
Unlevered Total Property Return (‘TPR’), including
capital and income return, of the portfolio as
calculated by MSCI.
12 months TPR delivered a return of 7.1%
compared to the MSCI All Property benchmark
of 5.4%.
EPRA earnings per share from operational
activities have grown by 2.4% over the last 12
months to 13.5p.
Since our merger in 2013, EPRA earnings per
share has grown by 246% from 3.9p to 13.5p.
Remuneration
Under the proposed Remuneration Policy 30%
of new LTIP awards are subject to TSR growth
compared with the FTSE 350 Real Estate Super
Sector excluding agencies and operators.
98.4% of the TSR component of the 2022 LTIP
award vested in the year and the TSR component
of the 2023 LTIP award is expected to vest in full.
The three year TSR for the 2023 LTIP was 30.8%
compared to the FTSE 350 Real Estate Super
Sector excluding agencies and operators of 9.1%.
Under the proposed Remuneration Policy, 25%
of new LTIP awards are subject to TAR growth
compared with the FTSE 350 Real Estate Super
Sector excluding agencies and operators.
68.4% of the TAR component of the 2022
LTIP award vested in the year and all of the TAR
component of the 2023 LTIP award is expected
to vest in June 2026.
The three year TAR for the 2023 LTIP was 26.2%
compared to the FTSE 350 Real Estate Sector
excluding agencies and operators of 3.5%.
30% of this year’s annual bonus award is subject
to TPR outperforming the MSCI benchmark.
This year, TPR outperformed the benchmark
delivering a full bonus payout.
The three year All Property TPR delivered a return
of 21.4% compared to the MSCI All Property
benchmark of 10.9%.
30% of this year’s bonus award is subject to an
EPRA EPS growth target. This year EPRA EPS
outperformed its growth target securing a full
bonus payout.
Under the proposed Remuneration Policy, 45%
of new LTIP awards are subject to an EPRA EPS
growth target.
The 2022 LTIP award vested in full in the year
and the EPRA EPS component of the 2023 LTIP
award is expected to vest in full.
2026/27
ambition
Three year TSR performance to be in the upper
quartile of the FTSE 350 Real Estate Super
Sector, excluding agencies and operators.
Three year total accounting return to be in the
upper quartile of FTSE 350 Real Estate Super
Sector, excluding agencies and operators.
One year TPR outperformance against
MSCI benchmark.
Deliver and sustain EPRA earnings per share
growth and dividend progression.
Own Manage Collaborate Generate
Read more about our strategy on page 14
8.3
7.1
4.7
2025
2026
2024
LondonMetric Property Plc Annual Report and Accounts 202624
Strategic report Governance Financial statements
Key performance indicators continued
Risk management
The achievement of our eight KPIs is influenced by the identification
and management of risks which might otherwise prevent the attainment
of our strategic priorities. The relationship between our principal risks,
strategic priorities and KPIs is noted in the Risk management section.
Read more in Risk management and internal controls page 70
Remuneration
The table on page 134 shows how our KPIs are reflected in and therefore
aligned to remuneration and incentive arrangements.
Read more in the Remuneration Committee report page 118
Objective
Drive like for like income growth Maintain a high weighted average
unexpired lease term (‘WAULT’)
Maintain strong
occupier contentment
EPC rating
KPI
Like for like income growth (%)
4.2
4.2
5.5
2025
2026
2024
WAULT (years)
18.5
16.9
19.4
2025
2026
2024
EPRA vacancy (%)
1.9
2.3
0.6
2025
2026
2024
EPC rating (%)
92
92
85
2025
2026
2024
Performance
The movement in the contracted rental income
on properties owned through the period
increased by 4.2%.
Additional income of £16.6 million was generated
from asset management activity following
lettings, regears and rent reviews.
Weighted average unexpired lease term across
the investment portfolio of 16.9 years as at
31 March 2026.
Occupancy rate of investment portfolio at
31 March 2026 was 97.7%, increasing our
vacancy to 2.3%.
On a like for like basis, the occupancy rate for the
year was 98.5%.
The proportion of our portfolio with an EPC rating
of A to C. As at 31 March 2026 this was 92%.
Remuneration
30% of this year’s annual bonus is subject to
Strategic objectives.
One of these objectives this year was like for like
income greater than CPIH plus 0.5% as set out
on page 141.
Like for like income was 4.2% and this target was
achieved in full.
Income longevity supports the growth in EPRA
earnings and a progressive dividend. EPRA
earnings is a key remuneration target as set out
on page 24.
30% of this year’s annual bonus is subject to
Strategic objectives.
One of these objectives this year was occupancy
of greater than 97.5% with a stretch target of
98.5% as set out on page 141.
On a like for like basis, occupancy was 98.5% and
this target was fully achieved.
10% of the annual bonus is subject to ESG
objectives.
The target for the year was an EPC rating A to C
of between 90% to 95% of the portfolio as set
out on page 142.
The proportion of the portfolio with an EPC
rating of A to C was 92% and this target was
substantially achieved.
2026/27
ambition
Deliver like for like income growth. Maintain a high weighted average unexpired
lease term targeting >ten years.
Maintain high occupancy across the investment
portfolio.
Maintain a high proportion of the portfolio
with an EPC rating of A to B.
Own Manage Collaborate Generate
Read more about our strategy on page 14
LondonMetric Property Plc Annual Report and Accounts 202625
Strategic report Governance Financial statements
Property review
Own Manage and collaborate
16.9 yrs
WAULT
Our portfolio is aligned to
structurally supported assets in
strong geographies with sector
leading income metrics, delivering
attractive income-led returns.
Portfolio overview
See page 27
£7.6bn
of assets
Logistics is our largest sector
weighting at 53%. Our long income
portfolio accounts for 46% of assets
and is spread across the convenience,
entertainment & leisure and
healthcare sectors.
Sector reviews
See page 28
£1.9bn
of transactions
M&A and direct property
acquisitions added £1,549 million
of assets to the portfolio, mainly in
urban logistics. Disposals totalled
£318 million.
Investment activity
See page 32
+£16.6m
rent uplift
Asset management continues to
lengthen our income profile and
generate attractive income growth.
In the year, we delivered 4.2% like
for like income growth from lettings
and rent reviews.
Occupier activity
See page 36
60%
EPC A-B
ESG is embedded into our daily
activities and we are working with
our occupiers to improve the
quality of our assets to meet future
environmental regulation and work
towards net zero carbon.
ESG activity
See page 38
In order (left to right):
Darren Richards, Chief Investment Officer
Andrew Smith, Strategy Director
Will Evers, Head of Investment
Mark Stirling, Asset Director
Enhancing and
growing our
income metrics
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26
Own
Portfolio overview
£7.6bn
Portfolio value
16.9 yrs
WAULT
7.1%
Total property return
Property review continued
Our portfolio’s income metrics remain very strong
The income security of the portfolio remains very strong with a
WAULT of 16.9 years which is down from 18.5 years in 2025 due
to the addition of shorter let assets from the Urban Logistics
REIT Plc (‘ULR’) takeover. The WAULT to first break is 15.5 years
and only 8% of income expires within the next three years.
Occupancy remains high at 98% and our gross to net income ratio
of 99% continues to reflect the portfolio’s strong retention rate,
very low property costs and minimal operational requirements.
Net contracted rent increased significantly over the year from
£340.4 million to £432.1 million and, in line with our preference
for greater market rental growth exposure in urban logistics,
the proportion of total rent linked to open market rent reviews
increased from 23% to 31%.
At 69%, we continue to have a high proportion of income with
guaranteed contractual reviews:
• 49% of rent is index linked: with 24% RPI linked, 13% CPI+
linked and 12% CPI or CPIH linked; and
• 20% of rent is subject to fixed uplifts, with a weighted average
uplift of 2.6% per annum.
Index linked reviews have a range of collars and caps typically
1% and 4% over a five year period such that:
• For RPI reviews, at 22% inflation over a five year period
(4% per annum), 93% of inflation is captured; and
• For CPI reviews, at 16% inflation over a five year period
(3% per annum), 99% of inflation is captured.
Annual reviews apply to 33% of our rent, which is down from
40% in 2025.
The portfolio delivered a strong TPR of 7.1%
The portfolio’s EPRA topped up net initial yield is 5.3%
(2025: 5.1%) and, reflecting the embedded income growth in the
portfolio, the equivalent yield is 6.4% (2025: 6.3%). Like for like
ERV growth for the year was 3.3% and the portfolio saw a 0.8%
property valuation increase with yields largely unchanged.
The Company again delivered an attractive total property return
for the year of 7.1%. This represented a 170bps outperformance
of the MSCI All Property UK Index. Over the last six years,
LondonMetric has delivered a total property return of 55%, which
is a compound annual growth rate of 7.6%.
Our assets are well located
We invest in strong geographies with high intrinsic value from
the land. 64.2% of the portfolio by value is located in London,
the South East and the Midlands. London and the South East
represents 40.5% and the Midlands represents 23.7%. The rest of
England accounts for 30.2% comprising the North West (10.4%),
the North East and Yorkshire (8.6%), the South West (6.6%) and
the East of England (4.6%). Scotland, Wales and Northern Ireland
account for 3.8% and the remaining 1.8% relates to our theme
park in Germany.
Our assets are structurally supported
Over the year we added £1.2 billion of assets through M&A and
£0.3 billion of further acquisitions in the direct market, which
increased the portfolio value from £6.2 billion to £7.6 billion.
The portfolio now totals 680 assets, which reflects an average
value per asset of £11 million, across 36.6 million sq ft and let at an
average rent of £11 per sq ft.
Our activity focused predominantly on urban logistics
investments and consequently our logistics weighting increased
from 46% to 53% over the year, with urban logistics now
representing 38% of the portfolio (2025: 29%). Whilst our long
income assets (comprising convenience, entertainment & leisure
and healthcare sectors) grew in absolute size, their weighting fell
from 52% to 46%.
1. Logistics 52.8%
2. Entertainment & leisure 20.2%
3. Convenience 13.8%
4. Healthcare (including education) 12.1%
5. Other (including four offices and a life science asset) 1.1%
1 2 3 4 5
64%
in London, South East & the Midlands
Portfolio weighting (by value)
Long incomeLogistics
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LondonMetric Property Plc Annual Report and Accounts 2026
27
Case study
Own continued
Logistics
£4.0bn
Logistics portfolio value
+18%
Reversion on our logistics portfolio
+7.0%
Total property return on logistics
Property review continued
Logistics continues to deliver attractive market rental growth
which, together with material embedded reversion, is delivering
strong income growth. Over the year, we added £8.4 million of
additional rent from asset management on our logistics assets,
with urban logistics open market rent reviews delivering an uplift
of 38%.
Reflecting the reversion still embedded in the portfolio, average
ERVs on our logistics portfolio are 18% higher than average
passing rents (urban logistics: 12%, regional and mega: 32%).
The higher reversion for regional and mega reflects greater
exposure to contractual reviews (index linked and fixed) and
the fact that these reviews have to date lagged stronger open
market settlements.
Our logistics assets are valued at a topped up NIY of 5.0% and
an equivalent yield of 6.2%. Over the year, they delivered a total
property return of 7.0% and saw a valuation uplift of 1.5%.
On a like for like basis, yields remained flat across our three
sub-sectors and ERVs grew by 2.6% (urban logistics: 2.8%,
regional and mega: 2.3%).
As at 31 March 2026 Urban Regional Mega
Value
1
£2,904m £803m £317m
Net contracted rent £156m £39m £16m
WAULT 9 years 16 years 14 years
Average rent (psf) £8.80 £6.50 £6.50
ERV (psf) £9.90 £8.70 £8.60
Topped up NIY 5.1% 4.8% 4.6%
Contractual uplifts on rent 37% 75% 100%
Total property return 6.9% 8.4% 5.5%
1 Including developments
Our logistics portfolio is spread across the urban, regional and
mega sub-sectors and is valued at £4,024 million, up from
£2,838 million in 2025 and representing 53% of the total
portfolio. The 308 logistics assets have a WAULT of ten years and
an occupancy rate of 97%.
The urban logistics sub-sector has been our strongest conviction
call for a number of years, and this part of the portfolio grew
significantly over the year from £1,796 million to £2,904 million
following the ULR takeover.
Our urban assets are spread across 279 locations and account for
almost three quarters of our logistics assets. 63% of our urban
logistics rent has market linked rent reviews, which is up from 53%
in 2025. Demonstrating our focus on strong geographies, 47% is
located in London and the South East and 25% is in the Midlands.
Two urban logistics rent reviews at Bedford Link
In the year we settled two open market rent reviews in
Bedford with Workstories and Larson-Juhl. The rent increased
by c.40% compared to the previous passing rent that was set
five years’ ago when the two warehouses were let following
completion of our first phase of the development.
8.10
9.80
8.30
9.50
7.60
9.30
7.40
8.20
7.00
9.50
2025
2026
2024
2023
2022
ERV (£ psf) Rent (£ psf)
Current passing rent and ERV for our logistics assetsLogistics portfolio by sub-sector
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28
Property review continued
Smaller logistics warehouses strategically located in or close
to dense areas of population to allow occupiers to minimise
delivery times, increase accuracy of delivery and satisfy
consumer demands for instant gratification. These assets are
typically below 100,000 sq ft.
Our urban logistics exposure has grown from £0.2 billion in 2017
to £2.9 billion today reflecting substantial investment in this sub-
sector. There are 279 assets, with 72% located in London, South
East and the Midlands.
Regional logistics warehouses are mainly mid size units serving
as regional hubs and creating the connecting link in any modern
supply chain.
Our regional logistics exposure has grown from £0.3 billion in
2017 to £0.8 billion today. There are 26 assets, with 56% located
in London, South East and the Midlands.
Mega distribution warehouses are large scale modern
distribution units, typically greater than 500,000 sq ft and
located close to major arterial routes.
Our exposure to mega logistics has fallen from £0.5 billion in
2017 to £0.3 billion today with sale proceeds recycled into higher
growth urban logistics. There are three assets, with 70% located
in London, South East and the Midlands.
Urban logistics Regional logistics Mega logistics
+24%
Average uplift in rent reviews over last five years
£2,904m
Value
+18%
Average uplift in rent reviews over last five years
£803m
Value
+9%
Average uplift in rent reviews over last five years
£317m
Value
Own continued
Logistics continued
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Our activity with Wickes
Wickes’ ambition is to grow its UK estate
to 300 stores, up from 230. Reflecting the
strength of our locations and Wickes’s desire
to secure long term occupation, we regeared
five Wickes stores in Hertford, Banbury,
Bicester, Lincoln and Andover with the WAULT
increasing by 16 years to 20 years. This activity
aligns perfectly with our NNN strategy and
high occupier contentment model, where our
occupiers profit from our assets, invest in them
and want to occupy for a long time. In the year
we also sold three Wickes stores including one
in Newmarket.
Case study
Own continued
Long income
£3.5bn
Long income portfolio value
+£0.3bn
Increase in long income exposure
+7.2%
Total property return on long income
Property review continued
Entertainment and leisure, which mainly comprises our theme
parks and hotel investments, is our largest sub-sector weighting at
£1,540 million (2025: £1,298 million).
The increase in our long income portfolio’s value over the year
was largely due to our £214 million of hotel investment activity.
Our convenience exposure also increased to £1,055 million
(2025: £978 million) helped by the addition of M&S and
Booker assets in the year. Our healthcare exposure remained
broadly unchanged.
See page 33 for investment activity
Our long income assets are valued at a topped up NIY of 5.6%
and an equivalent yield which is 110bps higher at 6.7%.
Over the year, our long income assets delivered a total property
return of 7.2% with valuations flat and ERV growth of 4.1%.
Our long income asset management delivered an £8.0 million
per annum uplift in rent, mostly from rent reviews which added
£6.5 million and reflected an 18% increase on a five yearly
equivalent basis.
Our long income assets are aligned to the changes in the way
people live and shop, and are spread across the convenience,
entertainment & leisure and healthcare sectors. They are let
on long leases to best in class operators and have very low
operational requirements.
As at the year end, our long income portfolio had grown by
£309 million to £3,516 million, representing 46% of the portfolio.
The 365 assets are 99% occupied, let with a WAULT of 23 years
and 89% of rent is subject to contractual uplifts which provides
certainty of income growth.
See page 31 for further details
As at 31 March 2026
Entertainment
& leisure Convenience
Healthcare
& education
Value
1
£1,540m £1,055m £921m
Net contracted rent £94m £64m £51m
WAULT 36 years 11 years 13 years
Topped up NIY 5.7% 5.7% 5.2%
Equivalent yield 7.5% 6.1% 5.7%
Contractual uplifts 98% 64% 100%
Total property return 7.4% 8.3% 5.8%
1 Including developments
Wickes,
Newmarket
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30
Property review continued
Entertainment & leisure
20% of portfolio
Convenience
14% of portfolio
Healthcare & education
12% of portfolio
Theme parks – 41% of sub-sector
Four assets at Thorpe Park (490 acres), Alton Towers (550
acres), Warwick Castle (100 acres) and Heide Park (in Germany,
210 acres). These assets are let with a WAULT of 51 years to
Merlin Entertainments, with annual CPI+0.5% rent reviews
on the UK assets and annual fixed rent reviews of 3.3% per
annum on Heide Park. All of our Merlin assets are guaranteed
by Merlin’s top operating company. C.20% of our rent is
derived from Merlin’s hotels with accommodation bookings an
important source of revenue for Merlin. In total, the sites have
c.6.5 million visitors per year and are valued at an average of
c.£0.5 million per acre.
See page 37 for further details on Merlin Entertainments
Hotels – 40% of sub-sector
93 budget hotels, with a WAULT of 28 years, including 63 let to
Travelodge (53 following post year end activity) with a WAULT
of 24 years, mainly on five yearly CPI+0.5%/RPI linked reviews,
and 26 let to Premier Inn with a WAULT of 24 years. Our hotels
are nationwide and focused on roadside locations.
Other – 19% of sub-sector
Consists mainly of 16 pubs, five cinemas, five garden centres
and the AO Manchester Arena, which is mostly let to SMG
Europe for a further 19 years.
Food stores – 38% of sub-sector
44 assets let at an average rent of £19.40 psf with key
occupiers including M&S, Waitrose, Sainsbury’s, Co-op, Costco,
Tesco and Aldi. These are predominantly smaller format stores
averaging c.30,000 sq ft.
NNN retail – 37% of sub-sector
50 assets, primarily single or cluster assets let to discount,
essential, electrical and home retail occupiers such as B&M,
Currys, DFS, Dunelm, Home Bargains, Pets at Home and The
Range at an average rent of £14.50 psf. These assets typically
benefit from high alternative use values.
Roadside – 14% of sub-sector
70 assets, primarily convenience stores with attached petrol
filling stations, drive-thru coffee outlets and automated car
washes. Key occupiers include Co-op, IMO, BP, McDonalds,
MFG and Starbucks.
Other – 11% of sub-sector
20 trade/DIY stores and autocentres (key occupiers include
Halfords, Kwik Fit, Topps Tiles and Wickes) and eight car parks
let to Q-Park with a WAULT of 26 years.
Hospitals – 86% of sub-sector
12 private hospitals, of which 11 are let to Ramsay Health
Care with a WAULT of 11 years and annual fixed rent
reviews of 2.75%. All of our Ramsay hospitals have a parent
company guarantee.
The two largest hospitals are in Sawbridgeworth and
Chelmsford with over half the hospitals located in the
South East.
See page 37 for further details on Ramsay Health Care
Care homes – 8% of sub-sector
Six assets mainly let to Bupa and Priory with a WAULT of
19 years.
Education – 6% of sub-sector
24 children’s nurseries and adventure centres and one
student asset.
Own continued
Long income continued
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31
Own continued
Acquisitions
£1,549m
Value acquired
80%
Logistics
Property review continued
Acquisitions in the year, including £1.2 billion of properties
added through the takeover of ULR and Highcroft
Investments plc (‘Highcroft’), totalled £1,549 million across
187 assets. The acquisitions had a WAULT of 12.9 years and
a NIY of 5.4% which is expected to grow to 6.1% over five
years from contractual rent reviews and capturing reversion
through asset management.
Logistics investments made up 80% of the acquisitions,
mostly in the urban logistics sector and acquired through
the takeover of ULR. A further 15% of acquisitions consisted
of entertainment & leisure investments, predominantly
Premier Inn hotels, with the remainder mainly comprising
convenience purchases and two office investments, the latter
acquired through the Highcroft takeover for £4.4 million.
See our ULR takeover case study on page 18
1. Logistics 79.9%
2. Entertainment & leisure 14.9%
3. Convenience 4.9%
4. Other (Offices) 0.3%
Logistics acquisitions – £1,238 million
142 logistics assets were acquired for £1,238.4 million with a
WAULT of 9.1 years comprising:
• 130 urban warehouses, acquired for £1,134.5 million through
the ULR takeover. The 10.1 million sq ft portfolio generated a
rent of £64.7 million per annum, 82% of which was subject
to open market rent reviews. The assets had a WAULT of
eight years and 63% were located in London, the South East
and the Midlands. 3PL and parcel operators represented a
significant amount of this income;
• Four urban warehouses, acquired individually for a total
of £48.1 million with a WAULT of 12.2 years, comprising a
recently developed 106,000 sq ft two unit scheme in Irlam,
an 80,000 sq ft pre-let development funding in Malton, a
recently developed and let 68,000 sq ft warehouse in the
West Midlands, and a 159,000 sq ft Booker warehouse in
Doncaster with potential for a large extension;
• Seven warehouses, acquired for £33.5 million through the
Highcroft takeover. The 507,000 sq ft of predominantly
urban assets generated a rent of £2.5 million per annum with
a WAULT of six years, and 42% was located in London, the
South East and the Midlands; and
• A 450,000 sq ft regional warehouse let to UPS and located
at East Midlands Airport, acquired for £22.3 million.
Acquisitions by sector
Long incomeLogistics
1 2 3 4
£22.3 million UPS logistics acquisition
The state-of-the-art, airside distribution facility at East
Midlands Airport is let to UPS until 2117. Rent reviews are five
yearly linked to CPI capped at 4%, and the current rent is 25%
of market rent.
The airport handles 40% of UK air freight and benefits from
unrestricted 24/7 operations, a long runway, proximity to the
M1 and East Midlands Freight Terminal and competitively
priced landing slots.
UPS developed the warehouse at a cost of c.£140 million in
2020, and the facility is their second largest cargo facility in
Europe, serving as their primary gateway to and from the UK.
A state-of-the-art and highly automated
450,000 sq ft warehouse let to UPS
(image courtesy of McLaughlin & Harvey, developer)
Case study
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32
Case study
Own continued
Acquisitions continued
Long income acquisitions – £306 million
1
Chipping Norton
2
Colchester
3
Exeter
4
Fareham
5
Gillingham
6
Havant South
7
Heathrow
8
High Wycombe
9
Kings Langley
10
Milton Keynes
11
Penzance
12
Poole North
13
Southampton
14
Southampton Airport
15
Trafford West
16
Waltham Abbey
17
Warwick
18
Witney
2
5
7
9
8
3
4
6
18 modern Premier Inn hotels, acquired for
£181.1 million at a blended NIY of 5.4% with
a WAULT of 28 years and 66% located in the
South East.
The hotels total 1,971 beds and all have a
parent company guarantee from Whitbread
PLC and five yearly rent reviews linked to CPI.
17 of the hotels were acquired through sale
and leaseback transactions with Whitbread.
Parent guarantee from Whitbread PLC
FTSE 100 credit
Modern and recently refurbished
Strong trading locations
66% London & South East
Strong rent cover
Very long leases with a WAULT of 28 years
Guaranteed rental growth
43 long income assets were acquired in the year for
£305.8 million with a WAULT of 33.1 years.
Entertainment and leisure acquisitions totalled
£230.4 million, comprising:
• 18 Premier Inn hotels, acquired for £181.1 million,
17 of which were sale and leasebacks;
• Three further hotel acquisitions for £32.6 million, including
two at Manchester Airport comprising the Clayton hotel
(365 beds) and the Crown Plaza hotel (299 beds);
• Two garden centres, acquired for £9.5 million let to BGC
and another small property for £0.2 million; and
• Two gyms, acquired for £7.0 million through the
Highcroft takeover.
Convenience acquisitions totalled £75.4 million, comprising:
• 11 NNN retail/roadside assets, acquired for £36.1 million
through the Highcroft takeover, most of which are located
in London, the South East and Midlands and include units
let to Booker, Wickes and Pets at Home;
• Five Booker units in Tunbridge Wells, Lincoln,
Southend-on-Sea, Worcester and Merthyr Tydfil,
acquired for £26.9 million; and
• Two development fundings in Ludlow and Eastbourne let
to M&S, Greggs and Starbucks, acquired for £12.4 million.
Post year end we have exchanged on the acquisition
of convenience pre-let development fundings for
up to £39.8 million, reflecting a yield on cost of 6.1%.
The developments are anchored by M&S food stores
with an anticipated WAULT of 19.3 years and index linked
rent reviews.
Witney:
57
bedrooms
£181m
Premier Inn acquisitions
10
1
18
17
11
12
13
14
15
16
Property review continued
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LondonMetric Property Plc Annual Report and Accounts 2026
33
Case study
Own continued
Disposals
£318m
Value disposed
43%
Logistics
Property review continued
Over the year, we sold 57 assets for £318.1 million (at
LondonMetric share), reflecting an average transaction size
of £6 million and a blended NIY of 5.8%. The WAULT was
12.5 years and sales were in line with prevailing book values.
Logistics assets accounted for 43% of disposals,
most of which were in the urban logistics sector and a
significant proportion of which were former ULR assets.
Convenience sales accounted for a further 33% of disposals,
most of which were the sale of former LXi assets.
In total, we sold 43 assets acquired through recent M&A
activity, netting £173 million. Including post year end sales,
which generated total proceeds of £49 million, we have now
sold 79 former LXi assets for £327 million (12% of the original
portfolio) and 21 ULR assets for £72 million (7% of the
original portfolio).
Logistics disposals – £137 million
25 logistics assets were sold for £137.3 million with a WAULT
of just four years, reflecting our strategy of selling down
shorter-let income where income growth prospects were
less certain.
The sales comprised:
• 17 former ULR assets, sold for £54.9 million and with
a WAULT of just 3.7 years. Nearly half of the assets
were located in the North of England or Scotland and
approximately half were let to 3PLs or parcel delivery
operators including DX and XPO;
• A vacant 290,000 sq ft regional logistics warehouse in
Sheffield, sold to an owner occupier for £26.0 million;
• A 98,000 sq ft multi-let urban logistics asset in Crawley,
sold for £21.4 million and with just two years term certain;
• A 32,000 sq ft urban logistics asset together with a car park
in Walthamstow London, both let to Ocado for a further
three years, sold for £15.6 million; and
• Four further sales for £19.4 million with a WAULT of five
years and mostly former LXi or Mucklow assets.
Post year end, we sold five logistics warehouses for total
proceeds of £27.9 million, four of which were former
ULR assets.
Multi-let urban sale in Crawley for £21.4 million
The 98,000 sq ft of multi-let industrial warehousing in
Crawley was sold for £21.4 million at a topped up NIY of 5.1%.
The asset was acquired as part of the Mucklow takeover in
2019 for an allocated purchase price of £18.1 million and has
delivered a good income return during our ownership.
Five of the six units were let with a WAULT to first break of just
under two years, and with uncertainty on future rental growth
the decision was taken to monetise the asset.
Disposals by sector
1. Logistics 43%
2. Convenience 33%
3. Entertainment & leisure 10%
4. Health & education 3%
5. Other (office & retail park) 11%
1 2 3 4 5
Long incomeLogistics
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LondonMetric Property Plc Annual Report and Accounts 2026
34
Long income disposals – £146 million
Own continued
Disposals continued
Property review continued
Long income assets sold in the year totalled £146.1 million
across 30 properties and with a WAULT of 17.5 years.
Convenience disposals represented the majority of these
sales, with 12 assets sold for £105.7 million, comprising:
• A 125,000 sq ft LXi Sainsbury’s supermarket in
Middlesbrough, sold for £41.0 million;
• Two LXi car parks let to Q-Park sold for £24.5 million;
• Three Wickes stores in Wigston, Carlisle and Newmarket,
sold for £11.6 million;
• A new M&S store in Weymouth, sold for £15.9 million;
• Two LXi food stores, in Scotland and Liverpool, sold for
£8.5 million;
• Two roadside assets let to Starbucks and Burger King in
Rushden and Peterborough, sold for £3.4 million; and
• A Highcroft asset in Leamington Spa, sold for £0.8 million.
Entertainment and leisure sales totalled £31.8 million across
15 assets. They comprised seven Travelodge hotels sold for
£18.7 million, and eight pubs sold for £13.1 million, five of
which were Stonegate pubs with just 16 pubs remaining from
the initial 34 acquired from the LXi takeover.
Healthcare and education assets sales totalled £8.6 million
and comprised one care home and two children’s nurseries.
Post year end, we have sold seven long income assets for
£21.3 million, six of which were Travelodge hotels.
Other disposals – £35 million
Other sales outside logistics and long income totalled
£49.7 million (LondonMetric share: £34.7 million), comprising:
• A 70,000 sq ft retail park in London, sold for a total
consideration of £48.5 million (LondonMetric share:
£33.5 million). The asset was acquired for £38 million in
2022. Our asset management has increased the annual
rent from £1.4 million to £2.5 million through regears
with B&Q and Pets at Home, and new leases with Tapi,
Starbucks, Burger King and InstaVolt; and
• A vacant Highcroft office in Cardiff, sold for £1.2 million.
£16 million disposal at Weymouth
In the year, we sold a 41,000 sq ft general merchandise and
food store development, pre-let to M&S on a 15 year lease,
for £15.9 million, reflecting a 5.2% NIY. The development
completed in March 2026 and marked the final phase of our 12
acre development which we acquired in 2017. Other occupiers
that signed leases as part of the development included Aldi,
B&M, Dunelm and McDonald’s.
Sale proceeds were recycled into higher yielding opportunities
with better rental growth prospects. We have now sold all
three phases of the development which cost £29.3 million, and
delivered a profit on cost of 22% and an ungeared IRR of 13% pa.
Case study
M&S at Weymouth
(image courtesy of
Mildren Construction)
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LondonMetric Property Plc Annual Report and Accounts 2026
35
+£16.6m
Income added
Asset management continues to lengthen our income
profile and generate attractive income growth as we work in
partnership with our occupiers.
During the year, we undertook 327 occupier initiatives adding
£16.6 million per annum of rent, which delivered like for
like income growth of 4.2%. Asset management on assets
acquired through the ULR takeover delivered £2.6 million of
this additional rent.
Over the next two years, with the benefit of contractual
uplifts, open market uplifts on our logistics portfolio and
other active asset management initiatives, we expect to add
£38 million per annum of additional income. Full letting of
vacant space would add a further £11 million of rent.
Manage and collaborate
Occupier activity
Property review continued
327
Initiatives
Lettings and regears
69 lettings and regears were signed in the year with a WAULT of
ten years, adding £5.7 million of rent per annum and with average
occupier incentives equivalent to just six months rent free.
Logistics lettings and regears were all on urban logistics assets and
with a WAULT of eight years adding £4.0 million. They comprised:
• 19 regears adding £2.3 million of rent at 24% above previous
passing rent and extending the WAULT by six years, with ten of
the regears on former ULR assets with occupiers including Ceva
Logistics, Culina Logistics, XPO and Volvo; and
• 11 new lettings adding £1.7 million of rent, the largest of which
was a 71,000 sq ft vacant warehouse in Luton relet at 72%
above rent previously paid. Six of the lettings were on former
ULR assets, adding £0.6 million.
Long income lettings and regears totalled 37 and were signed
with a WAULT of 14 years, adding £1.4 million per annum of rent.
Convenience lettings and regears accounted for £1.1 million of the
uplift and comprised:
• 18 new lettings, adding £0.6 million, including seven new
lettings with EV operator InstaVolt; and
• 11 regears, adding £0.5 million with an average rent increase of
20%, including a 24,000 sq ft food store in Luton where we
let a former Homebase to M&S on a new 15 year lease at a rent
53% higher than previously passing. Four deals were signed
with Wickes, whilst other deals were signed with occupiers
including Halfords, Dunelm, BP and Tapi.
Outside of our logistics and long income sectors, a further
£0.3 million was added through two office lettings.
At the year end, 1.2 million sq ft of the portfolio was vacant, of
which 0.9 million sq ft related to former ULR assets. The largest
vacancy is 0.5 million sq ft of warehousing in Melton Mowbray
where we are engaged with a number of potential occupiers who
are attracted by very low rents at the asset.
We continue to work closely with M&S and recently completed
development of three pre-let stores in Weymouth (41,000
sq ft, BREEAM Excellent), Luton (24,000 sq ft refurbishment)
and Largs (13,000 sq ft). In addition, we expect to complete
developments in the summer of our new 390,000 sq ft M&S
distribution facility in Avonmouth (BREEAM Excellent) and
a 21,000 sq ft store in Ludlow. We have also commenced
construction of a 21,000 sq ft M&S food store in Blackpool.
Rent reviews
258 rent reviews were settled in the year, adding £10.9 million per
annum of rent at an average of 19% above previous passing on a
five yearly equivalent basis, with open market reviews 33% higher.
Logistics rent reviews totalled 69 and added £4.4 million of rent at
21% above previous passing rent on a five yearly equivalent basis.
These reviews comprised:
• 52 urban reviews, which added £3.5 million and were settled
at 25% above passing rent on a five yearly equivalent basis,
with open market urban reviews adding £2.2 million which
represented a 38% uplift (a 6.6% CAGR);
• 16 regional reviews, which added £0.8 million and were settled
at 19% above previous passing on a five yearly equivalent basis.
All but one of these reviews were RPI linked; and
• One mega fixed review, settled at 8% above previous passing
rent on a five yearly equivalent basis.
Long income rent reviews were settled across 186 properties,
adding £6.5 million of rent at 18% above previous passing
rent, on a five yearly equivalent basis. All but 11 of the reviews
were contractual (RPI, CPI or fixed) rent reviews and the
deals comprised:
• 42 entertainment & leisure reviews, adding £2.5 million, of
which £1.6 million related to theme parks;
• 100 convenience reviews, adding £2.5 million; and
• 44 healthcare & education reviews, adding £1.5 million, most of
which related to annual reviews on our Ramsay Hospitals.
Strategic report Governance Financial statements
LondonMetric Property Plc Annual Report and Accounts 2026
36
c.465
Number of
occupiers
Strong and diversified income
with high satisfaction
Our investment and asset management actions over a
number of years have increased the resilience of our portfolio
by aligning our income to structurally supported sectors and
assets with strong occupational and investment demand.
The LXi merger in 2024 increased our income diversification
through the addition of new sectors where we believe there
are strong structural tailwinds, whilst the ULR takeover added
greater income granularity in our key conviction sector.
Over the year, we reduced the income concentration from
our top ten occupiers from 38% to 35%, with exposure to
our three largest occupiers (Ramsay Health Care, Merlin
Entertainments and Travelodge) also falling from 27%
to 22%.
Our latest occupier survey in March 2026, again
demonstrated strong contentment and we scored an average
of 8.8 out of 10.0 for whether occupiers would recommend
us as a landlord (2025: 8.7). In terms of satisfaction with our
properties, we scored 8.6 (2025: 8.6).
201 occupiers were contacted representing 86% of our rent,
and we received 70 responses representing 55% of our
rent. The survey included occupiers inherited through the
ULR takeover.
Property review continued
8.8/10
Occupier
satisfaction score
Occupier base by sector (% of income)
• Primark
• Great Bear
• Movianto
• Next
• Argos
• THG
• Amazon
• Tesco
• Reynolds
• General Electric
• Booker
• Bombardier
• Merlin
• Travelodge
• Premier Inn
• Odeon
• SMG
• The Brewery
• M&S
• Co-op
• Waitrose
• Aldi
• B&M
• Sainsbury’s
• Ramsay
Health Care
• Nightingale
Hospital
• Bupa
• Priory
Top ten occupiers (% of income)
Ramsay Health Care 9.1%
Merlin Entertainments 7.8%
Travelodge 4.9%
Premier Inn 3.3%
Booker 2.2%
M&S 1.9%
Great Bear 1.6%
Tesco 1.5%
Primark 1.4%
Amazon 1.3%
Total 35.0%
Ramsay Health Care
Ramsay provides quality healthcare
globally with over 14 million patient
admissions per annum across over
550 locations. Ramsay is listed on the
Australian Stock Exchange valued at
£5 billion. In the UK, Ramsay is one of
the leading independent healthcare
providers with 34 acute hospitals caring
for over 200,000 patients per annum and
employing c.8,000 people. UK revenues
in the last financial year were 13% higher at
£1.3 billion.
Merlin Entertainments
Merlin is a global leader in branded
entertainment destinations with
c.61 million visitors per annum. It operates
c.130 attractions in over 20 countries,
including Alton Towers, Thorpe Park and
Warwick Castle in the UK which are owned
by LondonMetric. Merlin recorded global
revenues of £2.0 billion in 2025 and is
owned by the LEGO family, Blackstone,
Wellcome Trust and CPPIB.
Mega
& regional
12.5%
Urban
36.1%
Entertainment
& leisure
23.8%
Convenience
14.7%
Healthcare
11.8%
Other
1.1%
Long incomeLogistics
Manage and collaborate continued
Occupier base
Strategic report Governance Financial statements
LondonMetric Property Plc Annual Report and Accounts 2026
37
60%
EPC A-B
We continue to improve our ESG focus
We have a comprehensive ESG strategy to minimise the
environmental impact of our assets, maximise energy
efficiency and improve climate resilience. We continue to
invest in high quality buildings and focus on working with our
occupiers on energy efficiency and clean energy initiatives,
primarily solar PV, LED lighting, roof improvements and
degasification. We also see ourselves as strong stewards
of poorer quality assets, with the necessary expertise and
appetite to improve existing buildings.
Our NNN approach ensures that our Scope 1 and 2 emissions
remain very low. Our Scope 3 emissions are significantly
higher but predominantly relate to occupier energy usage
and have a far lower energy intensity level than many
other real estate sectors. Relatively inexpensive initiatives
can materially improve energy ratings and consumption,
with occupiers typically undertaking these improvements
themselves given the quick payback and their long leases with
us. Where we fund improvements, this supports higher rents
or are incorporated within normal lease incentives, helping to
minimise defensive capex.
We continue to improve our external ESG benchmark
scoring, notably improving our CDP score from C- to A-.
Our GRESB score remained above the peer average at 73,
resulting in a two-star rating. Our MSCI rating was A, and
our FTSE4Good score remained above average at 3.6.
Read more about ESG from page 48
Property review continued
A-
CDP score
Key progress in the year
EPCs – Despite our M&A, our EPC A-B ratings increased from 58%
to 60% of the portfolio, and our EPC A-C ratings were unchanged
at 92% of the portfolio. Our EPC ratings benefitted from asset
management initiatives, new EPC assessments on over 50 units
covering 2.2 million sq ft, and our investment activity where we
sold lower-rated assets and acquired mainly EPC A-B rated assets.
Asset management and improvements – We continue to build
sustainability improvements into all of our new leases and regears.
We also undertook a number of refurbishments during the year,
which materially improved the EPC ratings and environmental
credentials of those assets.
Net Zero – Our Net Zero Pathway has been updated to reflect
changes in the portfolio in the year, including M&A. Our portfolio
carbon intensity has decreased from 39kgCO
2
e/sq m (2024
baseline) to 33 kgCO
2
e/sq m.
Occupier energy data – We continue to measure our occupiers’
energy usage. Despite industry changes which limited automated
data access this year, we reached 72% portfolio coverage
compared to 80% in the previous year.
Climate Resilience – We continue to monitor our portfolio’s
current and future vulnerability to extreme climate hazards, with
a focus on flood risk. Our updated flooding analysis showed that
the ULR portfolio has a similarly low risk profile compared to
the LondonMetric portfolio. We continue to undertake further
analysis on higher risk assets.
Solar PV – We continue to collaborate with occupiers to install
solar across our properties, adding 3.9MWp in the year, bringing
the total capacity to 11.9MWp (2025: 8.1MWp). This comprised
1.9MWp installed across seven existing properties, as well
as 2.0MWp from the ULR takeover and other acquisitions.
Our pipeline of future solar projects totals 4.9MWp.
Solar PV installations
ESG in action
0.5MWp of solar was installed on a warehouse in Eastleigh,
expected to save 90 tonnes of CO
2
annually and meet 14%
of the tenant’s energy needs. This followed a LondonMetric
system installation in an adjacent unit, inspiring the tenant’s
self-funded installation.
4.9MWp
Solar projects pipeline
A total of 3.9MWp of solar capacity was added to our
portfolio in the year. This has increased total installed
capacity from 8MWp last year to 12MWp.
3.9MWp
Solar capacity added in the year
459kWp solar
installation in
Eastleigh.
Eastleigh
Manage and collaborate continued
ESG activity
Case study
Strategic report Governance Financial statements
LondonMetric Property Plc Annual Report and Accounts 2026
38
Financial review
Our continued focus on income and portfolio growth this
year, through significant M&A activity and asset recycling, has
enabled us to deliver another strong set of results, despite
the liquidity challenges that have persisted in the real estate
sector and the ongoing economic and geopolitical uncertainty.
The corporate acquisitions of Highcroft Investments plc
(‘Highcroft’) and Urban Logistics REIT Plc (‘ULR’) in the first
half of the year added £1.2 billion of assets to our portfolio
and underpinned the 16.6% increase in our net rental income
and 13.9% increase in EPRA earnings, to £305.3 million or
13.5p per share. Our dividend for the year of 12.45p per share
is 108% covered by EPRA earnings and fully covered on a cash
basis. We have benefitted from operational synergies and cost
savings following these corporate acquisitions and continue to
maintain a disciplined approach to cost control, allowing us to
report a sector leading EPRA cost ratio of 7.7%.
We have strengthened our balance sheet and grown IFRS net
assets by £609.0 million in the year or by 14.8% to £4.7 billion,
primarily as a result of our M&A activity and valuation gain of
£68.2 million. Through targeted asset recycling and sales of
weaker and non core assets, we have reinvested into better
quality assets in stronger sectors and geographies and have
increased our logistics weighting to 52.8% from 46.1% last
year. EPRA net tangible assets (‘NTA’) per share increased from
199.2p last year to 200.6p.
We have strengthened our balance sheet
and grown IFRS net assets to £4.7 billion,
primarily as a result of our M&A activity.
Income growth and
diversified financing
This year, we have taken proactive measures to strengthen and
diversify our financial position through comprehensive refinancing
of secured, near term and high cost debt facilities acquired through
M&A. We have raised new debt of £1.2 billion, repaid £1.1 billion and
most recently refinanced £1.5 billion of unsecured bank facilities.
The new debt arrangements included our inaugural £500 million
public bond with a weighted average maturity of 5.5 years and
fixed rate coupon of 4.69%, rated A- by Fitch and a £150 million
US private placement, priced at the tightest credit spread of any
REIT globally in the US private placement market over the last
three years reflecting strong demand.
The new arrangements allowed us to repay £1,143.9 million of
existing debt, of which £743.9 million was secured and more
expensive former ULR and LXi facilities.
These refinancings have lowered our finance costs, increased our
maturity and diversified our lending pool, both through new bank
lenders and greater access to the debt capital markets, building on
the success and strength of our credit rating.
In March 2026, we refinanced £1.5 billion of unsecured revolving
credit facilities and term loans, reducing the average margin by
49bps to 1.05% and average commitment fees by 19bps, further
diversifying our lender base with two new lenders and improving
our weighted average debt maturity.
Our refinancing activity has enabled us to maintain a low average
cost of debt of 4.0% (2025: 4.0%), despite acquiring higher priced
debt through M&A and persistently high base rates. Our other
debt metrics remain robust, with debt maturity at the year end of
4.4 years (2025: 4.7 years), only £0.2 billion of debt expiring over
the next two years and a loan to value of 36.7% (2025: 32.7%).
We have available undrawn debt facilities of £0.5 billion, which
together with our disposals programme, provides significant
headroom and removes material refinancing risk until FY30.
We continue to be very well protected against adverse movements
in interest rates through a combination of fixed rate loans and
interest rate derivatives in the form of swaps and caps.
Martin McGann
Chief Financial Officer
Strategic report Governance Financial statements
LondonMetric Property Plc Annual Report and Accounts 2026
39
Presentation of financial information
The Group financial information is prepared in accordance with IFRS,
where the Group’s share of its joint venture (‘JV’) is shown as a single line
item in the income statement and balance sheet and its subsidiaries
including any non-controlling interest (‘NCI’) are fully consolidated.
The Group uses alternative performance measures based on the
European Public Real Estate Association (‘EPRA’) Best Practice
Recommendations (‘BPR’) to supplement IFRS, in line with best
practice in our sector, as they highlight the performance of the
Group’s property rental business and aid the comparability of financial
information across public real estate companies.
EPRA earnings and EPRA net tangible assets are key business metrics
adopted in this review and throughout this report and exclude items
including fair value movements on property, derivatives and other
financial instruments, profits and losses on disposal of properties,
goodwill, acquisition costs and deferred tax, all of which may fluctuate
considerably from year to year. EPRA earnings is the key support to the
level of dividend payments.
The supplementary notes include other EPRA metrics and a
proportionally consolidated EPRA income statement and balance sheet.
Further details, definitions and reconciliations between EPRA measures
and the IFRS financial statements can be found in note 8 to the financial
statements, supplementary notes i to vii and xviii, and in the Glossary.
Financial review continued
The exchange ratio was based on an adjusted NTA to adjusted NTA
approach, taking into account the fair value of property and debt
and the acquisition of the investment advisory contract and team
of four employees which completed the following day for a cash
consideration of £8.1 million.
These two acquisitions have been accounted for as business
combinations in accordance with IFRS 3. The difference between
the total consideration paid of £734.9 million and the total
fair value of net assets acquired of £726.8 million, totalling
£8.1 million, has been recognised in the income statement as
goodwill fully impaired in the year. The goodwill arising was largely
due to the consideration paid being based on the Company’s
share price at completion of 202.2p, which was higher than the
adjusted NTA used to determine the exchange ratio.
Transaction costs of £16.3 million have been recognised
separately in the income statement. Further details are set out in
note 15 to the financial statements.
Urban
Logistics
REIT Plc
£m
Logistics Asset
Management
Newco Limited
£m
Total
£m
Fair value of consideration paid:
Shares 521.4 – 521.4
Cash 196.7 8.1 204.8
Shares held in Urban Logistics
REIT Plc
8.7 – 8.7
726.8 8.1 734.9
Fair value of net assets acquired
(note 15)
726.7 0.1 726.8
Goodwill recognised
on acquisition and
subsequently impaired
0.1 8.0 8.1
Acquisition costs recognised
in the income statement
16.0 0.3 16.3
Through our M&A activity we acquired secured debt facilities with
new lenders of £484.4 million, of which £464.4 million had been
drawn at an average rate of 4.26%.
We acquired £140 million of interest rate swaps through the
ULR acquisition at an average rate of 3.2% and post year end we
completed £350 million of new interest rate swaps at a fixed rate
of 3.75%. Our drawn debt at the year end was 99.8% hedged by
current fixed rate debt and interest rate derivatives.
M&A activity
We acquired the entire issued share capital of Highcroft on
21 May 2025 for £47.6 million through the issue of 24.2 million
new ordinary shares. The fair value of net assets acquired
was £52.9 million, the portfolio of 22 assets being valued on
acquisition at £81.1 million.
The acquisition has been accounted for as a property acquisition
and the difference between the consideration paid and the
net assets acquired represents a price discount of £5.3 million,
reducing the cost of the property assets acquired. The price
discount was largely due to the exchange ratio being based on the
Company’s adjusted net tangible assets (‘NTA’) which was higher
than the Company’s share price on completion used to determine
the consideration paid of 196.5p.
Highcroft
Investments plc
£m
Fair value of consideration paid Shares 47.6
Fair value of net assets acquired Investment
property
81.1
Bank debt (26.1)
Other (2.1)
52.9
Price discount on acquisition (5.3)
Acquisition costs 1.7
We acquired the entire issued share capital of ULR on 23 June 2025
for £726.8 million through the issue of 257.9 million new ordinary
shares at 202.2p per share, a cash consideration of £196.7 million
and the fair value of the Company’s existing shareholding in ULR of
£8.7 million.
Financial highlights
£305.3m
EPRA earnings
£295.7m
IFRS reported profit
200.6p
EPRA NTA per share
202.7p
IFRS NAV per share
13.5p
EPRA EPS per share
12.45p
Dividend per share
13.9% 15.0%
0.1%
0.7%
2.4%
3.8%
Strategic report Governance Financial statements
LondonMetric Property Plc Annual Report and Accounts 2026
40
Our corporate acquisitions
underpinned the 16.6%
increase in net rental income
and 13.9% increase in EPRA
earnings to £305.3 million or
13.5p per share.
Income statement
Group EPRA earnings are summarised
in the table below.
For the year to 31 March
2026
£m
2025
£m
Gross rental income 461.7 395.5
Property costs (6.4) (4.9)
Net rental income 455.3 390.6
Management fees and other income 2.9 1.2
Net income 458.2 391.8
Administrative costs (30.2) (27.1)
Net finance costs
1
(123.9) (97.1)
Share of joint venture and non-controlling interest
2
2.2 1.9
Tax³ (1.0) (1.5)
EPRA earnings 305.3 268.0
1 Reflect borrowing costs of £163.6 million (2025: £124.5 million) (note 5b) and finance income of £18.0 million (2025: £23.7 million) (note 5a) less the impact of inflation volatility relating
to the income strip of £4.8 million (2025: £3.7 million) and debt early repayment costs of £16.9 million in the current year
2 Reflects EPRA earnings for MIPP of £3.4 million (2025: £3.2 million) reduced by the NCI share of EPRA earnings of £1.2 million (2025: £1.3 million) as shown in supplementary note ii
3 UK and German current taxes as reflected in note 6 to the financial statements. Deferred tax on our German asset of £0.7 million (2025: £0.7 million) is also included in IFRS reported profit
Financial review continued
Net rental income
As the UK’s leading NNN lease REIT, we strive to deliver reliable,
repetitive and progressive income and dividends for our
shareholders over the long term and are therefore delighted to
report a 16.6% increase in net rental income in the year. The detailed
movements in net rental income are set out in the table below.
£m £m
Net rental income in the year to 31 March 2025 390.6
Additional rent from existing properties and
developments 9.8
Movement in surrender premium income 2.5
Additional rent from acquisitions
1
72.2
Rent lost through disposals (23.0)
Additional rent from net acquisitions 49.2
Movement in rent provisions 4.7
Movement in property costs (1.5)
Net rental income in the year to 31 March 2026 455.3
1 Includes additional rent from ULR of £54.6 million, from Highcroft of £4.8 million and from other
acquisitions of £12.8 million
Our property costs have increased primarily as a result of increased
vacancy costs inherited through our acquisition of ULR. However,
our cost leakage ratio remains low at 1.4% (2025: 1.2%) which is
a reduction since the half year as we have started to mitigate the
impact of the ULR inherited vacancies.
Income Statement highlights
16.6%
Increase in net
rental income
99.7%
Rent collected
in the year
1.4%
Cost leakage ratio
7.7%
EPRA cost ratio
Strategic report Governance Financial statements
LondonMetric Property Plc Annual Report and Accounts 2026
41
IFRS reported profit
A reconciliation between EPRA earnings and the IFRS reported
profit is given in note 8(a) to the financial statements and
supplementary note ii on a proportionately consolidated basis
and is summarised in the table below.
For the year to 31 March
2026
£m
2025
£m
EPRA earnings 305.3 268.0
Revaluation of property 68.2 106.0
Fair value of derivatives (9.7) (11.1)
Loss on disposals (19.0) (13.0)
Goodwill impairment
1
(9.6) –
Acquisition costs
2
(16.3) –
Debt and hedging early repayment costs (16.9) –
Other movements
3
(6.3) (2.0)
IFRS reported profit 295.7 347.9
1 Goodwill recognised on acquisition and subsequently impaired. Full details are set out in note 15
to the financial statements
2 Reflects acquisition costs recognised in the income statement for the corporate acquisition
of ULR
3 Includes JV and NCI share of adjustments (£2.8 million), impact of inflation volatility relating
to the income strip (-£4.8 million), revaluation of investments (-£3.6 million) and deferred tax
(-£0.7 million) in the year to 31 March 2026
The Group’s reported profit for the year was £295.7 million
(2025: £347.9 million), representing a 15.0% decrease.
The movement reflects costs associated with corporate
acquisitions and debt repayment in the current year of
£42.8 million and adverse movements compared to last
year in property revaluations, sales and other movements of
£48.1 million, offset by positive movements in earnings and
derivatives of £38.7 million.
Rent collection
Our rent collection rates continue to be very strong, reflecting our
focus on credit control and the quality of our covenants. We have
collected 99.7% of rent due in the year and trade receivables of
£2.2 million that were overdue and considered at risk have been
provided for in full.
Administrative costs and EPRA cost ratio
Administrative costs increased 11.4% to £30.2 million, reflecting
higher remuneration costs from increased headcount and role
changes following corporate acquisitions, increased advisory fees for
the enlarged group and inflation.
Our sector leading EPRA cost ratio of 7.7% demonstrates operational
synergies, cost discipline and rental growth.
The full calculation is set out in supplementary note iv.
For the year to 31 March
2026
%
2025
%
EPRA cost ratio including direct vacancy costs 7.7 7.8
EPRA cost ratio excluding direct vacancy costs 7.1 7.5
Net finance costs
Our net finance costs have increased by £26.8 million or 27.6%
to £123.9 million this year. We have held higher debt balances
during the year due to debt of £464.4 million acquired through
corporate transactions and additional debt required to fund the cash
consideration of £204.8 million for ULR.
Our average drawn debt balance was £0.5 billion higher than last
year and our net debt has increased from £2.0 billion last year to
£2.8 billion at 31 March 2026.
Therefore, whilst our average debt cost is unchanged at 4.0% our
net finance costs have increased by £26.8 million. This increase
reflects interest charges on new debt acquired through our M&A in
the year of £11.1 million, increased interest on other debt facilities
net of derivative receipts of £14.4 million, higher commitment
and amortisation costs associated primarily with new facilities
of £1.9 million and increased interest charged on lease and
other financial liabilities following CPI increases of £1.2 million.
This was offset by increased bank, coupon and capitalised interest
receivable of £1.8 million.
Further details on finance income and costs are provided in note 5
to the financial statements.
Taxation
As the Group is a UK REIT, any income and capital gains from
our qualifying property rental business are exempt from UK
corporation tax.
Any UK income that does not qualify as property income within
the REIT regulations is subject to UK tax in the normal way.
Our German asset, acquired through LXi, is subject to German
corporate income tax and deferred tax is provided on revaluation
gains on that property.
The tax charge of £1.7 million in the year relates primarily to
German corporate and deferred taxes and the UK corporation tax
charge attributable to the Group’s non-controlling interest in LMP
Retail Warehouse JV Holdings Limited.
The Group’s tax strategy is compliance oriented; to account for
tax on an accurate and timely basis and meet all REIT compliance
and reporting obligations. We seek to minimise the level of tax risk
and to structure our affairs based on sound commercial principles.
We strive to maintain an open dialogue with HMRC with a view to
identifying and resolving any issues as they arise.
We continue to monitor and comfortably comply with the REIT
balance of business tests and distribute as a Property Income
Distribution (‘PID’) 90% of REIT relevant earnings to ensure our
REIT status is maintained. The Group has already paid a large part
of its expected PID for the year to 31 March 2026.
Financial review continued
Strategic report Governance Financial statements
LondonMetric Property Plc Annual Report and Accounts 2026
42
Financial review continued
This year, we have taken proactive measures to
strengthen and diversify our financial position
through comprehensive refinancing of secured,
near term and high cost debt facilities.
Balance Sheet highlights
£4.7bn
IFRS net assets
3.8%
Dividend growth
in the year
6.9%
Total accounting return
£3.0bn
Total debt drawn
Balance sheet
EPRA net tangible assets (‘NTA’) is a key performance measure that includes both income and capital returns but excludes the fair
valuation of derivative instruments that are reported in IFRS net assets. A reconciliation between IFRS net assets and EPRA NTA is
detailed in the table below and in note 8(c) to the financial statements. The EPRA proportionally consolidated balance sheet is shown
in supplementary note iii.
As at 31 March
2026
£m
2025
£m
Investment properties 7,819.0 6,383.9
Assets held for sale 47.8 10.4
Trading properties 1.1 1.1
Group investment property 7,867.9 6,395.4
Gross debt (2,952.3) (2,073.2)
Cash 143.4 81.2
Share of joint venture and non-controlling interest
1
48.9 42.2
Other net liabilities (409.8) (374.6)
EPRA net tangible assets 4,698.1 4,071.0
Derivatives 16.2 23.7
Deferred tax – (0.5)
IFRS equity shareholders’ funds 4,714.3 4,094.2
Share of non-controlling interest 18.6 29.7
IFRS net assets 4,732.9 4,123.9
1 Reflects share of net assets of MIPP of £67.5 million (2025: £71.9 million) reduced by the NCI share of net assets of £18.6 million (2025: £29.7 million) as shown in supplementary note iii
Strategic report Governance Financial statements
LondonMetric Property Plc Annual Report and Accounts 2026
43
Financial review continued
Dividend
Our policy of paying a sustainable and progressive dividend
remains unchanged and the dividend for the year is 108% covered
by EPRA earnings and fully covered on a cash basis as set out in
supplementary note xx. We have continued to declare quarterly
dividends and offer shareholders a scrip alternative to cash payments.
The Company paid the third and fourth quarterly dividends for the
year to 31 March 2025 and the first two quarterly dividends for the
year to 31 March 2026 totalling £271.8 million or 12.4p per share
as reflected in note 7 to the financial statements. The Company
issued 14.2 million ordinary shares under the terms of the Scrip
Dividend Scheme, which reduced the cash dividend payment by
£26.5 million to £245.3 million.
The first two quarterly payments for the current year of 6.1p per
share were paid as Property Income Distributions (‘PIDs’) in the
year. The third quarterly dividend of 3.05p per share was paid
as a PID in April 2026 and the Company has approved a fourth
quarterly payment of 3.3p per share to be paid in July 2026, of
which 1.5p will be a PID. The total dividend payable for 2026 of
12.45p represents an increase of 3.8% over the previous year.
The Board took the following into account when considering its
dividend payments:
• Its REIT obligations to distribute 90% of property rental
business profits;
• Its desire to pay a sustainable, covered and progressive return
to shareholders;
• Its EPRA earnings for 2026; and
• The outlook for 2027.
At the year end, the Company had distributable reserves of
£1.7 billion (2025: £1.1 billion), providing substantial cover for the
dividend payable for the year. When required and at least six
monthly, the Company receives dividends from its subsidiaries
which increase its distributable reserves.
IFRS net assets
IFRS reported net assets increased by £609.0 million or 14.8%
in the year to £4.7 billion, largely due to our M&A activity.
EPRA NTA has increased accordingly by £627.1 million or 0.7%
on a per share basis to 200.6p. The movement is detailed in
the table below.
£m
EPRA NTA
£m
At 1 April 2025 4,071.0
EPRA earnings 305.3
Dividend paid
1
(245.3)
Property revaluation 68.2
Corporate
acquisitions
Highcroft Share issue 47.6
ULR Share issue 521.4
ULR Goodwill and
derivatives
2
(9.3)
ULR Acquisition costs
3
(16.8)
542.9
Other movements
4
(44.0)
EPRA NTA at 31 March 2026 4,698.1
1 Dividend charge of £271.8 million less scrip saving of £26.5 million
2 Goodwill of £8.1 million recognised on acquisition and subsequently impaired and the fair value
of derivatives acquired of £1.2 million
3 Acquisition costs of £16.3 million reflected in the income statement and £0.5 million charged to equity
4 Other movements include debt early repayment costs (-£16.9 million), loss on sales (-£19.0
million), the impact of inflation volatility relating to the income strip (-£4.8 million), revaluation
of investments (-£3.6 million) and other movements (£0.3 million)
The movement in EPRA NTA per share, together with the dividend
paid in the year, results in a total accounting return of 6.9% (7.7%
after adjusting for M&A costs).
The full calculation can be found in supplementary note viii.
IFRS reported profit (for equity shareholders)
£295.7m
15.0%
295.7
347.9
118.7
2026
2025
2024
14.8%
IFRS net assets
£4,732.9m
4,732.9
4,123.9
3,969.5
2026
2025
2024
Strategic report Governance Financial statements
LondonMetric Property Plc Annual Report and Accounts 2026
44
Portfolio valuation
Our property portfolio valuation including the share of joint ventures
and excluding the non-controlling interest increased in the year to
£7.6 billion as set out in the table below.
The Group property portfolio valuation includes the value of assets
held for sale and trading properties that are reflected separately in
the balance sheet.
As at 31 March
2026
£m
2025
£m
Investment properties 7,819.0 6,383.9
Assets held for sale 47.8 10.4
Trading properties 1.1 1.1
Group investment property 7,867.9 6,395.4
Income strip gross up
1
(237.1) (231.0)
Head lease assets (54.4) (40.9)
Group property portfolio valuation
2
7,576.4 6,123.5
Share of joint venture 65.5 69.9
Share of non-controlling interest (21.3) (38.1)
Total property portfolio valuation 7,620.6 6,155.3
1 Represents the gross up of the investment property balance associated with the sale of a 65 year
income strip of Alton Towers and Thorpe Park in 2022, as reflected in note 14a(ii)
2 Portfolio valuation from external valuation reports set out in note 9a of £7,575.3 million
(2025: £6,122.4 million) plus trading property of £1.1 million (2025: £1.1 million)
During the year and as reflected in the table opposite, we acquired
property assets for £1,526.6 million, of which £1,225.7 million
related to the corporate acquisitions of Highcroft and ULR.
We spent £161.8 million on development and other capital
expenditure and generated net sales proceeds of £288.4 million
which reduced the book value of property by £307.4 million
(including the cost of lease incentives written off of £4.0 million).
At 31 March 2026, we had exchanged to sell ten assets for
£48.4 million (book value £47.8 million). These transactions will
be accounted for on completion next year.
A full reconciliation between transactions exchanged and
completed in the year is set out in supplementary note xix.
Portfolio valuation split
A breakdown of the total property portfolio valuation
by sector is reflected in the table below.
As at 31 March
2026
£m
2026
%
2025
£m
2025
%
Mega distribution 316.5 4.2 315.1 5.1
Regional distribution 802.8 10.5 726.8 11.8
Urban logistics 2,904.4 38.1 1,796.0 29.2
Logistics 4,023.7 52.8 2,837.9 46.1
Convenience 1,054.8 13.8 977.7 15.9
Entertainment & leisure 1,539.6 20.2 1,297.8 21.1
Healthcare & education 921.5 12.1 931.1 15.1
Long income 3,515.9 46.1 3,206.6 52.1
Other 81.0 1.1 110.8 1.8
Total property portfolio value 7,620.6 100.0 6,155.3 100.0
Income strip gross up
1
237.1 231.0
Head lease assets 54.4 40.9
Total portfolio value 7,912.1 6,427.2
Share of joint venture (65.5) (69.9)
Share of non-controlling interest 21.3 38.1
Group investment property
2
7,867.9 6,395.4
1 Represents the gross up of the investment property balance associated with the sale of a
65 year income strip of Alton Towers and Thorpe Park in 2022, as reflected in note 14a(ii)
2 Includes investment properties of £7,819.0 million (2025: £6,383.9 million), assets held for
sale of £47.8 million (2025: £10.4 million) and trading properties of £1.1 million (2025: £1.1
million) which are reflected separately in the Group balance sheet
Financial review continued
Portfolio valuation movement
The portfolio movement in the year is reflected
in the table below.
For the year to 31 March
2026
£m
2025
£m
Group opening valuation 6,123.5 5,972.7
Acquisitions
1
1,526.6 284.7
Developments
2
98.4 22.8
Capital expenditure
3
63.4 68.9
Disposals
4
(303.4) (323.7)
Revaluation
5
62.1 101.0
Foreign currency 5.8 (2.9)
Group closing property portfolio valuation 7,576.4 6,123.5
Income strip gross up 237.1 231.0
Head lease assets 54.4 40.9
Group investment property
6
7,867.9 6,395.4
1 Group acquisitions include purchase costs and represent completed investment properties as
shown in note 9 to the financial statements
2 Group developments include acquisitions, capital expenditure and lease incentive movements
on properties under development as reflected in note 9
3 Group capital expenditure and lease incentive movements on completed properties as
reflected in note 9 to the financial statements
4 Group disposals as reflected in notes 9a and 9b to the financial statements
5 Profit on revaluation of investment properties in the income statement also includes the
movement in the income strip gross up of £6.1 million (2025: £5.0 million)
6 Includes the value of assets held for sale of £47.8 million (2025: £10.4 million) and trading
properties of £1.1 million (2025: £1.1 million)
£7.6bn
Property portfolio value
£1.5bn
Acquisitions in the year
52.8%
Logistics
£68.2m
Portfolio valuation gain
Portfolio highlights
Strategic report Governance Financial statements
LondonMetric Property Plc Annual Report and Accounts 2026
45
Financing
The key performance indicators used to monitor the Group’s debt
and liquidity position are shown below.
As at 31 March
2026
£m
2025
£m
Total debt drawn
1
2,977.2 2,090.6
Cash 143.4 81.2
Net debt 2,833.8 2,009.4
Net debt/EBITDA
2
7.5 6.4
Loan to value
3
36.7% 32.7%
Cost of debt
4,6
4.0% 4.0%
Interest cover
5
(times) 3.8 4.2
Undrawn facilities 515.0 831.1
Average debt maturity 4.4 years 4.7 years
Hedging
6
99.8% 100.0%
1 Excludes unamortised fair value adjustments that reduce gross debt to £2,952.3 million
(2025: £2,073.2 million) as set out in note 14a(i)
2 Based on net debt and annualised funds from operations, which includes Highcroft and ULR
pre-acquisition earnings
3 LTV includes the impact of sales and acquisitions that have exchanged and excludes the fair
value of debt as reflected in supplementary note xviii
4 Cost of debt is based on total debt drawn and includes amortised costs but excludes
commitment fees and adjustments to fair value
5 Net income divided by net interest payable as defined by the Group’s unsecured
funding arrangements
6 Includes the impact of post period end hedging arrangements
Financing activity in the year
Net debt has increased by £0.8 billion this year, primarily
as a result of our M&A activity, through which we acquired
£484.4 million secured facilities with new lenders and funded the
cash consideration for ULR of £204.8 million.
In total, we have completed £1,230.0 million of new unsecured
debt arrangements which comprised the following:
• Inaugural £500 million public bond, rated A- by Fitch, with a
weighted maturity of 5.5 years and attractive coupon of 4.69%;
• £150 million US private placement with a weighted maturity of
5.5 years and blended fixed rate of 5.3%; and
• Four unsecured bank facilities totalling £580 million with
eight new lenders, a weighted maturity of 4.2 years and
blended margin of 1.4% which was lower than comparable
existing facilities.
These new arrangements have allowed us to repay £1,143.9 million
of existing debt facilities, comprising:
• £743.9 million secured facilities acquired through LXi and ULR;
– Four fixed rate facilities totalling £553.9 million with a
blended rate of 5.4%;
– £190 million term loan and revolving credit facility with a
margin of 1.75% and less than two years remaining; and
• Two unsecured revolving credit facilities totalling £400 million
with a blended margin of 1.6% and four months remaining.
These financings have reduced our finance costs, increased our
maturity and diversified our lending pool both through new bank
lenders and greater access to the debt capital markets, building on
the success and strength of our credit rating.
Finally, in March 2026, we refinanced £1.5 billion of unsecured
revolving credit facilities and term loans, reducing the average
margin by 49bps to 1.05% and average commitment fees by
19bps, further diversifying our lender base with two new lenders
and improving our weighted average debt maturity.
Hedging
The Group’s policy continues to be to limit exposure to
interest rate volatility by entering into hedging and fixed rate
arrangements. We acquired £140 million of interest rate swaps
through the ULR acquisition at an average rate of 3.2% and post
year end have completed on £350 million of new interest rate
swaps at a fixed rate of 3.75%. We continue to be very well
protected against adverse movements in interest rates and our
year end drawn debt was 99.8% hedged by fixed rate loans and
interest rate swaps and caps that we currently have in place.
We received £13.2 million (2025: £20.6 million) from interest rate
derivatives in place during the year and continue to monitor our
hedging profile in light of interest rate projections.
Financial loan covenants
The Group has comfortably complied throughout the year
with the financial covenants contained in its debt funding
arrangements and has substantial levels of headroom within these.
Covenant compliance is regularly stress tested for changes in
capital values and income. The Group’s unsecured facilities, private
placement loan notes and public bond, which together account
for 81% of debt drawn at the year end, contain gearing and interest
cover financial covenants. At 31 March 2026, the Group’s gearing
ratio as defined within these funding arrangements was 67%
which is significantly lower than the maximum limit of 125%, and
its interest cover ratio was 3.8 times, comfortably higher than the
minimum level of 1.5 times. Property values would have to fall by
27% to reach the banking gearing threshold, which would equate to
an LTV ratio of 54%, and rents would have to fall by 57% or interest
costs rise by 152% before the banking interest covenant is breached.
Financial position at 31 March 2026
This year, we have proactively strengthened and diversified our
financial position through extensive refinancing of secured, near
term and expensive debt facilities. At 31 March 2026, we had total
debt facilities of £3.5 billion, undrawn debt facilities of £0.5 billion
and ample room under banking covenants. We are in a strong
financial position, with diversified sources of funding and flexibility
to execute transactions as opportunities arise and repay near term
debt expiries.
Financial review continued
Financing highlights
4.0%
Cost of debt
£515m
Undrawn facilities
36.7%
Loan to value
99.8%
Hedging
Strategic report Governance Financial statements
LondonMetric Property Plc Annual Report and Accounts 2026
46
1. Debt expiring within 0-2 years
2
6%
2. Debt expiring within 3-10 years
2
90%
3. Debt expiring 10+ years
2
4%
Average debt maturity (based on debt drawn)
4.4 years
1
1. Unsecured RCF and Term Loans 50%
2. Private placement
20%
3. Public bond
14%
4. Secured facilities
16%
Total facilities
£3.5bn
Debt facility expiry profile (£m)
2
Financial review continued
Our available debt facilities and
disposals programme provide
significant headroom and flexibility.
3500
3000
2500
2000
1500
1000
500
0
3,492 93 93 238 609 2,459
FY26 FY27 FY28 FY29 FY30 FY31+
1
2
3
1
2
3 4
Our refinancing activity has enabled us to maintain a low average
cost of debt of 4.0% (2025: 4.0%), despite acquiring higher priced
debt through M&A and persistently high base rates. Other debt
metrics remain robust, with debt maturity at the year end of 4.4
years (2025: 4.7 years), with only £0.2 billion of debt expiring over
the next two years, and loan to value of 36.7% (2025: 32.7%).
Cash flow
During the year, the Group’s cash balances increased by
£62.2 million as reflected in the table below. Further detail is
provided in the consolidated cash flow statement.
For the year to 31 March
2026
£m
2025
£m
Net cash from operations before changes in
working capital 366.2 322.1
Working capital movements and tax paid (4.0) (5.2)
Net cash from operating activities 362.2 316.9
Net cash used in investing activities (303.8) (7.9)
Net cash from/(used in) financing activities 3.8 (339.7)
Net increase/(decrease) in cash
and cash equivalents 62.2 (30.7)
The net cash inflow from operations has increased by
£45.3 million to £362.2 million. The Group spent £163.9 million
acquiring Highcroft and ULR (net of cash received) and a further
£447.2 million acquiring other property and investment assets
and developing property. It received £282.6 million from property
disposals, £9.1 million from joint ventures investments and
£15.6 million in interest. Cash inflows from financing activities
reflect net loans drawn of £415.9 million offset by dividend
payments and distributions of £256.1 million, financing costs of
£152.1 million and share purchases and awards of £3.9 million.
1 Average debt maturity including extension options subject to lender approval is 5.2 years
2 Debt expiry profile includes all extension options subject to lender approval
Strategic report Governance Financial statements
LondonMetric Property Plc Annual Report and Accounts 2026
47
Responsible Business and ESG review
Our
Responsible
Business
The Company recognises the need to
consider and address all Environmental,
Social and Governance (‘ESG’) matters
relevant to its business.
Through our activities we look to minimise
the environmental impact of our business,
maximise opportunities to improve the
efficiency of our assets and improve the
resilience of our assets to climate change
and the impact of transitioning to a low
carbon economy.
• Reducing portfolio’s carbon intensity and
embodied carbon from our activities
• Addressing climate change through our
net zero target
• Helping cities to develop
sustainable infrastructure
SDGs
Our actions consider the long term interests
of all our stakeholders including those of our
employees, suppliers, customers and local
communities as well as ensuring that we
maintain a high standard of business conduct.
• Collaborating with our occupiers
• Enhancing and supporting local
communities and wellbeing of stakeholders
• Promoting good working conditions and
equality for all
SDGs
Environmental Social Governance
The Board is committed to upholding
high standards of corporate governance.
It ensures that appropriate health and safety
procedures, responsible supply chains and
ethical business conduct are embedded
across our activities.
• Enhance transparency in reporting,
aligned to key industry benchmarks
and frameworks
• Uphold responsible business ethics
• Strengthen climate resilience monitoring
and governance
SDGs
See p50 for more See p55 for more See p62 for more
LondonMetric supports the UN’s
17 Sustainable Development
Goals (‘SDGs’). The goals shown
on the left represent those that
we feel are the most relevant to
our business.
Martin McGann
Chief Financial Officer
Large solar array at a
warehouse in Huntingdon
Strategic report Governance Financial statements
LondonMetric Property Plc Annual Report and Accounts 2026
48
Responsible Business and ESG review continued
Our Strategy and Governance
In addition to meeting legislation, environmental improvements
translate into real asset value enhancement, as occupiers
increasingly value these improvements and differentiate between
assets based on environmental attributes. On a national scale,
there is a critical need to ensure businesses minimise their
environmental impact to meet overarching climate targets.
Our Responsible Business Framework guides us in mitigating
climate-related risks, identifying and advancing environmental
and stakeholder opportunities, and upholding high standards
of corporate governance. Responsible Business is embedded
across all our corporate, investment, asset management and
development activities. We implement both ‘top down’ analysis
and ‘bottom up’ asset-specific risk and opportunity assessment.
Over the year, we reviewed and updated our overall ESG strategy,
framework, policies and objectives to ensure they reflect our
business and the latest industry standards.
Our Sustainability and Responsible Business Policy sets out our
approach, with ESG targets reviewed and set annually. Progress is
monitored at monthly ESG Working Group meetings, attended
by key business representatives and an Executive Director who
represents the Board. ESG performance is reported to the Board,
with the Audit Committee responsible for overseeing ESG
progress. Executive Directors and relevant employees are set
individual ESG targets, and remuneration is linked to achieving
those targets.
The delivery of the ESG targets and the implementation of
the strategy are the responsibility of the Responsible Business
Working Group and the wider property team. Annual ESG
workshops are held to ensure clear communication on ESG
matters across the business.
We continue to engage with our key stakeholders and strengthen
our industry engagement through our Better Building Partnership
(‘BBP’) membership.
ESG performance in the year
We made good progress against our corporate ESG targets in
FY26, and further details are set out on the following pages.
Full details will be set out in our separate Responsible Business
Report, which will be available on our website in June 2026.
Key progress in the year included:
• Update to our Net Zero Pathway to reflect material portfolio
changes. Our carbon intensity has decreased to 33kgCO
2
e/sq m
(2024: 39.4kgCO
2
e/sq m);
• 11 refurbishments, all achieving EPC B, with a number achieving
A. Our portfolio’s EPC A-C rating remained at 92% with EPC
A-B ratings on 60% of the portfolio (2025: 58%);
• Solar PV additions of 1.9MWp across eight assets, together with
2.0MWp added through acquisition activity increase installed
solar capacity to 12MWp;
• Occupier energy data coverage of 72% (2025: 80%), with
the reduction mainly due to industry changes in how data is
collected. We will continue to drive improved data collection
through occupier engagement;
• A further improved landlord recommendation score of 8.8/10
(2025: 8.7) in our annual occupier survey;
• Maintaining our high employee satisfaction levels with 94% of
employees saying that they enjoy working for LondonMetric
(2025: 96%);
• Strong performances across our external ESG benchmarks:
GRESB score: 73, MSCI: A, ISS: C, CDP: A-, and FTSE4Good: 3.6/5;
• Meeting all sustainability-linked loan targets and issuance of our
Green public bond; and
• Update to our detailed portfolio flood risk analysis to include
assets acquired in the year and enhanced assessments on
higher risk assets. The analysis found that 19 properties,
representing 7% of floor area, had a high risk of internal fluvial
flooding. We continue to undertake indepth reviews, which we
expect will materially reduce the number of higher risk assets in
the portfolio.
Read more on climate resilience and flood risk on page 66
92%
Percentage of portfolio rated EPC A-C (by area)
8.8/10
Landlord recommendation score
3.9MWp
Solar capacity added in the year
94%
Percentage of employees who enjoy working
at LondonMetric
A-
CDP Score, up from C-
Strategic report Governance Financial statements
LondonMetric Property Plc Annual Report and Accounts 2026
49
Responsible Business and ESG review continued
LondonMetric’s direct Scope 1 and 2
emissions are minimal compared to its total
portfolio emissions and mainly arise from
external car park lighting, tenant heating
and energy use at a leased head office.
Our Manchester Arena property is the
main source of emissions, where we
supply gas heating to tenants. It accounts
for the majority of our Scope 1 emissions.
Reducing emissions here is central to our
Scope 1 and 2 decarbonisation strategy.
We aim to achieve Net Zero for Scope 1 and
2 emissions by the end of 2027
1
through
energy-efficiency upgrades, replacement
of fossil-fuel heating systems and
procurement of renewable energy. In the
interim, we maintain our carbon neutrality
statement, offsetting emissions through
verified carbon credits.
Since most of our properties have FRI/NNN leases, occupiers are in full control of most of
the energy consumption at our properties. Therefore collaboration with them is essential
to achieve decarbonisation on our assets and meet our Net Zero Pathway.
17 of our top 20 occupiers, accounting for 43% of rent, are formally committed to net
zero. This provides confidence that our modelled interventions to achieve our Net Zero
Pathway will be implemented. We work with occupiers to understand their energy use
and implement improvement opportunities.
Our target to be net zero by 2050, is supported by our projected 51% reduction in total
emissions by 2030 from our baseline in 2024 and full electrification of heating systems
by 2040, with any residual gap addressed through verified carbon offsets.
Although developments account for a small share of our carbon emissions, we look to
minimise emissions from our development activity and plan to establish a baseline and
set a target for embodied carbon by 2027. This year, we completed six developments,
all of which were rated EPC ‘A’ and monitored the embodied carbon at our largest
development in Weymouth, which achieved BREEAM Excellent. As it stands, 15% of our
portfolio is certified BREEAM Very Good or above.
Read more mandatory carbon reporting
for Scope 1 and 2 emissions on page 54
See londonmetric.com/sustainability for detailed
summary of our Net Zero Pathway
Scope 1 and 2
(Landlord emissions)
1 Emissions from our leased head office are excluded from our Scope 1 and 2 Net Zero target but are reported within our Scope 1 and 2 figures as required under SECR
2 Emissions from development activity were calculated using embodied carbon assessment covering A1-A5 for one development, and estimated for the remaining five
Updated portfolio carbon intensity
33kgCO
2
e/sq m
Occupier data coverage
72% (from 80%)
New developments completed to minimum EPC A
100%
LondonMetric Carbon footprint
Our footprint and environmental focus
We recognise the importance of addressing climate change and
how reducing real estate emissions can support the UK’s 2050 Net
Zero goal. LondonMetric can have a material impact by lowering
its emissions, aiding occupiers in reducing theirs, and helping them
meet their net zero commitments. Our goal is to achieve full net
zero across our portfolio by 2050, including occupier emissions.
All energy and carbon data are reported on a calendar year basis
(January to December 2024 and 2025).
In 2025, our total carbon footprint was 116,183tCO
2
e, (2024:
96,582tCO
2
e). Our carbon reporting focuses on material sources
of emissions, and with only 54 employees, corporate emissions
from purchasing and travel are insignificant and therefore
excluded. We monitor all sources of emissions and re-evaluate as
necessary. A detailed breakdown of our greenhouse gas inventory
is included in our Responsible Business Report, along with a
rationale for any exclusions.
Access to and the accuracy of our Scope 3 emissions data
remain challenging when measuring our carbon footprint.
Recent industry-wide issues with automating data collection have
meant that we have relied solely on manual data collection, which
has reduced our Scope 3 energy data coverage this year.
Reduction in emissions by 2030
51%
Landlord electricity renewably sourced
98%
Scope 3
(Occupier emissions)
Scope 3
2
(Development emissions)
0.3%
of total carbon footprint
94.9%
of total carbon footprint
4.8%
of total carbon footprint
Environmental
Strategic report Governance Financial statements
LondonMetric Property Plc Annual Report and Accounts 2026
50
Environmental continued
Responsible Business and ESG review continued
Our Net Zero Pathway
Following the acquisition of ULR in the year, we re-baselined
our Net Zero Pathway for our enlarged portfolio. The updated
assessment uses our latest available energy data to ensure that
our decarbonisation trajectory remains representative of our
current portfolio.
Our approach to gap-filling was also adjusted, allowing for
more accurate modelling of our portfolio’s energy intensity and
emissions by reducing the number of properties assumed to
use fossil fuels. As a result, the restated proportion of energy
usage across our portfolio that is electricity has increased to 71%
(2024: 55%).
The ULR acquisition, updated assumptions, grid decarbonisation,
and a move away from fossil fuel by occupiers have resulted in
our portfolio intensity reducing materially to 33kgCO
2
e/sq m
(2024: 39kgCO
2
e/sq m).
We expect this trend to continue, with c.50% of emissions
reduction by 2050 modelled to be achieved through energy
efficiency and degasification interventions, and the remainder
through ongoing decarbonisation of the grid.
Refining Our Approach
Having rebased our analysis we are monitoring and refining
our methodology. We are now in the process of reviewing and
interpreting the key outputs, which identified some anomalies and
require further analysis. While the updated methodology prevents
direct like for like comparisons this year, we expect to provide clear
year on year comparatives in future reporting periods.
Industrial and Logistics
Industrial and Logistics (‘’I&L’’) is the largest archetype within
LondonMetric’s portfolio (58% by area). Therefore I&L assets are
central to achieving our Net Zero Pathway.
These assets are well suited to achieving net zero due to their:
• Large, unobstructed roof areas, suitable for solar PV at scale;
• Lower energy intensity and often limited occupier fit outs,
generally requiring straightforward fabric and system
interventions to improve building energy ratings; and
• Occupier type, with the occupier base including many major
logistics and retail companies, most of whom have published
net zero targets.
The ULR acquisition increased our portfolio size by 18% (by value).
All of the assets acquired were I&L and they added 2MWp of solar
PV and had a similar EPC rating profile to LondonMetric’s.
As the acquisition did not introduce any new asset classes, there
was no alteration to our overall decarbonisation strategy at the
archetype level. With a carbon intensity of 25 kgCO
2
e/sq m
1
, the
ULR assets had a lower intensity compared to LondonMetric’s.
This takeover has strengthened our ability to deliver interventions
at scale, supporting our Net Zero pathway for I&L assets through
the following focus areas:
• Solar PV installation on rooftops, targeting at scale deployment;
• Fabric upgrades, often undertaken as part of the standard
property upgrade cycle;
• Degasification and low carbon heating solutions; and
• Occupier engagement to collaborate on asset strategies.
Proportion of portfolio energy use from electricity
71%
Reduction in overall carbon emissions by 2050 (expected)
97%
Archetype Carbon Intensity
Hospitals
Retail – Supermarkets
I&L – Unheated
Hotels
I&L – Manufacturing
I&L – Refrigerated
Retail – Warehouse
I&L – Heated
91
Intensity
(kgCO
2
e/sq m)
2%
5%
7%
8%
15%
3%
9%
32%
51
30
29
28
27
22
11
LondonMetric’s Net Zero Pathway
(kg CO
2
e/sq m)
2024 2025
39
33
Target
intensity
Degasification and
Grid decarbonisation
40
30
20
10
Net
Zero by
2050
Energy
efficiency
measures
The chart above shows 8 out of 18 archetypes in our Pathway,
focusing on those with the highest portfolio coverage. Generally,
archetypes with high carbon intensity represent a smaller
proportion of our portfolio.
1 Figures as of September 2024, published by ULR prior to the acquisition
% portfolio
(sq m)
Offsets
Governance Financial statements
LondonMetric Property Plc Annual Report and Accounts 2026
51
Strategic report
Responsible Business and ESG review continued
Environmental continued
Progress in the year on net zero delivery
Achieving net zero is embedded across our business, with asset
management initiatives (particularly on lease events) expected to
improve asset energy efficiency, where minimum high standards
are not already attained. Where near term improvements are
unachievable, plans are put in place to ensure assets can achieve a
minimum EPC B rating, thereby progressing towards net zero.
With our long lease structures, occupiers are also making
significant sustainability improvements to our properties at
their own costs. Whilst these improvements are not always
immediately visible to us, their impact is reflected in a reduction in
emissions intensity over time and better EPC ratings.
We continue to make tangible progress across the four
intervention pillars (shown below). Achievement of our Net Zero
Pathway is based on a number of assumptions and highlighted
below are some of those assumption across key archetypes and
actions taken in the year.
Fabric improvements encompass
roof and wall insulation
upgrades, replacement of single
glazing with double glazing, and
improvements to airtightness in
temperature-controlled assets.
In the year, we undertook several
fabric upgrade programmes as
part of refurbishments or lease
event interventions, including at
Bircholt and Colnbrook.
Degasification is a standard
initiative in our refurbishment
programme. Across the portfolio,
gas is being replaced with low
carbon heating systems.
This replacement is being
undertaken by our occupiers
but also by us. In the year, we
removed gas at 11 units, including
as part of our Eastbourne and
Luton retail refurbishments.
Solar PV supports renewable,
low carbon on site electricity.
In the year, 3.9MWp of solar
capacity was added, taking
our total installed capacity to
11.9MWp.
We have a pipeline of 4.9MWp,
and 55% of respondents in our
annual occupier survey indicated
that they were considering solar
or other renewable installations.
Occupier engagement is central
to delivering our Pathway.
Through quarterly sustainability
specific asset manager meetings,
we identify key opportunities
and risks at the asset level,
as well as how we can target
specific engagement with
our major occupiers on their
decarbonisation strategies.
Improve fabric
Replace fossil fuelInstall solar PV Behavioural change
30%
Targeted energy reduction
from fabric upgrades on I&L
Heated assets by 2040
17%
Roof coverage by solar PV
for eligible assets by 2050
31%
Targeted energy reduction
from replacing fossil fuel on
NNN retail assets by 2045
17/20
Proportion of our largest 20
occupiers with a formal
net zero commitment
EPC rating of portfolio¹
38.9%
21.6%
31.9%
B
A
C
E
D
Invalid
0.8%
5.8%
1.0%
We are committed to complying with regulatory standards and
ensuring our properties meet the Minimum Energy Efficiency
Standard (‘MEES’). Although not yet legislated, the current
proposed regulations set a target of a minimum B rating by
2030 which we continue to work towards. 60% of our assets are
already rated B or above (2025: 58%), and our EPC A-C coverage
stands at 92% (2025: 92%).
1 EPC ratings as at 31 March 2026. Ratings exclude assets not within scope of the
MEES Regulations, including assets located in Scotland and exempt properties
Total solar capacity installed across the portfolio
11.9MWp
Top 20 occupiers with firm net zero targets
17/20
Refurbishment completed in the year by LondonMetric
11
Warehouse refurbishment
completed in Birmingham this year
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52
Improving energy efficiency
Energy efficiency across our assets helps deliver progress towards
our net zero targets and aligns our portfolio with minimum
energy standards.
In the year, we completed 11 refurbishments, all targeting a minimum
EPC B. These refurbishments demonstrate our commitment to
improving asset quality, reducing carbon emissions, and delivering
better buildings for occupiers. Each project incorporates our
standard package of energy-efficiency interventions, including as
a minimum LED lighting installation and low carbon heating, with
fabric upgrades, solar PV, and EV charging points implemented
where appropriate.
Our NNN aligned portfolio has very low vacancy rates, reflecting
the quality of our assets. With our long leases, occupiers typically
invest in building improvements themselves during the lease term
without our direct involvement. This means that relatively few
assets return to us in need of upgrading. Where we do undertake
upgrade works, capex is accretive through higher rents.
Two example of asset refurbishments are shown on this page.
Responsible Business and ESG review continued
Environmental continued
Star Gate, Birmingham (37,000 sq ft)
Lodge Farm, Northampton (49,400 sq ft)
New letting deal agreed at our logistics warehouse
with sustainability improvements undertaken.
As part of our upgrade works, we capped the gas supply,
and a new all-electric air-conditioning system was installed
to provide heating and cooling for the office element.
Electric heaters were also installed in the staff ancillary and
warehouse areas. Our works improved the EPC rating from a
C to a B and the unit was re-let, achieving a 32% rental uplift.
A complete refurbishment, with degasification, solar
PV and EV.
Gas heating was replaced with a new electric heating and
cooling system, and LED lighting was fitted throughout the
warehouse. 154kWp of solar PV was installed, expected to
supply 47% of the occupier’s energy needs. Two twin EV
chargers were also installed, supporting zero-emissions
transport. A rental uplift of c.50% is expected on letting.
EPC Rating
B
Up from C
EPC Rating
A
Up from C
Solar capacity added
154
kWp
Strategic report Governance Financial statements
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Mandatory Streamline Energy and Carbon Reporting
Energy efficiency measures
This year, multiple energy efficiency projects have been
implemented across our landlord-managed supplies, such as
installing smart meters at Bicester, upgrading lighting controls
with timers and photocells at Berwick Upon Tweed, and replacing
lighting with LEDs at Manchester Arena.
Data qualifying notes
We calculate our carbon emissions for the calendar year using an
operational consolidated control approach and in accordance with
the requirements of the GHG Protocol Corporate Accounting and
Reporting Standard and ISO 14064-1:2006.
Our data quality is reviewed and improved every year,
so the previous year’s figures are restated if more data
becomes available.
Our energy and carbon data (Scope 1, 2 and Scope 3 Category
13) is externally assured in line with AA1000AS. The assurance
statement will be available in our Responsible Business Report.
For Scope 1 and 2 calculations, we rely on meter-level energy
consumption (kWh) data and extrapolate any incomplete
data. Our Scope 1 emissions consist of gas consumption and
exclude refrigerant-related emissions, as they are not material to
our operations.
We report Scope 2 on both a market and location basis, with
REGOs being taken into account for market-based figures.
We use the 2025 emission conversion factors provided by the UK
Government Department for Energy Security and Net Zero, as
our Scope 1 and 2 operations are exclusively UK-based.
Our like for like analysis only includes assets that are fully owned
and have the same occupancy status in both 2024 and 2025.
We have chosen operational control floor area (sq m) as our
intensity metric, which includes all internal areas with Scope 1 or 2
energy consumption.
A detailed GHG emissions inventory, including Scope 3
emissions relating to our tenant activities, will be included in our
Responsible Business Report.
SECR GHG emissions in metric tonnes
Emissions sources: Calendar Year 2025 Calendar Year 2024
Scope 1 emissions – combustion of fuels
1
121 77
Scope 2 emissions – electricity consumption (location-based) 267 194
Scope 2 emissions – electricity consumption (market-based) 6 15
Total emissions (location-based) tCO
2
e 388 271
Total emissions (market-based) tCO
2
e 127
91
Total energy consumption (kWh) 2,168,758 1,357,066
Operational control floor area sq m 529,522 576,883
Carbon intensity (kgCO
2
e/sq m) – location-based 0.73 0.45
Carbon intensity (kgCO
2
e/sq m) – market-based 0.24 0.13
1 Emissions from refrigerants use have not been included
We have been carbon neutral for Scope 1 and 2 since calendar
year 2024. In line with the Oxford Principles for Net Zero Aligned
Offsetting, we prioritise emissions reductions through energy
efficiency, renewable energy procurement, and decarbonisation
measures in line with our Net Zero Pathway to reduce our reliance
on offsets. We will offset a total of 127 tonnes of carbon
emissions for 2025, with verified carbon credits from
high-integrity projects. A detailed description of the carbon
credits purchased will be provided in our Responsible
Business Report.
Responsible Business and ESG review continued
Environmental continued
Landlord-derived energy consumption decreased by
6% to 281MWh on assets operated during both 2024
and 2025. This was due to several energy efficiency
initiatives implemented during the year, particularly
lighting upgrades.
Absolute energy consumption increased by 60%, to
2,169MWh due to the ULR acquisition, which included
several vacant units and sites where we as landlord
procure energy for tenant use.
-6%
Over the year on a
like for like basis
Consumption
Scope 1 and 2 emissions decreased by 20% for assets
operated during both 2024 and 2025.
Absolute emissions have increased overall to 388tCO
2
e
from 271tCO
2
e. The 43% increase was due to the acquisition
of the ULR portfolio.
Over 98% of Landlord electricity supply was sourced from
renewable energy sources.
-20%
Over the year on a
like for like basis
Greenhouse gas (GHG) emissions
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54
Responsible Business and ESG review continued
Occupiers
Building and nurturing relationships with
our stakeholders is integral to our business
model and the way we work.
We work closely with our
occupiers to create high
occupational contentment
Read more on page 56
465
Diverse range of customers across
many growth sectors
Our employees are critical
to our success and delivering
on our strategy
Read more on page 57
People
54
Highly talented and
incentivised team
We rely on the support of a
diverse group of contractors
and advisors
Read more on page 58
100%
Compliance with our Responsible
Development Requirements
checklist
Strong relationships with our
investors are critical to us
accessing capital efficiently
Read more on page 61
397
Investors and brokers seen
in the year
Supporting local
communities and charities
is highly important to us
Read more on page 59
Communities
98
Charity initiatives supported
in the year
Contractors
and Advisors
Our stakeholders
Investors
Social
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55
Occupiers
Responsible Business and ESG review continued
Strong customer focus
We recognise that when our occupiers’ businesses thrive, our
business also thrives. We treat our occupiers as customers and put
them at the centre of our decision making.
Our occupier-led approach provides us with market knowledge
to better understand future trends and make informed decisions.
Our customer satisfaction scores, high occupancy rate and rent
collection demonstrate the strength of these relationships.
Extending existing relationships and developing new
contacts continue to be a key focus for us.
Develop trusted relationships
Our customer-focused approach reflects our differentiated
proposition where we:
• Are approachable and actively engage with our occupiers;
• Strive to listen, fully understand occupier requirements and
create solutions that are mutually beneficial; and
• Make quick decisions, act swiftly and deliver on our promises.
Board Engagement
The Board is provided with detailed analysis of occupier
transactional activity on a regular basis. In addition:
• Executive Directors feed back results to the Board of occupiers’
financial performance and rent collection on a regular basis,
along with wider occupier intelligence and updates;
• Results of the annual occupier survey are presented to Audit
Committee each year; and
• Site visits provide an opportunity for the Board to engage
with customers.
Social continued
How we engage
with our
occupiers
• Annual occupier surveys
• Leasing and regear activity
• Regular site visits and inspections
• Energy saving discussions
• Wider property needs discussions
Why they are
important to us
• Drivers of income and capital growth
• Lie at the heart of our business purpose
What is important
to them
• Fit for purpose real estate
• Lease terms that suit their
business model
• Well designed and sustainable buildings
• Approachable and trustworthy landlord
A proactive landlord who constantly tries
to understand tenants needs and work out
if there is a way to deliver economic benefits
to both parties.
Feedback from a top 10 occupier
Occupier survey (March 2026)
Recommend LondonMetric
as a landlord
8.8/10
Satisfaction with
our properties
8.6/10
In March 2026, we undertook our annual occupier survey.
201 occupiers were surveyed, representing 86% of rent.
Responses were received from 70 occupiers representing
55% of rent.
Questions were asked about occupiers’ satisfaction with our
properties and their locations, how satisfied they were with
LondonMetric and whether they would recommend us as a
landlord. We also asked specific environmental questions.
We scored an average of 8.8 out of 10 for whether our
occupiers would recommend us as a landlord (2025: 8.7) and
8.6 out of 10 for how satisfied they were with our properties
(2025: 8.6).
This was the first year that we surveyed Urban Logistics REIT
occupiers and, as with previous surveys, we will address
the results of the survey and feedback through our ongoing
occupier engagement.
Encouragingly, occupier sentiment remained upbeat,
with 42% saying that they are looking to increase their UK
property footprint. A further 50% said that they expect their
footprint to stay the same, whilst those looking to reduce
space was only 8%.
Key occupier-related targets:
• Maintain high occupier satisfaction
• Engage with all of our key occupiers
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Responsible Business and ESG review continued
Social continued
Overview, culture and approach
The Company is highly focused with seven Non Executive
Directors and 54 employees (2025: 48). Since formation of
LondonMetric in 2013, employee numbers have only increased
marginally despite our portfolio increasing in size six fold.
This reflects improved efficiencies and the portfolio’s lower
operational requirements.
We have successfully attracted and retained a talented and
loyal team, which is reflected in our low annual voluntary staff
turnover rate of 6% since 2013. Working in the office is seen
as critical to our business with five days in the office per week
embraced. Our approach to our team is based on:
• A culture of empowerment, inclusion, openness and teamwork,
with a flat management structure and clear responsibilities and
decision making processes;
• Fair and performance based remuneration aligned to personal
and company targets, with inclusion of employees in LTIPs; and
• A small team, allowing a flexible and individual approach.
We promote diversity across knowledge, experience, gender, age
and ethnicity with a published diversity and inclusion policy, and
we support the Real Estate Balance group.
Read more on diversity on page 107
Board engagement
The Board regularly engage with its employees through:
• Regular communication from the Chief Executive;
• Various Company Committee meetings;
• Site visits for the Board facilitated by key staff; and
• Events arranged by the workforce Non Executive Director.
Our designated workforce Non Executive Director is Kitty
Patmore. Each year, she hosts an informal off site session for
some employees, with the Remuneration Committee Chair also
in attendance. The meeting allows employees to speak freely, ask
about board level discussions and share their working experiences.
Topics discussed this year included ideas to enhance integration
following M&A, retain the existing culture and further improve
internal communication. Non attributable feedback was relayed
to the Board.
How we engage
with our people
• Annual employee surveys and off site
employee sessions
• Annual appraisals
• Encourage training, including on
ESG matters
• Committee meetings
• Regular business updates
Why they are
important to us
• Build relationships with our occupiers
and the property industry
• Allow us to execute on investment,
asset management and
development strategies
• Responsibility for their wellbeing
What is important
to them
• Flexibility and wellbeing
• Progression and career development
• Reward and recognition
• Fairness and equality
People
Employee survey
Staff survey
engagement level
91%
Staff enjoy working
for LondonMetric
94%
In February 2026, we undertook our ninth annual employee
survey to track staff satisfaction. This year included former
Urban Logistics REIT employees.
47 questions were asked, focusing on the Company, the
working environment and the individual. Responses were
received from 91% of staff. Overall, feedback from the survey
again delivered very positive results with 94% of employees
saying they enjoy working at LondonMetric (2025: 96%).
Employees remain highly supportive of the Company and
working environment.
98% feel proud to work for LondonMetric with 96% feeling
the Company supports social responsibility, through
community involvement or charitable giving in an ever-
changing environment.
Read more on our purpose, values and culture on page 95
Key people-related targets:
• Maintain high employee satisfaction
• Create an inclusive workplace & culture
• Ensure access to meaningful training
to support development
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Social continued
Responsible Business and ESG review continued
Managing Agents
Managing Agents are an important part of the supply chain on our
assets where there are multiple occupiers in place.
We select a few highly competent companies to deliver
our managing agent services. Whilst our spend on these services
is relatively small, we continue to monitor their compliance
against our Managing Agents’ policies and ensure that their
sub-contractors are properly appointed and compliant with our
standards, including responsible supply chain/anti-slavery and
human trafficking.
Over recent years, we have undertaken a number of reviews of
material sub-contractors employed by our key Managing Agents
with a specific focus on sustainability, community, legislation
and employment.
Board Engagement
• The Board and its Committees receive regular presentations
and reports from its advisors;
• The Board continues to advocate the Prompt Payment Code
and promote responsible development standards; and
• The Board visits sites with the development and asset
management teams.
How we engage
with our
contractors &
advisors
• Regular project meetings
• Annual reviews and audits on projects
• Regular meetings with property
and managing agents
• Sharing of learning between
different suppliers
Why they are
important to us
• Being a small team we are dependent
on a diverse group of key suppliers
including professional advisors
and contractors
What is important
to them
• Fair payment terms and
prompt settlement
• Good, effective and collaborative
working relationship
• Long term partnerships
Contractors and Advisors
Overview
We rely on the support of a diverse group of contractors, suppliers
and advisors. Our relationships are highly important to allow us
to deliver on our developments and refurbishments, manage
our properties, acquire and dispose of properties and access
capital markets.
Our Responsible Procurement Policy
We have a responsible procurement policy which outlines our
approach to implementing supply chain and procurement
standards on developments and our existing estate through
our contractors and suppliers. It focuses on areas such as
labour, human rights, health and safety, resource, pollution
risk and community.
Contractors
Our contractor relationships are highly important in allowing us to
deliver on our developments and refurbishments. In conjunction
with our external project managers, our development team
ensures that we select high quality and robust contractors
with a proven track record. We regularly review the financial
robustness of our contractors and work closely with them
throughout projects.
Our development team monitors progress and tracks all elements
of our projects including sub-contracted works. We stay in
close contact with our contractors and arrange regular visits and
detailed reviews and checks of their systems and processes.
Our Responsible Development Requirements checklist is used
on all projects and sets minimum requirements for contractors.
Compliance with this checklist is mandatory for all projects
and sets minimum standards that our contractors must meet.
The checklist covers environmental, responsible supply chain and
H&S standards. We also specify compliance by contractors with
the Considerate Constructors Scheme on most of our projects
where we deem it appropriate.
At project meetings, we challenge all of our contractors to
consider the environment, biodiversity, local community
involvement and local sourcing.
Contractors & advisors activity in the year
Average payment
15 days
to pay our suppliers
Compliance
100%
with our Responsible
Development Requirements
checklist
Key contractor/supplier targets:
• Embed responsible development & high safety standards
across all contractors
• Ensure fair & equitable treatment of suppliers
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Overview
We recognise the importance of supporting our local
communities and maintaining strong engagement with
stakeholders. Our Community Policy sets out how we aim to
maximise the social and economic value created through our
activities by:
• Collaborating with local authorities, councils, and other
stakeholders to promote positive and sustainable outcomes for
the communities in which we operate;
• Enhancing local infrastructure through the regeneration and
development of modern purpose built buildings;
• Maintaining active engagement with councils and local
authorities through the life cycle of our developments to ensure
transparent communication and community involvement;
• Supporting local employment and economic activity during
construction and refurbishment projects by working with local
contractors and suppliers where feasible;
• Securing occupiers that deliver lasting employment
opportunities and strengthen the local economy; and
• Contributing to the wellbeing of local communities through
investment in community initiatives, events, educational
partnerships and local facilities.
Our Charity and Communities Working Group implements charity
giving and co-ordinates community involvement. We aim to
allocate £0.2 million pa for charitable giving across three key areas:
Corporate charities and initiatives identified at group level;
Employee-led charitable causes, with all employees able
to nominate organisations or apply for matched funding in
support of their own fundraising efforts; and
Occupier and asset-related initiatives, supporting local causes
and community organisations connected to our occupiers and
the communities in and around our assets and developments.
In 2025, we contributed £222,280 to charitable initiatives.
We continue to receive further charity funds from our banking
arrangements following the achievement of ESG-related
banking targets.
How we engage
with our people
• Supporting local charities
• Encouraging local sourcing on projects
• Planning consultations
• Resident updates on projects
• Engagement with local authorities
• Supporting local occupier initiatives
Why they are
important to us
• Considering communities local to
our activities is an important part of
our Responsible Business approach
to doing business and delivering
our strategy
What is important
to them
• Environmental and social impact of
our activities
• Employment opportunities
• Investment into local infrastructure
Communities
1
2
3
Responsible Business and ESG review continued
Social continued
Our charitable giving in the year
Initiatives
98
Activity
£222k
Corporate-led
We contributed £134,098 to corporate-led initiatives,
supporting a range of charities including NSPCC, Air
Ambulance, CiaO, Re N-Gage, LandAid, The King’s Trust,
Youth Beyond Borders and The Boathouse Youth.
Employee-led
£28,960 was given to employee-led initiatives supporting a
range of charitable causes. This included backing fundraisings
and community activities, such as children’s football clubs,
climbing the Alps and half marathons.
Occupier and asset related
We also contributed £59,222 towards a number of occupier
and asset related initiatives, including supporting Christmas
and other appeals, installing defibrillators, adding biodiversity
through bug hotels and improving facilities at a homeless
shelter near to our Weymouth development.
Board engagement
• Opportunities to take part in charitable events organised
by LondonMetric
• Regular updates on charitable activities and
community initiatives
• Awareness of community matters relating to ongoing
developments through project updates
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Working toward a world where dementia
no longer devastates lives, the charity focuses
on early diagnosis, research, and support
for families.
Supporting three exceptional charities
Responsible Business and ESG review continued
In June 2025, the LondonMetric
team hit the streets – on foot
and on wheels – for our very
own race to the office.
Overview
Teams from our London and Birmingham offices
took part in a city-wide challenge to see who
could reach the finish line first.
This Companywide effort saw cyclists setting off
from LondonMetric’s Bedford Link Logistics Park
while runners and walkers departed from our
Currys store in New Malden and other locations
in London and Birmingham.
The team challenges included
• Walking 10km
• Running 13 miles
• Cycling 66 miles
Each team made their way to one of our offices,
racing toward a shared finish line.
This exciting event was arranged to support
three exceptional charities chosen by
LondonMetric employees.
We exceeded our £20,000 fundraising target
receiving donations of £24,930.
£24k
Raised of the £20k target
+40
People took part from LondonMetric
A leading UK charity offering health care,
information, and financial support to people
affected by cancer. In 2024 alone, Macmillan
supported over 2.4 million people.
A local charity near our Bedford Logistics park
tackling homelessness through outreach,
housing, and employment opportunities.
Alzheimer’s
Society
King’s Arms Project,
Bedford
Macmillan
Cancer Support
980
Kilometres covered
Race to
the Office
48
Donations
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Social continued
Investor site visit in October 2025
We hosted a debt investor visit to a few of our larger assets
including our Bedford Link Logistics Park and our Rivers Hospital
let to Ramsay Health Care. A number of investors attended and
they were accompanied by the Chief Financial Officer, Asset
Director and several other senior employees.
Debt investors and joint ventures
We have continued to strengthen our relationship base across
bank lenders and the debt capital markets as well as engaging
with new debt investors through our inaugural public bond issue,
further diversifying our debt providers, and building on the
success and strength of our credit rating. We have also continued
to maintain strong, collaborative relationships with our joint
venture partners to achieve our shared goals.
Board Engagement
• Investor feedback provided regularly to the Board;
• Chair and Senior Independent Director participated in half
yearly investor roadshows;
• Shareholder consultation on our new Remuneration Policy; and
• Full Board attendance at the AGM in July 2025.
How we engage
with our investors
• Investor roadshows & conferences
• Results presentations to analysts
• Annual General Meeting
• Non Executive Director attendance at
investor meetings
• Debt refinancing activity
• Site visits
Why they are
important to us
• Continued investment and support
• Feedback and direction
• Maintaining a flexible and attractive
debt structure
What is
important
to them
• Financial performance and progression
• Scale and liquidity
• Structurally supported assets with
income growth
• Well covered and growing dividend
• Clear strategy, execution and reporting
• ESG fully considered
Equity investors
We value our good relationships with our shareholders.
Understanding their views continues to be a top priority and
is vital to the Company’s strategic direction. The Company’s
principal representatives continue to be the Chief Executive and
Chief Financial Officer who, along with the Head of Investor
Relations and Sustainability, hold meetings throughout the year
and particularly following results announcements.
Over the year, we met with 397 equity investors and brokers
through one-to-one and group meetings. Unsurprisingly, interest
to meet the Company remained high given continued market
uncertainty as well as our M&A and transactional activity.
A breakdown of meetings by type of investor is shown in the chart
opposite. The Company continues to place great importance on and
engage with its private wealth shareholders, who represented 31%
of investors met in the year. We continued to see increased interest
from US investors, who now account for 21% of our register.
We continue to enjoy strong research analyst coverage and
interaction with the 15 brokers that cover us, which is up from 13
last year.
Our investor relations framework
The framework is set around our half yearly results, and at
other times in response to ad hoc requests and where we
undertake UK regional and overseas roadshows and investor
conferences. Meetings and roadshows keep investors informed
of the Company’s performance and plans and allows them to
ask questions.
Specific topics discussed during the year included implementation
of strategy, financial and operational performance, the property
market, the strength of our occupiers, our M&A transactions, non
core sales, investment opportunities, our debt structure and ESG.
Shareholders are kept informed through results statements
and other regulatory announcements. These are published
on our website, affording all shareholders full access to
material information.
Investors
Responsible Business and ESG review continued
Investor activity
Equity investors met
397
Debt facilities arranged
£2.7bn
Equity investors (by type)
1. Sector specialists 37%
2. Private wealth 31%
3. Generalists 27%
4. Brokers 5%
1 2 3 4
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61
Overview
Martin McGann, Chief Financial Officer, represents the Board
at Responsible Business Working Group meetings and his
remuneration is linked to the Company achieving certain
Responsible Business-related objectives.
To ensure governance standards cascade across our stakeholders
and to align with industry standards, we have updated several of
our policies in the year. The Company’s overall Sustainability and
Responsible Business policy is available on our website along with
other related documents, including:
• Responsible Business targets and Responsible Business reports;
• Our approach to health and safety;
• Compliance and anti-corruption procedures;
• Whistleblowing Policy;
• Community Policy; and
• Human Rights and Modern Slavery Policy and Act Statement.
Committed to embedding ESG across our business, in the year we
issued our inaugural £500 million Green public bond, allocating
proceeds to eligible green projects under our Green Finance
Framework, and approximately 60% of investors held dedicated
sustainable investment mandates or strong ESG requirements.
Read more about Governance from page 87
Health & Safety
The Board is responsible for ensuring that there are appropriate
health and safety procedures in place. Mark Stirling, Asset
Director, is responsible for implementing procedures and
reporting back to the Board. RP&P Management Ltd (‘RP&P’) acts
as our Corporate Health and Safety Advisor.
Risk assessments for compliance with specific duties or regulation
are carried out and necessary actions are implemented as
required. Health and safety training is carried out for employees
and additional training is considered on a case by case basis.
Our health and safety procedures are regularly reviewed and, as
well as ensuring that our employees are offered a safe and healthy
working environment, it addresses the two key areas of:
I. Construction – Procedures and processes have been developed
to ensure we comply with current legislation with a Project
Manager, Principal Designer and Principal Contractor appointed
on all projects to oversee, manage and monitor health and safety.
II. Managed properties – The majority of our assets are let on full
repairing and insuring leases. For single occupier assets, the occupier
is responsible for managing health and safety matters at the
property and the wider estate. Where there are multiple occupiers,
we appoint a Managing Agent for health and safety monitoring,
ensuring assessments are completed and reported back to us.
There were zero reportable incidents on projects and a zero accident
rate for LondonMetric employees.
Responsible Development Requirements
We have implemented robust processes to ensure that our
contractors uphold our high standards and minimise the
environmental impact from developments. All of our contractors
adhere to our Responsible Development Requirements checklist,
which sets minimum requirements on developments, including:
• Health & Safety and Considerate Constructors;
• Scheme compliance;
• BREEAM Very Good or better standard (where appropriate) and
environmental impact monitoring; and
• Promoting local employment opportunities and fair
remuneration for workers.
Annual contractor review of The Capital Group
Each year we undertake a detailed review of systems and processes
at one of our contractors, looking in particular at compliance with
our standards, local sourcing, modern slavery and minimum wage.
This year we are reviewing The Capital Group, a London based
contractor with whom we have a longstanding relationship.
They recently completed a development in Luton for us.
Having already completed our Responsible Development
Requirements Checklist, Capital has demonstrated that it has
robust policies in place and shares the same core values as
LondonMetric. The contractor maintains strong relationships with
its clients and key suppliers, with senior management playing a
very active role in all business activities.
Governance
The Board is committed to upholding high standards
of corporate governance and Responsible Business is
an important part of ensuring that we deliver on those
high standards.
Leadership status
A-
CDP score in 2025
submission
Supplier monitoring
100%
Completion of Responsible
Development checklist
We maintained good ratings in external benchmarks,
outperforming our peer group in most instances. Notably, we
achieved a leadership ranking with an ‘A-’ score in our latest
CDP submission, an improvement from ‘C-‘. This progress
followed a gap analysis and enhanced reporting metrics,
reflecting our commitment to transparent climate action.
We achieved a score of 73 in the 2025 GRESB Real Estate
Assessment, earning a two-star rating. We retained our
inclusion in the FTSE4Good Index, scoring 3.6 out of 5.0 in
the latest assessment, compared to 2.8 for the peer group
and achieved ‘A’ in our MSCI rating, above the sector average.
In EPRA’s last review, we maintained our Gold Award in the
sBPR assessment and improved our ISS score to ‘C’, which
exceeds the peer group average.
External governance benchmarking
Responsible Business and ESG review continued
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62
TCFD Recommendation & Alignment
LondonMetric has complied with the requirements of UKLR
6.6.6.(8) by including its Task Force on Climate-related Financial
Disclosures (‘TCFD’) Statement below. Our statement is
consistent with the four overarching disclosures. We have
complied with nine out of eleven TCFD-specific disclosure
requirements, except for Strategy B and C, where we are focused
on strengthening the financial quantification of our disclosure.
This statement outlines the combined group’s position after
LondonMetric’s acquisition of Urban Logistics REIT in June 2025.
Any changes to our climate-related risks and opportunities are
highlighted where relevant. In anticipation of the UK Sustainability
Reporting Standard S2: Climate-related Disclosures (UK SRS S2),
we have conducted a gap assessment against its disclosure
requirements and have begun incorporating relevant disclosures
into this report, aiming for full compliance once it is legislated.
a) Describe the Board’s oversight of climate-related risks
and opportunities
The Board of Directors and the Audit Committee oversee ESG
matters and are accountable for the Group’s risk management
framework, including climate-related risks and opportunities.
Further details are provided on pages 70 to 74 of the Annual
Report and the Audit Committee Terms of Reference.
The Board considers climate-related issues in its regular
review of strategy, risk management, budgeting, performance
and capital allocation. It ensures that all risks are identified,
assessed and addressed through mitigation, and evaluates
relevant trade-offs in strategic decisions. ESG factors, including
climate-related risks and opportunities, are assessed alongside
commercial considerations when determining long term asset
viability. While ESG risks are not automatically exclusionary,
assets exceeding the Company’s risk appetite will, where
possible, undergo enhanced ESG due diligence and in full capex
analysis (for acquisitions) or may be earmarked for disposal (for
owned assets).
The Board identifies its own training needs and has access to
the Deloitte Academy’s sustainability and climate briefings.
The Nomination Committee also monitors the Board’s
skills, including sustainability expertise, and considers the
Board well-equipped to oversee climate-related matters.
The Remuneration Committee sets Board remuneration, with
10% of annual bonuses linked to ESG objectives, including EPC
improvements, sustainability improvements at lease events
and occupier data coverage.
The Audit Committee conducts an annual review of the Group’s
risk register and oversees the integration of climate-related
risks into the wider risk management framework, providing
the Board with assurance that risks are adequately managed.
It also monitors progress against the Group’s climate-related
objectives and targets, in line with the framework outlined in
Metrics & Targets.
Relevant climate risks, opportunities, and updates on ESG
metrics and targets are reported to the Board quarterly and ad
hoc as necessary.
b) Describe management’s role in assessing and
managing climate-related risks and opportunities
The Senior Leadership Team (‘SLT’) and the Responsible
Business Working Group are responsible for the day-to-day
management of climate-related risks and opportunities and
report directly to the Audit Committee. The Working Group
includes representatives from finance, asset management,
property management, development, and strategy, ensuring
ESG integration across key internal functions. It is led by the
Head of Investor Relations and Sustainability, supported by
an ESG associate, and the Chief Financial Officer, both SLT
members, with the CFO also serving on the Board. The Working
Group identifies, assesses and manages climate-related risks
and opportunities across the business and escalates material
issues to the SLT.
Quarterly meetings with asset managers are held to evaluate
climate-related progress, with daily contact to ensure
ESG support. Regular contact with the investment team
ensures climate due diligence is completed for all asset level
acquisitions, identifying vulnerabilities and establishing an
understanding of the impacts on asset value from the outset.
ESG is included as an item in asset handovers between the
investment and asset management teams and we also hold
annual ESG workshops for both teams.
Figure 1: LondonMetric Climate-Related Risk Governance
Structure & Meeting Frequency
Board of Directors Meetings quarterly
Audit Committee Meetings six times a year
Climate information provided to Board
• Audit Committee updates (inc. risk register) – at least annually
• Target & metric progress – regular ad hoc updates
Senior Leadership Team Meetings monthly
Climate information provided to Board
• Board papers – quarterly
• Regular ad hoc updates
Responsible Business Working Group Meetings monthly
Climate information provided to Board
• ESG papers – at least annually
Investment
Committee
Meetings every
4-6 weeks
Finance
Committee
Meetings every
4-6 weeks
Asset Management
Committee
Meetings every
4-6 weeks
1. Governance
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63
a) Describe the climate-related risks & opportunities the
organisation has identified over the short, medium
and long term; and
b) Describe the impact of climate-related risks &
opportunities on the organisation’s businesses,
strategy, and financial planning
We conducted our latest climate risk assessment in early
2025 and remain committed to updating our full climate risk
assessment every three years, unless material changes occur.
Following the acquisition of Urban Logistics REIT, we concluded
that the acquisition did not materially alter the Group’s asset mix,
geographic footprint or portfolio-level strategy and therefore
previous climate-related risk assessments remained relevant to
the enlarged portfolio. We did review the flood risk exposure on
the newly acquired assets as part of our annual flood risk review
on all new assets.
Our climate risk assessment is structured around three-time
horizons, as shown below.
Time Horizon Transition Risk Physical Risk
Short Term 2025 – 2027 (2020s) 2021 – 2050 (2030s)
Medium Term 2028 – 2037 (2030s) 2041 – 2070 (2050s)
Long Term 2038+ (2040s) 2071 – 2100 (2080s)
Physical risk horizons are longer, reflecting their slower
development over time, while we consider transition
risks to materialise more immediately, therefore requiring
closer reviews and alignment with our strategic planning
horizons. Scenario analysis was undertaken using two IPCC
Representative Concentration Pathways (‘RCPs’), RCP4.5
(stabilised emissions) and RCP8.5 (high emissions), to model
potential outcomes for the UK portfolio through to 2100.
Our leased offices are excluded and considered low risk since we
do not own them and can operate remotely.
Material risks and opportunities are summarised in the tables
on the following pages. Inherent scores were derived on a 1-25
scale: Very Low (<5), Low (5-9), Medium (10-14), High (15-19) and
Very High (20-25). Residual scores consider our preparedness
for a risk on the same scale and were updated according to
mitigation actions undertaken during the year and reviewed in
line with our risk management and governance processes.
The analysis focuses on risks with a direct financial impact
on LondonMetric; most of our leases are FRI meaning
interventions such as heating, ventilation, and air conditioning
system replacement and associated costs fall under tenant
responsibility. Physical risks are considered material if rated
High or above in the short term, or Very High at any time.
Transition risks and opportunities are material across all
timeframes if inherent scores are Medium or above and residual
scores are Low or above. Issues rated Very Low are not shown
but monitored internally.
We aim to review our materiality thresholds within our
next climate risk assessment to better align with UK
SRS requirements.
Further insight into our methodology and scenario analysis is
provided in the ‘Risk Management’ section (see page 68).
c) Describe the resilience of the organisation’s strategy,
taking into consideration different climate-related
scenarios, including a 2°C or lower scenario
Given our physical and transition risks and opportunities under
RCP4.5 and RCP8.5, we consider our organisation to be highly
resilient in the short and medium term, supported by robust
risk management practices and an agile investment strategy.
As demonstrated in our Net Zero Pathway, we expect the
whole portfolio to make meaningful progress in decarbonising.
However, our material risks will require increased focus on
higher-intensity asset classes, particularly hospitals, food stores
and hotels, through occupier engagement and disposal of
underperforming assets.
Our investment strategy considers changing climate,
regulatory and market conditions to continually improve
the environmental quality and resilience of our portfolio.
Our portfolio will likely stay diversified in terms of asset sectors,
but we expect ongoing asset monitoring and embedding asset
improvements to help mitigate financial impacts and reduce
our portfolio’s relative carbon intensity. Our FRI leases mean
tenants tend to undertake upgrades during the lease, reducing
our capital expenditure.
Proposed changes to MEES regulations, particularly the
requirement for commercial properties to achieve an EPC
rating of B or above by 2030, represent a key transition risk.
In response, we continue to actively review our portfolio
to identify assets at risk of non-compliance and ensure
appropriate mitigation plans are in place. Over the past year,
EPCs have been reassessed across 2.2 million sq m of assets,
and we continue to target a minimum EPC B rating on all new
lettings, lease regears and acquisitions. As a result, we have
increased the proportion of our portfolio rated EPC A-B from
58% to 60%.
TCFD Recommendation & Alignment continued
2. Strategy
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64
Table 1: Material climate-related transition risks under RCP4.5 scenario
We expect transition risks to materialise in the short to medium term and thus be the most material risks for LondonMetric within these timeframes.
Time Horizon Physical Risk Inherent Risk Rating Potential Financial Impact Management/Mitigation Residual Score
Short Term
(2025–2027)
R1: Market and technological demand
Shifts in tenant preference for efficient,
low carbon buildings combined with
accelerating technological innovation,
such as solar PV, EV charging and smart
building systems, may lower demand
for assets with weaker sustainability
performance. Expectations are rising
particularly among high-profile
occupiers and premium assets.
Medium
(14)
• Pressure on rents, incentives and vacancy rates if
occupiers favour higher-performing sustainable buildings
• Higher capital investment exposure for vacant assets
that require upgrades to remain competitive
• Possible valuation impacts and obsolescence risk where
demand decreases for lower-performing assets
Our acquisitions process involves comprehensive due
diligence to ensure our assets meet tenant expectations,
supported by a disposal strategy for underperforming
assets. Within asset management, we align with tenants’
net zero ambitions and use our own Net Zero Pathway to
guide refurbishment. Key interventions include lighting and
equipment upgrades, new roofs, solar PV installation and
heating degasification.
We expect this risk to be low in the short term but rise to
medium over the medium term as tenant expectations
continue to increase.
Low
(9)
Medium Term
(2028–2037)
R2: Carbon tax and fuel
source transition
The transition away from fossil fuels,
combined with potential carbon pricing
mechanisms and shifting energy
policies, is increasing pressure to move
towards low carbon heating and energy
systems.
Medium
(14)
• Rising operating costs for fossil fuel-based systems
where we control energy supply
• Capital investment needs to transition energy and
heating systems to lower carbon alternative in vacant
assets that can otherwise not be relet
• Lower rental income and letting opportunity if occupiers
face high operating/refurbishment costs
We engage our tenants to encourage the switch to
alternative fuel sources through leasing incentives or
green leases. In particular, we are working towards the
degasification and switch to electric heating for our units,
which will help us meet future MEES EPC requirements.
We expect this risk to remain medium over the long term
as most assets are likely to transition away from fossil fuels
before any carbon tax is introduced.
Medium
(10)
R3: Environmental legislation
Current and emerging regulations, such
as MEES, ESOS, UK SRS and policies
aligned to national climate goals, are
tightening performance requirements
for assets and reporting obligations.
Medium
(14)
• Increased administrative and reporting costs associated
with new disclosure requirements
• Asset devaluation or obsolescence if compliance gaps
are material or costly to address
• Capital expenditure to meet minimum standards will
likely fall on us as the landlord
We have a robust strategy in place to manage legislative
requirements like MEES and ESOS. We have an internal EPC
B target and align occupier engagement and our disposal
strategy accordingly. Our due diligence process factors in
property upgrade costs for compliance although this cost is
rarely material since upgrade costs are paid by occupiers or built
into lease incentive arrangements. We also utilise our industry
memberships and networks for regulatory horizon scanning
and are preparing for UK SRS S2 reporting. We expect this risk
to remain low over the long term due to our robust process.
Low
(8)
R4: Embodied carbon
Rising focus on whole-life carbon
emissions is increasing attention
on materials, refurbishment and
construction choices. Stakeholders
expect greater transparency and
strategies for embodied carbon.
Medium
(12)
• Higher construction/refurbishment costs due to
low-carbon materials and embodied carbon assessment
• Potential valuation adjustments for assets with high
embodied carbon
• Lower availability of capital for future developments
if investor perceptions are affected
Although developments represent a small share of our
activity, we plan to set an embodied carbon target by 2027
and maintain high development standards including EPC
and BREEAM targets. We also consider carbon pricing
for new developments and redevelopments. We expect
this risk to remain low in the long term due to our limited
development exposure.
Low
(5)
2. Strategy continued
TCFD Recommendation & Alignment continued
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65
Table 2: Material climate-related physical risks under RCP8.5 scenario
Physical risks will affect our portfolio most materially in the long term, with increased precipitation, flooding, drought, water stress and heat stress being key hazards.
Time Horizon Physical Risk Inherent Risk Rating Potential Financial Impact Management/Mitigation Residual Score
Long Term
(2071–2100)
R5: Heavy and increased
winter precipitation
Heavy rainfall or rainfall over a
prolonged period may lead to more
regular fluvial flooding events and
affect assets in proximity to rivers or
coastal areas.
High
(18)
The potential financial impacts across our material physical
risks are similar and summarised below:
• Higher vacancy risk if occupiers perceive assets as
operationally vulnerable
• Lower asset valuation due to issues like structural
damage, damp, mould or re-pricing of physical risk
• Reduced rental income or pressure on incentives if
physical risk suppresses local demand or impacts tenant
operations (e.g. tenants reliant on water or cooling
infrastructure)
• Capital investment may be required for vacant units that
need major upgrades before they can be re-marketed
and relet
Our broader physical risk assessment flags increased winter
precipitation as a High long term risk for Convenience,
Hotel, Health and Other archetypes. To underpin this
assessment and further assess potential asset value
impacts, we also conduct flood risk assessments on an
asset level. 6.9% of our total portfolio (19 assets) is currently
at high risk of internal fluvial flooding and we also monitor
our portfolio for surface water flooding (expect to fall as
further analysis undertaken). We undertake regular asset
inspections and site visits to ensure tenants adequately
consider flood risk in their operation of our assets. During
development and refurbishment, we also ensure that any
mitigation measures are considered to minimise flood risk.
Medium
(14)
R6: Drought, subsidence and
water stress
Prolonged periods of low rainfall may
lead to soil shrinkage, ground movement
and reduced water availability, increasing
the risk of structural damage to assets
and disrupting occupier operations
reliant on water supply.
High
(19)
Drought, subsidence and water stress present a High risk
in the long term in nearly half of the regions, particularly
across East and Southeast England and the East and West
Midlands. It will affect mainly industrial & logistics and
health archetypes. Our longer term strategy focuses on
limiting impact on asset value by encouraging occupiers to
undertake structural assessments and ensuring the integrity
of areas surrounding our assets.
Medium
(10)
R7: Heat stress and
higher temperatures
Rising mean temperatures and
extreme temperature highs may
reduce the operational efficiency of
assets, increase cooling demand, and
affect workers and machinery.
High
(19)
Heat stress becomes a significant long term risk, rated
Very High for health archetypes in Southeast England, and
High for several other archetypes, including entertainment
& leisure, hotels and logistics. To reduce this risk, we
collaborate with occupiers to install energy-efficient electric
heating and cooling systems. This is supported by insights
from our annual occupier survey, which helps identify and
address property-related concerns.
Medium
(10)
TCFD Recommendation & Alignment continued
2. Strategy continued
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66
Table 3: Material climate-related opportunities under RCP4.5 scenario
Our climate-related opportunities are focused on improvements that can be made to our assets in terms of their energy and carbon intensity and are most prominent in the logistics sector.
Time Horizon Opportunity Inherent Risk Rating Potential Financial Impact Management/Mitigation Residual Score
Medium Term
(2028–2037)
O1: Green energy transition
Growing demand for low carbon
and electrified assets is creating
opportunities to integrate renewable
technologies across assets.
High
(19)
The financial benefits from climate-related opportunities
are broadly consistent and most prominent in the logistics
sector. They include:
• Rent premiums where upgraded assets become more
attractive to occupiers due to lower operating costs
• Valuation premiums for assets with sustainability-aligned
upgrades, leading to better marketability and liquidity
• Reduced capital expenditure as proactive upgrades
reduce the need for reactive and often more costly
investment later
We undertook 8 solar PV projects during the year and
continue to work with our occupiers to degasify assets and
incorporate more sustainable technology like heat pumps.
Given a larger part of our portfolio is industrial assets, this
presents further opportunity for solar PV projects due to the
large roof spaces of these assets.
Medium
(12)
O2: Increased efficiency
Improving building standards and
adopting modern design/operational
practices can enhance overall asset
efficiency and resilience.
Medium
(12)
Our Net Zero Pathway provides us with a structured plan of
what measures to implement (e.g. lighting and equipment
upgrades, degasification) to achieve increased efficiency
across the portfolio.
Medium
(10)
O3: Asset upgrade and development
The transition presents opportunities to
acquire and improve underperforming
assets.
Medium
(12)
We have been strong stewards in developing underinvested
assets, which allows us to acquire sub-standard assets and
make material changes that enhance their operation and
value. In the year we undertook 11 refurbishment projects,
upgrading assets’ environmental credentials.
Low
(7)
2. Strategy continued
TCFD Recommendation & Alignment continued
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67
a) Describe the organisation’s processes for identifying
and assessing climate-related risks;
b) Describe the organisation’s processes for managing
climate-related risks; and
c) Describe how processes for identifying, assessing,
and managing climate-related risks are integrated
into the organisation’s overall risk management
Our climate-related risk management process remains
unchanged from the previous reporting period. Climate risks and
opportunities continue to be identified, assessed and prioritised
within our enterprise risk management framework, with
operational responsibility held by the SLT.
Risk Identification & Assessment:
Physical risks are identified using the UKCP18 Climate
Risk Indicators (‘CRI’) and EU Taxonomy hazards to
ensure exhaustive coverage of relevant climate hazards.
Nineteen hazards, aggregated into eight physical risk types,
are assessed across the portfolio, covering acute and chronic
risk categories as defined by the TCFD. The assessment uses
national datasets and climate modelling, including the National
Flood Risk Assessment (‘NAFRA’), Met Office historical climate
datasets and UKCP18 scenario projections.
Transition risks are identified across the four TCFD categories
(policy & legal, technology, market, reputation) and assessed
through academic and industry literature reviews to ensure
materiality and sector suitability. The policy & legal assessment
captures current regulatory requirements (e.g. ESOS, MEES), as
well as emerging regulations (e.g. strengthened MEES, UK SRS).
Similarly, climate-related opportunities are identified using the
TCFD opportunity categories and assessed through academic
papers and peer reviews.
Risk Scoring & Prioritisation:
Scenario analysis underpins our scoring approach. We use RCP
8.5 as the primary scenario for physical risks, as it represents the
long term worst case. The NGFS Delayed Transition scenario
(aligned with RCP 4.5) is used as the primary scenario for
transition risks and opportunities as we consider this to most
accurately depict policy and economic developments in the near
term in line with this being considered the most likely scenario
by the UK Met Office.
Physical Risk Transition Risk & Opportunities
RCP 4.5
RCP 8.5
NGFS Below 2ºC
NGFS Delayed Transition
NGFS Current Policies
All climate-related risks and opportunities are qualitatively rated
for likelihood (1-5) and impact (1-5), generating an inherent risk
score (0-25), which is converted to a standard risk rating (see
table below). Physical risk scores are derived by aggregating
related hazards using the highest hazard score per timeframe
and adjusting for company-level impact consequence.
Score Range Risk/Opportunity Rating
0-5 Very low
6-10 Low
11-15 Medium
16-20 High
21-25 Very High
Once the risk/opportunity ratings have been applied, we
produce residual ratings by adjusting for our preparedness, which
reflects existing mitigation measures (for risks) or readiness
to benefit (for opportunities). Residual risk scores are updated
annually where relevant to account for actions undertaken
during the reporting year.
Risk Register Integration:
Climate-related risks and opportunities form part of our
corporate risk register under the principal risk ‘Responsible
Business & Sustainability’. Principal risks are those with the
potential to materially affect our operations, stakeholders,
strategy delivery or the Board’s risk appetite. Climate-related
risks are evaluated and prioritised using the same likelihood and
impact methodology as other enterprise risks.
The SLT, supported by the Working Group, updates the risk
register at least annually, with Audit Committee approval of
any changes, acceptable risk levels and required mitigations.
The ESG team provides specialist input into the assessment and
scoring process.
Management & Monitoring:
We manage material climate-related risks in collaboration with
occupiers, encouraging measures such as green lease clauses,
resilience investments and sustainability improvements,
aligned with our Net Zero Pathway and disposal strategy.
Since most of our leases are FRI leases, we rely on our occupiers’
environmental ambitions and willingness to work with us.
Climate-related risks and opportunities are fully refreshed
every three years, with ongoing monitoring to detect emerging
issues or material changes. Ad hoc updates are made if needed,
unless a full re-assessment is warranted. Progress on risk and
opportunity management is monitored through the Company’s
targets and KPI framework (see Metrics & Targets section).
3. Risk Management
TCFD Recommendation & Alignment continued
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LondonMetric Property Plc Annual Report and Accounts 2026
68
Table 4: Metrics and Targets Framework
Target Objective
& R/O Mapping
Interim Targets KPIs FY 2025/26 FY2024/25 Trend analysis & comments
Mitigation &
Conformance
with Science-
Based Initiatives
(R4, R5, R6, R7,
O1, O2, O3)
Net Zero Scope 1,
2+3 emissions
by 2050
Net Zero absolute Scope
1+2 emissions by 2027 from
2023 baseline
Total Scope 1+2 market-based
emissions (tCO
2
e)
1
123tCO
2
e 91tCO
2
e 35% increase due to acquisitions in
the year, with REGO contracts for
98% of landlord supplies.
51% reduction in absolute
Scope 3 emissions by 2030
and 71% reduction by 2035
from 2023 baseline
Total Scope 3 emissions
intensity (kgCO
2
e/m
2
)
33kg
CO
2
e/m
2
39kg
CO
2
e/m
2
Reduction due to low-energy
acquisitions and degasification.
Occupier energy data coverage
>80%
2
72% 80% Coverage has decreased due to
industry issues blocking data access.
Measure embodied carbon &
set target by 2027
100% Large developments
BREEAM Very Good or better
100% n/a BREEAM Excellent rating achieved
for Weymouth development.
Adaptation
(R4, R5, R6, R7,
O1, O2, O3)
Monitor &
improve portfolio
energy efficiency
Increase % portfolio with
EPC A+B
Total portfolio with EPC A+B
& aligned (%, £m rent)
3
60%,
£275m
58% Driven by refurbishment initiatives,
new acquisitions, and EPC renewals.
Increase % of lease events
with green improvements to
90% by 2030
>75% of relevant lease events
leading to improvement
4
85% 40% Strong tenant relationships and
asset management increased
improvements.
Mitigation
(R4, R5, R7, O1,
O2, O3)
Phase out fossil
fuels in the
portfolio in line
with our net-zero
2050 target
Electrify heating systems
in 25% of units by 2030,
50% of units by 2035
& 100% by 2040
Electricity consumption as %
of total energy consumption
71% 55% Increase due to landlord and
ten-ant-led degasification.
Installations of six on site solar
& low carbon heating in the year
(min 3 solar) (#)
11 installs 7 installs In the year 8 solar and 5
low-carbon heating installations
were undertaken as a result of asset
management. All solar installs were
over 35kWp, and 3 low carbon
heating were over 25kW.
Adaptation
(R1, R2, R3)
Monitor portfolio
exposure to
physical risk
Develop asset-level strategy
for all assets exposed to
material flood risk
Assets vulnerable to material
climate-related flood risk (%)
5
6.9% fluvial 4.1% fluvial Portfolio flood risk increased due to
acquisitions in the year. Enhanced
flood assessments have been
undertaken on existing assets, with
further assessment planned for
acquisitions.
1 The net zero target for Scope 1 and 2 excludes head office emissions and applies only to properties owned for at least 24 months.
2 2024/25 figures include data from automated sources which was not unavailable in 2026 due to industry issues.
3 Only applicable to properties in the scope of the UK Minimum Energy Efficiency Standard (MEES) regulation. Theme parks are excluded from £m KPI as income principally derives from land area.
4 Relevant lease events apply to new lettings or renewals for units not meeting future EPC B standard or with gas consumption.
5 Fluvial flood figures for 2024 have been restated, as these were based on the title area in the past. Updated stats only include build assets.
4. Metrics & Targets
a) Disclose the metrics used by the organization to
assess climate-related risks and opportunities in line
with its strategy and risk management process;
b) Disclose Scope 1, Scope 2 and, if appropriate, Scope 3
greenhouse gas (GHG) emissions and the related risks;
c) Describe the targets used by the organization to
manage climate-related risks and opportunities
and performance against targets.
We have established a comprehensive metrics & targets
framework to assess and manage climate-related risks and
opportunities in line with our strategy and risk management
process. Material metrics, their targets and the risks
and opportunities they apply to are shown in Table 4.
Asset percentages are calculated using floor area, unless
otherwise stated.
As explained in the ‘Governance’ section, 10% of executive
bonuses are tied to a selection of these metrics. While we have
not adopted an internal carbon price, we use a shadow price on
all developments over £5 million where we are developing the
asset ourselves rather than forward funding.
Our GHG emissions are calculated in line with the GHG Protocol
Corporate Accounting and Reporting Standard and ISO 14064-
1:2006, consistent with industry practice and aligned with TCFD
and UK SRS guidance. Our methodology remains unchanged
from last year and is disclosed in our SECR statement (page 54).
Our targets and ambition levels support our Net Zero Pathway
and apply across our UK-based portfolio.
We consider our targets to be aligned with the Paris Agreement,
the UK Net Zero target and the UK 2030 and 2035 Nationally
Determined Contributions (‘NDCs’). Our Net Zero target has
been devised using a sectoral decarbonisation approach (‘SDA’),
consistent with CRREM, and assumes that the remainder 2%
of residual emissions will be offset through high quality, verified
carbon offsets in line with the Oxford Offsetting Principles.
Further details on our offsetting strategy and credits are provided
in Appendix C of our Net Zero Pathway, available on our website.
TCFD Recommendation & Alignment continued
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Risk management and internal controls
Managing risk
Our risk management framework ensures that risks are managed
in line with the Board’s risk appetite.
The Board
The Board determines the level of risk it is prepared to accept
in pursuing the Group’s strategic objectives and retains
ultimate responsibility for the risk management and internal
controls framework.
Risk considerations are embedded within Board decision making
and form a standing component of Board agendas throughout the
year. The Chief Executive initiates discussion through a market and
operating overview covering relevant macroeconomic themes,
external developments, evolving trends within UK real estate
and the wider risk environment. Input is provided by the Chief
Financial Officer as appropriate, including in relation to capital
structure, liquidity, financing and other Company specific risks.
A high level risk dashboard is used to monitor material issues, track
movements in principal and emerging risks and promote regular,
structured risk debate.
Detailed Board papers highlight specific risk considerations
relevant to matters reserved for the Board. Where such papers
are circulated outside of scheduled meetings, Directors are
able to engage with senior management prior to approval and
subsequent Board ratification. Relevant discussions between
Directors outside formal meetings are also reported back to
the Board.
During the year, the external environment continued to be a
key driver of Board level risk discussions. The Board considered
the implications of ongoing geopolitical instability, including
the escalation of conflict in the Middle East, rapidly evolving US
policy and domestic political and fiscal developments, as well as
the renewed volatility in global trade, energy markets and supply
chains. These developments have increased uncertainty around
inflation, interest rates, debt costs and market sentiment, with
potential second order impacts for occupiers, investment markets
and financing conditions.
Framework and responsibility
The Board
The Board has overall responsibility for the Group’s risk
management and internal controls framework. It:
• Assumes ultimate responsibility for risk management and
internal controls
• Assesses and monitors going concern and longer
term viability
• Sets the Group’s strategic objectives having considered the
associated risks
• Determines appropriate risk appetite levels
• Establishes delegated authority limits
Audit Committee
The Audit Committee provides a key oversight and assurance
role on behalf of the Board. It:
• Monitors the effectiveness of the risk management and
internal controls framework
• Reviews key processes and controls over principal risks
• Reports to the Board on the effectiveness of risk
management and control processes
Senior Leadership Team
The Senior Leadership Team is responsible for the day‑to‑day
identification, assessment and management of risk. It:
• Identifies, assesses and quantifies risks across the business
• Designs, implements and monitors risk
mitigation processes
• Ensures risk awareness is embedded throughout
the organisation and integrated into operational
decision making
Martin McGann
Chief Financial Officer
Our risk management framework
supports informed decision making
and remains integral to the way we run
the business, ensuring that strategic
priorities are pursued within clearly
defined risk parameters.
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Internal control systems
An effective system of internal controls underpins the
Group’s risk management framework. Key elements include:
• A schedule of matters reserved for the Board
• A documented appraisal and approval process for
developments and significant capital expenditure
• Robust financial planning, forecasting and
reporting processes
• Regular cash flow forecasting reviewed by members of the
Senior Leadership Team
• Integrated financial and property management system
• Clearly defined roles, responsibilities and authority limits
• Close involvement of senior management in day‑to‑day
operations, supported by disciplined management
committee structures below the Board
• Maintenance of the risk register and summary dashboard
• Formal whistleblowing arrangements and annual
performance reviews to enable staff to voice concerns
The Senior Leadership Team oversees a comprehensive
system of processes and controls covering all aspects
of the business. These are kept under continuous review
and updated as necessary to reflect changes in systems,
regulation and operating practices.
BDO have been engaged to support the documentation of
process flows and material controls in preparation for the
Board’s future declaration on the effectiveness of material
controls under Provision 29 of the Code.
This work forms part of a wider, structured programme
to strengthen and evidence the Group’s internal control
framework, supporting the Board’s responsibilities under
Principle O of the Code. The programme is being progressed
on a phased basis and is described in more detail in the
section on the next page on preparing for the Provision 29
controls declaration.
Alongside the macro backdrop, the Board also considered a range
of business specific risks, including labour and skills retention,
sustained higher debt costs, market liquidity, execution risk
associated with corporate activity, the timing and pricing of non
core asset disposals, debt strategy, tenant covenants, vacancies
and asset management initiatives.
This year, the Board approved a number of acquisitions, including
the takeovers of Urban Logistics REIT Plc (‘ULR’) and Highcroft
Investments plc (‘Highcroft’). In each case, the transactions were
assessed through the Group’s established investment appraisal
and approval processes, supported by detailed due diligence and
external advice where appropriate. The Board was satisfied that
the acquisitions were consistent with the Group’s strategy and risk
appetite and did not give rise to any new principal risks.
The Audit Committee
The Audit Committee plays a central role in oversight and
assurance. It reviews the risk management framework to ensure
there is an effective system in place for identifying, assessing and
mitigating the principal risks facing the Group – those risks which
could impact strategic objectives, future performance, viability
or reputation.
The Committee undertakes an annual review of the risk register
and internal controls and performs thematic reviews where
areas of heightened or emerging risk are identified. Findings and
recommendations are reported to the Board.
Read more on the Committee’s activities, conclusions and
recommendations during the year on page 73.
The Senior Leadership Team
The Senior Leadership Team, comprising departmental
heads with a broad range of skills and experience, oversees
key operational and financial aspects of the business. It is
responsible for ongoing risk identification and for the design,
implementation and maintenance of internal controls in response
to risks identified.
Short reporting lines support the timely escalation of issues
and ensure that key messages and decisions are communicated
effectively across the organisation, embedding risk awareness
throughout day‑to‑day activities. Senior Leadership Team
members hold significant shareholdings in the Company,
reinforcing alignment with shareholders and supporting long term
disciplined decision making.
Risk register
The Group’s risk register is reviewed and updated at least annually
by the Company Secretary with input from members of the
Senior Leadership Team.
The register identifies risks and assesses them based on both
significance and likelihood, reflecting their potential impact on
the business before mitigation. Safeguards are assessed from
strong to weak and combined with inherent risk ratings to produce
a residual risk score using a colour coded approach. Each risk is
assigned an owner, with mitigating actions, assurance activities
and timeframes clearly documented.
The detailed risk register is supplemented by the high level
risk dashboard used by the Board at each meeting to monitor
movements in principal and emerging risks.
Principal risks arising from this process are set out
on pages 75 to 84.
Risk management and internal controls continued
Read more on preparing for the Provision 29 controls
declaration on page 72.
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Preparing for the Provision 29
controls declaration
The UK Corporate Governance Code 2024 places increased
emphasis on the Board’s responsibility for establishing and
maintaining an effective risk management and internal
control framework, including an annual evidence based
review of the effectiveness of material controls and a formal
declaration in the Annual Report from next year.
During the year, the Group continued to progress a structured
programme of work to strengthen, document and evidence
its internal control framework in preparation for this
future declaration. This programme has been overseen by
management with regular updates provided to the Audit
Committee and Board.
Key elements of the programme include:
• Scoping the Group’s key business cycles and processes to
establish a consistent and repeatable basis for identifying
material control areas
• Documenting end‑to‑end processes and controls,
supported by process maps and risk and control matrices
to identify key risks, material controls and any gaps
• Enhancing the documentation and consistency of controls
across financial, operational, reporting and compliance
areas and identifying and tracking remediation actions
• Developing an assurance and monitoring approach
to support the Board’s ongoing assessment of
control effectiveness
• Completing an initial assessment of the design of material
controls across key business cycles with effectiveness
testing planned ahead of 31 March 2027
This work is being phased and prioritised reflecting both
the scale and complexity of the Group’s activities and the
evolving regulatory timetable. While the Board has not yet
made a declaration under Provision 29, the programme is
designed to ensure that it is well prepared to do so when
required and that internal controls continue to evolve in line
with the Group’s growth and risk profile.
Emerging risks are identified, assessed
and monitored through established
governance processes, with appropriate
escalation and mitigating actions
developed where required.
Identifying emerging risks
The early identification of emerging risks is supported by
the Group’s governance structure and operating model.
The Senior Leadership Team is supported by ESG specialists
and management sub committees covering investment, asset
management and finance, which meet regularly alongside more
informal interactions as issues arise.
Active involvement of senior management in daily operations
and strategic decision making supports the timely identification,
assessment and monitoring of emerging risks – those risks
which may not yet be fully understood but have the potential to
materially impact the business in the future. These may arise from
technological developments, changes in the macroeconomic or
geopolitical environment, regulatory evolution, environmental
and climate‑related factors, or shifts in occupier and
consumer behaviour.
At an asset level, close relationships with occupiers and operating
partners provide insight into tenant performance, emerging
pressures and evolving requirements. Management also maintains
regular engagement with lenders, investors, analysts and industry
bodies, helping to identify external developments, test assumptions
and highlight areas where further analysis or briefing is required.
Material emerging risks are escalated and discussed at Board
level, ensuring that potential impacts on strategy, operations
and financial resilience are considered at an early stage and
appropriate mitigating actions are developed.
Determining appropriate risk appetite levels
The Group’s risk management framework provides the Board with
assurance that inherent business risks are identified and mitigated
appropriately, reducing the likelihood of adverse outcomes
and helping to ensure that controllable risks remain within
acceptable limits.
Risk appetite represents the nature and extent of risk the
Board is willing to accept in pursuit of its strategic objectives.
In determining risk appetite, the Board considers a wide range
of factors, including prevailing market conditions, emerging risks
and the Group’s financial strength. While the Board maintains
a generally low risk appetite, it balances this with the need
to remain commercially responsive and able to pursue value
accretive opportunities.
Further detail on the Board’s risk appetite in relation to each
principal risk is set out on pages 75 to 84.
Risk management and internal controls continued
The Board sets and reviews the
Group’s risk appetite in the
context of prevailing market
conditions, emerging risks and
the Group’s financial strength,
ensuring that strategic decisions
are taken within clearly defined
and appropriate risk parameters.
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Audit Committee’s review of the effectiveness
of risk management and internal controls
The Audit Committee plays an integral role in the Group’s
oversight and assurance processes. On behalf of the Board, it
reviews the effectiveness of the risk management and internal
control framework and considers whether a comprehensive
assessment has been undertaken of the principal and emerging
risks facing the Group, including those that could impact the
delivery of its strategic objectives.
Throughout the year, the Audit Committee undertook a
programme of risk, internal control and thematic reviews,
drawing on management reporting, the Group’s risk register
and updates on key areas of focus. In doing so, the Committee
considered the prevailing economic, market and geopolitical
environment, together with business specific risks relevant
to the Group’s activities during the year, including capital
management, corporate activity and operational execution.
The Committee also received regular updates on the review
and documentation of key processes and controls as part of the
Group’s ongoing work to strengthen and evidence its internal
control framework in preparation for the future declaration
required under Provision 29 of the Code.
The Committee’s prior year recommendations arising from
its review of risk management and internal controls have
been addressed.
Based on its review and assessment, the Committee identified
no significant weaknesses in the design or operation of the
Group’s risk management and internal control framework.
The Committee’s conclusions were reported to the Board.
Outcome
Following Board discussion and the Audit Committee’s review
and assessment of the effectiveness of the systems established
for the identification, assessment and mitigation of risk, the
Board considers that a robust appraisal of the principal and
emerging risks facing the Group, including those that could
jeopardise its strategic priorities, was undertaken during the year.
Risk management and internal controls continued
Compliance with Provision 29 of the Code
(Internal Controls declaration)
Internal controls evaluation and
management reporting
The Group’s detailed risk register Corporate activity and execution risk
What was considered
Progress against the structured
programme of work to strengthen,
document and evidence the
Group’s internal control framework
in preparation for the future
Board declaration required under
Provision 29. Updates were
received from the Chief Financial
Officer on scoping, documentation
and prioritisation of key business
cycles and controls, supported by
work undertaken by BDO.
Outcome
Members were satisfied with
progress to date and agreed that
the Committee should continue
to receive regular updates as the
programme advances.
What was considered
Review of management’s
assessment of the design
and operation of key internal
controls across financial,
operational, reporting
and compliance areas.
Updates were considered on
the documentation of key
processes and controls and
the consistency of control
operation across the Group.
Outcome
No significant weaknesses
were identified.
What was considered
Review of the risk register,
including the identification,
assessment and weighting
of principal and emerging
risks together with associated
mitigating actions,
assurance activities and
assigned ownership.
Outcome
The Committee was satisfied
that the register appropriately
reflected the Group’s risk
profile and the prevailing
economic, market and
geopolitical environment.
No changes to the principal risks
were recommended.
What was considered
Review of risk considerations
associated with corporate
activity during the year
including the acquisitions of
ULR and Highcroft.
Outcome
The Committee noted that
transaction specific risks,
including accounting treatment
and integration considerations,
were assessed through the
Group’s established appraisal
and approval processes,
supported by due diligence
and external advice where
appropriate and that no new
principal risks arose.
Capital management and liquidity IT and cyber security Portfolio credit and tenant risk ESG and climate-related risks
What was considered
Capital management, liquidity
and corporate activity risks were
considered as part of the interim
and year end reviews with the
external auditor in attendance.
Outcome
The Committee was satisfied that
the Group maintained a strong
liquidity position with appropriate
covenant headroom and
funding flexibility.
What was considered
Review of how cyber and IT
risks are managed, including
enhancements to systems,
controls and resilience,
together with the results of
independent testing.
Outcome
The Committee was satisfied
that cyber risk continues to
be actively monitored and
managed and that appropriate
safeguards are in place.
What was considered
Review of tenant covenant
strength, credit monitoring
processes and watch list
reporting, together with updates
on occupier performance in
the context of the current
economic environment.
Outcome
The Committee was satisfied
that appropriate processes
remain in place and that
management continues to
monitor emerging pressures.
What was considered
Consideration of climate,
sustainability and broader
ESG risks, including progress
against the Net Zero Pathway,
regulatory developments and
external benchmarking.
Outcome
The Committee noted ongoing
work and requested updates
on specific areas of analysis
and near term Net Zero
Pathway targets.
Audit Committee’s review
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Risk management and internal controls continued
Looking ahead
Looking ahead, the Board and Audit Committee will continue to
monitor the evolving economic, market, climate and geopolitical
environment and its potential implications for the Group’s
risk profile. Focus will remain on maintaining strong capital
discipline and liquidity, overseeing the continued embedding
and monitoring of the Group’s internal control framework in
preparation for the future declaration under Provision 29 of the
Code and ensuring that established processes continue to support
effective execution of the Group’s strategy. The Board will also
remain alert to emerging risks, including those relating to tenant
performance, operational resilience and corporate activity, and
will respond as appropriate should conditions change.
Principal risks
Our principal risks remain consistent with last year.
We consider risk under the three main categories but recognise
that these are often interlinked.
Residual risks are assessed by their likelihood and potential impact
on the business after mitigation measures are applied.
Our principal risks are identified and reported on pages 75 to 84
Corporate risks
Relating to the entire Group
Property risks
Focusing on our core business
Financing risks
Focusing on business funding
Risk considerations:
Culture
Strategy
The market
Political
Economic
Employees
Responsible Business practices
Wider stakeholders
Security
Systems
Regulation
Risk considerations:
Portfolio composition
Investments
Divestments
Asset management
Developments
Valuation
Occupiers
Risk considerations:
Capital markets
Investors
Joint ventures
Debt
Cash management
See pages 75 to 80
See pages 81 to 83
See page 84
Risk categories
Principal risks represent those risks that
could most materially affect the Group’s
ability to deliver its strategy, performance
and long term objectives.
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A review of our principal risks
Mitigation
• Our investment approach focuses on
income growth by directing resources into
sectors supported by broad economic
trends, evolving consumer preferences and
demographics, with an emphasis on assets
that are essential to occupiers.
• By leveraging a wide ranging network,
thorough research and strong connections
with tenants, we gather essential market
insights to aid effective strategic decisions.
• The Senior Leadership Team has extensive
experience to manage the essential
operational and financial elements that
drive the business forward and with a
streamlined organisational structure we can
quickly identify market changes, evaluate
developing risks and efficiently manage
operational activities.
• The Board regularly reviews strategy and
objectives to ensure continued alignment
with evolving market conditions, structural
trends and technological developments.
• The portfolio is continually analysed to
take into consideration sector weightings,
tenant and geographical concentrations,
perceived threats and market changes,
asset management opportunities and
other factors.
• Robust transactional controls are maintained
and the Board is kept regularly updated on
significant activity.
Commentary
The Group’s income‑led strategy and focus
on structurally supported sectors continue to
guide capital allocation during a challenging
investment market.
Activity levels during this year and last were
exceptionally high, reflecting the execution of
strategy through accretive corporate activity
alongside disciplined portfolio optimisation,
despite constrained market liquidity. Against a
subdued and uncertain transactional backdrop,
the Group has continued to refine sector
exposure, tenant mix and asset quality in line
with strategic objectives.
This year total acquisitions amounted to
£333 million on a stand‑alone basis and
£1.5 billion including M&A activity, while
disposals totalled £318 million. Income lost on
disposals broadly matched income acquired on
a like for like basis, even though higher yielding
assets were generally sold.
Since the acquisition of LXi two years ago, to
March 2026, £327 million or 12% of the original
portfolio has been sold, representing significant
progress in reducing non core exposure,
alongside £72 million of ULR assets since June
sold at prices in line with underwritten values.
Sales of poorer quality and vacant assets have
reduced reletting risk and ongoing void costs.
Year ahead
The Group will remain disciplined as it continues
to optimise the enlarged portfolio, recycling
capital from non core assets where appropriate
and deploying selectively into opportunities
that meet return and risk requirements.
While direct market liquidity remains uneven,
the Group’s scale, income characteristics and
proven execution capability provide flexibility to
remain patient and opportunistic.
Appetite
Low. The Board has a low appetite for
misalignment between strategy and execution.
Capital is allocated selectively to assets and
sectors that support long term income growth,
with disciplined execution, portfolio alignment
and sustainable compounding rather than
simply growing assets under management.
Change in the year
Increased risk
The level of risk has increased due to the
scale and pace of activity undertaken in a
more challenging and illiquid investment
environment. This reflects greater external
complexity rather than any diminution in
execution capability or strategic clarity.
Read more in the Chief Executive’s review page 15
and the Property review page 26
Risk
Our asset selection or targeted sectors may
not always align with the current economic
climate, market cycle or occupier needs.
External factors or ineffective implementation
of strategy may prevent us from achieving
our goals.
Impact
Our financial performance and growth
objectives may be negatively impacted.
Impact on strategy
Own Collaborate
Manage Generate
Read more about our strategy on page 14
Corporate risks
1 Strategy and its execution
Potential severity of impact
Low High
Likelihood to impact the business
Low High
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Risk
Unexpected events on a national, regional
or global scale – including financial crises,
pandemics, conflicts, terrorism, or political and
economic developments – may cause market
downturns, sector instability or significant
business disruption.
Impact
Our competitive advantage could be
diminished, potentially impacting our
financial performance.
Impact on strategy
Own Collaborate
Manage Generate
Read more about our strategy on page 14
A review of our principal risks continued
Mitigation
• The Board assesses the external operating
environment and its implications on capital
markets, occupier demand and portfolio
resilience, using this analysis to inform
capital allocation and investment decisions.
• We focus on the controllable aspects
of the business through disciplined
portfolio management, maintaining a
broad mix of tenants to diversify risk,
keeping vacancies low and investing in well
located UK properties across structurally
supported sectors.
• Building strong relationships with occupiers
helps us to understand tenant needs and
stay informed about market trends and
emerging risks. This allows us to offer
assets that consistently attract occupiers,
supporting steady income and lasting value.
• Our capital and funding strategy is kept
under regular review and we maintain
flexible funding arrangements from a diverse
lender pool, with significant covenant
headroom, low leverage and an investment
grade credit profile.
• Development exposure remains limited in
the current economic environment with no
speculative development activity.
• The property portfolio is protected by
appropriate insurance cover.
Commentary
The external environment has become
increasingly uncertain, shaped by heightened
geopolitical tension, ongoing conflict in Ukraine
and the Middle East, persistent inflationary
pressures and the risk of further disruption to
capital markets and global trade. Such events
can have rapid and unpredictable effects on
sentiment, liquidity and occupier behaviour,
even where underlying property fundamentals
remain sound.
In response, the Group has continued to focus
on strengthening the resilience of the elements
of the business that are within its control.
Capital allocation decisions during the year
reflected a cautious and disciplined approach
to market risk, prioritising income durability,
asset quality and flexibility over short term
growth. Significant progress in reducing non
core exposure and vacancy risk has improved
portfolio robustness, while the focus on mission
critical assets that are integral to occupiers’ core
operations continues to support stable cash
flows during periods of disruption.
The Group’s scale, diversification and measured
approach to execution provide a degree of
insulation against major external shocks.
These characteristics, alongside active oversight
by the Board of the evolving risk environment,
position the business to remain operationally
and financially resilient as conditions continue
to change.
Year ahead
The external environment is expected to
remain volatile, with the potential for further
geopolitical, economic and market driven
disruption. The Group will continue to focus on
the areas it can control, maintaining portfolio
and income resilience, preserving balance
sheet flexibility and retaining the ability to
adjust capital allocation and management
actions promptly as conditions evolve.
The Board will keep the potential implications
of major external events under close review
as part of ongoing strategic and capital
allocation decisions.
Appetite
Low. Events of this nature are inherently outside
the Board’s control. The Board’s appetite is
therefore focused on maintaining a resilient
portfolio and financing structure that can
absorb shocks and limit potential adverse
impacts. The evolving risk environment is
monitored closely, with adjustments made
where necessary.
Change in the year
Increased risk
The risk has increased due to escalating
geopolitical conflict, continued instability in
Ukraine and the Middle East, heightened global
trade and capital market tensions, UK political
instability and the increasing prevalence of
disinformation, all of which elevate uncertainty
and the potential for sudden external shocks.
Read more in the Chief Executive’s review page 15
and the Property review page 26
Corporate risks continued
2 Major event
Potential severity of impact
Low High
Likelihood to impact the business
Low High
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Corporate risks continued
3 People
A review of our principal risks continued
Mitigation
• Competitive remuneration structures are
in place, with employees participating in
long term incentive arrangements that
support retention, encourage long term
performance and foster an ownership
culture. Staff turnover remains low.
• Employee engagement and culture are
monitored through annual staff satisfaction
surveys, with results reviewed and actions
considered as appropriate by senior
management and the Board.
• The designated workforce Non Executive
Director holds annual round table
discussions with a cross section of
employees to gather feedback and insights,
with key themes reported to the Board.
• Performance management and
development are supported through annual
appraisals, providing a structured forum
to discuss objectives, performance, and
development needs, supplemented by
ongoing dialogue with line managers.
• The Senior Leadership Team actively
promotes talent development below Board
level, supporting succession planning and
organisational resilience.
• External specialist support is engaged
where appropriate to complement
internal capability.
Commentary
We value a culture of empowerment, inclusion,
openness and teamwork, which has supported
strong engagement and retention during a
period of sustained business change. Over the
last three years the Group has completed
four public company takeovers, growing
assets from £3.0 billion to £7.6 billion and
increasing contracted rent from £145 million
to £432 million, placing increased demands on
leadership, organisational capability and culture.
This year we welcomed four colleagues
following the acquisition of ULR, all of whom
have transitioned successfully and are fully
embedded in the business. Continued growth
and scale create further opportunities for
professional development, supporting
LondonMetric’s position as an attractive place
to work.
Staff survey results remain highly positive,
with 94% of employees saying that they enjoy
working at LondonMetric. This independent
evidence is consistent with feedback
reported to the Board by the workforce
Non Executive Director following informal
employee engagement.
Succession planning remains a key focus for
the Board and the Senior Leadership Team.
Following Valentine Beresford’s decision to
retire at the year end, Will Evers was appointed
sole Head of Investment. The investment and
property leadership team continues to operate
collaboratively, ensuring continuity of expertise,
clear accountability and disciplined capital
allocation, underpinned by strong economic
alignment with long term shareholder interests.
Year ahead
Resourcing will be kept under review,
alongside continued system enhancements
to streamline processes and further improve
operational efficiency.
Appetite
Low. The Board has a low appetite for risks that
could undermine effective leadership, specialist
expertise, succession planning or organisational
culture, recognising these as critical to the
delivery of strategy and long term value.
Change in the year
No significant change
While organisational scale and demands
increased during the year, strong retention,
engagement and succession planning have
mitigated any increase in people‑related risk.
Read more in:
Responsible Business and ESG review -
People page 57
How we monitor culture page 96 to 97
Risk
The Group relies on a relatively small team
of highly motivated individuals whose skills
and experience are critical to the effective
leadership of the business, capital allocation
discipline and the execution of strategy.
The ability to attract, motivate and retain high
calibre individuals, particularly in senior roles,
is essential to the Group’s continued success.
Impact
Our financial performance and ability to
deliver long term value for shareholders
may be adversely affected if we are unable
to retain key skills, leadership capability and
organisational momentum.
Impact on strategy
Own Collaborate
Manage Generate
Read more about our strategy on page 14
Potential severity of impact
Low High
Likelihood to impact the business
Low High
Strategic report Governance Financial statements
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Risk
The effectiveness of the Group’s cyber security,
the integrity of its property and financial
systems and the accuracy and timeliness of
financial information supporting decision
making and strategy may be compromised.
Impact
Decisions may be made on inaccurate or
incomplete information and external reporting
may be misstated or delayed. Cyber threats
may give rise to significant financial losses,
reputational harm and disruption to
business continuity.
Impact on strategy
Own Collaborate
Manage Generate
Read more about our strategy on page 14
A review of our principal risks continued
Mitigation
• A strong controls culture is maintained
across the business, supported by
appropriate segregation of duties and
controls over financial systems. Robust data
capture and validation processes underpin
the integrity and accuracy of the Group’s
property database and financial records.
• Management information and financial
performance are monitored through regular
reporting with management accounts
reviewed by senior management and the
Board. Variances to forecast are analysed
and reported supporting effective oversight
and informed decision making.
• Cost management and expenditure controls
ensure spending is appropriate, authorised
and subject to ongoing monitoring.
• Corporate acquisitions are subject to
comprehensive due diligence to identify
differences in accounting policies, processes,
systems and controls. Following completion,
enhanced controls and oversight are
implemented where required prior to
full integration.
• IT resilience and cyber security are
supported through a business continuity
framework, independent third party testing
and ongoing staff training, with cyber
risk and control effectiveness kept under
regular review.
Commentary
During the year, the Group successfully
integrated the ULR and Highcroft acquisitions
from a systems, financial reporting and controls
perspective. Financial data and key processes
were migrated onto LondonMetric’s established
systems, with enhanced oversight and controls
implemented where required to support
consistency, accuracy and timely reporting
across the enlarged Group.
As part of this, management continued the
migration of rent billing activity in‑house,
improving control over billing processes,
data quality and the timeliness of financial
information. These changes have increased
resilience and reduced reliance on third party
providers while supporting more effective
portfolio and cash flow management.
The Group also made progress in strengthening
the documentation and consistency of key
financial and operational controls in preparation
for the future material controls declaration
under Provision 29. The Audit Committee
reviewed management’s assessment of the
design and implementation of key internal
controls across financial, operational, reporting
and compliance areas and no significant
weaknesses were identified.
Cyber and IT risks continue to receive
focused management and Board oversight.
System resilience and cyber security are
supported through a business continuity
framework, independent testing and ongoing
staff training with the Audit Committee
receiving regular updates on control
effectiveness in this area.
Year ahead
The programme of work to strengthen,
document and evidence the Group’s systems
and internal controls will continue with a focus
on completing process mapping, refining
control documentation, progressing the testing
of material controls and embedding consistency
across the enlarged Group. Progress, including
the development of appropriate assurance and
monitoring approaches, will continue to be
overseen by management and reviewed by the
Audit Committee.
Appetite
Low. The Board has a low appetite for risks
that could compromise the integrity, accuracy
or timeliness of financial and property
information, the effectiveness of internal
controls, or the resilience of the Group’s IT and
cyber environment.
Change in the year
No significant change
While system integration and control
documentation activity increased
following corporate acquisitions, no
material weaknesses were identified and
overall risk levels remain unchanged.
Read more on preparing for the Provision 29
controls declaration on page 72
Corporate risks continued
4 Systems, processes
and financial management
Potential severity of impact
Low High
Likelihood to impact the business
Low High
Strategic report Governance Financial statements
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Risk
Failure to adhere to responsible business
practices or to effectively identify and manage
climate‑related risks.
Impact
Non‑compliance could result in reputational
damage, reduced asset desirability, increased
costs, lower income resilience or restricted
access to capital.
Impact on strategy
Own Collaborate
Manage Generate
Read more about our strategy on page 14
A review of our principal risks continued
Mitigation
• Supported by external specialists, we
monitor developments in regulation,
stakeholder expectations and best practice
relating to sustainability, environmental
matters and social impact to inform strategy
and decision making.
• Clear accountability for responsible business
obligations sits with members of the
Senior Leadership Team, supported by a
Responsible Business Working Group that
meets regularly and reports to the Audit
Committee with material issues escalated to
the Board as appropriate.
• Sustainability objectives and performance
targets are set, monitored and reported.
Energy performance across the portfolio is
managed to comply with current and future
Minimum Energy Efficiency Standards
(‘MEES’), supporting asset quality, lettability
and long term liquidity.
• Environmental and climate‑related risks are
assessed across the portfolio, supported
by targeted studies, data analysis and
appropriate training.
• Regular engagement with occupiers and
other stakeholders informs priorities and
expectations and supports a collaborative
approach to responsible business outcomes.
• We work with tenants to enhance the
resilience of assets and occupier business
models in response to climate‑related risks
while also considering the Group’s impact on
local communities.
• Contractors and suppliers are required
to comply with the Group’s responsible
development and sustainability requirements.
Commentary
During the year, the Group made further
progress in strengthening its approach to
responsible business and the management
of climate‑related risks across the enlarged
portfolio. Detailed analysis was undertaken and
our Net Zero Pathway refreshed to encompass
assets acquired. The update and relevance
of our ESG KPIs were presented to the Audit
Committee to ensure our targets remain
appropriate, credible and aligned with the
Group’s strategy and risk appetite.
The Group continues to monitor the
environmental impact of its activities, having
72% coverage of occupier emissions and it
remains carbon neutral for Scope 1 and 2
landlord emissions. Energy performance has
continued to improve, with EPC A‑C rated
assets maintained at 92% of the portfolio and
A‑B increasing to 60%, supporting asset quality,
tenant demand and long term liquidity.
Flood risk analysis was progressed across
the portfolio during the year to review assets
acquired enabling targeted mitigation on higher
risk properties.
Engagement with occupiers remains strong and
continues to translate into tangible outcomes,
including implementation of sustainability
improvements at lease events and the routine
adoption of green clauses on new leases and
regears. The annual occupier survey again
reported a high landlord recommendation score
of 8.8/10, demonstrating alignment between
responsible business outcomes and tenant
satisfaction. This alignment also resulted in an
additional 1.9MWp of solar capacity added to
the portfolio from asset management.
Year ahead
The Group will continue to embed its
responsible business priorities into regular
asset management reviews and asset by asset
action plans, with a focus on implementing and
monitoring the revised Net Zero Pathway KPIs
across the enlarged portfolio. Portfolio level
flood risk will continue to be monitored
to support resilience planning, alongside
continued improvement in EPC performance
and collaboration with occupiers on energy
efficiency and sustainability initiatives.
Appetite
Low. The Board has a low tolerance for
responsible business and sustainability‑related
risks that could adversely impact the Group’s
reputation, stakeholder confidence, asset
liquidity or access to capital.
Change in the year
No significant change
Although regulatory expectations and climate‑
related risks are expected to continue to evolve,
the Group’s overall responsible business risk
profile remains stable, supported by improved
data, governance and portfolio analysis.
Read more in:
Responsible Business and ESG review page 48
TCFD Recommendation & Alignment page 63
Our full Responsible Business report can be found
at www.londonmetric.com
5 Responsible business
and sustainability
Potential severity of impact
Low High
Likelihood to impact the business
Low High
Corporate risks continued
Strategic report Governance Financial statements
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Risk
Failure to comply with applicable legal and
regulatory requirements.
Impact
Failure could result in financial penalties,
reputational damage, operational disruption
or restrictions on the Group’s ability to execute
its strategy.
Impact on strategy
Own Collaborate
Manage Generate
Read more about our strategy on page 14
A review of our principal risks continued
Mitigation
• Regulatory developments affecting the
Group are monitored on an ongoing basis,
supported by external specialist advisors
where appropriate.
• The implications of legislative and regulatory
change are assessed and factored into
strategic and operational planning.
• Clear accountability for compliance with
specific legal and regulatory obligations
is assigned to individual members of the
Senior Leadership Team, with oversight
provided by the Board and Audit Committee
through regular reporting and review.
• Employees receive regular training on
relevant compliance matters, including
health and safety, cyber awareness,
anti‑money laundering, market abuse,
whistleblowing, conduct and ethics.
• Health and safety policies and procedures
are kept under regular review, with audits
undertaken on developments and activities
to monitor compliance and support
continuous improvement.
• The Group’s procurement and supply chain
policies set clear standards relating to labour
practices, human rights, environmental
matters, pollution risk and community
impact, supporting responsible business
practices across the value chain.
Commentary
While the regulatory environment continues to
evolve, including increased expectations around
governance, reporting and sustainability, no
significant regulatory breaches or compliance
failures were identified this year.
The Group continued to strengthen its
regulatory compliance framework, supported
by clear accountability within the Senior
Leadership Team and regular oversight by the
Board and Audit Committee. Experience from
prior acquisitions has been embedded into
the Group’s existing controls, reinforcing a
consistent approach to regulatory compliance
across the enlarged business.
Year ahead
Regulatory expectations relating to governance,
reporting and internal controls are expected
to continue to evolve. The Board and
Audit Committee will maintain oversight
of management’s ongoing programme
to strengthen, document and evidence
compliance and control frameworks in
preparation for future regulatory requirements,
including the Board declaration on the
effectiveness of material controls required
under the UK Corporate Governance
Code 2024.
Any future independent assurance activities in
this area, and the evaluation of outputs arising
from them, will be considered by the Audit
Committee in the context of the Group’s overall
assurance framework and reported to the Board
as appropriate.
Appetite
Low. The Board has a low appetite for regulatory
non‑compliance that could result in harm to
stakeholders, damage to assets or reputation,
or restrictions on the execution of strategy.
Change in the year
No significant change
While regulatory requirements continue to
evolve, no material compliance failures were
identified and the overall level of regulatory
risk remains unchanged.
Read more in:
Preparing for the Provision 29 controls
declaration on page 72
Audit Committe’s review of the effectiveness of
risk management and internal controls page 73
Audit Committee report page 111
6 Regulatory framework
Potential severity of impact
Low High
Likelihood to impact the business
Low High
Corporate risks continued
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Risk
We may be unable to source and execute
investment opportunities at pricing levels that
meet the Group’s return requirements.
Impact
The Group’s ability to deploy capital in a
disciplined manner and deliver value and
earnings accretive growth in line with its
strategy may be constrained.
Impact on strategy
Own Collaborate
Manage Generate
Read more about our strategy on page 14
A review of our principal risks continued
Mitigation
• The investment team draw on deep sector
experience, market insight and established
relationships to identify and assess
investment opportunities across the market.
• Investment decisions are subject to rigorous
governance through a Senior Leadership
Team led Investment Committee, supported
by short reporting lines and active
management involvement, enabling timely
and well informed decision making.
• All transactions are assessed against
strict pricing, return and risk criteria with
a disciplined approach to underwriting
maintained and investment deferred where
pricing does not meet required thresholds.
• The Group’s scale and position as a leading
consolidator in the UK listed real estate
market provide access to a broad range of
corporate and asset level opportunities,
supported by experience in executing and
integrating transactions, while also enabling
selectivity and pricing discipline in assessing
potential investments.
• A resilient capital structure, significant
undrawn facilities and access to diversified
funding sources support flexibility and
optionality, allowing the Group to remain
patient and disciplined until pricing
is attractive.
• High levels of contracted and index linked
rental income provide income visibility
and allow the Group to remain patient and
selective, maintaining pricing discipline.
Commentary
The investment market has remained
challenging during the year, with elevated
and volatile debt costs and cautious market
sentiment continuing to weigh on transaction
activity particularly for acquisitions of scale
requiring leverage.
Against this backdrop, the Group has remained
highly active, across both acquisitions and
disposals, maintaining a broadly balanced
approach to capital deployment and recycling
at a direct asset level. Investment activity has
reflected disciplined capital allocation with
decisions focused on opportunities that met
the Group’s pricing, income durability and asset
quality requirements.
The Group’s scale, sector focus and established
relationships have continued to provide access
to opportunities that are less competitive such
as sale and leaseback opportunities, or require
execution capability, structuring expertise or
certainty of delivery beyond that of many
market participants.
Year ahead
Investment activity is expected to remain
selective, with transaction liquidity and pricing
varying significantly by asset type and lot size.
The Group will continue to deploy capital in a
disciplined manner.
Appetite
Low. Capital deployment is deliberately paced
in response to market conditions. The Board
has a low appetite for deploying capital at
pricing that does not meet the Group’s return
and risk thresholds and is prepared to remain
patient where market conditions do not support
disciplined investment.
Change in the year
Increased risk
Investment risk has increased due to
continued volatility in debt markets,
constrained transaction liquidity and persistent
misalignment between asset pricing and returns
that meet the Group’s underwriting criteria,
particularly in structurally supported sectors.
Read more in the Chief Executive’s review page 15
and the Property review page 26
Property risks
7 Investment risk
Potential severity of impact
Low High
Likelihood to impact the business
Low High
Strategic report Governance Financial statements
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81
Risk
The value of the Group’s investments
may decline.
Impact
A sustained fall in asset values could
place pressure on net asset value and, in
very adverse scenarios, on loan to value
covenant headroom.
Impact on strategy
Own Collaborate
Manage Generate
Read more about our strategy on page 14
A review of our principal risks continued
Mitigation
• The Group prioritises sustainable income,
through lettings to high quality tenants
across a diversified portfolio of well
located assets. Modern, fit for purpose
properties, low vacancy and strong
covenants support income resilience and
help moderate valuation volatility in weaker
market conditions.
• The portfolio is predominantly aligned
to structurally supported sectors, with
negligible exposure to legacy sectors
supporting long term asset relevance
and liquidity.
• Active asset management enhances the
quality, functionality and desirability of
assets over time. Close engagement with
occupiers supports longer dated income
visibility and greater certainty of cash flows.
• Market conditions and property cycle
dynamics are continually monitored, with
capital allocation and asset management
decisions taken in anticipation of changing
conditions and adjusted where appropriate.
• Asset performance is reviewed regularly
on an asset by asset basis, supported by
benchmarking and portfolio analytics.
• Tenant covenant strength and trading
performance are monitored to identify
emerging pressures and inform asset level
decision making.
• Capital is actively recycled through
disposals of weaker sub‑sectors and assets
with reinvestment into higher quality
opportunities with better income growth
prospects in strong sectors, enabling the
portfolio to adapt to changing market
conditions and occupier needs.
Commentary
During the year, management continued to
focus on actively reducing valuation risk through
the disposal of non core and lower quality
assets, particularly those with short income
profiles, weaker tenant credits or elevated
obsolescence risk. In total, 57 assets were sold
for £318 million despite the challenging market
backdrop and uncertainty around liquidity for
certain asset types.
Most of these disposals related to assets
acquired through recent corporate activity
that did not align with the Group’s long
term strategy. While overall market liquidity
remained constrained, the Group continued to
see more consistent buyer depth for smaller
lot sizes, particularly where leverage was not
required. This supported execution at or around
book values, albeit with pricing still sensitive to
asset quality and sector.
Sales proceeds have been recycled into higher
quality properties with stronger income
durability and growth prospects, supporting
valuation stability over the medium term.
By focusing on asset quality, income visibility
and lot size liquidity rather than near term yield
optimisation, the Group has taken a measured
approach to managing valuation risk in an
environment where pricing remains highly
sensitive to interest rates and sentiment.
Year ahead
Valuation conditions are expected to remain
uncertain, with pricing discovery constrained by
elevated funding costs and intermittent market
liquidity. The Group will continue to manage
valuation risk through a further reduction of
residual non core exposure where appropriate
and disciplined capital allocation with continued
focus on income quality and asset relevance
rather than short term yield movements.
Appetite
Low. The Board seeks to minimise valuation
risk through disciplined asset selection and
active portfolio management, recognising that
property valuations are inherently subjective
and sensitive to changes in interest rates,
sentiment and market liquidity.
Change in the year
Increased risk
Although prime yields in structurally
supported sectors have shown some stability,
valuation risk has increased due to continued
uncertainty around pricing discovery,
limited liquidity for larger assets and the
heightened sensitivity of values to interest
rate movements and market sentiment.
Read more in the Chief Executive’s review page 15
and the Property review page 26
Property risks continued
8 Valuation risk
Potential severity of impact
Low High
Likelihood to impact the business
Low High
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Risk
Acquisitions and asset management initiatives
may be inconsistent with strategy, due
diligence may be inadequate, or tenants may
default or fail.
Impact
This could adversely affect financial
performance, constrain the delivery of
growth objectives and place pressure on debt
covenant headroom in extreme circumstances.
Impact on strategy
Own Collaborate
Manage Generate
Read more about our strategy on page 14
A review of our principal risks continued
Mitigation
• Acquisitions and asset management
initiatives are subject to comprehensive
due diligence, supported by input from
experienced internal teams and external
advisors where appropriate.
• New initiatives are assessed through
structured cost benefit and risk analysis prior
to approval and implementation.
• Tenant concentration, covenant strength
and trading performance are considered for
all investment and leasing decisions and are
monitored on an ongoing basis thereafter.
• Close engagement with tenants supports
early identification of potential issues, with
rent collection and arrears monitored closely
to inform proactive management.
• The Group has a diversified tenant base, with
the majority of income generated from a
broad range of occupiers, reducing reliance
on individual tenants. Exposure to bespoke
assets is concentrated in a small number of
high quality tenants with strong covenants
and long dated income.
• An experienced asset management team
works collaboratively with occupiers to
deliver solutions that support tenant
performance and help mitigate vacancy and
income risk.
Commentary
During the year, the Group continued to
manage transaction and tenant risk through
a combination of income granularity, long
dated lease structures and active, engagement
led asset management. Rental income
growth was delivered across lettings, regears
and reviews, reflecting the underlying
strength of occupier demand for the Group’s
assets and the effectiveness of its asset
management approach.
The portfolio benefits from a diversified tenant
base and a high proportion of long dated,
contracted income, which limits exposure to
individual tenants or transactions. Where risks
do arise, close engagement with occupiers
enables early identification of potential issues
and proactive interventions to protect income
continuity and reduce vacancy risk.
While operating conditions are more
challenging for some tenants, the Group’s focus
on business critical assets, strong covenants and
flexible asset management solutions continues
to mitigate the potential impact of tenant
distress on overall performance.
Year ahead
While the external economic environment
remains uncertain and cost pressures may
increase stress for some tenants in certain
sectors, these factors are not expected to
materially increase overall transaction and
tenant risk. This reflects the diversification of
the income base and the Group’s proactive
management approach. The focus will remain
on tenant engagement, disciplined transaction
execution and early intervention where
pressures emerge.
Appetite
Low. The Board has no appetite for risk
arising from inadequate due diligence or poor
execution of acquisitions or asset management
initiatives. A measured level of tenant covenant
risk and shorter lease lengths may be accepted
only where supported by strong occupational
demand, asset flexibility or credible
alternative use.
Change in the year
Increased risk
While portfolio composition and operating
performance remain robust, tenant and
transaction risk has increased due to a more
challenging economic backdrop, rising
cost pressures on occupiers and increased
uncertainty affecting business confidence.
Read more in the Chief Executive’s review page 15
and the Property review page 26
9 Transaction and tenant risk
Potential severity of impact
Low High
Likelihood to impact the business
Low High
Property risks continued
Strategic report Governance Financial statements
LondonMetric Property Plc Annual Report and Accounts 2026
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A review of our principal risks continued
Mitigation
• Capital allocation is managed on a
disciplined basis, with competition for capital
across the portfolio. Assets are considered
for disposal where future growth prospects
are assessed to be limited, supporting
liquidity and balance sheet flexibility.
• The availability, cost and terms of debt
are considered as part of long term capital
planning, with relationships maintained
across a diversified group of lenders and
funding sources.
• Cash flow and liquidity forecasts are
monitored regularly by members of the
Senior Leadership Team, supporting early
identification of funding requirements
and pressures.
• The Group operates with a prudent level
of gearing and monitors LTV and covenant
headroom on an ongoing basis.
• Financing arrangements incorporate
appropriate covenant headroom and
cure rights, and the predominantly
unsecured nature of the Group’s facilities
provides flexibility.
• Where secured debt inherited through
corporate activity is backed by multiple
assets, the implications of asset disposals are
assessed and lenders engaged to facilitate
substitutions where appropriate.
• Interest rate exposure is actively managed,
with derivatives used selectively to fix or cap
rates in line with the Group’s risk appetite.
• Debt maturity profiles are actively managed
to avoid concentration risk and support
flexibility over the medium and long term.
Commentary
In December, the Group successfully accessed
the public debt capital markets issuing a debut
£500 million unsecured bond. This issuance
improved access to longer term funding,
diversified the Group’s sources of capital
and supported a return to a predominantly
unsecured debt structure.
Building on this, in March the Group completed
the refinancing of £1.5 billion of unsecured term
loans and revolving credit facilities. The new
£1.3 billion syndicated facility and £200 million
bilateral facility replaced nearly all unsecured
facilities due to mature over the next four
years and delivered a material enhancement
to the Group’s debt profile, including expected
savings from lower margins and commitment
fees, improved lender diversification and an
extended weighted average debt maturity.
Following the refinancing, only £186 million
of debt will mature over the next two years,
which can be met from planned disposals and
available undrawn facilities as the Group retains
significant liquidity headroom.
Interest rate risk continues to be managed
in line with the Board’s risk appetite.
The refinancing was undertaken alongside the
Group’s existing hedging strategy, with all drawn
debt either fixed or fully hedged, providing
protection against interest rate volatility and
supporting the predictability of finance costs.
Following the year end, a further £350 million
of swaps expiring April 2029 were executed
at 3.75%.
Year ahead
The Group will continue to actively manage its
capital structure to maintain strong liquidity and
covenant headroom while monitoring market
conditions for opportunities to further optimise
the cost, maturity and mix of funding. Focus will
remain on preserving flexibility, supporting
disciplined capital allocation and aligning future
financing decisions with the Group’s strategy
and risk appetite.
Appetite
Low. The Board has no appetite for imprudently
low levels of liquidity or covenant headroom
and has very limited appetite for unhedged
floating rate debt, particularly in a volatile
interest rate environment.
Change in the year
Decreased risk
During the year, the Group executed a significant
refinancing programme that materially
strengthened its capital structure, improved
funding flexibility and reduced refinancing risk.
Financing risks
10 Capital and finance risk
Risk
The Group may have insufficient liquidity or
access to available credit, or may be exposed to
rising interest rates.
Impact
This could constrain the implementation of
the Group’s strategy and adversely affect
financial performance.
Impact on strategy
Own Collaborate
Manage Generate
Read more about our strategy on page 14
Potential severity of impact
Low High
Likelihood to impact the business
Low High
Read more in:
Financial review page 39
Going concern and viability page 85
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Going concern and viability
The Directors have evaluated the Group’s prospects and
principal risks to assess both short term and long term viability.
Details regarding the methodology employed for this assessment
are outlined in the Risk Management and Internal Controls section
of this report from page 70.
Based on the results of this assessment, they believe that the
Group has adequate resources to meet its liabilities as they fall
due over the three year period to 31 March 2029 and will be able
to continue in operation.
The assessment of viability is split into short term and longer term
time horizons.
Time period of assessment
Consistent with previous years and in accordance with the UK
Corporate Governance Code 2024, the Board has assessed the
prospects of the Group over the following time horizons:
• Short term – a period of 12 months from the date of this
report as required by the ‘Going Concern’ provision; and
• Longer term – a period of three years to 31 March 2029 as
required by the ‘Viability Statement’ provision.
Short term assessment
The Directors’ short term going concern assessment considered
the key models and metrics used by the Senior Leadership Team
to measure and monitor the Group’s liquidity.
These are reviewed at least monthly by the Senior Leadership
Team and include the following key metrics and information:
• The Group’s current financial position;
• The short term cash flow forecast;
• The availability of undrawn debt facilities;
• The repayment profile of the Group’s debt facilities;
• Potential sources of alternative financing;
• The hedging profile and forecast interest and swap rates;
• Rent collection rates; and
• The lease expiry profile.
During the year, the Group raised £1,230.0 million of funding
through a £500.0 million public bond, £150.0 million US private
placement and £580.0 million new revolving credit facilities and
term loans. The new arrangements diversified lending sources and
were at attractive prices and lower than for existing comparable
facilities. The public bond was rated A‑ by Fitch and broadened
our access to the public debt market.
The new arrangements allowed the Directors to consider the
repayment of more expensive secured facilities acquired through
our acquisitions of LXi and ULR and also unsecured facilities
that were nearing maturity. In total, the Group was able to repay
£1,143.9 million existing debt facilities that were on less favourable
terms or had shorter maturities.
In March 2026, we completed an extensive refinancing exercise
of £1.5 billion revolving credit facilities and term loans. The Group
entered into two new arrangements on similar terms with
Lloyds and a syndicate of ten lenders, at lower margins and
extended maturities.
At 31 March 2026, the Group’s gearing ratio as defined within
its unsecured facilities, private placement loan notes and public
bond, which together account for 81% of debt drawn, was 67%
(maximum 125%) and interest cover was 3.8 times (minimum
1.5 times).
Longer term assessment
The Board has reviewed the viability assessment period and, as in
previous years, considers the three year period to 31 March 2029
suitable for evaluating the Group’s viability for the following reasons:
• The Group’s financial business plan and detailed budgets cover
a rolling three year period;
• It is a reasonable approximation of the time it takes from
obtaining planning permission for a development project to
practical completion of the property; and
• Three years is considered to be the optimum balance
between long term property investment and the difficulty
in accurately forecasting ahead given the cyclical nature of
property investment.
Assessment of viability
The Board conducted this review taking account of the Group’s
business strategy, principal and emerging risks, financial position
and outlook as discussed throughout the Strategic report.
The Group’s three year business model is used to consider future
prospects on a quarterly basis and to stress test assumptions
and consider the likely impact of changes in the principal risks,
including:
• Macroeconomic conditions in the domestic and global markets
and changes impacting rental income, property values and
finance costs;
• The occupier market and changes impacting occupancy levels;
The following key financial metrics, which are set out in the
Financial review on page 46 supported their assessment:
As at 31 March 2026
Loan to value 36.7%
Cost of debt 4.0%
Interest cover (times) 3.8
Undrawn facilities (£m) 515.0
Cash (£m) 143.4
Average debt maturity 4.4 years
Hedging 99.8%
Rent collection in the year 99.7%
Occupancy 97.7%
Going Concern Statement
On the basis of this review, together with available market
information and the Directors’ experience and knowledge
of the portfolio, they have a reasonable expectation that the
Company and the Group can meet its liabilities as they fall
due and has adequate resources to continue in operational
existence for at least 12 months from the date of signing
these financial statements. Accordingly, they continue to adopt
the going concern basis in preparing the financial statements
for the year to 31 March 2026.
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LondonMetric Property Plc Annual Report and Accounts 2026
85
• The availability of additional funding and interest rate
projections; and
• The real estate market conditions impacting investment,
divestment and development opportunities.
Our strategy, which the Board reviews at each of its meetings,
focuses on investing in mission‑critical assets and delivering
reliable, repetitive and growing income and dividends over the
long term.
This strategy forms the foundation of our business plan and
three year financial forecasting model, incorporating transactions
under offer, committed developments and reinvestment plans.
The integrated model forecasts future earnings, cash flows and
net assets, taking into account capital commitments, dividend
cover, loan covenants and REIT compliance metrics.
The Senior Leadership Team provide key strategic input to
the financial forecasts covering investment, divestment and
development plans which consider their impact on earnings and
liquidity. Forecasts are reviewed against actual performance and
reported quarterly to the Board.
The business plan was stress tested to ensure it remained resilient
to adverse movements in its principal risks including changes
to macroeconomic conditions that were considered severe but
realistic scenarios, both on an individual and collective basis.
The scenarios considered the likely impact on the Group’s longer
term profitability and liquidity and were consistent with previous
years as set out below:
• A 2% increase in interest rates;
• A 5% tenant default rate reducing rent by the equivalent
amount; and
• A 5% decline in property valuations.
The modelling indicated that under all scenarios the Group
would still be able to execute its strategic plan and had sufficient
reserves to continue in operation and remain compliant with its
debt covenants.
In addition, reverse stress testing was undertaken to determine
the circumstances under which financial covenants would be
breached and considered the following scenarios:
• The amount by which property values would need to fall before
the gearing covenant was breached;
• The amount by which rent would need to fall before the interest
cover covenant was breached; and
• The amount by which interest costs would need to rise before
the interest cover covenant was breached.
Under the Group’s unsecured facilities, private placement debt
and public bond, that together account for 81% of the Group’s
borrowing, the reverse stress testing indicated the following:
• Property values would need to fall by 27% before the banking
gearing threshold was reached and this would equate to a loan
to value ratio of 54%; and
• Rental income would need to fall by 57% or interest payable
rise by 152% to breach the interest cover covenant.
In conjunction with the modelling undertaken, the Board is
mindful of the following points when assessing the Group’s
longer term prospects:
• Income certainty, with 69% of the Group’s rental income
benefitting from contractual uplifts;
• Income diversity, with only 35% of rent due from our top ten
occupiers and lower than in the previous year;
• Strong rent collection, with 99.7% of rent due in the
year collected;
• Strong relationships with debt providers, evidenced by the
new £1.2 billion debt arrangements and £1.5 billion refinancing
which also diversified the pool of lenders and debt offering;
• Substantial liquidity, with undrawn debt facilities of
£515.0 million at the year end;
• Significant hedging following post period end transactions
which increased the percentage of debt drawn at the year
end hedged to 99.8%, mitigating future interest rate risk
and volatility;
• The Group’s proven track record of executing transactions,
including sizeable corporate acquisitions and successful
subsequent integration, making good sector choices and
growing income even in uncertain and challenging times; and
• The Group’s ability to be flexible and react to changes in the
macroeconomic and property markets, including the ability to
transact through M&A opportunities.
This testing, combined with the Group’s strong financial
position and mitigation actions available including deferring non
committed capital expenditure and selling assets, supports the
Group’s ability to weather unexpected and adverse economic and
property market conditions over the longer term viability period.
Viability Statement
Based on the results of their assessment, the Directors have
a reasonable expectation that the Company will be able to
continue in operation and meet its liabilities as they fall due
over the three year viability period to 31 March 2029.
Going concern and viability continued
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LondonMetric Property Plc Annual Report and Accounts 2026
86
Our governance framework supports effective
leadership and long term sustainable success
through clear structures, robust oversight,
and accountable and informed decision
making in the best interests of shareholders
and other stakeholders.
Governance
In this section
Chair’s introduction 88
Governance overview 90
Board leadership
and Company purpose
92
Division of responsibilities 102
Composition, succession and
evaluation
104
Audit, risk and internal control 111
Remuneration 118
Report of the Directors 149
Directors’ Responsibility Statement 152
The Board devoted
significant time to
overseeing capital allocation
and capital structure activity,
completing and integrating
acquisitions, strengthening
the control environment and
ensuring that governance
arrangements remained
robust and effective as the
Group continued to scale.
Alistair Elliott
Chair
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LondonMetric Property Plc Annual Report and Accounts 2026
87
Chair’s introduction
As Chair of the Board, I am pleased to introduce the Governance
section of this year’s Annual Report following a year in which the
Group focused on disciplined delivery, the successful completion
and integration of major strategic initiatives and balance
sheet strength.
This year was characterised by the consolidation of the enlarged
Group and the execution of a number of priorities that are central
to both our strategy and our governance framework. In particular,
the Board devoted significant time to overseeing capital allocation
and capital structure activity, completing and integrating
acquisitions, strengthening the control environment and ensuring
that governance arrangements remained robust and effective as
the Group continued to scale.
The year also marked the completion of the acquisitions of
Urban Logistics REIT Plc (‘ULR’) and Highcroft Investments plc
(‘Highcroft’), representing a significant step in the evolution of
the Group. The Board closely monitored the finalisation of these
transactions and the subsequent integration of the acquired
platforms, with a particular focus on aligning systems, processes
and controls with the Group’s internalised operating model.
Ensuring that integration was achieved without compromising
financial reporting quality, risk management or culture was a key
governance priority.
Alongside this, the Board oversaw a large programme of non
core asset disposals, with £318 million realised during the
year. Capital was recycled into higher quality, income secure
assets aligned with the Group’s long term strategy, enhancing
portfolio quality, income durability and risk adjusted returns.
Throughout the year, the Board remained closely engaged in
reviewing portfolio performance, asset management activity and
capital allocation decisions. This disciplined and active oversight
underpins the Board’s commitment to long term value creation.
Operationally, the portfolio continued to demonstrate resilient
performance, supported by long income characteristics, high
occupancy and embedded rental growth.
A year of consolidation,
capital discipline and delivery
During the year, the Board
oversaw the integration of
Urban Logistics and Highcroft,
the disciplined recycling
of capital and significant
financing and refinancing
activity strengthening balance
sheet resilience and long term
funding flexibility.
Alistair Elliott
Chair
Strategic report Governance Financial statements
LondonMetric Property Plc Annual Report and Accounts 2026
88
Chair’s introduction continued
Against this backdrop, capital discipline and balance sheet
resilience were at the forefront of Board decision making
throughout the year. The Board oversaw a substantial programme
of financing and refinancing activity, including the Group’s
inaugural £500 million public bond issuance and the extension
and refinancing of bank facilities. These actions enhanced
liquidity, extended debt maturities and preserved covenant
headroom, reducing refinancing risk and leaving limited near term
debt maturities. The strategic rationale and impact of this activity
are set out in detail in the Financial review.
The Board also made clear progress during the year in
strengthening the Group’s assurance framework, including work
undertaken in preparation for the Board’s future attestation on the
effectiveness of material controls under Provision 29 of the Code.
This included the documentation and mapping of key processes
and controls over principal risks, alongside enhanced reporting
to the Audit Committee. Further detail is provided within Risk
management and internal controls from page 70.
People, culture and leadership remain central to the Board’s
agenda. Throughout the year, the Board continued to oversee
Board and executive succession planning, workforce engagement
and leadership development, recognising their importance to the
Group’s long term success. The Board’s approach to composition,
evaluation and succession is described in more detail in the
Nomination Committee report.
Looking ahead
The Board remains focused on navigating an uncertain external
environment while maintaining high standards of governance,
accountability and transparency. The Group’s strengthened
balance sheet, enhanced portfolio quality and disciplined
operating model provide a robust platform from which to manage
risk and pursue opportunities consistent with our strategy.
On behalf of the Board, I would like to thank all colleagues for their
continued hard work and professionalism during the year, and my
fellow Directors for their constructive challenge and support.
We remain committed to maintaining the highest standards of
governance as we continue to execute our strategy for long term,
sustainable growth.
Our Annual General Meeting is scheduled for 9 July 2026.
We encourage your attendance and support of the proposed
resolutions, as we intend to do.
The notice of the meeting is detailed on pages 204 to 209 of this
Annual Report.
Alistair Elliott
Chair
21 May 2026
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LondonMetric Property Plc Annual Report and Accounts 2026
89
Division of responsibilities 102
Sets out the roles of Board members and
framework for Board Committees.
Governance framework 102
Leadership roles and responsibilities 103
This report sets out the Company’s governance policies and
practices and explains how the Board and its Committees
discharge their duties, apply the principles and comply with
the provisions of the UK Corporate Governance Code.
Board leadership
and Company purpose 92
Provides an overview of how the Board
leads its activities in the year and how
it has considered its stakeholders and
S172 responsibilities.
Board of Directors 92
Board meetings and attendance
during the year 92
Senior Leadership Team 94
Our purpose, values and culture 95
How we monitor culture 96
Board activities in the year 98
Companies Act 2006 Section 172 Statement 99
Stakeholders 100
Audit, risk and internal control 111
Sets out how we monitor the integrity of
the financial statements and oversee risk
management and internal control.
Audit Committee report 111
Financial reporting and significant matters 113
Risk management and internal control 115
External audit and regulatory compliance 115
Governance overview
Remuneration 118
Sets out Directors’ remuneration arrangements,
implementation and alignment with strategy
and the wider workforce.
Remuneration Committee report 118
Directors’ remuneration at a glance 122
Directors’ Remuneration Policy 123
Annual Report on Remuneration 136
Implementation of Policy next year 137
Composition, succession
and evaluation 104
Sets out the practices in place which ensure the
Board and its Committees have the appropriate
balance of skills to govern the business and
operate effectively.
Nomination Committee report 104
Board composition and succession planning 105
Board appointments, induction and training 107
Board diversity and inclusion 107
Board performance evaluation 109
Board consideration and outcomes
A balanced and committed Board
Increased scale through
corporate acquisitions
Disciplined capital recycling
Strengthened debt structure
Board changes:
May 2025
Andrew Livingston stepped down
Kitty Patmore became designated
workforce NED
July 2025
Suzy Neubert became
Remuneration Committee Chair
September 2025
Suzy Neubert appointed to
Nomination Committee
January 2026
Alistair Elliott appointed to
Remuneration Committee
Enhancements to
documentation
Identification of material controls
Mapping of controls
to principal risks
Shareholder consultation
Approved annual bonus and LTIP
vesting outcomes
Determine new
Remuneration Policy
92
Investment transactions
£318m
Disposals approved
£500m
Public bond issue
£1.5bn
Debt refinanced
£1.2bn
New unsecured facilities
Approved corporate acquisitions
Highcroft Investments plc
21 May 2025
Urban Logistics REIT Plc
23 June 2025
£1.2bn
Property acquired through
corporate acquisitions
Read more on page 118 Read more on page 72
Board independence
at 31 March 2026
Female representation
at 31 March 2026
Board meeting attendance
during the year
63% 44% 100%
Board succession
and independence
Reward structure for Executive
Directors
Pathway to Provision
29 compliance
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LondonMetric Property Plc Annual Report and Accounts 2026
90
Statement of compliance with the
UK Corporate Governance Code 2024
The Board has considered the Company’s compliance with the
provisions of the UK Corporate Governance Code 2024 (the
‘Code’), published by the Financial Reporting Council in January
2024 and publicly available at www.frc.org.uk.
The Board considers that, throughout the year, the Company has
applied the Principles and complied with the Provisions set out in
the Code in all material respects.
The Board notes that the 2024 Code applies to financial years
beginning on or after 1 January 2025, with Provision 29 (relating to
the declaration on the effectiveness of material internal controls)
applying for the financial year beginning on 1 April 2026.
The Board has also undertaken preparatory work in anticipation
of Provision 29, including enhancing documentation, identifying
financial, operational, reporting and compliance controls
considered material and mapping these controls to principal risks.
This work is ongoing and set out in more detail on page 72.
Statement on Board Diversity
The Board has considered UK Listing Rule 6.6.6R (9) relating
to Board diversity as at 31 March 2026 and considers that the
Company has met all three targets as set out below.
Provision
9(a)(i) At least 40% of the individuals on the Board
of Directors are women.
9(a)(ii) At least one of the senior positions of Chair, Chief
Executive, Senior Independent Director or Chief
Financial Officer on the Board of Directors is
held by a woman.
9(a)(iii) At least one Board member is from an ethnic
minority background.
Other Governance Statements
Statements Position
Going Concern
and Viability
The Going Concern Statement is made on
page 85.
The Viability Statement is made on page 86.
Principal risks
and uncertainties
The principal risks and uncertainties are set out
from page 75 and the Board’s statement is on
page 73.
Fair, balanced and
understandable
The fair, balanced and understandable statement
is made on page 152.
Section 172
statement
The Section 172 statement is on pages 99 to 101
and provides cross-references to the required
detail set out throughout this Annual Report.
Governance overview continued
The Board comprises
individuals with broad
commercial experience
across sectors including
property, finance,
banking, capital markets,
risk management and
sustainability.
Strategic report Governance Financial statements
LondonMetric Property Plc Annual Report and Accounts 2026
91
Skills and experience: Martin joined London & Stamford Property Plc
in September 2008. From 2002 to 2005 he worked for Pillar Property
Plc, latterly as finance director. Between 2005 and 2008, Martin
was a director of Kandahar Real Estate. Martin is a qualified chartered
accountant having trained and qualified with Deloitte.
Other appointments: None.
Martin McGann
Chief Financial Officer
Appointed: 13 January 2010
Board of Directors
Strong leadership
The Board meets regularly in line with the financial calendar, with additional
meetings held as needed. The Company Secretary maintains a rolling agenda
for the Board and its Committees, working with the respective Chairs to
ensure coverage of reserved matters, regulatory requirements and the Code.
Directors are expected to attend all meetings and devote sufficient time to
the Company’s affairs. Where a Director is unable to attend, they receive
the papers in advance and may submit comments, with apologies noted.
Minutes and action points are circulated after each meeting and progress is
reviewed at the next meeting.
Members of the Senior Leadership Team and wider organisation attend
Board and Committee meetings as required to provide updates and discuss
operational, strategic and emerging topics. Some also attend Board lunches,
supporting open dialogue and broader perspectives. These interactions
enhance Non Executive Directors’ understanding of the business, culture
and leadership capability, enabling more effective challenge and informed
decision making.
Skills and experience: Andrew Jones is a co founder of LondonMetric.
Since the 2013 merger of Metric Property Investments plc and London &
Stamford Property Plc, he has led a sixfold increase in the Group’s portfolio
to c.£7.6 billion across logistics, convenience retail, entertainment and
leisure. He has also established LondonMetric as a leading consolidator
in UK listed real estate with a market capitalisation of over £4.4 billion
through five M&A transactions since 2019, including LXi REIT, Urban
Logistics and A&J Mucklow. Andrew previously held senior roles at British
Land, following its acquisition of Pillar Property plc in 2005, where he
served as executive director and head of retail.
Other appointments: Non executive director of InstaVolt Limited.
Andrew Jones
Chief Executive
Appointed: 25 January 2013
Board and Nomination Committee Chair: 11 July 2023
Skills and experience: Alistair spent almost 40 years at Knight Frank,
latterly as senior partner and chair of the group executive board, leading
the firm’s global strategy. He has held a number of senior industry roles,
including vice chair and trustee of LandAid, member of the BPF Policy
Committee and the Professional and Business Services Council, and chair
of the Office Agents Society and the Property Advisors Forum.
Other appointments: Member of the Prince’s Council for the Duchy of
Cornwall and the Council for the Duchy of Lancaster, and non executive
chair of Grosvenor Property UK.
N
Alistair Elliott
Chair
Appointed: 26 May 2022
R
Board leadership and Company purpose
Current member
Appointed to
board Independent Board
1
Audit
Committee
1
Nomination
Committee
1
Remuneration
Committee
1
Alistair Elliott (Chair) 26/5/2022 n/a 7 (7) Chair 2 (2) 1 (1)
Andrew Jones 25/1/2013 N 7 (7)
Martin McGann 13/1/2010 N 7 (7)
Suzanne Avery 22/3/2018 Y 7 (7) 6 (6) 2 (2) 5 (5)
Robert Fowlds 31/1/2019 Y 7 (7) 6 (6) 2 (2) 5 (5)
Sandy Gumm 27/3/2024 Y 7 (7)
Nick Leslau 5/3/2024 N 7 (7)
Andrew Livingston
2
31/5/2016 Y 2 (2) 1 (1)
Suzy Neubert (SID) 29/3/2023 Y 7 (7) 6 (6) 1 (1) Chair 5 (5)
Kitty Patmore 28/1/2021 Y 7 (7) Chair 6 (6)
1 Bracketed numbers indicate the number of meetings the member was eligible to attend
2 Andrew Livingston retired from the Board on 20 May 2025
Committee Membership
A
Audit
N
Nomination
R
Remuneration
Meeting attendance
Strategic report Governance Financial statements
LondonMetric Property Plc Annual Report and Accounts 2026
92
Board of Directors continued
Remuneration Committee Chair: 9 July 2025
Skills and experience: Suzy is a qualified barrister and has extensive
capital markets and financial services experience both in executive and
non executive director positions. She was managing director of equities at
Merrill Lynch followed by 14 years as global head of sales & marketing at
J O Hambro Capital Management. Suzy also previously held the position
of senior independent director of Witan Investment Trust Plc and was a
non executive director of LV=.
Other appointments: Senior independent director of Jupiter Fund
Management plc, non executive director Howden Joinery Group Plc and
Aptia Group Limited and a trustee and vice chair of the King’s Trust.
Audit Committee Chair: 24 May 2023
Skills and experience: Kitty is chief financial officer of Harworth Group
plc and has over 20 years’ experience in finance, banking and real estate
lending, with a strong capital markets background. Her experience spans
senior roles at Harwood Real Estate, DRC Capital and Barclays Bank PLC,
where she focused on real estate finance, capital allocation and funding
structures. Kitty brings extensive experience of listed company financial
leadership, governance, investor engagement and disclosure.
Other appointments: Chief financial officer of Harworth Group plc.
Skills and experience: Suzanne has over 25 years’ experience in corporate
banking, holding various managing director roles at RBS, including
managing director of Real Estate Finance Group & Sustainability, where
she was responsible for REITs, Funds and London based private property
companies as well as for the RBS corporate bank sustainability strategy.
She was a co-founder of Real Estate Balance and previously a trustee
of LandAid.
Other appointments: Church Commissioner and senior advisor to Centrus.
Skills and experience: Nick was chair and majority shareholder of Prestbury
Investment Partners Limited, investment advisor to Secure Income REIT Plc
(‘SIR’) prior to its merger with LXi REIT Plc in 2022. A Chartered Surveyor, he
was previously chief executive of Burford Holdings Plc and group chair and
chief executive of Prestbury Group Plc. He has served on numerous quoted
and unquoted boards, most recently Max Property Group Plc, SIR and LXi.
Other appointments: Member of the Bank of England Property Forum.
Director of various private companies including the Prestbury group of
companies where he is chair.
Skills and experience: Robert has over 40 years’ experience in real
estate and is a chartered surveyor. He was head of real estate investment
banking at J.P. Morgan Cazenove until 2015 and, prior to joining J.P. Morgan
Cazenove in 2006, an equity analyst at Merrill Lynch and previously
Dresdner Kleinwort Benson. Robert was also a non executive director of UK
Commercial Property REIT Limited, until August 2021.
Other appointments: Member of the supervisory board of Klepierre S.A.
and non executive director and chair of Helical plc.
Skills and experience: Sandy is a chartered accountant with over 30 years’
experience in commercial real estate and finance. She joined Prestbury
Group at its establishment in 1997 as finance director and became chief
operating officer in 2007. She later served as chief operating officer of
Prestbury Investment Partners Limited, advisor to Secure Income REIT Plc
(‘SIR’), until its merger with LXi in 2022. Earlier in her career, Sandy spent
nine years at KPMG before becoming group financial controller of Burford
Holdings Plc. She has held numerous quoted and unquoted board roles,
most recently at SIR and LXi.
Other appointments: Director of various private companies including
the Prestbury group of companies and Wellcome Genome Campus
Holdings Limited.
Suzy Neubert
Senior Independent Director
Appointed: 29 March 2023
Katerina Patmore (Kitty)
Independent Director
Appointed: 28 January 2021
Suzanne Avery
Independent Director
Appointed: 22 March 2018
Nicholas Leslau (Nick)
Non Independent Director
Appointed: 5 March 2024
Robert Fowlds
Independent Director
Appointed: 31 January 2019
Sandra Gumm (Sandy)
Independent Director
Appointed: 27 March 2024
A
A
N N NR RA AR
Board leadership and Company purpose
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LondonMetric Property Plc Annual Report and Accounts 2026
93
A I
Andrew Smith
Strategy Director
Joined: 6 May 2014
Senior Leadership Team
Committee Membership
A
Asset Management Committee
I
Investment Committee
F
Finance Committee
A
Mark Stirling
Asset Director
Joined: 25 January 2013
Darren Richards
Chief Investment Officer
Joined: 6 January 2025
F
F
F
Gareth Price
Head of Investor Relations
and Sustainability
Joined: 5 January 2015
Jadzia Duzniak
Company Secretary
Joined: 23 April 2007
Will Evers
Head of Investment
Joined: 25 January 2013
Ritesh Patel
Head of Corporate Finance
Joined: 21 November 2011
Jackie Jessop
Head of Finance
Joined: 1 March 2006
Acquisitions
& disposals
Cash flow,
liquidity, debt
Asset
management,
development
& valuation
Risk & mitigation
ESG, AI
Financial forecasts
& results
Staff
wellbeing
Responsibilities of the Senior Leadership Team
Board leadership and Company purpose
AI
AI Steering Committee
AI
I AI
I AI
I AI
AI
F AI
The Board has delegated responsibility for the execution of the Company’s
strategy and the day-to-day management of the business to the Senior
Leadership Team, which operates under the direction of the Chief Executive.
The team, which includes the Executive Directors, comprises departmental
heads from across the Company’s key business functions and meets monthly
to oversee strategy delivery, risk management, financial and operational
performance, investment activity, capital allocation and employee-related
matters.
These meetings support the development of management capability
below Board level and reinforce the Company’s culture and values, with key
messages and decisions communicated by departmental heads throughout
the wider organisation. Given the size of the Group, Executive Directors
and Senior Leadership Team members are closely involved in all significant
business discussions and decision making.
The Senior Leadership Team is supported by four sub-committees – the
Investment Committee, the Asset Management Committee, the Finance
Committee and the AI Steering Committee – each of which focuses on
specific areas of the business and meets regularly.
Following the retirement of Valentine Beresford in March 2026, Will Evers
was appointed sole Head of Investment.
The biographies of the Executive Directors are on page 92
The biographies of the Senior Leadership Team members can be
found in the People section of our website at www.londonmetric.com
LondonMetric Property Plc Annual Report and Accounts 202694
Strategic report Governance Financial statements
Our purpose, values and culture
Our team is small, highly motivated, and brings
significant real estate and financial expertise.
We value honesty and respect in our operations, always
engaging and listening to stakeholders, and acting with
integrity to reach our objectives. Open communication,
collaboration and a positive outlook are central to
our approach, guiding us to make long term decisions
that support empowerment, inclusion, openness
and teamwork.
Our organisational culture reflects these core values, shaping both
employee conduct and stakeholder engagement. This culture
encourages behaviours essential for sustained success. The Board
and Senior Leadership Team acknowledge that company culture is
defined not by prescriptive rules, but by behaviours exemplified at
the highest levels of leadership.
Our
purpose…
What we do
and why
Our aim is to build on our position as the UK’s leading Triple Net Lease REIT and become the UK’s most enduring real estate partner by investing in
mission critical and key real estate assets to deliver reliable, repetitive and growing income over the long term. Our purpose sets out to stakeholders what
we do and why, underpinning our approach and long term direction and guides our decision making.
Drives our
strategy…
How we achieve our
purpose through our
strategic priorities
Our strategy guides how we achieve our purpose through four
strategic priorities of investing in quality assets in winning
sectors, maintaining a disciplined, low cost and responsible
management approach, leveraging our expertise to collaborate
with stakeholders and deliver reliable, repetitive and growing
income and a progressive dividend.
Underpinned
by our values…
What we believe in Our values are embedded into our everyday practices by the close involvement of the Executive Directors and Senior Leadership Team members,
who lead by example and demonstrate the behaviour that underpins our culture, which can be broadly defined as:
Empowerment Inclusion Openness Teamwork
Shaping our
behaviours
and culture
The way we work Trusting our employees to take
responsibility and make decisions
Promoting diversity throughout
the organisation and equality of
progression and reward
Working together in an
environment characterised by
openness, trust and fairness
Operating with honesty, integrity
and respect for the people we work
and interact with
Read more on page 1
Read more on page 14
Own Manage Collaborate Generate
Board leadership and Company purpose
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Strategic report Governance Financial statements
Ways in which the Board
manages and monitors culture
Culture outcomes
The Board consistently utilises a range of indicators to determine
whether the Company’s culture remains in harmony with its
purpose, values and strategic objectives. These measures are also
used to ensure that the culture supports effective decision making
in accordance with Section 172 requirements.
Throughout the year, the Board carefully reviewed responses from
employee surveys, workforce engagement initiatives and broader
stakeholder interactions as part of its ongoing oversight of culture.
The workforce NED hosted a meeting for a small group of
employees, from both property and finance, as a forum for staff
to share their views and raise any concerns. This was also attended
by the Remuneration Committee Chair who welcomed questions
on executive pay and rewards.
Employee feedback reinforced the support for the business and
recent growth journey. Employees are proud to work for the
Company and are invested in the strategy. Employees participate
in long term incentive arrangements that foster an
ownership culture.
This feedback played an important role in informing discussions
relating to positive leadership behaviours, improvements in
internal communication, the adoption of AI tools and the
integration of teams following M&A.
The Board took steps to ensure continued and consistent
leadership behaviours and effective communication across
the enlarged Group. Actions included increasing headcount,
strengthening teams, enhancing office based working practices,
refurbishing office space and supporting staff wellbeing.
Looking ahead, the Board will continue to focus on
reinforcing the Company’s culture as the business evolves,
with particular emphasis on communication and sustained
employee engagement.
1
Board engagement with employees includes:
– The annual designated workforce NED meeting;
– Employee participation and presentation at Board and
Committee meetings and lunches;
– Property site visits, where employees are invited to
accompany Board members;
– Induction sessions for new Board members; and
– Regular office interaction;
2
Leadership behaviours and alignment with the Company’s
values are actively incorporated into performance reviews
and leadership evaluations. Annual individual staff
appraisals conducted by Executive Directors and Senior
Leadership Team members facilitate discussions on career
development, training, wellbeing and reinforce desired
behaviours. These sessions also provide a platform for staff
to express concerns or raise issues;
3
CEO and CFO business and strategy briefings following
half yearly results allow employees to engage directly and
ask questions;
4
Feedback from designated workforce NED, collected
through staff surveys and meetings, highlights areas of
strength and identifies opportunities for improvement
-this year focusing on maintaining our existing culture and
enhancing internal communication systems and AI tools;
5
Feedback from other stakeholder engagement, including
shareholders and our annual occupier survey, help the
Board assess how our behaviours are embedded into the
way we do business;
6
Oversight of team integration following M&A activity; and
7
Monitoring of the staff turnover rates, whistleblowing
and health and safety incidents.
How we monitor culture
The Board, led by the Chair, retains overall
responsibility for setting the tone from the top
and overseeing the Company’s culture.
The Board exemplifies leadership, with its conduct influencing the
organisation through ongoing engagement between Executive
Directors and Senior Leadership Team members. With our small
team, we are able to closely monitor culture and values. Both the
Chair and Non Executive Directors regularly visit the office and
remain updated on business operations through regular dialogue
with staff.
We acknowledge the significant benefits of in person
collaboration, particularly for employees who are early in their
careers or involved in transactional roles within our organisation.
It is our considered view that working together in an office setting
enhances the exchange of ideas and contributes positively to
overall performance.
The Board remains committed to engagement, communication
and maintaining a consistent culture as the business grows.
The Board ensures that any concerns about alignment with
Company purpose, values, or strategy are addressed, seeking
confirmation from senior leadership if corrective action is needed.
No issues required escalation this year.
Our team’s contributions are fundamental to our achievements
and we take pride in fostering an appealing workplace defined
by robust values and a positive culture. As the Company has
expanded, preserving this culture has been crucial. We have
recently refurbished the office space and created additional
meeting space and quiet pods to accommodate a larger
predominantly office based team. The employee survey results
this year were again strong with 94% of staff enjoying working
for the Company. The Board views a healthy company culture
as essential in reducing key risks, especially when it comes to
decision making, integration and maintaining operational strength.
Board leadership and Company purpose
LondonMetric Property Plc Annual Report and Accounts 202696
Strategic report Governance Financial statements
How we monitor culture continued
Diversity
44%
Female representation on the Board
50%
Female representation across the Company
Strong occupier contentment
8.8/10
Landlord recommendation score
in 2026 occupier survey
Employee LTIP participation
100%
Of staff who have worked for the Company for
more than one year were granted awards in 2026
Low staff turnover rate
6%
Average staff turnover since 2013
Board leadership and Company purpose
Prompt payments
15 days
Average number of days to settle supplier invoices
Whistleblowing incidents
None
Reported in the year
Results of the annual employee survey
91%
Employee engagement level
98%
Of employees feel proud to work for LondonMetric
96%
Of employees believe the Company supports and promotes
social responsibility
94%
Of employees enjoy working at LondonMetric
LondonMetric Property Plc Annual Report and Accounts 202697
Strategic report Governance Financial statements
Strategy and operations Governance, leadership
and regulatory
Finance and reporting People and stakeholders
M&A activity
• Approved the corporate acquisitions of ULR and
Highcroft, including holding an additional Board
meeting to review due diligence, key risks, metrics
and people considerations
Strategy
• Discussed strategy in light of investment market
liquidity, corporate opportunities, progress on
non core disposals and reinvestment to enhance
portfolio quality
• Considered the external operating environment,
including macroeconomic conditions, capital markets
volatility and geopolitical developments, and their
potential impact on strategy, tenants and access
to capital
• Considered dividend sustainability and approved a
progressive dividend of 12.45p per share (2025: 12.0p)
Portfolio performance
• Received regular updates on portfolio performance
and asset management activity, including portfolio
alignment following corporate acquisitions
• Reviewed tenant covenant strength and exposure to
key and watch list tenants
• Debated significant asset management initiatives
Cyber security
• Reviewed actions to align with the Government’s
Cyber Governance Code of Practice, including Board
oversight of cyber risk and resilience
• Received a briefing on developments in technology
relevant to the business
Transactions
• Oversaw governance arrangements relating to the
ULR and Highcroft acquisitions, including approval
of transaction documentation, share allotment and
admission, and related regulatory filings
Risk management and internal controls
• Reviewed risk management and assurance activity
during the year, including principal risks, internal
controls and development of the assurance framework
in preparation for future material controls attestation
Succession planning
• Considered leadership and succession matters,
including oversight of executive succession planning
• Approved the appointment of Alistair Elliott to
the Remuneration Committee and considered the
independence of Sandy Gumm under Provision 10
of the Code
Regulatory
• Noted the new RICS requirement for mandatory
rotation of property valuers and the Company’s
approach to ensuring compliance
• Undertook the annual evaluation of the effectiveness
of the Board and its Committees
• Maintained oversight of regulatory and other
Code developments
Financing strategy
• Considered the funding and balance sheet implications
of the ULR and Highcroft acquisitions, including debt
substitution requirements, covenant constraints,
ratings considerations and ongoing compliance with
debt facilities
• Received and considered updates on liquidity,
maturities and floating rate debt exposure
• Approved new financing of £1.2 billion in the year,
including an inaugural £500 million public bond, a £150
million US private placement and the refinancing of
£1.5 billion of unsecured facilities to extend maturity,
reduce refinancing risk, deliver cost savings and
diversify the lender base
Statutory reporting
• Reviewed interim and year end financial reporting,
property valuations and results, including engagement
with independent valuers and Deloitte and approved
the related disclosures
Going concern and viability
• Reviewed going concern and longer term viability,
informed by stress testing, scenario analysis and
liquidity headroom
Integration following M&A
• Had regard to Section 172 matters when making key
decisions, particularly in relation to M&A, financing
and disposals
• Considered stakeholder and employee matters arising
from the acquisitions, including workforce integration
and the orderly transition of roles
Monitored culture
• Monitored culture across the Group, receiving updates
on integration activity, organisational structure and
workforce engagement
• Considered the results of the annual staff survey
and feedback from the designated workforce
engagement NED
Shareholder engagement
• Received updates on shareholder engagement and
investor communications, including in relation to the
proposed new Remuneration Policy
• Oversaw stakeholder engagement more broadly,
including relationships with investors, lenders and
advisors during a year of heightened corporate activity
Board activities in the year
An overview of matters considered, decisions made and subsequent outcomes is provided in the table below.
Own Manage Collaborate Generate
Read more about our strategy on page 14
May June July September November December January February March
Full year results 2025
Acquired Highcroft
Investments plc
Andrew Livingston
retired and Kitty Patmore
appointed designated
workforce NED
Investor roadshow
Acquired Urban
Logistics REIT Plc
AGM
Suzy Neubert
appointed
Remuneration
Committee Chair
Suzy Neubert
appointed to
Nomination Committee
Half year results 2026 Investor roadshow Alistair Elliott appointed
to the Remuneration
Committee
Shareholder consultation
on new Remuneration
Policy
Valentine Beresford
retired from the SLT
Board leadership and Company purpose
LondonMetric Property Plc Annual Report and Accounts 202698
Strategic report Governance Financial statements
Companies Act 2006 Section 172 Statement
The Board of Directors can confirm that during the year ended 31 March 2026 it acted in a way that it considered in
good faith would be most likely to promote the long term success of the Company for the benefit of its shareholders,
having regard to the matters set out in S172(1)(a) to (f) of the Companies Act 2006.
We set out in the table below how we have considered each of the requirements of S172 with references to further reading.
S172 matter Board consideration Further reading
1(a) The likely consequences of
decisions in the long term
The Board sets the Company’s purpose, which is to build on our position as the UK’s leading Triple Net Lease REIT and become the UK’s most
enduring real estate partner by investing in mission critical and quality assets in structurally supported sectors that allow us to deliver reliable,
repetitive and progressive income over the long term through disciplined, low cost and responsible management. The Board oversees management’s
execution of strategy to deliver this and reviews progress against targets and financial forecasts. Strategic matters are reviewed at every meeting.
We hold assets for long term income generation to support a progressive and covered dividend. We seek to improve and enhance our assets so that
they remain fit for purpose, meet high environmental standards and can deliver sustainable and growing income returns.
Our purpose and aim page 1
CEO Q&A and review
pages 12 to 21
Our purpose, values and
culture page 95
1(b) The interests of employees Our small team of employees is crucial to executing our strategy. We strive to create an environment that values empowerment, inclusivity, transparency
and collaboration, ensuring everyone feels inspired and involved. 98% of employees surveyed in 2026 felt proud to work for the Company.
Following our M&A activity this year, the Board received updates on integration progress and monitored employee retention outcomes and the need
to recruit additional staff to meet the operational needs of the enlarged group.
People and employee survey
page 57
How we monitor culture
pages 96 to 97
1(c) Fostering the Company’s
relationships with suppliers,
customers and others
Our occupiers are central to our mission and, as a small team, we depend heavily on our suppliers and advisors to achieve our goals. By actively
engaging with them, we foster strong partnerships and strive to offer practical solutions through attentive listening. We ensure fair treatment of our
suppliers by promptly paying their invoices. At 31 March 2026, the average settlement period was 15 days.
Our latest occupier survey was undertaken in March 2026 and received responses from 70 occupiers representing 55% of rent. Strong occupier
contentment score of 8.8 out of 10.
Occupiers page 56
Occupier survey results page 56
Average supplier payment days
page 58
Audit Committee report page 112
1(d) The impact of the
Company’s operations
on the community and
the environment
The Audit Committee received an ESG update in May 2026 and reviewed progress against the Net Zero Pathway and considered other targets
including portfolio EPC ratings and asset level sustainability initiatives such as degasification and solar.
The Responsible Business Working Group is headed by the Chief Financial Officer, meets monthly and has approved charitable giving of £222,000
this year, including £29,000 for employee-led initiatives.
Our ESG key performance indicator measures the proportion of the portfolio with an EPC rating of A to C. At 31 March 2026, this was 92% in line
with last year.
Communities page 59
ESG key performance indicator
page 25
1(e) The Company’s reputation
and maintaining high
standards of
business conduct
Our values establish the standards of conduct and expected behaviours for all staff, and leadership consistently exemplifies these principles from
the highest levels.
Regular companywide training on health and safety, cyber awareness, anti money laundering, market abuse, whistleblowing, conduct and ethics is
provided to staff.
We are proud to be a FTSE4Good business.
Our purpose, values and
culture page 95
FTSE4Good page 49
1(f) The need to act fairly as
between members of
the Company
The Board, primarily through the Executive Directors, maintains open and constructive communication with shareholders. This year, they conducted
397 meetings and presentations after annual and half year results.
Investors page 61
Board leadership and Company purpose
LondonMetric Property Plc Annual Report and Accounts 202699
Strategic report Governance Financial statements
Stakeholders
Capital allocation and M&A activity1 Debt refinancing and bond issue2
Board leadership and Company purpose
During the year, the Board evaluated opportunities arising from
increased consolidation within the listed REIT sector and approved
the corporate acquisitions of ULR and Highcroft. These transactions
represented a significant step in the evolution of the Group and were
assessed against the Board’s long term strategic objectives, capital
discipline and risk appetite.
In reaching its decisions, the Board considered the long term
consequences of the acquisitions for shareholders, employees,
occupiers and other stakeholders. The Board challenged
management on valuation, integration risk, funding structure
and execution capacity to ensure that anticipated strategic and
financial benefits could be delivered without compromising
balance sheet resilience or operational control.
Following completion, the Board had oversight of the integration
process, with particular focus on aligning systems, processes
and controls with the Group’s internalised operating model.
Stakeholder considerations informed the phasing of integration
activity to protect financial reporting quality, risk management
and organisational culture. The Board also monitored workforce
integration and retention following the transition of former ULR
employees into the Group.
Alongside these acquisitions, the Board approved a substantial
programme of non core asset disposals, recycling £318 million
of capital into higher quality assets with stronger income growth
prospects. In doing so, the Board balanced near term market
conditions with long term portfolio quality, income sustainability
and shareholder returns.
How our stakeholders inform our decision making
Our key stakeholders include employees, occupiers, investors,
contractors, advisors, and communities. To create value and
sustainable returns, we listen to their perspectives and maintain
strong relationships through regular engagement, using their input to
guide our decisions. We strive for fair treatment of all stakeholders,
keeping the Company’s long term interests in mind, though
competing priorities may not allow positive outcomes for everyone.
This year, the Chair and Senior Independent Director have met
with investors following results announcements and also to
discuss the proposed Remuneration Policy and have reported
feedback to the Board.
Read more on our stakeholders from page 55
How we engage with our stakeholders
Stakeholder engagement is both at Board level, principally with
employees and shareholders, and through Senior Leadership
Team members and other senior managers who keep the Board
fully apprised of any issues or feedback through regular reports
and briefing papers. Methods of engagement include one-to-one
meetings and roadshows both face to face and through virtual
platforms, regular liaison, employee appraisals and occupier and
employee surveys.
Informed decision making
All major Board decisions must clearly show that the impact
on stakeholders has been properly considered and evaluated.
Where applicable, Board and Committee minutes document how
stakeholders were taken into account during the decision making
process and all newly appointed Directors receive an explanation
of Directors’ duties under S172 as part of their induction.
Capital discipline and balance sheet resilience remained a central
focus of the Board’s decision making during the year, against a
backdrop of persistently high interest rates, yield volatility and
broader macroeconomic uncertainty.
The Board approved and monitored a comprehensive programme
of financing and refinancing activity, including the Group’s
inaugural £500 million public bond issuance and the extensive
refinancing of existing bank facilities. In evaluating these
transactions, the Board considered the long term implications
for liquidity, cost of capital, covenant headroom and refinancing
risk, as well as the interests of shareholders, lenders and
rating agencies.
The Board challenged management on the maturity profile,
pricing and structural terms of new and refinanced debt to
ensure that the Group retained financial flexibility and resilience
through the cycle. These actions extended the weighted average
debt maturity, diversified funding sources and reduced cost
and exposure to near term refinancing risk, while maintaining
appropriate leverage in line with the Group’s financial policies.
Throughout the process, the Board remained mindful of the
need to balance prudent risk management with the delivery of
sustainable returns for shareholders over the long term.
Further detail of the Group’s financing activities is set out in the
Financial review.
Impacted stakeholders S172 considerations S172 factor
Employees Retention, culture, integration 1(b)
Occupiers Service continuity 1(c)
Shareholders Capital discipline, returns 1(a)
Impacted stakeholders S172 considerations S172 factor
Shareholders Cost of capital, resilience,
sustainable returns
1(a)
Lenders and bond
investors
Credit quality, covenants,
maturity profile
1(c)
Employees Financial stability and
long term viability
1(b)
LondonMetric Property Plc Annual Report and Accounts 2026100
Strategic report Governance Financial statements
Stakeholders continued
Governance3 Remuneration Policy
Board leadership and Company purpose
4
Our key stakeholders include
employees, occupiers, investors,
contractors, advisors, and
communities.
To create value and sustainable returns,
we listen to their perspectives and
maintain strong relationships through
regular engagement, using their input
to guide our decisions.
Alistair Elliott
Chair
The Board recognises that strong governance, independence
and effective succession planning are fundamental to promoting
the long term success of the Company and maintaining
stakeholder confidence.
As Andrew Livingston’s tenure approached nine years, the
Nomination Committee reviewed his independence during
the prior year and confirmed a planned transition in line with
Provision 10 of the Code. The Board approved the change at that
time. Andrew Livingston retired from the Board during the year
and the Nomination Committee oversaw the handover of the
workforce Non Executive Director role to Kitty Patmore, ensuring
continuity and effectiveness.
In agreeing the succession arrangements during the prior year,
the Board had regard to the interests of employees and to
maintaining effective workforce engagement, recognising the
importance of the designated workforce Non Executive Director
role in supporting dialogue between the workforce and the Board.
The Board is satisfied that these actions maintained strong
governance arrangements and independence and ensured
that stakeholder perspectives continue to inform Board
decision making.
Read more in the Nomination Committee report from page 104
The Board recognises that executive remuneration plays an
important role in promoting long term sustainable performance
and aligning management incentives with shareholder interests.
During the year, the Remuneration Committee consulted
with major shareholders, representing approximately 60% of
the Company’s issued share capital, as well as proxy voting
agencies, in advance of proposing a new Remuneration Policy
for shareholder approval. The Board considered the feedback
received and challenged the Committee on the appropriateness
of the proposed changes in the context of the Company’s
strategy, performance and wider market practice.
As a result of the shareholder engagement, aspects of the long
term incentive framework were amended to address concerns
raised relating to the introduction of an additional EPRA cost ratio
performance metric. The Board considered the feedback received
and instead increased the weighting for growth in EPRA EPS to 45%.
Having taken the views of stakeholders into account, the
Board is satisfied that the revised policy supports long term
decision making, sustainable performance and responsible
reward outcomes.
Impacted stakeholders S172 considerations S172 factor
Shareholders
Alignment with long term
value creation
1(a)
Employees
Fairness and pay transparency 1(b)
Proxy advisors/
governance bodies
Pay transparency and inclusion 1(f)
Impacted stakeholders S172 considerations S172 factor
Employees
Continuity of workforce
engagement
1(b)
Shareholders
Board independence
and succession
1(a), 1(e)
Regulators
Code compliance and
best practice
1(f)
LondonMetric Property Plc Annual Report and Accounts 2026101
Strategic report Governance Financial statements
Board
Committees
Remuneration Committee
Responsible for determining and
implementing a fair reward structure to
incentivise Executive Directors to deliver the
Group’s strategic objectives whilst maintaining
stability in the management of its
long term business.
• Determines and implements
Remuneration Policy
• Sets remuneration packages and incentives
for Executive Directors
• Approves annual bonus and LTIP targets
and outcomes
• Has oversight of workforce remuneration
arrangements and alignment
Nomination Committee
Responsible for ensuring that the Board and
its Committees have the right balance of skills,
knowledge and experience, having due regard
to succession planning and diversity.
• Recommends appointments
• Board composition and succession
• Considers skills and diversity
• Leads the performance evaluation of the
Board and its Committees
Audit Committee
The Audit Committee has oversight of the
Group’s financial reporting, risk and internal
control processes, monitors the integrity of
the financial statements and maintains an
effective relationship with the Group’s
external auditor.
• Oversees financial reporting process
• Scrutinises significant judgements made
by management
• Monitors effectiveness of risk management
systems, internal control and viability
• Evaluates the external audit process
• Oversees regulatory compliance
Governance framework
Read more on pages 118 to 148
Management Committees
Read more on pages 104 to 110
How we make decisions
To ensure effective oversight and a clear separation between
the Board’s responsibilities and the day-to-day management of
the business, certain matters are reserved for Board approval.
These include the approval of strategy, budgets, financial statements,
capital allocation and dividend policy. Authority for investment,
asset management and capital expenditure decisions is delegated in
accordance with defined value thresholds, as set out below.
Delegated authority limits
Board
Read more
on pages
92 to 93
The Board provides leadership and strategic direction, sets the organisation’s culture, values and ethics, and oversees
management’s delivery of strategy with appropriate challenge and support.
It comprises individuals with broad commercial experience across sectors including property, finance, banking,
capital markets, risk management and sustainability. This collective expertise and understanding of the business
and its stakeholders supports the delivery of sustainable long term value, as set out in the Strategic report.
Senior
Leadership
Team
The Board delegates the execution of
the Company’s strategy and day-to-day
running of the business to the Senior
Leadership Team which operates under
the direction and leadership of the Chief
Executive. It is supported by four sub-
committees, focusing on different areas
of the business.
• Implementation of strategy
• Sets budgets and monitors
operational and financial performance
• Day-to-day management of
the business
• Manage, appraise and develop staff
• Employee remuneration
and wellbeing
• Manages allocation of capital
• Identifies and assesses business risks
and implements mitigation strategies
• Responsible Business, ESG
workstreams and AI
Read more on pages 111 to 117
Read more
on page 94
Information flow
The Company Secretary ensures that Directors receive clear,
timely and relevant information to enable them to discharge their
duties effectively. Reports and briefing papers are circulated well
in advance of each Board and Committee meeting to support
informed discussion and decision making. These materials provide
updates on market conditions, the portfolio, financial performance,
risk and governance matters, together with agenda specific papers.
During the year, focused briefings were provided on topics
including the internal performance review, debt and hedging,
cyber security, portfolio credit strength, artificial intelligence
and ESG.
Directors also receive transactional papers between meetings,
with decisions formally ratified at the subsequent Board meeting.
The Board has three Committees of Non Executive Directors to which it has delegated a number of its responsibilities. The
Committees ensure a strong governance framework for decision making and each operates within defined terms of reference which
are reviewed annually. The Chair of each Committee provides a verbal update on the matters discussed at each meeting to the Board.
Senior Leadership Team
Chief Financial Officer
Chief Executive
Board
Department manager
>£20m+
>£10m+
>£2.5m+
>£50k+
<£50k+
Division of responsibilities
Strategic report Governance Financial statements
LondonMetric Property Plc Annual Report and Accounts 2026
102
Leadership roles and responsibilities
Role Individuals Responsibilities
Chair Alistair Elliott • Responsible for leadership of the Board and for ensuring its effectiveness
• Sets the Board’s agenda, culture and tone, promoting open and constructive debate
• Promotes the Company’s purpose, values and ethics
• Maintains regular communication with the Non Executive Directors, both individually and collectively
• Oversees delivery of strategy and the performance of the Chief Executive
• As Chair of the Nomination Committee, ensures appropriate succession planning
Chief Executive
(CEO)
Andrew Jones • Develops and recommends strategy to the Board and is responsible for its implementation
• Sets objectives and oversees the day-to-day operations and performance of the business,
assisted by the Senior Leadership Team
• Leads engagement with shareholders and key stakeholders and reports feedback to the Board
Chief Financial
Officer (CFO)
Martin McGann • Supports the Chief Executive in the development and delivery of strategy
• Has responsibility for stewardship of the Company’s financial resources
• Oversees the ESG agenda, risk management and internal control framework
Non Executive
Directors
Suzanne Avery
Alistair Elliott
Robert Fowlds
Sandy Gumm
Nick Leslau
Suzy Neubert
Kitty Patmore
• Provide independent judgement, oversight and constructive challenge to the Executive Directors
• Contribute to the development of strategy and approve matters reserved to the Board
• Monitor delivery of the agreed strategy within the Board approved risk and control framework
• Review the integrity of financial information and risk management systems
• Bring a breadth of skills, experience and commercial insight
• All are considered independent except Nick Leslau, due to the size of his shareholding
Senior
Independent
Director (SID)
Suzy Neubert • Acts as a sounding board for the Chair and an intermediary for other Directors
• Provides an alternative channel for shareholder engagement where appropriate
• Leads the evaluation of the Chair’s performance
Designated
Workforce Non
Executive Director
Kitty Patmore • Acts as a link between the Board and the workforce
• Engages with employees and attends key employee and business events
• Monitors workforce feedback, including staff surveys
• Reviews whistleblowing matters and reports to the Board
Company
Secretary
Jadzia Duzniak • Advises the Board on corporate governance matters and is accountable to the Chair
• Ensures a timely and effective flow of information to the Board, its Committees and
senior management
• Promotes compliance with statutory and regulatory requirements and Board procedures
• Provides guidance and support to Directors, individually and collectively
The Board provides
leadership and strategic
direction, sets the
organisation’s culture, values
and ethics, and oversees
management’s delivery of
strategy with appropriate
challenge and support.
Alistair Elliott
Chair
Division of responsibilities
Strategic report Governance Financial statements
LondonMetric Property Plc Annual Report and Accounts 2026
103
Nomination Committee report
Key responsibilities
I am pleased to present an
overview of the Committee’s
work over the year.
Board composition and succession planning
• Regularly assess the skills and composition of the Board and its
Committees to identify any gaps in experience or expertise
• Develop and maintain a succession plan for the Board and
key senior managers, including identifying and mentoring
future leaders
Read more on page 105
Director appointments
• Lead the process for new Board and Committee appointments
in a transparent and objective manner to ensure each has
the necessary mix of skills and experience to steer the
Company effectively
• Evaluate the skills, qualifications, experience and independence
of potential candidates to ensure they meet the Company’s
needs and regulatory requirements
Read more on page 106 to 107
Promote diversity and inclusion
• Foster the Company’s diversity policy at Board level to ensure
that it reflects a broad range of perspectives and experiences to
enhance decision making and corporate governance
• Consider the Company’s approach to diversity and ensure it
complies with relevant codes and guidelines
Read more on pages 107 to 108
Director induction and ongoing training
• Oversee the induction of new Directors ensuring they receive
the necessary orientation and training to fulfil their roles
effectively and to ensure a smooth transition
• Identify and support training needs to help Directors stay
informed on industry trends, regulatory changes and
governance best practices
Read more on page 107
Evaluating Board and Director performance
• Oversee annual assessments to determine whether the
Board and its Committees are functioning effectively
• Assess the time commitment required from Non Executive
Directors, consider whether as Directors they are fulfilling
their duties and consider their annual re-election
Read more on pages 109 to 110
Corporate governance
• Ensure the Company complies with relevant corporate
governance codes which set out standards for roles and
board composition
• Ensure sufficient Directors are independent to maintain
objectivity and prevent conflicts of interest
Read more on page 108
Highlights this year
• Oversaw the implementation of succession changes
announced last year, including Andrew Livingston’s
retirement and Kitty Patmore taking on the designated
workforce Non Executive Director role
• Oversaw the orderly transition of the Remuneration
Committee Chair from Robert Fowlds to Suzy Neubert
following the 9 July 2025 AGM; Robert actively
supported Suzy’s onboarding and the early stages of the
remuneration policy review
• Confirmed Suzy Neubert’s appointment to the Nomination
Committee with effect from 30 September 2025.
• Supported the appointment of Alistair Elliott to
the Remuneration Committee with effect from
28 January 2026
• Took into consideration the retirement of Valentine
Beresford from the Senior Leadership Team
Alistair Elliott
Nomination Committee Chair
Membership and attendance
The number of Committee members and their attendance
during the year was as follows:
Member
Date
appointed
Tenure
(years)
1
Meetings
attended
2
Alistair Elliott (Chair) 11/7/2023 3 2 (2)
Andrew Livingston
3
19/9/2018 – –
Suzanne Avery 31/1/2019 7 2 (2)
Robert Fowlds 28/1/2021 5 2 (2)
Suzy Neubert 30/9/2025 1 1 (1)
1 Tenure is measured from date of appointment to the Committee and as at 31 March 2026,
rounded to the nearest whole year
2 Bracketed numbers indicate the number of meetings the member was eligible to attend
3 Andrew Livingston retired 20 May 2025
Composition, succession and evaluation
Strategic report Governance Financial statements
LondonMetric Property Plc Annual Report and Accounts 2026
104
Dear Shareholder,
As Chair, I present the Nomination Committee report for the year
ending 31 March 2026.
Role of the Committee
This Committee comprises of independent Non Executive
Directors. We operate under Terms of Reference
reviewed annually to reflect the Code and evolving best
practice. These terms can be found on our website at
www.londonmetric.com.
Our role is to ensure the Board and its Committees retain the
right balance of skills, experience, independence and knowledge
to provide strong and effective leadership for long term success.
We also lead the planning and orderly management of succession
across the Board and senior management.
Key activity during the year
Board composition and succession planning
Our focus this year has been on maintaining an optimal balance
of skills, experience, independence and diversity on the Board
and its Committees, to support the Company’s long term strategic
objectives, and on ensuring an orderly succession for key roles
without disruption to the business.
As signposted in last year’s report, Andrew Livingston retired
from the Board on 20 May 2025 and the Committee oversaw an
orderly handover of his responsibilities, including the transition
of the designated workforce Non Executive Director role to Kitty
Patmore, ensuring continuity in workforce engagement. As part of
his handover for this role Andrew invited Kitty to his final informal
off site meeting and discussion with a cross section of staff.
The Committee also oversaw the orderly transition of the
Remuneration Committee Chair from Robert Fowlds to Suzy
Neubert following the 9 July 2025 AGM. It was agreed that Robert
would remain on that Committee to support Suzy’s onboarding
due to his valuable experience of working with the former
remuneration consultant and leading the last remuneration
policy review.
The Committee additionally confirmed Suzy Neubert’s
appointment to the Nomination Committee as reported last year.
The effective date of the appointment was 30 September 2025.
Separately, on 28 January 2026, it was recommended that Alistair
Elliott be appointed to the Remuneration Committee. Alistair was
eligible for appointment as he was independent on joining the
Board. He had attended Remuneration Committee meetings by
invitation for over a year, providing valuable continuity, insight and
constructive challenge. This recommendation was approved by
the Board.
During the year, the Committee also revisited the independence
of Sandy Gumm under Provision 10 of the Code. The Committee
and the Board concluded that Sandy continues to be independent
in character and judgement, with no factors compromising her
ability to act objectively. Nick Leslau continues to be deemed non
independent due to the size of his shareholding in the Company.
Having reviewed the balance of skills, experience and
independence on the Board, the Committee reaffirmed that
Andrew Livingston’s Board seat would not be replaced, and that
the Board continues to meet all independence requirements
under the Code with the complementary experience, skills and
knowledge necessary to drive the Group forward.
Evaluation
The annual Board and Committee performance evaluation
undertaken during the year reaffirmed the effectiveness of the
Board and its Committees, with respondents highlighting a
constructive culture, high quality debate and open communication.
In addition to these consistently positive findings, this year’s
evaluation placed particular emphasis on forward looking strategic
discussion, the importance of succession planning across the wider
management population and the Non Executive cohort and the
continued strengthening of assurance and internal controls in light
of forthcoming regulatory requirements.
Feedback from Directors noted further improvements in the
clarity of reporting during the year and the benefits of enhanced
engagement with members of the Senior Leadership Team.
Reflecting the Board’s ongoing focus on effectiveness, the
evaluation also highlighted opportunities to continue evolving
Board agendas over time to support deeper forward looking
strategic discussion.
During the year, the Chair maintained regular engagement with
Non Executive Directors, both individually and collectively,
through a range of formal and informal interactions.
These discussions covered matters including Board and executive
succession planning, Board composition and strategic priorities,
and provided insight into Directors’ ongoing contribution, capacity
and engagement, supporting the Committee’s oversight of
Board effectiveness.
The Committee would like to thank all Directors and participating
members of the Senior Leadership Team for their thoughtful
and constructive input into the evaluation process and for their
continued commitment and contribution throughout the year.
Further detail on the Board and Committee performance
evaluation is set out on pages 109 to 110.
This Committee is responsible for assessing the
composition of the Board and its Committees
and for identifying any gaps in skills, experience,
knowledge, or diversity.
We work to ensure that the Board is well-
rounded and equipped to effectively oversee
the Company’s activities and that Directors
provide strong and effective leadership to drive
the future success of the business.
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Time commitment
Directors must obtain approval before accepting external
commitments to avoid conflicts of interest and to ensure they
have enough time for their Company duties. During the year Suzy
Neubert stepped down from the board of LV = and, with approval,
accepted an appointment to the board of a private company
which specialises in pension administration.
In accordance with the Company’s governance framework the
Executive Directors are required to devote substantially the whole
of their working time to the Company, unless otherwise agreed
by the Board. Andrew Jones currently remains a non executive
director of InstaVolt Limited.
The Committee received confirmation during the year that each
Director continued to devote sufficient time to their duties.
This conclusion was informed by the Chair’s regular engagement
with Non Executive Directors and consideration of their external
commitments, which were assessed to ensure they did not
conflict with Directors’ responsibilities to the Company or
impair their ability to meet the expected time commitments of
their roles.
Election and re-election of Directors
Following the evaluation and appraisal process, the Committee
concluded that each Director standing for election or re-election
continues to make an effective and valuable contribution, with
the necessary skills, knowledge, experience and time to discharge
their duties in the coming year. All Directors will stand for re-
election at the AGM on 9 July 2026, and I encourage shareholders
to support these resolutions.
Looking forward
Looking ahead, the Committee’s priorities for the year will centre
on ensuring continuity and effective succession across the Board
and senior leadership. In parallel, the Committee will continue
to consider how the Board’s collective skills and experience
should evolve alongside the Group’s strategy, capital structure
and portfolio composition. This includes reflecting the growing
importance of capital markets engagement and financing, balance
sheet management and disciplined capital allocation, alongside
sector and operational expertise, to ensure the Board remains well
positioned to support the Company’s long term objectives.
The Committee notes that Suzanne Avery’s Board tenure reaches
nine years in March 2027. As part of its forward planning, the
Committee will consider the implications of this in the context of
the Board’s overall composition, size and future needs, including
the skills, experience and perspectives that would be lost on
any future retirement and the capabilities that may be required
to support the Board’s longer term strategy. The Committee
will keep these matters under review and will determine the
appropriate next steps in due course.
More broadly, the Committee will focus on maintaining a
disciplined and forward looking approach to talent and leadership
oversight, including periodic review of executive succession
arrangements, management depth and the evolution of key
roles over time, to ensure the Board and Senior Leadership
Team remain well positioned to support the Company’s long
term objectives.
A Balanced Board
The composition of the Board and its three Committees as at
31 March 2026 is detailed in the table on page 92. Directors’
biographies are reflected on pages 92 to 93 and Board diversity is
summarised on page 108.
Nomination Committee report continued
Composition, succession and evaluation
Board independence
Board gender diversity
Non Executive board tenure
Board skills
2
1 All charts are based on Board composition as at 31 March 2026
2 Some Directors are represented in more than one category in terms of their experience
A Balanced Board
1
1 (13%)
5 (63%)
2 (25%)
Independent Non
Executive Directors
Non Independent
Non Executive Directors
Executive Directors
4 (44%)
5 (56%)
Male
Female
3 (43%)
2 (29%)
2 (29%)
0-3 years
3-6 years
6-9 years
6 (67%)
8 (89%)
2 (22%)
Finance & banking
Property
Sustainability
Risk management
2 (22%)
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Executive succession planning and talent development
The Committee continued to support succession planning and
talent development across the organisation during the year,
recognising this as a key element in maintaining a strong and
sustainable leadership pipeline capable of supporting the Group’s
long term strategy. The Committee maintains visibility of the
Group’s internal talent pipeline, with a particular focus on high
performing individuals and their readiness to assume greater
responsibility over time. In common with all Non Executive
Directors, Committee members are encouraged to maintain
appropriate engagement with the wider organisation, providing
insight into potential successors through presentations, property
tours, office visits and, where appropriate, discussions on
specific topics.
Succession planning below Board level sits with the Senior
Leadership Team, which includes the Executive Directors,
to ensure suitable future leaders are recruited and retained
and that appropriate contingency plans are in place for
unforeseen absences.
There were no Senior Leadership Team appointments during
the year. However, the Committee noted the retirement of
Valentine Beresford, which was announced in October 2025 and
also confirmed Will Evers’ appointment as Head of Investment,
following his prior role as Joint Head. This represented the most
significant senior leadership transition outside of the Board and
formed part of the broader executive succession planning context
considered by the Committee.
The Committee will continue its oversight of executive succession
planning in the year ahead, ensuring appropriate focus is
maintained on leadership development, internal capability and
the orderly management of future senior leadership transitions.
Board induction
Although there were no new Directors appointed during the
year, the Committee continues to maintain a comprehensive
and well-structured induction programme for use whenever
a new Board member is appointed. This standing programme
is designed to support the effective integration of new
Non Executive Directors, providing them with a thorough
understanding of the business, including its strategy, portfolio,
governance framework, stakeholder landscape, financial structure,
risks and controls.
Induction materials typically include recent Board and Committee
papers, the Risk Register, key governance documents, site visits
and meetings with senior management across the organisation.
The programme is tailored to the background and experience of
each new Director, ensuring they are able to contribute effectively
from the outset and build a detailed understanding of the Group’s
operations and culture.
Board training
Directors are encouraged to identify and develop their own
training needs, with the Chair overseeing overall provision to
ensure that the Board and its Committees collectively maintain
the skills and knowledge necessary for effective governance.
Training and development are delivered through a combination
of Board level briefings, Committee specific updates and access
to external resources, allowing Directors to stay informed on
developments relevant to their responsibilities, matters affecting
the Company and the wider operating environment.
During the year, training was provided through a mixture
of Board and Committee sessions covering topics such as
regulatory and accounting developments, UK Corporate
Governance Code compliance, debt and hedging, cyber security,
artificial intelligence, portfolio credit analysis and ESG matters.
Committee members also received specialist updates relevant
to their particular remit, supplementing the broader programme
available to the Board.
Directors continue to have access to ad hoc learning opportunities
where particular areas of interest or emerging risks are identified,
and external advisors may be invited to provide insight on
specialist topics as needed.
Diversity and inclusion
The Board recognises the importance of diversity in its broadest
sense and the value it brings to the organisation. A range of
skills, experience, perspectives and ideas enriches discussion,
strengthens challenge and ultimately supports better decision
making. We strive to maintain a working environment built
on equal opportunity and a culture of openness, respect
and inclusion.
The Board sets the tone on diversity and considers the principles
of the Company’s Diversity and Inclusion Policy, available on our
website, when evaluating new appointments. The Company has
complied with UK Listing Rule 6.6.6R(9) throughout the year, as
summarised on page 108.
We acknowledge that our diversity ambitions are influenced
by the quality and availability of external candidates, and we
therefore engage only with search firms who are signatories to the
Voluntary Code of Conduct for Executive Search Firms, ensuring
a diverse and high quality candidate pool. However, progress is
naturally constrained by the availability of suitable candidates and
the limited number of vacancies that arise within the organisation.
This remains a structural challenge across the sector, particularly
for specialist roles and small leadership teams.
All appointments to the Board and across the Company are
based on merit, suitability for the role and alignment with our
values; appointment on any other basis would not be in the best
interests of shareholders or the Company. We are proud of our
low level of staff turnover, which supports a stable and committed
workforce, while recognising that this can constrain the pace of
demographic change.
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We continue to support Real Estate Balance, which promotes
the development of a strong female talent pipeline within the
sector, and we remain mindful of the FTSE Women Leaders
target of 40% female representation across leadership teams.
Given the size and structure of the Senior Leadership Team and
the low rate of natural turnover, achieving this target is likely
to remain challenging and will depend partly on the timing of
future vacancies.
The Senior Leadership Team is responsible for the day-to-day
operation of the business and comprises functional heads
representing a broad mix of skills and experience. Our ambition
remains to increase gender diversity within the Senior Leadership
Team and among their direct reports when opportunities arise
and strong candidates are identified.
Across the wider organisation, 50% of employees are women,
and the Company continues to foster a culture that supports
inclusion and equal opportunities for all colleagues.
Further detail on the Company’s approach to diversity and
inclusion is available in the Responsible Business and ESG review
from page 48.
The tables opposite meet the requirements of UK Listing Rule
6.6.6R(10) and set out the gender and ethnic diversity of the
Board, Senior Leadership Team and wider Group as at 31 March
2026. Data is based on individuals’ self identified responses using
the gender and ethnicity categories shown.
Nomination Committee report continued
Composition, succession and evaluation
Gender representation as at 31 March 2026
Number of Board
members % of the Board
Number of senior
positions¹
Number of Senior
Leadership Team
members²
% of Senior
Leadership
Team
Men 5 56% 3 6 75%
Women 4 44% 1 2 25%
Non-binary – – – – –
Not specified/prefer not to say – – – – –
Female Male
Senior Leadership Team and direct reports
3
8 31% 18 69%
Group 27 50% 27 50%
Ethnic representation as at 31 March 2026
Ethnic representation
Number of Board
members % of the Board
Number of senior
positions¹
Number of Senior
Leadership Team
members²
% of Senior
Leadership
Team
White British or other White 8 89% 3 7 87%
Mixed/Multiple ethnic 1 11% 1 – –
Asian/Asian British – – – 1 13%
Black/African/Caribbean/Black
British
– – – – –
Other ethnic group,
including Arab
– – – – –
Not specified/ prefer not to say – – – – –
1 Senior Board positions include the Chair, Chief Executive, Chief Financial Officer or Senior Independent Director
2 The Senior Leadership Team, as set out on page 94 is considered to be the Company’s executive management as defined by the Listing Rules and senior management
as defined by the Code
3 The Senior Leadership Team’s direct reports are the next layer of management below senior management
Other Group diversity
20–30 11 21%
31–40 12 22%
41–50 12 22%
51+ 19 35%
Total 54 100%
0–5 29 54%
6–10 5 9%
11–15 14 26%
16+ 6 11%
Total 54 100%
Age (years) Length of service (years)
20–30
31–40 41–50 51+
0–5
6–10
11–15
16+
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2026 Performance evaluation
The objective of the annual evaluation is to assess the
effectiveness of the Board and its Committees, including their
composition, dynamics, behaviours and the quality of information
that supports decision making. In line with the Company’s
three year cycle, the 2026 review was an internal evaluation,
coordinated by the Company Secretary. All Directors and relevant
members of the Senior Leadership Team completed detailed
questionnaires, and the consolidated results were reviewed by
the Chair before being considered by the Board. The outcomes
of the evaluation, together with progress against prior year
actions, were considered by the Board as part of its wider review
of effectiveness.
The key recommendations arising from the evaluation are set out
opposite and on page 110.
The key findings from the 2026 performance evaluation review
Area Key findings
Objectives,
strategy
and remit
• The Company’s overall strategy and objectives are well defined and actively managed with strong agreement on strategic
direction and execution between both NEDs and Executives
• Strategy is viewed dynamically with the CEO continuing to refine and adapt strategy in response to market conditions
and opportunities
• Strategy risks are identified, and NEDs can consult with the CEO as required between meetings
• There is a strong connection between strategic objectives and the management team’s competence and experience
Performance
measurement
• The Board collectively assumes responsibility for performance by fostering a culture of ownership that is deeply embedded
and focused on achieving results
• Management reporting is high quality, regular and easy to review with enhanced debt and funding analysis and transaction
activity overviews provided during the year
Relationships
with shareholders
• The relationship between the Company and its shareholders remains a primary consideration for the Executive Directors,
and current investor sentiment towards the Company is positive
Risk
management
• Risk oversight is regarded as strong, with structured updates on principal and emerging risks and Directors confident that risk
is considered in decision making processes
• The process for identifying and reporting principal risks is sound, suitable and relevant to the business. The level of detail
received, and the range of mitigating measures adopted is appropriate and properly implemented
• There is sufficient emphasis placed on the development and documentation of assurance and internal controls in
preparation for forthcoming regulatory requirements
• Respondents praised management’s handling of risks arising from the M&A, integration and debt management work
undertaken in the year
Board function
and Directors
• The Board is united, and Directors foster strong, productive relationships with one another
• The Board maintains a prudent and conservative culture, and its Directors demonstrate a clear understanding of their
regulatory obligations
• Engagement levels are high with open and transparent discussion and debate on pertinent matters at meetings
• The attendance of senior management at meetings is helpful and welcomed
Board
constitution
and succession
• The Board is strong and well balanced with a complimentary range of expertise and breadth and depth of experience to
allow it to effectively face current and future challenges
• Management are highly respected, well connected, and trusted, placing them in an excellent position to identify early market
signals and spot opportunities. They maintain open communication with the Board, and their responsiveness gives Non
Executive Directors confidence in their leadership
Board
Committees
• Committees have the right balance of skills and are diligently and extremely well chaired and supported by external advisors,
the Executive Directors and wider management team
• The Board and its Committees operate effectively with good transparency between them
The Chair
• The Chair offers effective management support, is praised for energy and diligence, and demonstrates constructive leadership
• He motivates Directors to express their opinions and ensures in-depth, transparent discussions take place before significant
decisions are reached, while also managing time efficiently
Year 1
(2024)
Year 2
(2025)
Year 3
(2026)
Internal review to focus on
progress against year 2 and
any new issues raised ahead
of an external evaluation
Internal review to monitor
progress against year 1 and
any new issues raised
Independent externally
facilitated review
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Recommendations Progress against 2025 recommendations
The Group’s underlying capital management
strategy would benefit from greater profile
in public communications
The Financial review sets out the strategic rationale for the year’s major financing actions
and how these support liquidity, maturity and cost, diversifying the lender pool and reducing
secured debt within the Group.
Public communication in the year included announcements relating to the public bond
and refinancing.
Read more on page 39
Non Executive Directors would welcome broader input
from the Chair and SID on shareholder engagement
activities conducted by them
The Chair and SID have relayed feedback from shareholder engagement, including the
Remuneration Policy consultation, strengthening the Board’s understanding of investor
sentiment and responding directly to Board evaluation feedback on the value of more
visible and aggregated shareholder insight.
Additional site visits for Non Executive Directors No formal Non Executive Director site visits were undertaken in the year. Engagement
with the portfolio instead took place through presentations, transaction reviews and
informal discussions.
Consider increasing management’s delegated
authority from £10 million to £20 million to provide
greater flexibility
Implemented ahead of the prior year end.
Review, documentation and testing of key processes
and material controls in preparation for the
Board’s Provision 29 of the Code attestation on the
effectiveness of material controls
The Company strengthened and further evidenced its assurance framework ahead of the
new regulatory requirements. The Audit Committee received updates on the review and
documentation of internal controls, including BDO’s structured approach to Provision 29.
This work included key cycle mapping and identification of material controls over principal
risks, supported by an updated Internal Control Evaluation Questionnaire.
Read more on page 72
The key findings from the 2025 performance evaluation review and progress made after reviewKey suggestions from the 2026 performance
evaluation review
The 2026 Board and Committee performance evaluation
confirmed that the Board continues to operate effectively, with
open debate, constructive challenge and a clear focus on strategic
priorities. In addition to reaffirming these strengths, the evaluation
identified a small number of areas where further refinement and
development could enhance Board effectiveness and support the
continued evolution of governance practices.
• Further enhance the balance of Board agendas by allocating
more structured time to forward looking strategic discussion,
enabling deeper exploration of medium term opportunities
and risks
• Continue refining the structure and presentation of Board
and Committee papers, without changing their core content,
to support clearer signposting of key information and
efficient preparation
• Build on existing investor engagement practices by
complementing ad hoc investor feedback, particularly in the
context of transaction and strategy discussions, with more
regular thematic updates to support broader strategic debate
• Strengthen portfolio level forward analysis, complementing
the detailed asset level information provided when Directors
consider major investment and disposal decisions outside of
formal Board meetings
• Consider how best to leverage the full breadth of Non Executive
Directors’ experience and networks outside formal Board and
Committee meetings, to further support management and
strategic development
Independent advice
All Directors and Committees can consult the Company Secretary
at any time, who ensures that Board procedures are followed
and governance requirements are met to uphold high standards.
Directors are also permitted to seek independent professional
advice at the Company’s expense to support their responsibilities;
however, no Director did so during the year. The chairs of
the Audit and Remuneration Committees maintain regular,
independent communication with relevant staff and external
advisors, including the Company’s auditor, property valuers, and
remuneration consultants.
Conflicts of interest
Directors are obligated to disclose to the Company any potential
conflicts of interest. All identified conflicts are documented and
reviewed during each Board meeting. No conflicts of interest have
been reported this year.
Alistair Elliott
Chair of the Nomination Committee
21 May 2026
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110
Kitty Patmore
Audit Committee Chair
Financial reporting
• Monitor the integrity of the financial reporting process
• Scrutinise the annual and interim financial statements
• Assess whether the Company has adopted suitable accounting
policies and made appropriate estimates and judgements
• Review and challenge the accounting methodology for
significant or unusual transactions adopted by management
Read more on pages 113 to 114
Risk management and internal control
• Assess the risk management framework to ensure that a robust
system is in place for identifying and mitigating the principal
risks faced by the Group, including emerging risks
• Review the system of internal controls including financial,
operational and compliance controls, and consider
their effectiveness
• Consider the requirement for an internal audit function
Read more on page 115
External audit
• Select, appoint and oversee the work of the external auditor
• Evaluate the auditor’s independence, objectivity, performance
and fees
• Monitor the ratio and level of audit to non audit fees payable to
the external auditor
• Review the scope of the audit and compliance with relevant
auditing standards
• Review the policy for the approval of non audit fees payable to
the external auditor
Read more on pages 115 and 116
As Chair, I am pleased to present my
report which sets out the work we
have undertaken this year.
Highlights this year
• Considered the accounting treatment for the acquisitions of
Highcroft Investments plc and Urban Logistics REIT Plc and
monitored the integration plans for systems, data and people
• Considered the programme of work undertaken by
management, assisted by BDO, to prepare for the
requirement under Provision 29 of the UK Corporate
Governance Code 2024 to include a Board declaration on
the effectiveness of material controls by 31 March 2027
• Dedicated one meeting to ESG matters and received
a presentation and update from the Head of Investor
Relations and Sustainability
• Received papers on going concern, cyber security,
tenant covenants and valuer rotation and discussed with
members of the Senior Leadership Team at meetings
Membership and attendance
The number of Committee members and their attendance
during the year was as follows:
Member
Date
appointed
Tenure
(years)
1
Meetings
attended
2
Kitty Patmore (Chair) 28/1/2021 5 6 (6)
Suzanne Avery 22/3/2018 8 6 (6)
Robert Fowlds 31/3/2019 7 6 (6)
Suzy Neubert 24/5/2023 3 6 (6)
1 Tenure is measured from date of appointment to the Committee and as at 31 March
2026, rounded to the nearest whole year
2 Bracketed numbers indicate the number of meetings the member was eligible to attend
Key responsibilities
Regulatory compliance
• Monitor compliance with applicable laws and regulations
• Review the Viability Statement and going concern basis of
preparation of the financial statements
• Consider whether the Annual Report is ‘fair, balanced
and understandable’
• Oversight of ESG activities and reporting
Read more on pages 116 and 117
Whistleblowing and ethical standards
• Review the Company’s whistleblowing, anti-corruption and
anti-bribery procedures
Read more on page 116
Audit, risk and internal control
Audit Committee report
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Dear Shareholder,
As Chair of this Committee, I am delighted to present my report
for the year to 31 March 2026 which sets out the work we have
undertaken this year.
Following another year of growth through corporate acquisitions,
we have considered the appropriate accounting treatment for the
acquisitions of Highcroft Investments plc (‘Highcroft’) and Urban
Logistics REIT Plc (‘ULR’) and have monitored the subsequent
integration of staff, processes and systems into the enlarged
Group. Our detailed assessment of the accounting considerations
and the conclusions we reached is set out on page 114.
The annual comprehensive review of the Group’s risk register and
internal control procedures remains a central agenda item during
our March planning meeting, providing valuable support to the
Board in confirming that its risk management framework is robust
and relevant. This year, management also presented a detailed
paper on the structured programme of work, both completed
and planned, designed to strengthen, document, and evidence
the internal control framework ahead of the Board’s declaration
regarding the effectiveness of material controls as at 31 March
2027, in line with Provision 29 of the UK Corporate Governance
Code 2024. The programme of work focuses on scoping key
business cycles, documenting end-to-end processes and material
controls and developing an assurance framework to support the
Board’s assessment of controls’ effectiveness. Management has
engaged BDO to assist with the identification and documentation
of business process areas and material controls. During the year,
management completed an initial assessment of the design of
material controls. Operating effectiveness testing and further
enhancement will be undertaken next year. We are pleased with
the level of work undertaken to date and will continue to monitor
further enhancements and testing during the course of next year.
We have continued to oversee the external audit process and have
met independently with both the external auditor and valuers to
discuss significant transactions and challenge and scrutinise areas
of judgement including the property valuations.
With the implementation of the RICS mandatory rotation of UK
valuers from May 2026, the Committee reviewed proposals set
out by the Strategy Director for assigning asset groups to three of
our incumbent external valuers based on rotation requirements
and expertise. Over the next six months, the Committee will
monitor the transition and continue to scrutinise and challenge
the half yearly valuations.
Committee composition and effectiveness
There were no changes to the Committee during the year which
comprises of four independent Non Executive Directors.
The Board is satisfied that members possess the financial
expertise, commercial insight, and industry knowledge required
by the Code, supported by their roles in property, finance,
banking, capital markets, risk management, and sustainability.
Member biographies detailing relevant skills and experience are
available on page 93.
This year, the Board, led by the Nomination Committee,
conducted an internal performance evaluation. The review found
that the Audit Committee remains effective, offers independent
oversight, and receives strong support from the Chief Financial
Officer, his team and the external auditor.
Committee meetings
The Committee met formally six times during the year and
followed our usual programme, which is aligned to the Company’s
financial reporting timetable. As in previous years, the external
auditor, independent property valuers, Chief Financial Officer
and Head of Finance attended meetings. In addition the Strategy
Director, Head of Investor Relations and Sustainability and other
members of staff were invited to selected meetings to provide
input on specific topics, including valuer rotation, preparation
for Provision 29 and ESG. As Chair, I update the Board at its
next meeting on matters discussed and decisions made at each
Committee meeting.
The May and November meetings are scheduled to precede the
approval and issue of the full and half year financial reports and
separate meetings were held with the Group’s property valuers
to challenge and scrutinise the valuation process and outcomes.
At its March meeting, the Committee considered the year end
audit plan and the Group’s risk register and internal control
processes, with a particular focus on progress against the Provision
29 controls programme. The review also covered key risk areas
including the economic downturn and global disruption, IT and
cyber security and portfolio credit and tenant risk.
Once again, this year the Committee dedicated a full meeting to
ESG matters, enabling a deeper level of scrutiny and discussion
than is possible within the regular agenda. Key areas of focus
included progress against our revised Net Zero Pathway and
other targets including portfolio EPC ratings and asset level
sustainability initiatives, such as degasification and solar. As in
previous years, the meeting was attended by the Responsible
Business Working Group members led by the Chief Financial
Officer, including the Head of Investor Relations and Sustainability,
Head of Development, an ESG associate and an external ESG
specialist from Orbis Advisory. We were satisfied that ESG is firmly
embedded into all business operations and remains a key focus
for management.
We welcome the attendance of members of the Senior Leadership
Team and professional advisors to our meetings as it facilitates a
greater depth of discussion and debate on specialist and topical
issues and allows the Committee to meet the pool of emerging
talent below Board.
In addition to formal Committee meetings, I have regular contact
with the Chief Financial Officer and Head of Finance to discuss
and understand key matters in advance of meetings, facilitating
informed and constructive debate.
Our work in 2026
Throughout the year, the Committee acted in accordance with
its terms of reference, which were last reviewed and updated
in March 2026 and can be found at www.londonmetric.com.
The work undertaken this year is set out in the table on page 113
and has included the consideration, review and approval where
required of each of the items noted.
Audit Committee report continued
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Audit, risk and internal control
Financial reporting
One of our principal responsibilities is to monitor the integrity
of the financial information published in the interim and annual
financial statements and the overall tone, messaging and clarity
of reporting.
In conducting its review, the Committee considers:
• The extent to which suitable accounting policies and practices
have been adopted, consistently applied and disclosed;
• Significant matters by virtue of their size, complexity, level of
judgement and potential impact on the financial statements;
and
• Compliance with relevant accounting standards and other
regulatory reporting requirements including the Code.
Developments in accounting regulations and best practice are
monitored and, where appropriate, reflected in the financial
statements. The Committee and finance team are kept informed
of developments in accounting and corporate governance through
technical briefing material and webinars as well as an annual
technical update presentation for finance staff led by Deloitte, which
this year included a discussion on the new Provision 29 material
controls declaration, the FRC Annual Review and consideration of
the presentation and disclosure requirements of IFRS 18.
Management confirmed that they were not aware of any material
misstatements and the auditor confirmed they had not found any
material misstatements in the course of their work, as reported in
their independent report from page 154.
Area of responsibility Consideration
Financial reporting
• Interim and full year results announcements and the Annual Report
• Accounting treatment of significant transactions and areas of judgement
• The valuation process, the half yearly property valuations and the independence of the Group’s valuers
• Processes undertaken to ensure that the financial statements are ‘fair, balanced and understandable’
Risk management and
internal control
• The Group’s risk register, principal and emerging risks
• Cyber security risk, processes and enhancements
• Systems and staff integration following corporate acquisitions in the year
• The adequacy and effectiveness of the Group’s internal controls
• The appropriateness of the going concern assumption
• The Viability Statement and longer term forecast
• The need for an internal audit function
• Preparation for the new Provision 29 material controls declaration
External audit
• Scope of the external audit plan
• The independence and objectivity of the external auditor
• Performance of the external auditor and effectiveness of the audit process
• Auditor’s fee for the year
• Non audit services policy and ratio of fees
Regulatory compliance
• Committee’s composition, performance, terms of reference and constitution
• Section 172 statement
• TCFD statement, ESG ambitions and progress
• Tax strategy and REIT status
Audit, risk and internal control
Following another year of growth through corporate
acquisitions, we have considered the appropriate
accounting treatment for the acquisitions of Highcroft
and ULR and have monitored the subsequent integration
of staff, processes and systems into the enlarged group.
Audit Committee report continued
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Audit Committee report continued
Reporting issue
Property valuations are inherently subjective
and rely on judgements and assumptions made
by external valuers, supported by transactional
market evidence that may not ultimately prove
to be accurate. In periods of market uncertainty,
the availability and relevance of such evidence
may reduce, increasing the degree of
judgement required. As a result, the property
valuation remains a key area of focus for the
external auditor.
The Group’s property assets, with a carrying
value of £7.6 billion, are reflected in the Financial
review and detailed in Supplementary note ix.
The Committee’s role
All investment properties are externally valued
on a half yearly basis by independent valuers:
CBRE Limited, Savills (UK) Limited, Knight Frank
LLP and Jones Lang LaSalle.
The Committee met twice during the year
with the external valuers as part of the interim
and year end reporting process, to review
and challenge the valuation methodologies,
material assumptions and valuation outcomes.
The Committee considered the principal
assumptions applied, including rental
growth, market yields, capital expenditure
and void costs, together with the supporting
market evidence used to benchmark assets.
Where appropriate, assumptions were
challenged and the sensitivity of valuations to
changes in those assumptions was assessed.
Assets requiring a higher degree of judgement
were subject to enhanced scrutiny, including
properties under development, post period
end disposals and valuation movements not
broadly aligned with market benchmarks.
The Committee also considered matters raised
with management to satisfy itself that the
valuers remained independent and objective,
and that the valuation process had not been
subject to undue influence.
As part of their audit procedures, Deloitte used
their internal property valuation specialists
to independently assess and challenge
the valuation approach, assumptions and
judgements. Deloitte met separately with
the valuers and reported their findings and
conclusions directly to the Committee.
Reporting issue
The Group acquired £1.5 billion of property in the
year, largely through the corporate acquisitions
of Highcroft and ULR as discussed in detail
throughout the Strategic report.
Certain transactions that are large and/or
complex in nature may require management
to make judgements when considering the
appropriate accounting treatment including how
and when a transaction should be recognised.
There is an inherent risk that an inappropriate
approach for a significant transaction could
lead to a material misstatement in the Group’s
financial statements.
The Committee’s role
The Committee, in conjunction with the external
auditor, received and challenged management’s
accounting proposals in relation to the corporate
acquisitions in the year, which were presented
in Board and Committee briefing papers and
discussed at meetings.
The corporate acquisition in May 2025 of
Highcroft and its portfolio of 22 assets valued
on acquisition at £81.1 million was considered
to be an asset acquisition rather than a business
combination, as no processes or workforce were
acquired and substantially all of the fair value was
represented by investment properties.
By contrast, the corporate acquisitions of ULR
and Logistics Asset Management Newco
Limited, which held the investment advisory
contract for ULR, both of which completed
in June 2025, were considered to be business
combinations in accordance with IFRS 3 as in
addition to the property portfolio and debt
facilities acquired, a team of four employees,
an investment advisory contract and all of its
operating processes were transferred. The Group
acquired a portfolio of predominantly logistics
assets valued at £1.1 billion, as well as debt of
£0.4 billion.
The acquisition of the entire issued share capital
of ULR was implemented by way of a Scheme
of Arrangement under Part 26 of the Companies
Act 2006 and completed on 23 June 2025 for
£726.8 million, through the issue of 257.9 million
ordinary shares at 202.2p per share, a cash
consideration of £196.7 million and the fair
value of the Company’s existing shareholding in
ULR of £8.7 million. Alongside this, the Group
acquired Logistics Asset Management Newco
Limited for a cash consideration of £8.1 million.
As reflected in note 15c, the fair value the
identifiable assets acquired from ULR and
Logistics Asset Management Newco Limited was
£726.8 million generating goodwill of £8.1 million,
as the consideration paid was more than the
fair value of the assets acquired. The goodwill
arising was largely due to the consideration paid
being based on the Company’s share price at
completion of 202.2p, which was higher than the
adjusted NTA used to determine the exchange
ratio. The goodwill has been fully impaired and
reflected in the income statement in the year as
the future cash flows arising in the form of rental
income were fully incorporated into the fair value
of the assets acquired.
Significant accounting matter – Property valuations Significant accounting matter – Significant transactions
Audit, risk and internal control
Conclusion
The Committee confirmed to the Board
that it was satisfied that the external
property valuation included within the
financial statements had been carried
out appropriately, independently and in
accordance with industry valuation standards.
Conclusion
The Committee concurred with the approach
adopted by management in each case.
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Risk management and internal control
The Board recognises the importance of effective risk
management and internal control processes in managing business
risks and delivering strategy. Risk awareness guides decision
making and is supported by robust procedures for identifying and
managing risks.
Detailed information, including the Audit Committee’s work
and the preparations underway to ensure compliance with the
Provision 29 controls declaration as at 31 March 2027, can be
found in the Risk management and internal controls section on
page 72.
BDO has continued to support management in scoping the
Group’s business cycles and improving process documentation.
Management presented an initial assessment of material controls
to the Committee in March. The Committee challenged the
scope, prioritisation and proposed next steps, including the
planned enhancements to the controls framework.
The Committee expects the controls framework to transition from
documentation to embedded operation and testing next year.
The Committee has continued to assist the Board by reviewing
the detailed risk register and internal control questionnaire
prepared by the Senior Leadership Team. Additionally, it received
a cyber security update outlining improvements and future focus
areas including the development and use of AI platforms, as
well as a review of tenant covenants and details of review and
monitoring processes.
Preparing for the Provision 29 controls declaration on page 72
Internal audit
The Group does not maintain an internal audit function due to its
size, straightforward structure, and close management oversight.
The Committee reviews this need annually, recognising that
as the Group grows, a robust assurance framework becomes
more essential and new Code regulations require clear evidence
of controls.
External advisors are engaged for specialist reviews, such
as IT systems and security testing and support with tax and
ESG matters.
The Committee is satisfied that, at this stage, targeted external
assurance and management-led control testing provide
proportionate and effective assurance and agreed that external
assurance should be sought for any complex, specialist or high
risk issues.
External audit
The Committee maintains a constructive working relationship
with its external auditor, Deloitte, led by Rachel Argyle. Under UK
regulations, the lead partner must be rotated every five years, a
formal tender held every ten years, and the auditor changed every
twenty years. Rachel Argyle will leave her role after the 2027 year
end, and Deloitte will cease serving as auditor after the 2033
year end.
This year, the Company has complied with the Competition and
Markets Authority Order 2014 concerning non audit services.
Oversight
A primary responsibility of the Audit Committee is to evaluate
the effectiveness and quality of the external audit process, in
alignment with the FRC’s ‘Audit Committees and the External
Audit: Minimum Standard.’ The success of the audit depends
on the proper identification of audit risks at the beginning of the
audit cycle.
Deloitte presented their audit plan to the Committee in March,
outlining key areas of audit risk, including property valuations and
management override of controls. The Committee discussed and
approved the level of audit materiality.
Deloitte subsequently shared their audit findings with the
Committee ahead of both interim and full year results.
The Committee reviewed and scrutinised the auditor’s work,
concentrating on principal assumptions and identified audit risks.
Additionally, the Committee held private discussions with the
auditor without management present.
Effectiveness
The Committee evaluated the external audit process by reviewing
the audit plan, deliverables, independence, objectivity, fees, and
reappointment. Its assessment considered the audit partner’s
expertise, consistency, quality, and timeliness of deliverables, as
well as how well the plan was followed, the level of independent
scrutiny, and understanding of key issues. The Committee
also factored in management’s feedback after the audit
clearance meeting.
Audit, risk and internal control
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Independence
The Committee values auditor objectivity and independence,
which may be affected by non audit services. The Company
assesses these services on a case by case basis, requiring
Executive Director pre-approval for fees up to £100,000 or
Audit Committee review above that amount. Guidelines include
maintaining auditor independence, auditor confirmation
of independence, and prohibiting certain services such as
bookkeeping, financial statement preparation, system design,
taxation, valuation, remuneration and legal advice. PwC, Grant
Thornton and BDO provided taxation services in the year.
Remuneration advice was provided by Korn Ferry. Provision 29
controls work and the audit of certain subsidiary companies was
undertaken by BDO. This year, approval was given for Deloitte to
prepare a comfort letter for the inaugural public bond issue.
Year to 31 March
2026
£000
2025
£000
2024
£000
Audit fees 783 620 626
Review of interim results 104 95 50
Comfort letter for EMTN programme 80 – –
Total 967 715 676
Ratio of non audit fees (including
interim review) to audit fees
23% 15% 8%
Deloitte confirmed its independence to the Audit Committee,
highlighting internal safeguards and procedures that maintain
objectivity and prevent conflicts with non audit work. The three
year average ratio of non audit fees to audit fees is low at 16%,
supporting Deloitte’s continued independence.
The Audit Committee found this year’s audit well planned,
executed and high quality. Deloitte remained professional,
objective and independent throughout.
Regulatory compliance
Section 172 duties
The Audit Committee reviewed the Board’s responsibilities under
Section 172 of the Companies Act 2006, focusing on promoting
the Company’s success for its members. The Chief Financial
Officer provided a report to the Committee detailing how the
Board addressed stakeholder needs during the year.
The Board’s Section 172 statement is on pages 99 to 101 and
engagement with stakeholders is set out in the Responsible
Business and ESG review on pages 48 to 62.
Going concern and viability
The Audit Committee reviewed the suitability of preparing the
financial statements on a going concern basis and supported the
Board’s Viability Statement. The assessment included principal
risks, risk appetite, period of assessment, financial position, loan
covenant headroom, undrawn facilities, investment commitments
and stress tested forecasts. Scenario testing covered interest
rate increases, reduced rental income and lower property values.
After its review, the Committee confirmed that the going concern
basis is appropriate and recommended Board approval of the
Going Concern and Viability statements, which can be found on
pages 85 to 86.
Whistleblowing procedures, anti-corruption
and anti-bribery
The Company operates with honesty and professionalism,
enforcing strict integrity standards and zero tolerance for
misconduct. Employees receive whistleblowing and
anti-corruption guidelines at onboarding and ongoing ethics
training. The Board is responsible for reviewing and monitoring
whistleblowing activities, and the Committee reports any
incidents that are brought to its attention to the Board. No cases
were reported during the review period.
Climate-related disclosures
The Committee reviewed how the Company identifies
and assesses climate risk, confirming alignment with TCFD
recommendations. Members were reassured by strong risk
management processes and positive third party benchmarking,
which support industry standard disclosures and ensure suitable
reporting each year.
The Company’s TCFD disclosure is found on pages 63 to 69 in
the Responsible Business and ESG review and showcases the
Company’s commitment to transparent and comprehensive
climate-related reporting. The statement includes early
integration of the expected UK Sustainability Reporting Standard
S2: Climate-related Disclosures, with key additional requirements
already embedded within existing governance and risk processes.
Focus areas identified for next year include strengthening the
financial quantification aspects of disclosure (Strategy B and
Strategy C) and improving the measurement and coverage of
Scope 3 emissions generated by tenants (Metrics & Targets B).
The Company also continues to monitor its key physical and
transition risks, particularly those related to flood risk and
environmental legislation.
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Fair, balanced and understandable review process:
The Committee concluded that the Annual Report was fair,
balanced and understandable, allowing the Board to make its
statement on page 152.
Looking ahead
Next year, in addition to our usual work, the Committee will focus
on the following key matters:
• Continue to receive regular progress reports and monitor
delivery of the programme of works underway to support the
Board’s declaration on the effectiveness of material controls
as at 31 March 2027 in accordance with Provision 29 of the UK
Corporate Governance Code 2024;
• Assess the evolving sustainability reporting requirements; and
• Oversee the assessment and pathway for compliance with IFRS
18 Presentation and Disclosure in Financial Statements which
will come into effect for the Group on 1 April 2027.
Finally, I would like to thank my fellow Committee members for
their commitment and valuable contribution this year.
Kitty Patmore
Chair of the Audit Committee
21 May 2026
Management preparation and review
• A team of experienced senior managers from finance,
investor relations and property was established with
clear responsibilities for preparing and reviewing
relevant sections of the report
• Team members attended a corporate governance and
accounting update presented by the external auditor in
February 2026
• Regular liaison of team members during the drafting
stages ensured consistency in tone and message,
balanced content and appropriate linkage
Executive Director involvement
• The team sought input from the Executive Directors
early in the process on the design and overall message
and tone of the report
• Executive Directors were closely involved throughout
the process, with extensive review of drafting
Verification
• The team conducted an extensive verification exercise
to ensure factual accuracy and consistency throughout
the report
• The external auditor’s review considered the tone,
message and consistency of the report and findings
were reported to the Committee
Board approval
• The Committee reviewed the Annual Report ahead of
its meeting to approve in May and fed back comments
to the Chief Financial Officer and wider team
• The Board considered the Committee’s
recommendation that the Annual Report taken as a
whole is fair, balanced and understandable
Fair, balanced and understandable
At the request of the Board, the Audit Committee considered
whether this Annual Report was a fair, balanced and
understandable assessment of the Group’s position and
prospects. The review process and considerations taken into
account are set out below.
Fair, balanced and understandable considerations:
In carrying out its review, the Committee considered the
following criteria:
Fair
• Does it provide shareholders with information to assess
the Group’s position and performance, business model
and strategy?
• Does it include relevant and necessary transactions
and balances?
• Does it include the required regulatory disclosures?
• Is it honest, reporting both successes and opportunities
alongside challenges to the business?
Balanced
• Does it present the complete story and are key messages
appropriately reflected?
• Is it consistent throughout with sufficient linkage?
• Is there an appropriate mix of statutory and alternative
performance measures?
• Are alternative performance measures explained and
reconciled to the financial statements?
Understandable
• Is it written in straightforward language without
unnecessary repetition?
• Does it use diagrams, charts, tables and case studies to
break up lengthy narratives?
• Is there a clear contents page to aid navigation and
sufficient signposting?
Audit Committee report continued
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Our remuneration framework aligns executive reward with
strategy, performance and workforce pay.
The Committee’s role is to operate a fair and transparent reward
structure that motivates and incentivises the Executive Directors
to deliver the Group’s strategic goals, reward exceptional
performance and retain high calibre individuals for the long term.
Remuneration Policy
• Set and review the Directors’ Remuneration Policy and ensure
it is aligned to the Company’s purpose and values and the
delivery of its strategy
• Set the remuneration of the Executive Directors and oversee
senior leadership workforce remuneration arrangements
Read more from page 123
Remuneration packages and payouts
• Determine and review individual remuneration packages
• Approve salaries, bonuses and LTIP awards
Read more in the Annual Report on Remuneration from
page 136
Variable incentives
• Determine and review the Long Term Incentive Plan (‘LTIP’)
and Annual Bonus Plan arrangements
• Approve targets and outcomes
Read more in the Annual Report on Remuneration from
page 136
Highlights this year
• Considered and approved the appointment of Korn Ferry
as advisor following a competitive tender process
• Reviewed the Directors’ Remuneration Policy and
consulted with shareholders on its design and performance
measures ahead of the mandatory vote at this year’s AGM
• Considered employees’ views on executive pay through
attendance at the workforce Non Executive Director’s
annual staff meeting
• Approved the variable elements of the annual bonus and
LTIP performance against targets set
Membership and attendance
The number of Committee members and their attendance
during the year was as follows:
Member
Date
appointed
Tenure
(years)
1
Meetings
attended
2
Suzy Neubert (Chair) 29/9/2023 3 5 (5)
Suzanne Avery 19/9/2018 8 5 (5)
Andrew Livingston
3
28/1/2021 – 1 (1)
Robert Fowlds 31/1/2019 7 5 (5)
Alistair Elliott 28/1/2026 – 1 (1)
1 Tenure is measured from date of appointment to the Committee and as at 31 March
2026, rounded to the nearest whole year
2 Bracketed numbers indicate the number of meetings the member was eligible to attend
3 Andrew Livingston retired 20 May 2025
Key responsibilities
Governance
• Maintain open communication with shareholders on
remuneration decisions and policies
• Feedback to the Board on remuneration matters
• Review and approve the annual Remuneration
Committee report
This report is structured as follows:
• Committee Chair’s introduction, which summarises the work,
key decisions taken and outcomes (pages 119 to 121);
• Directors’ Remuneration Policy (‘Policy’) overview and
illustrations (pages 123 to 135); and
• Annual Report on Remuneration which describes how the
Policy has been applied for the year ending 31 March 2026
and how we intend to implement the Policy for the year to
31 March 2027 (pages 136 to 148).
Remuneration Committee report
Remuneration
Our focus this year has been to consult with
shareholders on the Directors’ Remuneration
Policy and approve proposed changes ahead
of the mandatory vote at the AGM in July.
Suzy Neubert
Remuneration Committee Chair
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On behalf of the Remuneration Committee, I am delighted to
present my first report as Chair for the year to 31 March 2026,
having succeeded Robert Fowlds following the last AGM on
9 July 2025.
Remuneration aligned to purpose and strategy
Our remuneration framework continues to be strongly aligned with
the Company’s purpose, strategy and performance as well as the
interests of our shareholders as reflected in the chart on page 134.
Delivery of these strategic objectives is measured using key
performance metrics that are embedded within the variable
elements of remuneration, being EPRA Earnings per Share (‘EPS’),
Total Property Return (‘TPR’), Total Accounting Return (‘TAR’)
and Total Shareholder Return (‘TSR’). Strategic and ESG based
metrics were introduced to the annual bonus as part of the Policy
approved in 2023.
New Remuneration Policy
We have consulted our largest shareholders and the leading
proxy voting agencies on proposed revisions to the Directors’
Remuneration Policy so that approval for a new Policy can
be sought at the AGM in July. The engagement process was
very helpful in shaping our proposals which are set out later in
this report.
The context for the new Policy is the continued growth in the
business in terms of both assets and complexity.
The last material increase in remuneration for the CEO and
CFO was in June 2024, when salaries were increased to bring
them to market levels to reflect the significant shift in scale of
the business. Since then, the Company has expanded through
acquisitions including Urban Logistics REIT Plc (‘ULR’) and
Highcroft Investments plc (‘Highcroft’), which added £1.2 billion
of assets to the portfolio this year, and has successfully integrated
these businesses and LXi. This has been evidenced by EPRA EPS
increasing to 13.5p in 2026 from 10.9p in 2024. The Company has
performed particularly well on a sustained basis over the last ten
years, consistently outperforming the REIT sector as illustrated by
the TSR chart on page 146, and has been a FTSE 100 constituent
since June 2024.
As part of our triennial review of the Policy, we have considered
the market positioning of our executives’ remuneration to ensure
that there is no disconnect between business performance,
size and remuneration opportunity. This review had identified
that target total remuneration for both the CEO and CFO has
(i) slipped below the lower quartile compared to a pan-sector
group of 20 companies above and 20 below LondonMetric’s six
month average market capitalisation (excluding financial services
companies) and (ii) in relation to the other FTSE 100 REITs at the
time of the consultation (SEGRO, Land Securities, British Land
and Unite), target total remuneration now ranks fourth out of five.
The Committee notes that this is primarily a function of materially
below market LTIP grant levels. These were last increased in 2016,
by 25% of salary, and the Policy maximum has not changed
since 2013.
Having taken these factors into account, the only substantive
change we are making is to propose a higher level of maximum
LTIP award. This is an increase of 75% of salary for the CEO and
60% of salary for the CFO. Feedback we received during the
consultation was very supportive of this change. During the
discussions of LTIP performance metrics we acknowledged
shareholders’ feedback and dropped a proposal to introduce a
15% weighting on EPRA cost ratio performance, instead increasing
the weighting on EPRA EPS growth to 45%. This better reflects
the income focus of the Company than has been the case up
to now.
The full Policy is set out on pages 123 to 135.
Performance during the year
Throughout a year filled with ongoing global economic instability,
elevated geopolitical risks, and the uncertainty created by the
delayed Autumn Budget, we have continued to strengthen the
Company. Our M&A activity has been a significant focus, with the
acquisitions and full operational integration of ULR and Highcroft
completing in the first half year. Our portfolio has been improved
with profitable new acquisitions, alongside the sale of weaker, non
core assets predominantly inherited from LXi and ULR. In this
demanding market, these efforts required considerable resources
and attention due to liquidity challenges in the investment sector.
Our balance sheet and financial position was also strengthened
by the significant amount of debt refinancing undertaken in the
year. We arranged £1.2 billion of new unsecured facilities, including
a £150.0 million US private placement featuring the tightest
credit spreads seen by any REIT globally in the USPP market over
the past three years, and a £500 million inaugural public bond
issue rated A- by Fitch. Additionally, we repaid and cancelled
facilities totalling £1.1 billion and refinanced a further £1.5 billion of
unsecured facilities and term loans, securing better rates and with
a diversified lending pool.
Operationally, we advanced rent reviews and lease renegotiations,
adding £16.6 million additional income and achieving exceptional
income growth that surpassed expectations.
Our investment and asset management activity allowed us to
deliver another strong set of results and grow both EPRA earnings
and NTA. Our 2.4% growth in EPRA earnings per share allowed us
to increase our dividend for the year by 3.8% to 12.45p per share,
whilst maintaining full earnings and cash cover.
Given the organisation’s strong financial and operational
performance, the Committee considers it entirely appropriate to
reward the Executive Directors with the variable elements of this
year’s annual bonus and LTIP in line with the formulaic outcomes
as detailed below.
Salary increases
The Committee approved a 4.5% increase to Executive Director
salaries to apply from 1 June 2026, which is below the average
increase awarded to the workforce of 6.0%. This follows an
increase from 1 June 2025 of 2.5% for the Executive Directors and
an average increase of 6.5% for the workforce.
Committee Chair’s introduction
Remuneration
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Annual bonus
The metrics determined for the annual bonus for the year
to 31 March 2026 were based on Growth in EPRA EPS (30%
weighting), Growth in Total Property Return (‘TPR’) (30%
weighting), Strategic objectives (30% weighting) and ESG
objectives (10%) and consistent with last year, the Remuneration
Committee determined to measure EPS performance on both a
quantitative (50%) and qualitative (50%) basis.
The maximum opportunity remained at 165% of salary for the
Chief Executive and 140% of salary for the Chief Financial Officer.
EPRA EPS performance was strong and increased to 13.5p, which
was greater than the financial target set.
Significant progress was made on the four qualitative factors
set including: progress of non core disposals and reducing the
exposure to vacant ULR assets, evolution of the portfolio toward
preferred sector choices, increased exposure to market rent
reviews and the effective integration of ULR and Highcroft.
The Committee deemed that strong progress had been made
against the qualitative pillars of EPS, and in combination with the
above target quantitative outcome, this element would be met
in full.
In line with best practice, TPR is measured on a multi year basis
(over one and three years) based on the relative outperformance
against the MSCI all property benchmark to 31 March 2026.
The Committee is satisfied that this approach measures and
rewards the longer term investing principles inherent in the real
estate sector.
Relative outperformance was above the maximum target and
therefore the TPR element paid out in full.
A significant proportion of the strategic and ESG elements of the
annual bonus were determined based on quantifiable targets
set with respect to three key pillars of business strategy – own
desirable assets; be partner of choice and generate income-led
TSR with good governance. For the strategic element, these
included logistics exposure, gross to net income leakage, like
for like income growth, occupancy rate, balance sheet strength,
diversity of lenders and EPRA cost ratio. In relation to the ESG
element, objectives set included EPC ratings, tenant incentives
linked to asset sustainability improvements, employee and
occupier satisfaction, improved benchmark scores and occupier
data collection rates.
The Committee assessed that the Executive Directors achieved
their Strategic and ESG target, which paid out at 94.4% and 81.9%
of maximum respectively. Overall, the Committee determined
annual bonuses for the Executive Directors to be at 96.5% of
their respective maximum levels. Full details of all the objectives,
targets and their assessment is set out on pages 140 to 142.
LTIP vesting
Vesting of the LTIP awards granted to Executive Directors in 2023
is dependent on Company performance over the three years to
31 March 2026. Performance is measured by reference to TAR
and TSR relative to the FTSE 350 Super Sector Real Estate index
excluding agencies and operators (37.5% weighting each) and
EPRA EPS growth (25% weighting).
In line with last year and reflecting the significant M&A activity
undertaken by the Company, the Committee discussed and
approved the same adjustment to the way in which TAR is defined
for the purpose of determining the incentive outcomes, to reflect
the amortisation of significant and exceptional one-off costs
borne as a result of the M&A strategy. The Committee felt that
with this adjustment, TAR was reflective of the true business
performance matching the costs of M&A activity with the benefits
derived from it. Based on this approach, the TAR element will vest
in full.
As actual TSR growth over the measurement period was equal to
the upper quartile threshold of 30.8%, the TSR element will vest
in full.
Lastly, as set out in the earlier annual bonus section, the EPRA
EPS outcome for the year of 13.5p was above the maximum target
and therefore this element will vest in full.
Taking into account the performance under the EPRA EPS growth,
relative TSR and TAR conditions, all of the 2023 LTIP will vest
in June 2026 subject to a two year post vesting holding period.
22 other employees will benefit from the vesting of this award,
and the Committee retains the objective of widening share
ownership below the Executive level. To this end, LTIP awards will
be granted to all employees who have worked for the Company
for more than one year.
LTIP awards
The Group’s LTIP arrangements seek to align executive pay with
the delivery of long term growth in shareholder value.
This year, 1,263,195 share awards were granted to the Executive
Directors and 761,642 LTIP awards vested. The Directors
disposed of 359,050 shares to settle tax liabilities and retained
the remaining 402,592 shares which increased their holding in
the Company.
Looking forward
Our focus next year will be to oversee the implementation of the
proposed new Policy and ensure that remuneration arrangements
and packages continue to incentivise management.
Chair’s introduction continued
Remuneration
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120
Conclusion
The Company has had another strong year, defined by M&A
activity and its successful integration into the business, together
with the recycling of assets and strengthening the Group’s
debt structure. The Committee believes that the remuneration
outcomes are entirely appropriate and reflective of the strong
business performance this year.
I look forward to your support at our forthcoming AGM and
welcome feedback from shareholders. I will be available
at the AGM should you have any questions and can be
contacted through the Company Secretary at other times at
info@londonmetric.com.
Finally, I would like to express my gratitude to the Committee
members for their dedication and support throughout the year, as
well as to our employees for their unwavering commitment that
led to these exceptional results.
Suzy Neubert
Chair of the Remuneration Committee
21 May 2026
Chair’s introduction continued
The Committee is satisfied that the amount payable under the
variable incentive plans is a fair reflection of the underlying
performance of the business. As such, no discretion was
exercised by the Committee in relation to the formulaic
outcomes. In making this assessment, the Committee took
account of the following factors:
The Company achieved a strong set of financial results,
allowing the Board to propose an increase to the dividend
for the year to 31 March 2026 of 3.8% which was also
covered 108% by EPRA earnings
Successful recycling of capital increasing the Group’s
logistics weighting to 53%, up from 46% last year
Accretive asset management initiatives, delivering
£16.6 million of rental uplift through reviews and lettings
Remuneration Committee assessment
The Committee is satisfied that
the Policy operated as intended
in the year to 31 March 2026.
Remuneration
Maintained the strength and quality of the portfolio and
tenant mix with a WAULT of 16.9 years and occupancy
of 97.7%
ESG embedded into operations and high EPC rating
maintained with 92% of assets rated A to C and 60%
rated A to B, up from 58% last year
Strengthened balance sheet and financial position
through £1.2 billion new facilities and £1.5 billion debt
refinancing at reduced rates and with a diversified
lending pool
All employees received an annual bonus and LTIP awards
will be granted to all employees who have worked for the
Company for more than one year
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Directors’ remuneration at a glance
Annual bonus plan – targets and outcome
Performance measure
Payout target
Actual
%
awarded25% 100%
EPRA EPS 13.1p 13.4p 13.5p 100%
TPR (3 year All Property) 10.9% 3.1% 21.4% 100%
TPR (1 year All Property) 5.4% 6.5% 7.1% 100%
2023 LTIPs vesting – targets and outcomes
Performance measure
Payout target
25% 100% Actual
%
awarded
TSR 9.1% 30.8% 30.8% 100%
TAR 3.5% 15.4% 26.2% 100%
EPRA EPS 11.5% 11.9% 13.5p 100%
The level of LTIP vesting in 2026 demonstrates the successful performance of the Company over the three year performance period with
strong absolute earnings growth and a resulting comparative return performance in excess of many of the Company’s direct competitors.
Combining these outcomes with
the strategic and ESG objectives
gives the following payouts
1
: £000
% of
maximum
Andrew Jones 1,306 96.5
Martin McGann 727 96.5
1 Full details of the strategic and ESG objectives and the Committee’s assessment of their
achievement is set out on pages 141 to 142
LTIPs granted in the year
Basis of award
(% of salary) Date of grant
Share awards
number
Face value per
share
Face value of
award £000
Andrew Jones 200% 3 June 2025 819,508 200.1p 1,640
Martin McGann 165% 3 June 2025 443,687 200.1p 888
The estimated number of shares vesting are as
follows: Number
%
awarded
Andrew Jones 829,329 100%
Martin McGann 437,791 100%
Earnings for the financial year
Remuneration for
Executive Directors
Salary
£000
Benefits
£000
Pension
£000
Bonus
£000
LTIP
3
£000
Total
2026
2
£000
Total
2025
£000
Illustrative change in value
of shares owned and
outstanding share awards
1
£000
Andrew Jones 817 29 82 1,306 1,651 3,885 3,159 860
Martin McGann 536 31 53 727 872 2,219 1,821 466
1 Based on an illustrative swing in share price of 10p. For reference, the highest closing share price during the year was 215.0p and the lowest closing price was 170.5p. The number of shares and share awards was calculated based on the year end total
2 Full details of Directors’ remuneration for the year can be found in the table on page 139
3 2023 LTIP awards expected to vest in June 2026
Remuneration
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Directors’ Remuneration Policy
The current Policy, which was approved with over a 99% vote in
favour at the December 2023 General Meeting, is approaching the
end of its three year term.
This section outlines the proposed 2026 Policy which, subject
to shareholder approval at the AGM, will take effect from 9 July
2026. Payments to Directors can only be made if they are
consistent with the Policy, or by an amendment to the Policy as
approved by shareholders.
The Policy has been prepared in accordance with The Large and
Medium-sized Companies and Groups (Accounts and Reports)
Regulations 2008 (as amended) and the provisions of the current
UK Corporate Governance Code and the UK Listing Rules.
The Board delegated its responsibility to the Remuneration
Committee to establish the Policy for the remuneration of the
Executive Directors and the Chair. The Board has established the
Policy for the remuneration of the other Non Executive Directors.
The Committee sets the Policy for Executive Directors, taking into
account the Company’s strategic objectives over both the short
and the long term as well as external market practices.
The Committee oversees the operation of employee pay
practices, ensuring that incentives for employees support the
culture and values of the Company.
In order to manage conflicts of interest, no Director or employee
participates in discussions pertaining to their own remuneration.
The Committee reviews the performance of its external
advisors on an annual basis to ensure that the advice provided is
independent of any support provided to management.
Overview of our Policy
The Group’s Policy is designed to align executive pay and
incentives with the Company’s goals and encourage and
reward exceptional overall and individual performance. As well
as motivating performance, remuneration plays a key role in
retaining highly regarded individuals and needs to be competitive.
The principles which underpin the Policy ensure that Executive
Directors’ remuneration:
• Is aligned to the business strategy and achievement of
business goals;
• Is aligned with the interests of shareholders by encouraging high
levels of share ownership;
• Attracts, motivates and retains high calibre individuals;
• Is competitive in relation to other comparable real
estate companies;
• Is set in the context of pay and employment conditions of other
employees; and
• Rewards superior performance through the variable elements
of remuneration that are linked to performance.
Main changes to the Policy
During the course of the last year, the Committee has carried out
its triennial review of the Policy with the assistance of our newly
appointed advisors, Korn Ferry. The review concluded that the
current Policy was broadly fit for purpose in its overall design
but fell short in terms of the incentive opportunity relative to
our peers and companies of a similar size and standing in the UK
listed market. Further explanation is contained in the Committee
Chair’s statement on page 119.
The substantive change proposed is to increase the opportunity
under the LTIP to 275% of salary for the CEO and to 225% of
salary for other Executive Directors. The Committee has taken
the opportunity to review the detailed wording of the Policy and
update it to both simplify it and provide minor additional flexibility
where it might be beneficial over the next three years.
Minor amendments include:
• The ability to pay NED fees in shares and also to reflect
additional time commitment with higher fee levels;
• The ability to pay an Executive Director a temporary additional
allowance where their responsibilities and/or role change on a
temporary basis; and
• Permitting the Committee to set the threshold payment at less
than 25% of maximum in the annual bonus plan and LTIP.
Remuneration
Our remuneration framework aligns
executive reward with strategy,
performance and workforce pay.
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Directors’ Remuneration Policy continued
Executive Directors’ Remuneration Policy Table
The policy table below sets out the key elements of the remuneration package for Executive Directors.
Base salary
Purpose and link to strategy Provide a competitive level of fixed pay to attract and retain Executive Directors of the required calibre to deliver the Group’s strategy.
The level of pay reflects individuals’ skills, seniority and experience and complexity of the role.
Operation An Executive Director’s basic salary is set on appointment and reviewed annually with changes normally taking effect from 1 June or when there is a change in position
or responsibility.
When determining an appropriate level of salary, the Committee considers:
• Pay increases to other employees
• Remuneration practices within comparable real estate companies
• Any change in scope, role and responsibilities
• The general performance of the Company and each individual
• The experience of the relevant Director
• The economic environment
Individuals who are recruited or promoted to the Board may, on occasion, have their salaries set below the targeted policy level until they become established in their
role. In such cases subsequent increases in salary may be higher than the general rise for employees until the target positioning is achieved. A temporary additional
allowance may be paid where an individual’s responsibilities/role change on what is expected to be a temporary basis.
Maximum opportunity The Committee ensures that maximum salary levels are positioned in line with companies of a similar size to the Group and validated against other real estate
companies, so that they are competitive against the market.
The Committee intends to review the comparator group each year and will add or remove companies as it considers appropriate.
In general, salary increases for Executive Directors will be in line with the increase for employees. However, larger increases may be offered if there is a material change in
the scope and responsibilities of the role, including significant changes in Group size and/or complexity or if it is necessary to remain competitive to retain a Director.
Performance measures The Directors are subject to an annual performance assessment, the outcome of which is taken into account when setting base salaries.
Pension
Purpose and link to strategy Provide a competitive post retirement benefit to attract and retain individuals.
Operation The Company provides a pension contribution allowance in line with practice relative to its comparators to enable the Company to recruit and retain Executive Directors
with the experience and expertise to deliver the Group’s strategy.
This allowance will be a non-consolidated allowance and will not impact any incentive calculations.
Maximum opportunity The maximum pension contribution rate is 10% of salary for Executive Directors, aligned to the wider workforce. Where there is any increase to the pension contribution
rate received by the wider workforce, the Executive Directors will be entitled to receive the same contribution level at the discretion of the Remuneration Committee
which, for the avoidance of doubt, could be more than 10% of salary. No element other than base salary is pensionable.
Performance measures None.
Remuneration
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Benefits
Purpose and link to strategy Provide a comprehensive and competitive benefit package to aid recruitment and the retention of high quality Executive Directors.
Operation Each Executive Director receives the following:
• Car allowance
• Private medical insurance
• Life insurance
• Permanent health insurance
The Committee recognises the need to maintain suitable flexibility in the determination of benefits that ensures it is able to support the objective of attracting and
retaining personnel. Accordingly, the Committee would expect to be able to adopt benefits such as relocation expenses, tax equalisation and support in meeting specific
costs incurred by Executive Directors to ensure the Company and the individuals comply with their obligations in the reporting of remuneration.
Additional benefits which are available to other employees on broadly similar terms may be offered.
Maximum opportunity Car allowance is £20,000 per annum for each Executive Director.
Other benefits are provided at the market rate and therefore the cost will vary from year to year based on the cost from third party providers.
Performance measures None.
Annual bonus
Purpose and link to strategy Incentivise the achievement of annual financial targets consistent with the Group’s business plan for the relevant financial year as well as the delivery of non
financial targets.
Operation Annual performance measures, targets and their weightings are set by the Committee at the start of the financial year, linked to the Group’s long term strategy.
Executive Directors who have met their minimum shareholding requirement have the option to receive the annual bonus paid in cash. For those who are yet to meet the
minimum shareholding requirement, up to 100%, and at least 50%, of the annual bonus will be paid in deferred shares vesting over three years.
Dividend equivalents will be payable on deferred shares. The annual bonus contains malus and clawback provisions.
Maximum opportunity The maximum bonus for the Chief Executive is 165% of salary and 140% of salary for other Executive Directors. Target bonus is normally half of the maximum
opportunity. The threshold for the bonus is up to 25% of the maximum opportunity.
Performance measures Performance is assessed against target financial and non financial measures depending on the annual priorities of the business. The Committee may amend the
measures used each year in line with the Group’s general business strategy as well as vary weightings from year to year.
At least 75% of the bonus will be based on quantifiable targets. Non financial targets will be set to measure (for example) strategic and ESG performance as well as
contribution to the achievement of portfolio management initiatives and other operational management objectives.
The Committee will set challenging annual targets that are appropriately stretching, but achievable. The Committee is of the opinion that due to the commercial
sensitivity of annual targets, they will be disclosed retrospectively.
In exceptional circumstances where the Committee believes the original measures and/or targets are no longer appropriate, the Committee has discretion to amend
performance measures and targets during the year as long as these are considered equally stretching as the original measures and/or targets.
The Committee retains discretion to make downward or upward adjustments to the amount of bonus payable resulting from the application of the performance
measures if it believes that the outcomes are not a fair and accurate reflection of business performance.
Directors’ Remuneration Policy continued
Remuneration
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Directors’ Remuneration Policy continued
Long term incentives
Purpose and link to strategy Incentivise and reward the delivery of long term Group performance and sustained growth in line with business strategy, thereby building a shareholding in the Group
and aligning Executive Directors’ interests with shareholders.
Operation Awards are granted annually to Executive Directors in the form of a conditional share award or nil cost option.
Details of the performance conditions will typically be set out in the Annual Report on Remuneration on a prospective basis. If the Committee decides that any metric is
commercially sensitive for future grants, details will be disclosed retrospectively in the Annual Report on Remuneration.
Awards will normally vest at the end of a three year period subject to:
• The Executive Director’s continued employment at the date of vesting; and
• Satisfaction of the performance conditions.
Vested awards will be subject to a further two year holding period during which Executive Directors cannot dispose of shares other than for tax purposes. The Committee
may award dividend equivalents on awards that vest. The LTIP contains malus and clawback provisions.
Maximum opportunity Annual awards with a maximum value of up to 275% of salary for the Chief Executive and 225% of salary for other Executive Directors. Up to 25% of the award will vest
for threshold performance. 100% of the award will vest for maximum performance. There is normally straight line vesting between these points.
Performance measures The performance measures for the LTIP are set by the Committee and are based on a combination of metrics, with at least 50% being financial in nature.
The performance period is three years. The Committee may change the balance of the measures or use different measures for awards as appropriate. No material
change will be made to the type of performance conditions without prior shareholder consultation.
In exceptional circumstances the Committee retains the discretion to:
• Vary, substitute or waive the performance conditions applying to LTIP awards if it considers it appropriate and the new performance conditions are deemed reasonable
and are not materially less difficult to satisfy than the original conditions; and
• Make downward or upward adjustments to the amount vesting under the LTIP award resulting from the application of the performance measures if it believes that the
outcomes are not a fair and accurate reflection of business performance.
Remuneration
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Directors’ Remuneration Policy continued
Annual Bonus
Performance measures
and weightings
• 30% Growth in EPRA EPS
• 30% Growth in Total Property Return (‘TPR’)
• 30% Strategic objectives
• 10% ESG objectives
Performance targets The relative TPR measurement will be based on performance against the relevant MSCI All Property indices on an annual and multi year basis. Full payout if growth is
equal to 1.2 times the relevant index; 25% payout if growth is equal to the relevant index; Straight line interpolation between points. The Board deems all other specific
annual bonus targets to be commercially sensitive.
Full details of next year’s targets and their achievement will be disclosed retrospectively in the Directors’ Remuneration Report for the year to 31 March 2027.
Why measures were chosen Incentivise the achievement of annual financial targets consistent with the Group’s business plan with particular focus on TPR and EPRA EPS. The strategic objectives
ensure that management is rewarded for the achievement of additional targets linked to value generation for shareholders. Linking the Executive Directors’ annual bonus
to ESG objectives is reflective of broader investor views and ensures the Executive Directors are incentivised to deliver the Company’s ESG strategy.
How targets are set The performance targets are calibrated by the Committee considering the Company’s business plan, strategic and operational objectives and market conditions. The TPR threshold
and maximum performance levels are similar to the median and upper quartile TAR and TSR relative vesting scales in the LTIP. The Committee will aim to set quantifiable
targets where possible against ESG measures but recognises the challenge as an investment company, rather than a pure operator, of capturing quality carbon and related data.
LTIP
Performance measures
and weightings
• 30% Total Shareholder Return (‘TSR’) versus FTSE 350 Real Estate Super Sector Index (excluding agencies and operators)
• 25% on relative Total Accounting Return (‘TAR’) against the same peer group as TSR
• 45% on EPRA EPS growth (‘EPS’)
Performance targets The relative TSR and TAR target at threshold level is performance equal to the Index and maximum performance is equal to the upper quartile (weighted by market
capitalisation), with straight line vesting in between.
The Committee will retain the discretion, at vesting, to determine whether the absolute level of TSR return has been acceptable, and to adjust for this if appropriate,
rather than being limited by a formulaic measure. In relation to EPS, vesting will be based on the EPS achieved in the year ending 31 March 2029. Threshold vesting will
be achieved for EPS growth equal to CPIH and maximum vesting for EPS growth of CPIH + 2%. CPIH will be capped at 4.0% per annum with a floor of 2.0% per annum.
Straight line vesting in between threshold and maximum performance.
Why measures were chosen The relative TSR and TAR measures have been selected to reward senior executives for the generation of strong and sustainable long term growth and the delivery
of long term sustainable value for the benefit of shareholders. EPS has been selected as it remains the Company’s primary measure of profitability. Each measure is
consistent with the objective to generate reliable, repetitive and growing income-led total returns.
How targets are set The relative TSR and TAR targets have been set, in line with standard practice, such that threshold vesting is achieved for performance in line with an appropriate index,
with full vesting for upper quartile (weighted by market capitalisation).
The Group’s three year financial forecast was taken into account when setting the EPS targets along with consideration of strategic goals and priorities, proposed
investment and development plans, gearing levels, previous years’ results and the Company’s portfolio lease structure. The CPIH cap and floor are included to reflect the
nature of many of the Company’s leases and ensures a minimum level of growth is required in times of low inflation.
Performance measures and targets
The table below sets out the performance measures chosen in respect of the annual bonus and LTIP in respect of the financial year ending 31 March 2027.
Remuneration
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Directors’ Remuneration Policy continued
Shareholding guidelines
Minimum shareholding requirement
In line with the Group’s remuneration principles, the Policy places
significant importance on aligning the long term interests of
shareholders with those of management by encouraging the
Executive Directors to build up over a five year period and then
subsequently hold a shareholding equivalent to a percentage
of base salary. Adherence to these guidelines is a condition of
continued participation in the equity incentive arrangements.
In addition, Executive Directors will be required to retain at least
50% of the post tax amount of vested shares from the Company
incentive plans until the minimum shareholding requirement is
met and maintained. The following table sets out the minimum
shareholding requirements.
Role
Shareholding requirement
(% of salary)
Chief Executive 700%
Other existing Executive Directors 700%
Newly appointed Executive Directors 400%
Post cessation shareholding requirement
There is a post cessation shareholding requirement for the
Executive Directors, who must retain shares equivalent in value to
the minimum of 200% of salary and their actual shareholding on
cessation for two years post cessation of employment.
This requirement provides further long term alignment with
shareholders and ensures a focus on successful succession planning.
Malus and clawback
The following definition of malus and clawback will apply to both
the annual bonus (including any deferred shares) and the LTIP.
Malus is the adjustment of the annual bonus awards or
unvested LTIP awards because of the occurrence of one or more
circumstances listed. The adjustment may result in the value being
reduced to nil.
Clawback is the recovery of payments made under the annual
bonus or vested LTIP awards as a result of the occurrence of one
or more circumstances listed.
Non Executive Directors’ fees
The fees for Non Executive Directors and the Chair are broadly set
at a competitive level against the comparator group and increases
take account of any change in responsibility.
The aggregate fee for Non Executive Directors and the Chair will
not exceed £1 million.
The base fee for Non Executive Directors has been increased by
2.7% from 1 June 2026. Fees for chairing committees have been
increased to £20,000 to bring them closer in line with market.
The Chair’s fee has been increased by 8.8% from 1 June 2026 to
better align with the peer group.
Chair £310,000
Base Non Executive Director fee £60,000
Senior Independent Director additional fee £10,000
Additional fee for Audit/Remuneration
Committee Chair (plus membership fee) £20,000
Additional fee for Audit/Remuneration
Committee membership £5,000
Remuneration
Remuneration element Malus Clawback
Annual bonus (cash) Up to the date of the cash payment Two years post the date of any cash payment
Annual bonus (deferred shares) To the end of the three year vesting period n/a
LTIP To the end of the three year vesting period Two years post vesting
Clawback may apply to all or part of a participant’s payment under
the annual bonus or LTIP award and may be effected, among
other means, by requiring the transfer of shares, payment of cash
or reduction of awards or bonuses.
The circumstances in which malus and clawback could apply are
as follows:
• Discovery of a material misstatement resulting in an adjustment
in the audited accounts of the Group
• The assessment of any performance condition or condition in
respect of an annual bonus payment or LTIP award was based
on error, or inaccurate or misleading information
• The discovery that any information used to determine the
annual bonus payment or LTIP award was based on error, or
inaccurate or misleading information
• Action or conduct of a participant which amounts to fraud or
gross misconduct
• Events or the behaviour of a participant have led to the censure
of a Group company by a regulatory authority or have had a
significant detrimental impact on the reputation of any Group
company provided that the Board is satisfied that the relevant
participant was responsible for the censure or reputational
damage and that the censure or reputational damage is
attributable to the participant
• Where, as a result of an appropriate review of accountability,
the Remuneration Committee determines that the Executive
Director has caused wholly or in part a corporate failure of
the Company
The table above outlines the time periods during which these
recovery provisions may apply for each element of remuneration.
The Committee has set these time periods to reflect the period of
time that it might reasonably expect that audit procedures would
have identified any of the above circumstances.
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Directors’ Remuneration Policy continued
Non Executive Directors’ Remuneration Policy Table
Fees and benefits
Purpose and link to strategy To attract and retain suitably qualified Non Executive Directors by ensuring fees are competitive. Non Executive Directors are not eligible to receive benefits other than
travel, hospitality-related or other incidental benefits linked to the performance of their duties as a Director.
Operation The Board is responsible for setting the remuneration of the Non Executive Directors. The Remuneration Committee is responsible for setting the Board Chair’s fees.
Non Executive Directors are paid an annual fee and additional fees for the Chair of Committees and for the Senior Independent Director. The Company retains the
flexibility to pay fees for the membership of Committees and performance of additional duties/extra time commitment. The Chair does not receive any additional fees
for membership of Committees.
Fees are reviewed annually based on equivalent roles in the comparator group used to review salaries paid to the Executive Directors and can be paid in cash or shares.
Non Executive Directors and the Chair do not participate in any variable remuneration arrangements or other benefits arrangements.
Maximum opportunity The fees for Non Executive Directors and the Chair are broadly set at a competitive level against the comparator group.
In general, the level of fee increase for the Non Executive Directors and the Chair will be set taking account of any change in responsibility. The aggregate fee for Non
Executive Directors and the Chair will not exceed the limit set out in the Articles of Association, which is currently £1 million.
The Company will pay reasonable expenses incurred by the Non Executive Directors and Chair and may settle any tax incurred in relation to these.
Recruitment remuneration arrangements
The Company’s principle is that the remuneration of any new executive recruit will be assessed in line with the same principles as for the existing Executive Directors, as set out in the Remuneration Policy
table. The Committee is mindful that it wishes to avoid paying more than it considers necessary to secure a preferred candidate with the appropriate calibre and experience needed for the role.
In setting the remuneration for new recruits, the Committee will have regard to guidelines and shareholder sentiment regarding one-off or enhanced short term or long term incentive payments as well as
giving consideration for the appropriateness of any performance measures associated with an award.
Where an existing employee is promoted to the Board, the Policy would apply from the date of promotion but there would be no retrospective application of the Policy in relation to subsisting incentive
awards or remuneration arrangements. Accordingly, prevailing elements of the remuneration package for an existing employee would be honoured and form part of the ongoing remuneration of the person
concerned. These would be disclosed to shareholders in the Annual Report on Remuneration for the relevant financial year.
New Non Executive Directors will be appointed through letters of appointment and fees set at a competitive market level and in line with the other existing Non Executive Directors. Letters of appointment
are normally for an initial term of three years and are subject to a notice period of three months by either party.
Remuneration element Recruitment Policy
Salary, Benefits and Pension These will be set in line with the policy for existing Executive Directors.
Annual Bonus Maximum annual participation will be set in line with the Company’s policy for existing Executive Directors and will not exceed 165% of salary (175% of salary in
exceptional circumstances).
LTIP Maximum annual participation will be set in line with the Company’s policy for existing Executive Directors and will therefore not exceed 275% of salary.
Remuneration
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Directors’ Remuneration Policy continued
Remuneration element Recruitment Policy
Buyout of incentives forfeited on
cessation of employment
Where the Committee determines that the individual circumstance of recruitment justifies the provision of a buyout, the equivalent value of any incentives that will be
forfeited on cessation of an Executive Director’s previous employment will be calculated taking into account the following:
• The proportion of the performance period completed on the date of the Executive Director’s cessation of employment
• The performance conditions attached to the vesting of those incentives and the likelihood of them being satisfied
• For awards which do not include performance conditions, the relevant vesting conditions and any underpins or similar conditions
• Any other terms and conditions having a material effect on their value
The Committee may then grant up to the same value as the forfeited value under the Company’s incentive plans. To the extent that it was not possible or practical to
provide the buyout within the terms of the Company’s existing incentive plans, a bespoke arrangement would be used.
Relocation Policies In instances where the new Executive Director is required to relocate or spend significant time away from their normal residence, the Company may provide one-off
compensation to reflect the cost of relocation for the Executive Director. The level of the relocation package will be assessed on a case by case basis but will take into
consideration any cost of living differences and schooling.
Service contracts and payment for loss of office
Service contracts are terminable by either party with notice of 12 months. The Committee considers this appropriate for all existing and newly appointed Directors. The Executive Directors are subject to
annual re-election at the Company’s AGM. The Non Executive Directors do not have service contracts but are appointed under letters of appointment. Each Non Executive Director is subject to an initial
three year term with annual re-election at the Company’s AGM.
The following definition of leavers will apply to both the annual bonus and the LTIP. A good leaver reason is defined as cessation in the following circumstances:
• Death
• Ill health
• Injury or disability
• Redundancy
• Retirement
• Employing company ceasing to be a Group company
• Transfer of employment to a company which is not a Group company
• At the discretion of the Committee
Cessation of employment in circumstances other than those set out above is cessation for other reasons.
Remuneration element Treatment on cessation of employment
General The Committee will honour Executive Directors’ contractual entitlements. Service contracts do not contain liquidated damages clauses. If a contract is to be terminated,
the Committee will determine such mitigation as it considers fair and reasonable in each case. There is no agreement between the Company and its Directors or
employees providing for compensation for loss of office or employment that occurs because of a takeover bid. The Committee reserves the right to make additional
payments where such payments are made in good faith to discharge an existing legal obligation, or by way of damages for breach of such an obligation or by way of
settlement or compromise of any claim arising in connection with the termination of an Executive Director’s office or employment.
Salary, Benefits and Pension These will be paid over the notice period. The Company has discretion to make a lump sum payment in lieu.
Remuneration
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Directors’ Remuneration Policy continued
Remuneration element Treatment on cessation of employment
Cash bonus Good leaver: performance conditions will be measured at the bonus measurement date. Bonus will normally be pro-rated for the period worked during the financial year.
Other reason: no bonus payable for year of cessation.
Discretion: the Committee has the following elements of discretion:
• To determine that an Executive Director is a good leaver. It is the Committee’s intention to only use this discretion in circumstances where there is an appropriate
business case which will be explained in full to shareholders
• To determine whether to pro-rate the bonus to time. The Committee’s normal policy is that it will pro-rate the bonus for time. It is the Committee’s intention to use
discretion to not pro-rate in circumstances where there is an appropriate business case which will be explained in full to shareholders
Deferred share awards Good leaver: all subsisting deferred share awards will vest.
Other reason: lapse of any unvested deferred share awards.
Discretion: the Committee has the following elements of discretion:
• To determine that an Executive Director is a good leaver. It is the Committee’s intention to only use this discretion in circumstances where there is an appropriate
business case which will be explained in full to shareholders
• To vest deferred shares at the end of the original deferral period or at the date of cessation. The Committee will make this determination depending on the type of good
leaver reason resulting in the cessation
• To determine whether to pro-rate the maximum number of shares to the time from the date of grant to the date of cessation. The Committee’s normal policy is that it
will not pro-rate awards for time. The Committee will determine whether or not to pro-rate based on the circumstances of the Executive Director’s departure
LTIP Good leaver: pro-rated to time and performance in respect of each unvested LTIP award.
Other reason: lapse of any unvested LTIP awards.
Discretion: the Committee has the following elements of discretion:
• To determine that an Executive Director is a good leaver. It is the Committee’s intention to only use this discretion in circumstances where there is an appropriate
business case which will be explained in full to shareholders
• To measure performance over the original performance period or at the date of cessation
• The Committee will make this determination depending on the type of good leaver reason resulting in the cessation
• To determine whether to pro-rate the maximum number of shares to the time from the date of grant to the date of cessation. The Committee’s normal policy is that it
will pro-rate awards for time. It is the Committee’s intention to use discretion to not pro-rate in circumstances where there is an appropriate business case which will be
explained in full to shareholders
LTIP award in a holding period Where cessation of employment occurs during any holding period, the holding period will normally continue to apply to vested LTIP award shares as normal. However,
the Committee retains discretion to allow the shares to be released when cessation of employment occurs in certain exceptional circumstances.
Buyout awards Where cessation of employment occurs in relation to a new Executive Director who has been granted a buyout award, the treatment would be in line with the terms of
the buyout award. The Committee has discretion in line with the terms of the buyout award.
Remuneration
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Change of control
The following table outlines the policy for the treatment of incentives in the event of a change of control:
Remuneration element Change of control Discretion
Annual bonus (cash) Pro-rated to time and performance to the date of the change
of control.
The Committee has discretion regarding whether to pro-rate the bonus for time. The Committee’s
normal policy is that it will pro-rate the bonus for time. It is the Committee’s intention to use its
discretion to not pro-rate in circumstances only where there is an appropriate business case which
will be explained in full to shareholders.
Annual bonus (deferred shares) Subsisting deferred share awards will vest on a change of control. The Committee has discretion regarding whether to pro-rate the award for time. The Committee’s
normal policy is that it will not pro-rate awards for time. The Committee will make this determination
depending on the circumstances of the change of control.
LTIP The number of shares subject to subsisting LTIP awards will vest on
a change of control, pro-rated to time and performance.
The Committee has discretion regarding whether to pro-rate the LTIP awards for time.
The Committee’s normal policy is that it will pro-rate the LTIP awards for time. It is the Committee’s
intention to use its discretion to not pro-rate in circumstances only where there is an appropriate
business case which will be explained in full to shareholders.
Buyout awards The treatment would be in line with the terms of the buyout award. The Committee has discretion in line with the terms of the buyout award.
Directors’ Remuneration Policy continued
Remuneration
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Directors’ Remuneration Policy continued
Other directorships
Executive Directors are permitted to accept external, non executive appointments with the prior approval of the Board where such
appointments are not considered to have an adverse impact on their role within the Group. Fees earned may be retained by the Director.
Andrew Jones was a non executive director of InstaVolt Limited throughout the year to 31 March 2026 and earned fees of £40,000.
Employee considerations
Chief Executive Wider workforce
1
+4.5%
Salary increase
from June 2026
+1.2%
Bonus movement
in 2026
+6.0%
Average salary increase
from June 2026
+5.0%
Average bonus movement
in 2026
1330%
Of salary held in
Company shares
10%
Pension contribution
in line with workforce
100%
Of employees received
a bonus in 2026
100%
Of employees who have worked
for the Company for more than
one year will participate in the
LTIP in 2026
1 Excludes Executive Directors
The Company applies the same principles to the remuneration for employees as it applies to the Executive Directors, namely that:
• The remuneration is competitive in relation to other comparable real estate companies;
• The incentive elements reward superior performance through the variable elements of remuneration that are linked to the same
performance targets as for the Executive Directors that are aligned to the business strategy; and
• The remuneration encourages employees to become shareholders.
The Committee considers employee views carefully and Kitty Patmore is the designated workforce Non Executive Director responsible
for gathering employee views, ensuring that key points raised by employees are discussed at Committee and Board meetings and
feeding back to employees how their views have been considered in the decision making process.
Kitty hosted a meeting of a small group of employees from across the business, providing a forum for staff to share their views and
raise any concerns. The Remuneration Committee Chair attended this meeting to consider employee views on executive pay but
did not address the upcoming Policy renewal directly.
Remuneration
Participation/ FY26 Annual Bonus Entitlement
Role Chief Executive Chief Financial Officer Senior Leadership Team
LTIP award 275% of salary 225% of salary 55% to 165% of salary
Annual bonus 159% of salary 135% of salary 49% to 133% of salary
Pension 10% of salary 10% of salary 10% of salary
Difference in policy for Executive Directors and for
other employees
The table opposite illustrates the cascade of pay structures
throughout the business for the Chief Executive, Chief Financial
Officer and the Senior Leadership Team.
The Committee believes this demonstrates a fair and transparent
progression of remuneration throughout the Company which is in
line with one of its core pay principles that variable performance
based pay increases with seniority.
The following differences exist between the Company’s Policy for
the remuneration of Executive Directors as set out in the Policy
table and its approach to the payment of employees generally:
• All employees are eligible for a performance based
annual bonus. A lower level of maximum annual bonus
opportunity applies to employees when compared to the
Executive Directors.
• Executive Directors participate in the LTIP. All employees who
have worked for the Company for more than one year will be
invited to participate in the 2026 LTIP at the Remuneration
Committee’s discretion.
In general, these differences arise from the development of
remuneration arrangements that are market competitive for the
various levels of seniority.
The Remuneration Committee is comfortable that the
remuneration of the Executive Directors is appropriate taking
account of internal and external measures.
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Directors’ Remuneration Policy continued
Strategy link to Remuneration Policy
The Committee’s remuneration decisions are steered by the
achievement of the Group’s strategic objectives and so it is critical
that the incentive arrangements operated by the Company are
directly linked to the achievement of these strategic priorities and
overall corporate objectives. It is the Committee’s belief that the
incentive elements of the Policy align with these objectives.
The following table demonstrates how the Company’s key
performance indicators (‘KPIs’) are aligned to its variable incentive
arrangements of the annual bonus and LTIP.
Key performance indicators
Link to remuneration
Annual bonus LTIP
Link to strategy
Total shareholder return
30%
Total accounting return
25%
EPRA earnings per share
30% 45%
Total property return
30%
Strategic objectives
30%
ESG objectives
10%
Remuneration
Own
Invest in quality assets in winning sectors
Manage
Low cost and responsible asset management
Collaborate
Leverage our expertise and strong relationships
Generate
Deliver reliable, repetitive and growing income
Read more about our strategy on page 14
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Scenario Fixed
Annual Bonus
(including Deferred Bonus) LTIP
Minimum • Base salary: Expected salary earned
over the financial year to 31 March
2027
• Pension: 10% of base salary
• Benefits: In line with those paid
in year ending 31 March 2026
Nil Nil
Target 50% of maximum (in line with
target payout)
25% vesting (in line with threshold
vesting)
Maximum 100% of maximum 100% vesting
Maximum with LTIP share price
growth of 50% over three years
100% of maximum 100% vesting with 50% share
price growth
Directors’ Remuneration Policy continued
Illustration of application of Proposed
Remuneration Policy
The charts opposite show the application of the Policy in its first
year and provides an indication of the potential remuneration
for each element of remuneration for each of the two current
Executive Directors under various scenarios.
The elements of remuneration have been categorised into three
components: (i) Fixed; (ii) Annual bonus (including deferred
bonus); and (iii) LTIP. The remuneration illustrations are based
on the implementation of Policy next year where the maximum
annual bonus opportunities are 165% of salary for the Chief
Executive and 140% of salary for the Chief Financial Officer, and
LTIP awards at 275% and 225% of salary respectively for the
Chief Executive and Chief Financial Officer. Potential dividend
equivalents earned on vested shares have not been included and
the other assumptions used in determining the remuneration
illustrations are set out in the table opposite. For comparison,
we have also shown the actual single figure for the year to
31 March 2026.
Statement of consideration of shareholder views
The Remuneration Committee seeks to ensure that shareholder
views are fully taken into account in the development and
operation of the Remuneration Policy. Ahead of making its final
decisions on the new Policy, the Committee sought feedback
from shareholders during a consultation process. The Committee
initially consulted with eight of our largest shareholders and then
broadened the consultation to other holders in the top 30 plus the
leading proxy voting agencies.
The Committee was pleased that the vast majority of
shareholders who provided feedback were supportive of the
proposals. Following feedback in the initial phase of engagement,
the proposal to include within the LTIP an EPRA cost ratio metric
was dropped and the 15% weighting was aggregated with the
30% weighting on EPRA EPS growth.
The Committee remains committed to ongoing dialogue with the
Company’s investor base to ensure the views of all stakeholders
are taken into account in order to ensure the correct decisions are
made in the interests of the Company and its shareholders.
Andrew Jones Martin McGann
Fixed Bonus LTIP Share price growth Fixed Bonus LTIP Share price growth
100%
965
43% 20% 16%
26%
31%
2,261
30%
24%
50%
20%
5,914
4,736
40%
3,885
ActualOn target MaximumMinimum
100%
645
48% 24% 19%
23%
29%
1,355
29%
38%47%
24%
3,330
2,697
19%
2,219
ActualOn target MaximumMinimum
Remuneration
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The Committee meets independently of the Executive Directors
and receives advice from Korn Ferry, which is only connected to
the Group through the provision of remuneration services.
Korn Ferry was appointed this year after a competitive tender.
Remuneration advice fees totalled £76,270, based on hourly rates.
Prior to their appointment, PwC were the remuneration advisor
to the Committee and were paid fees of £65,250 in the year,
calculated on both hourly and fixed fee bases.
The Committee is satisfied that the advice provided by Korn Ferry
and PwC was both objective and independent.
No Executive Director participates in decisions regarding their
own remuneration, and fees for Non Executive Directors are
determined collectively by the Board.
The Company Secretary serves as secretary to the Committee,
with the Chief Executive and Chief Financial Officer attending
meetings by invitation; however, they are absent during
discussions concerning their own compensation.
The Chair of the Committee provides the Board with
comprehensive reports on the proceedings and outcomes after
each meeting.
This section presents the Annual Report on
Remuneration for the year ending 31 March 2026,
detailing how the Policy was implemented and plans
for its application in 2027. The report, including the
Chair’s introduction, will be subject to an advisory
vote at the AGM on 9 July 2026.
The report complies with the UK Corporate Governance Code
2024, Listing Rules and The Large and Medium-sized Companies
and Groups (Accounts and Reports) Regulations 2008 (as
amended). The areas of the report which are subject to audit have
been highlighted.
The role of the Remuneration Committee
The Committee sets Executive Directors’ pay according to the
approved Policy and its Terms of Reference, which the Board
reviews each year. These documents are available on the
Company’s website at www.londonmetric.com. Although the
Board is ultimately responsible for executive compensation,
it has assigned this duty to the Committee.
All Committee members are Non Executive Directors, ensuring
that Executive Directors’ pay is decided by Board members who
have no personal financial interest in the Company other than as
potential shareholders. Suzy Neubert became Chair after the July
2025 AGM, replacing Robert Fowlds. Andrew Livingston retired
from the Board and Committee in May 2025 and Alistair Elliott
joined the Committee in January 2026.
Annual Report on Remuneration
Meetings and activities
The Committee met on five occasions during the year. The main
activities of the Committee during the year were as follows:
Annual
bonus and
LTIP
Set challenging EPS targets for the 2025 LTIP
awards granted and annual bonus for the year to
31 March 2026
Approved Executive Directors’ share awards
under the LTIP following the announcement
of the Company’s results for the year ended
31 March 2025
Assessed the performance of Executive Directors
against targets set at the beginning of the year
and reviewed annual bonuses for the year to
31 March 2026
Salary Reviewed annual salary increases effective from
1 June 2026
Governance Internal evaluation of its own performance and
review of its Terms of Reference
Reviewed and approved the Remuneration
Committee report
Reviewed and approved the CEO pay ratio
Received a regulatory update from Korn Ferry
Remuneration
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Summary of Policy (if approved at the AGM) Implementation in the year to 31 March 2027
Annual bonus
Annual bonus performance targets are set by the Committee at the start of the
financial year linked to the Group’s long term strategy.
The performance targets are calibrated by the Committee considering the
Company’s business plan, strategic and operational objectives and market
conditions. At least 75% of the bonus will be subject to quantifiable metrics.
The payout for on target performance is 50% of the maximum and the payout for
threshold performance is 25% of the maximum.
Executive Directors who have met their minimum shareholding requirement have
the option to receive the annual bonus paid in cash. For those who are yet to meet
the minimum shareholding requirement, up to 100%, and at least 50%, of the
annual bonus will be paid in deferred shares vesting over three years.
The maximum bonus opportunity is 165% of salary for the Chief Executive and 140% of salary for the Chief Financial
Officer. The performance conditions and weightings for the annual bonus are as follows:
Performance measure Weighting Description of targets
Growth in EPRA EPS 30% Growth in Company’s EPRA EPS against a range of challenging targets
Growth in total
property return
(‘TPR’)
30% Growth in Company’s TPR against the relevant MSCI All Property indices on an annual and multi
year basis; Full payout if growth is equal to 1.2 times the relevant index; 25% payout if growth is
equal to the relevant index; Straight line interpolation between these points
Strategic objectives 30% Measures management’s performance against the strategic imperatives set annually by the
Board. Many will be financial in nature such that at least 75% of the overall annual bonus will be
subject to quantifiable metrics
ESG objectives 10% Measures management’s performance against targets aligned with delivering the Company’s
ESG strategy
The Committee believes that the annual bonus targets for the coming year are commercially sensitive and
accordingly these are not disclosed. These will be reported and disclosed retrospectively next year in order for
shareholders to assess the basis for any payouts.
Base salary
An Executive Director’s basic salary is set on appointment and reviewed annually
with changes normally taking effect from 1 June or when there is a change in position
or responsibility.
When determining an appropriate level of salary, the Committee considers multiple
factors including pay increases to other employees, remuneration within comparable
real estate companies or listed companies of similar scale, changes in scope, role and
responsibilities and the general performance of the Company and individual.
The Committee has approved salary increases for the Executive Directors of 4.5% which is below the
workforce average.
Executive Director
Base salary from
1 June 2026
Andrew Jones £856,900
Martin McGann £562,341
Pension
The maximum pension contribution rate is 10% of salary for Executive Directors,
aligned to the wider workforce.
Where there is any increase to the pension contribution rate received by the wider
workforce, the Executive Directors will be entitled to receive the same contribution
level at the discretion of the Remuneration Committee.
Executive Directors will receive the 10% salary contribution.
This is payable as a monthly contribution to the Executive Director’s individual personal pension plan or taken as a
cash equivalent. Salary sacrifice arrangements can apply.
Benefits
The Committee recognises the need to maintain suitable flexibility in the benefits
provided to ensure it is able to support the objective of attracting and retaining
personnel in order to deliver the Group strategy.
In line with the Policy, each Executive Director receives:
• Car allowance
• Private medical insurance
Implementation of Policy next year
Remuneration
• Life insurance
• Permanent health insurance
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Summary of Policy (if approved at the AGM) Implementation in the year to 31 March 2027
Long Term Incentive Plan
Annual awards of up to 275% of salary for the Chief Executive and 225% of salary for
other Executive Directors.
Awards will normally vest at the end of a three year period subject to:
• The Executive Director’s continued employment at the date of vesting; and
• Satisfaction of the performance conditions.
Vested awards will be subject to a further two year holding period during which
Executive Directors cannot dispose of shares other than for tax purposes.
The Committee may award dividend equivalents on awards that vest.
The Committee has determined that LTIP awards for 2026 will be 275% of salary for the Chief Executive and 225% of
salary for the Chief Financial Officer.
Performance measure Weighting Threshold (25% vesting) Maximum
1
(100% vesting)
Total shareholder
return (‘TSR’)
30% Equal to index Equal to upper quartile ranked company
2
Total accounting
return (‘TAR’)
25% Equal to index Equal to upper quartile ranked company
2
EPRA EPS growth 45% CPIH over three years CPIH
3
plus 2% over three years
1 Straight line interpolation between threshold and maximum
2 The upper quartile calculation will reflect the market capitalisation of each company in the peer company, in line with the approach for calculating the threshold vesting target
3 CPIH will be set with a floor of 2% per annum and a cap of 4% per annum
TSR and TAR are relative measures against the FTSE 350 Real Estate Sector excluding agencies and operators (‘the
Index’). TAR will be measured in line with the methodology set out in the Remuneration Committee Chair’s statement
on page 120, as initially explained in last year’s report.
Shareholding requirement
Executive Directors are encouraged to build up and hold a shareholding equivalent to
a percentage of base salary.
Executive Directors will be required to retain at least 50% of the post tax amount of
vested shares from incentive plans until this requirement is met and maintained.
There is a post cessation shareholding requirement for the Executive Directors, who
must retain shares equivalent in value to the minimum of 200% of salary and their
actual shareholding on cessation for two years post cessation of employment.
The shareholding requirement is:
• Chief Executive and other existing Executive Directors – 700% of salary
• Newly appointed Executive Directors – 400% of salary
Malus and clawback
Malus may apply to any cash bonus up to the date of payment and any deferred
bonus or LTIP award during their respective vesting periods. Clawback may apply
to any cash bonus for up to two years following the payment of the bonus and may
apply to LTIP awards for up to two years following vesting. Malus/clawback may result
in the value of awards being reduced to nil.
The circumstances in which malus and clawback could apply are:
• Material misstatement
• Calculation error in incentives
• Fraud or gross misconduct
Non Executive Director fees
Non Executive Directors are paid an annual fee and additional fees for the Chair of
Committees and for the Senior Independent Director. The Company retains the
flexibility to pay fees for the membership of Committees. The Chair does not receive
any additional fees for membership of Committees.
Fees are reviewed annually based on equivalent roles in the comparator group used to review salaries paid to
the Executive Directors. Non Executive Directors and the Chair do not participate in any variable remuneration
arrangements or other benefits arrangements.
Please see page 128 for details of fees for the year ending 31 March 2027.
Implementation of Policy next year continued
Remuneration
• Reputational damage
• Corporate failure
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Directors’ remuneration in 2026
Single total figure of remuneration for each Director (audited)
Salary and fees Benefits
1
Pension
2
Total Fixed Annual bonus
3
LTIP
4
Total Variable Total
Director
5
2026
£000
2025
£000
2026
£000
2025
£000
2026
£000
2025
£000
2026
£000
2025
£000
2026
£000
2025
£000
2026
£000
2025
£000
2026
£000
2025
£000
2026
£000
2025
£000
Executive
Andrew Jones 817 774 29 27 82 77 928 878 1,306 1,290 1,651 991 2,957 2,192 3,885 3,159
Martin McGann 536 509 31 29 53 51 621 589 727 718 872 514 1,599 1,186 2,219 1,821
Non Executive
Alistair Elliott 279 242 – – – – 279 242 – – – – – – 279 242
Suzanne Avery 68 67 – – – – 68 67 – – – – – – 68 67
Robert Fowlds 71 77 – – – – 71 77 – – – – – – 71 77
Sandy Gumm 58 57 – – – – 58 57 – – – – – – 58 57
Nick Leslau 58 57 – – – – 58 57 – – – – – – 58 57
Andrew Livingston
(retired 20 May 2025) 10 62 – – – – 10 62 – – – – – – 10 62
Suzy Neubert 85 76 – – – – 85 76 – – – – – – 85 76
Kitty Patmore 73 72 – – – – 73 72 – – – – – – 73 72
1 Taxable benefits include the provision of a car allowance for Executive Directors and private medical insurance
2 Pension contribution is 10.0% of salary and may be taken partly or entirely in cash. No Executive Directors participate in a defined benefit pension arrangement
3 Annual bonus payable in respect of the financial year ending 31 March 2026 paid fully in cash as minimum shareholding requirements met
4 2023 LTIP awards expected to vest in June 2026 for the performance period to 31 March 2026. The value of the award has been calculated by multiplying the estimated number of shares that will vest, including the dividend equivalent, by the average share price for the three months to 31 March 2026 (199.1p).
No discretion was applied in determining the estimated vesting of the award as a result of changes in share price or other factors. The change in share price between grant and 31 March 2026 increases the value of the award by £159,000 for Andrew Jones and £84,000 for Martin McGann as reflected in the
table on page 144. The estimated figures disclosed in the previous Annual Report for the 2022 LTIP awards vesting in 2025 have been restated to reflect final vesting figures and the share price on the date of vesting. The estimated share price used last year was 182.8p and the actual share price on vesting was
197.6p. The differences in value were £89,000 for Andrew Jones and £46,000 for Martin McGann
5 The Committee did not operate malus or clawback in relation to any part of the Directors’ remuneration in the year to 31 March 2026 or earlier years
The Committee continues to believe that it is important to take a holistic view of the Executive Directors’ total wealth when considering the single figure of remuneration. The Executive Directors have
very large shareholdings in the Company and are exposed to relatively small changes in the share price significantly affecting their overall wealth. In the Committee’s opinion, the impact of share price
movements on the total wealth of the Director is more important than the single figure. The significant shareholding encourages Directors to take a long term view of the sustainable performance of the
Company, which is critical in a cyclical business. The Directors’ significant exposure to share price movements remains a key facet of the Company’s Policy.
Remuneration
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Annual bonus outcome for the year ended 31 March 2026 (audited)
The Remuneration Committee’s assessment of the performance outcome for each element of the annual bonus for the year to 31 March 2026 is set out in the table below. Bonus awards are based 60%
on the Company’s key property and financial metrics and 40% on metrics relating to the Company’s strategic and ESG objectives, with over 75% of the overall bonus determined by quantifiable metrics.
The maximum opportunity remained at 165% of salary for Andrew Jones and 140% of salary for Martin McGann.
Financial
objectives – EPS
(out of 30%)
Financial
objectives – TPR
(out of 30%)
Strategic
objectives
(out of 30%)
ESG
objectives
(out of 10%)
Bonus
% of
maximum
Bonus
% of
salary
Total
bonus
£000
Andrew Jones 30.0% 30.0% 28.3% 8.2% 96.5% 159% 1,306
Martin McGann 30.0% 30.0% 28.3% 8.2% 96.5% 135% 727
Performance targets
Given the growth of the Company over the last few years, and the evolution of its strategy to become the UK’s leading Triple Net Lease REIT, the Remuneration Committee continues to be mindful of bonus
targets to ensure that they are appropriately defined and represent fair measures of the success of the business and drive outperformance. On this basis, adjustments were made to some of the targets as
noted below.
Group financial targets
The financial performance element measures EPRA EPS and TPR relative to the MSCI all property benchmark.
In line with last year and recognising the difficulty in purely setting financial targets that would represent outperformance, the Remuneration Committee determined at the start of the year to measure EPS
performance on both a quantitative (50%) and qualitative (50%) basis during 2026. EPRA EPS performance was strong, increasing by 2.4% to 13.5p which was in excess of the maximum financial target
of 13.4p. The Committee deemed that given strong progress had been made against the qualitative pillars of EPS, as set out below, and in combination with the above target quantitative outcome, the EPS
element would be met in full.
Qualitative pillars of EPRA EPS
• Progress of non core disposals: £318 million of disposals have been delivered, which includes weaker and more challenged assets primarily inherited through M&A. During the year, we have successfully
divested £173 million of non core former ULR, Highcroft and LXi assets;
• Evolution of the portfolio toward preferred choices: Our logistics exposure has increased to 53% from 46% last year, primarily as a result of £1.2 billion of assets added through M&A activity. In addition,
reinvestment of disposal proceeds has included £181 million into the budget hotel sector to increase our exposure to Premier Inns and reduce our exposure to Travelodge;
• Increased exposure to market rent reviews: market rent reviews have increased significantly to 31% of the portfolio (2025: 23%); and
• The integration of systems, processes and people following the ULR and Highcroft corporate acquisitions has successfully completed. Significant amounts of debt substitution work has also been
completed giving management the ability to sell identified non core assets, which had previously been held in secured debt arrangements.
In line with best practice, TPR is measured on a multi year basis (over one and three years) to reflect performance against the MSCI All Property index. The Committee is satisfied that this approach
measures and rewards the longer term investing principles inherent in the real estate sector. Relative performance was above the maximum target as set out in the table on page 141 and on this basis, the
TPR element will pay out in full.
Directors’ remuneration in 2026 continued
Remuneration
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Directors’ remuneration in 2026 continued
Performance measure Weighting Basis of calculation
Range
Actual
performance
%
awarded(0%) (25%) (100%)
EPRA EPS 30% Growth in EPRA EPS <13.1p 13.1p 13.4p 13.5p 100%
Total property return (‘TPR’) 30% Growth in TPR against
MSCI index
Below MSCI index Equal to MSCI index Equal to 1.2 times MSCI index See below 100%
3 year All Property <10.9% 10.9% 13.1% 21.4% 100%
1 year All Property <5.4% 5.4% 6.5% 7.1% 100%
Strategic and ESG targets
Executive Directors’ bonus awards were measured against strategic (30% weighting of overall bonus) and ESG (10% weighting) performance metrics respectively. The objectives selected by the Committee
were aligned to the Company’s strategic priorities in the year and these are set out below along with the Committee’s assessment of their achievement and outcome.
2025/6 Priority Strategic objective Outcome & assessment Award
Own desirable assets in
structurally supported sectors
with low running costs
Improve portfolio quality and sell non core assets Logistics exposure has increased from 46.1% last year to 52.8%. Sales of £318 million,
predominantly non core former LXi and ULR assets and reinvestment of £333 million in
addition to our two corporate acquisitions which added £1.2 billion of assets.
Fully met
Maintain low cost leakage between 1% and 1.5% This has remained low and on a like for like basis is 1.2% (2025: 1.2%). Substantially met
Be a partner of choice to support
long, strong and growing income
Like for like income growth to be greater than CPIH +0.5% Like for like income growth is 4.2% as reflected in the Property review. Fully met
Occupancy rate to be greater than 97.5% with stretch
of 98.5%
Occupancy rate on a like for like basis is 98.5%. Fully met
Generate income-led TSR,
supported by a strong balance
sheet and good governance
Maintain a fortress balance sheet and grow sources
of capital
Strengthened financial position through £1.2 billion new facilities including a £150 million US
private placement and £500 million public bond. Repaid and cancelled facilities totalling
£1.1 billion and refinanced a further £1.5 billion at preferential rates and with a diversifying
lending pool.
Fully met
EPRA cost ratio to be between 7.5% and 8.5% EPRA cost ratio is 7.7% as noted in Supplementary note iv. Substantially met
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2025/6 Priority ESG objective Outcome & assessment Award
Own desirable assets in
structurally supported sectors
with low running costs
EPC A-C between 90% to 95% • EPC A-C of 92% achieved as reflected in the Responsible Business and ESG review on
page 49.
Partially met
Percentage of tenant incentives linked to sustainability
improvements of between 40% to 50%
• 85% of incentives tied to sustainability improvements as reflected in the table on page 69. Fully met
Maintain high levels of employee
and occupier satisfaction
Occupier satisfaction greater than 75%, stretch of 80% • Occupier landlord satisfaction score of 8.8 out of 10 in 2026. Fully met
Employee satisfaction greater than 75%, stretch of 80% • Latest staff survey results remain positive with 94% of staff enjoying working for the
Company.
Fully met
Good governance Maintain and improve benchmark scores • GRESB score of 73 and FTSE4Good score of 3.6 are both above the peer group average.
CDP score improved from C- to A- and MSCI rating was ‘A’.
Fully met
Occupier data collection to be between 77% and 85% • Latest collection result is 72%. Not met
Deferred Bonus Plan
The Policy allows the Directors to opt out of bonus deferral if the minimum shareholding requirement is met. At the date of this report, both Executive Directors’ shareholding materially exceeds the
minimum requirement and therefore no annual bonus earned in the year to 31 March 2026 will be deferred into shares.
Long Term Incentive Plan – awards granted (audited)
Awards granted in the year to 31 March 2026 as nil cost options are summarised in the table below.
Director
Basis of award
(% of salary)
Date of
grant
Share awards
number
Face value
per share
Face value
of award
£000
Face value of
award at
threshold
(25%) vesting
£000
Andrew Jones 200% 3 June 2025 819,508 200.1p 1,640 410
Martin McGann 165% 3 June 2025 443,687 200.1p 888 222
The face value is based on a weighted average price per share, being the average share price over the five business days immediately preceding the date of the award. Awards will vest after three years
subject to continued service and the achievement of performance conditions over the three year period to 31 March 2028 as set out on page 143.
Directors’ remuneration in 2026 continued
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Directors’ remuneration in 2026 continued
Performance condition Vesting level
Total Shareholder Return (‘TSR’) measured against FTSE 350 Real Estate Super Sector excluding agencies and operators (37.5% of award)
1
TSR less than index over 3 years 0%
TSR equals index over 3 years 25%
TSR between index and upper quartile ranked company in the index Pro rata on a straight line basis between 25% and 100%
TSR equal to or better than the upper quartile ranked company in the index 100%
Total Accounting Return (‘TAR’) measured against FTSE 350 Real Estate Super Sector excluding agencies and operators (37.5% of award)
2
TAR less than index over 3 years 0%
TAR equals index over 3 years 25%
TAR between index and upper quartile ranked company in the index Pro rata on a straight line basis between 25% and 100%
TAR equal to or better than the upper quartile ranked company in the index 100%
EPRA EPS growth against a base target plus CPIH (25% of award)
Less than base plus CPIH plus 0% over 3 years 0%
Base plus CPIH plus 0% over 3 years 25%
Base plus CPIH plus between 0% and 2% over 3 years Pro rata on a straight line basis between 25% and 100%
Base plus CPIH plus 2% or better over 3 years 100%
1 The Committee will retain the discretion, at vesting, to determine whether the absolute level of TSR return has been acceptable, and to adjust for this if appropriate
2 TAR will be measured in line with the methodology set out in the Remuneration Committee Chair’s statement on page 120
The adjusted EPRA EPS base target for the three year performance period commencing 1 April 2025 has been set at 13.1p. The Group’s three year financial forecast was taken into account when setting this
target along with consideration of strategic goals and priorities, proposed investment and development plans, gearing levels and previous years’ results. Targets are considered challenging yet achievable in
order to adequately incentivise management and are in line with the Company’s strategic aim of delivering long term growth for shareholders.
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Long Term Incentive Plan – awards vesting (audited)
2023 LTIP awards expected to vest in relation to the three year performance period ending 31 March 2026 are summarised below.
Performance measure Weighting Basis of calculation
Range
Actual
performance
%
awarded(0%) (25%)
2
(100%)
2
Total shareholder return (‘TSR’) 37.5% TSR against FTSE 350 Real
Estate Index¹
<9.1% 9.1% (index) 30.8% (upper quartile ranked
company)
30.8% 100%
Total accounting return (‘TAR’) 37.5% TAR against FTSE 350 Real
Estate Index¹
<3.5% 3.5% (index) 15.4% (upper quartile ranked
company)
26.2% 100%
EPRA EPS 25% Growth in EPRA EPS against a
challenging base target
<11.5p 11.5p 11.9p 13.5p 100%
1 TSR and TAR are relative measures against the FTSE 350 Real Estate Sector excluding agencies and operators (‘the Index’). These metrics have been measured in line with the methodology set out in the Remuneration Committee Chair’s statement on page 120
2 Straight line interpolation between threshold and maximum
Overall, the Committee determined the 2023 LTIP vesting targets to be fully met. No discretion has been exercised as the Committee determined vesting is in line with underlying corporate performance.
Director
Maximum
number of
shares
2
LTIP
% of
maximum
Estimated
number of
shares vesting
Face value
at grant
£000
Share price
appreciation
£000
Total estimated
value of award
vesting
1
£000
Andrew Jones 829,329 100.0% 829,329 1,221 159 1,651
Martin McGann 437,791 100.0% 437,791 644 84 872
1 The estimated value is based on the average share price for the three months to 31 March 2026 of 199.1p
2 Includes dividend equivalent shares to 31 March 2026
Outstanding LTIP awards held by the Executive Directors are set out in the table below.
Number of shares under award
1
Director Date of grant
Face value
of grant At 1 April 2025 Granted in year
Notional
dividend shares
in year Vested in year Lapsed in year
At 31 March
2026
Performance
period
Andrew Jones 6.6.2022 257.4 564,009 – 9,329 (501,671) (71,667) – 1.4.2022 to 31.3.2025
2.6.2023 176.2 777,620 – 51,709 – – 829,329 1.4.2023 to 31.3.2026
13.6.2024 200.7p 847,751 – 56,373 – – 904,124 1.4.2024 to 31.3.2027
3.6.2025 200.1p – 819,508 40,272 – – 859,780 1.4.2025 to 31.3.2028
Martin McGann 6.6.2022 257.4 292,275 – 4,835 (259,971) (37,139) – 1.4.2022 to 31.3.2025
2.6.2023 176.2 410,495 – 27,296 – – 437,791 1.4.2023 to 31.3.2026
13.6.2024 200.7p 458,976 – 30,520 – – 489,496 1.4.2024 to 31.3.2027
3.6.2025 200.1p – 443,687 21,803 – – 465,490 1.4.2025 to 31.3.2028
1 Awards granted as nil cost options
Directors’ remuneration in 2026 continued
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Directors’ remuneration in 2026 continued
Directors’ shareholdings and share interests (audited)
The beneficial interests in the ordinary shares of the Company held by the Directors and their families who were in office during the year are set out in the table below. There were no movements in
Directors’ shareholdings between 31 March 2026 and the date of this report.
The shareholding guidelines recommend Executive Directors build up a shareholding in the Company at least equal to seven times salary. All Executive Directors complied with this requirement at 31 March
2026 and as at the date of this report. No Director had any interest or contract with the Company or any subsidiary undertaking during the year.
In 2017, the Executive Directors entered into individual personal loan arrangements with Coutts & Co and granted pledges over ordinary shares in the Company as security in connection with the loans.
The loans were used to repay debt secured against various residential investment properties held personally. The number of shares pledged by each of the Directors is reflected in the table below.
Overall interest
31 March 2026
Ordinary shares of
10p each
Overall interest
31 March 2025
Ordinary shares of
10p each
LTIP shares in the
form of a nil cost
option subject
to performance
conditions
Deferred bonus
shares not subject
to performance
conditions
Total interests as at
31 March 2026
Share ownership as
% of salary
1
Shareholding
guideline met
Number of shares
pledged as at
31 March 2026
Executive Directors
Andrew Jones 6,007,539 5,742,363 2,593,233 – 8,600,772 1330% Yes 3,446,072
Martin McGann 3,272,102 3,134,206 1,392,777 – 4,664,879 1104% Yes 2,341,585
Non Executive Directors
Alistair Elliott 90,000 90,000
Suzanne Avery 27,050 27,050
Robert Fowlds 136,780 136,780
Sandy Gumm
2
351,639 351,640
Nick Leslau
3
26,408,755 26,408,755
Andrew Livingston⁴ 106,830 106,830
Suzy Neubert 39,505 39,004
Kitty Patmore 15,000 15,000
1 Based on the Company’s share price at 31 March 2026 of 181.5p and the beneficial interests of the Director
2 Sandy Gumm also holds an indirect minority interest in Prestbury Investment Holdings Limited which gives her an interest in 556,801 of the 24,365,860 ordinary shares held by that company
3 Nick Leslau holds 2,042,895 ordinary shares through Yoginvest Ltd (in respect of which Nick Leslau is the sole shareholder) and 24,365,860 ordinary shares through Prestbury Investment Holdings Limited (in respect of which Nick Leslau holds a controlling indirect interest)
4 Andrew Livingston retired 20 May 2025
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Performance graph
The graph below shows the Group’s total shareholder return (‘TSR’) for the period to 31 March 2026,
compared to the FTSE All Share REIT Index, the FTSE 350 Real Estate Index and the FTSE 350
Real Estate Super Sector Index. These have been chosen by the Committee as in previous years
as they are considered the most appropriate and relevant benchmarks against which to assess the
performance of the Company.
Total shareholder return measures share price growth with dividends deemed to be reinvested on
the ex-dividend date.
Directors’ remuneration in 2026 continued
Chief Executive’s remuneration table
The table below details the remuneration of the Chief Executive, Andrew Jones, for the ten year
period to 31 March 2026.
Year to 31 March
Total
remuneration
£000
Annual bonus
(as a % of the
maximum payout)
LTIP vesting
(as a % of the
maximum opportunity)
2026 3,885 96.5 100
2025 3,159 97.8 87.5
2024 2,739 96.2 90.2
2023 2,372 79 84.7
2022 2,881 90 95.8
2021 2,998 97 100
2020 2,925 97.5 88
2019 2,703 90 84
2018 2,392 79 94
2017 2,506 89 100
LondonMetric
FTSE All Share REIT FTSE 350 REIT FTSE 350 RE SS
01 Apr
2016
01 Apr
2017
01 Apr
2018
01 Apr
2019
01 Apr
2020
01 Apr
2021
01 Apr
2022
01 Apr
2023
01 Apr
2024
01 Apr
2025
01 Apr
2026
70
90
110
130
150
170
190
210
230
250
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Directors’ remuneration in 2026 continued
Annual percentage change in remuneration of Directors and employees
The percentage change in Director remuneration from the previous year compared to the average percentage change in remuneration for all other employees is as follows:
2026 %
change
2025 %
change
2024 %
change
2023 %
change
2022 %
change
2021 %
change
Salary
and fees
Taxable
benefits
Annual
bonus
Salary
and fees
Taxable
benefits
Annual
bonus
Salary
and fees
Taxable
benefits
Annual
bonus
Salary
and fees
Taxable
benefits
Annual
bonus
Salary
and fees
Taxable
benefits
Annual
bonus
Salary
and fees
Taxable
benefits
Annual
bonus
Andrew Jones 5.5% 7.4% 1.2% 21.3% 3.8% 26.5% 4.8% – 27.7% 7.8% – -5.7% 3.4% – -3.3% 0.4% – -0.2%
Martin McGann 5.3% 6.9% 1.2% 19.2% 3.6% 24.0% 4.9% – 31.1% 7.7% -3.4% -7.9% 3.5% – -3.4% 0.6% 3.6% 2.5%
Alistair Elliott
1
15.3% n/a n/a 52.2% n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a
Suzanne Avery 1.5% n/a n/a 4.7% n/a n/a 3.2% n/a n/a 3.3% n/a n/a – n/a n/a 1.7% n/a n/a
Robert Fowlds -7.8% n/a n/a – n/a n/a – n/a n/a 2.7% n/a n/a 5.6% n/a n/a 10.9% n/a n/a
Sandy Gumm 1.8% n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a
Nick Leslau 1.8% n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a
Andrew Livingston³ -83.9% n/a n/a 5.1% n/a n/a 3.5% n/a n/a 3.6% n/a n/a – n/a n/a 1.9% n/a n/a
Suzy Neubert 11.8% n/a n/a 18.8% n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a
Kitty Patmore 1.4% n/a n/a 5.9% n/a n/a 19.3% n/a n/a 3.6% n/a n/a n/a n/a n/a n/a n/a n/a
Other employees² 6.0% 5.6% 5.0% 6.5% 1.9% 10.0% 9.8% -9.0% 31.1% 8.4% -4.2% -5.1% 4.2% 3.0% -0.9% –% -5.0% 10.0%
1 Alistair Elliott was appointed Chair of the Board on 11 July 2023
2 Excluding Directors
3 Andrew Livingston retired 20 May 2025
CEO pay ratio
Whilst the Company has fewer than 250 employees and therefore is not required to disclose a ratio,
the Committee felt that it was appropriate to disclose the CEO to all-employee pay ratio, recognising
that the Company’s investors expect to see such disclosure.
Pay ratio
Year
Method of
calculation
25th
percentile
50th
percentile
75th
percentile
2026 A 48:1 30:1 9:1
2025 A 38:1 24:1 8:1
2024 A 38:1 22:1 8:1
2023 A 33:1 19:1 7:1
2022 A 43:1 22:1 8:1
2021 A 34:1 13:1 7:1
2020 A 42:1 16:1 8:1
The Company chose to adopt the Option A methodology, as at 31 March 2026, when calculating
the ratio as it deemed it the most appropriate approach and had sufficient data to be able to carry
out this method. This method was used to calculate all figures in the table to the left. The Chief
Executive’s single figure of remuneration used for the calculation ratio is as detailed on page 139.
The same methodology was used to calculate all-employee pay for the purposes of the ratios,
which were calculated based on amounts receivable up to the end of the relevant financial year for
all employees excluding the CEO and the Non Executive Directors. No elements of pay have been
omitted and no assumptions have been made.
The Committee is comfortable that the median pay ratio is consistent with pay and progression
policies for employees.
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Directors’ remuneration in 2026 continued
Service contracts
Service contracts are terminable by either party with notice of 12 months. The Committee considers
this appropriate for all existing and newly appointed Executive Directors.
The Non Executive Directors do not have service contracts but are appointed under letters of
appointment. Each Non Executive is subject to an initial three year term with annual re-election at
the Company’s AGM.
Payments to past Directors and for loss of office
There have been no payments for loss of office or to past Directors in the year.
Relative importance of spend on pay
The table below shows the expenditure and percentage change in spend on employee remuneration
compared to other key financial indicators.
2026
£m
2025
£m
%
change
Employee costs
1
19.0 17.3 9.8%
Dividends
2
271.8 203.7 33.4%
1 Figures taken from note 4 Administrative costs on page 170 and are stated before any amounts capitalised and exclude share scheme costs
2 Figures taken from note 7 Dividends on page 172
Statement of voting at AGM
At the AGM on 9 July 2025, the Annual Report on Remuneration was approved with votes from
shareholders representing 73% of the issued share capital of the Company.
The Directors’ Remuneration Policy was approved at a General Meeting of the Company on
18 December 2023 with votes from shareholders representing 78% of the issued share capital at the
time. The details of these outcomes are below.
2025 Annual Report on Remuneration 2023 Directors’ Remuneration Policy
Votes cast % Votes cast %
For 1,642,684,809 95.83 844,279,993 99.37
Against 71,438,098 4.17 5,321,974 0.63
Withheld 247,570 98,680
Total 1,714,370,477 849,700,647
Suzy Neubert
Chair of the Remuneration Committee
21 May 2026
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The Directors unanimously recommend that you vote in favour
of the resolutions as they intend to do in respect of their own
beneficial holdings, which amount in aggregate to 36.3 million
shares representing approximately 1.55% of the existing issued
ordinary share capital of the Company as at 20 May 2026.
Additional information which is incorporated into this report by
reference, including information required in accordance with the
Companies Act 2006 and UK Listing Rule 6.6.1R can be found on
the following pages:
Corporate governance arrangements
We have applied the principles of good governance contained in
the UK Corporate Governance Code 2024 (the ‘Code’) throughout
the year under review and have complied with all of the provisions
of the Code. Our compliance statement is set out on page 91.
Further details on how we have applied the Code can be found in
the Governance section on pages 87 to 148 and should be read as
part of this report.
Company status and branches
LondonMetric Property Plc is a Real Estate Investment Trust
(‘REIT’) and the holding company of the Group, which has
no branches. It is listed on the London Stock Exchange with
ordinary shares in the company being admitted to the Equity
Shares (Commercial Companies) category of the Official List of
the Financial Conduct Authority and to trading on the London
Stock Exchange’s main market for listed securities with a
premium listing.
Principal activities and business review
The principal activity of the Group continues to be property
investment and development, both directly and through joint
venture arrangements.
The purpose of the Annual Report is to provide information
to the members of the Company which is a fair, balanced and
understandable assessment of the Group’s performance, business
model and strategy. A detailed review of the Group’s business and
performance during the year, its principal risks and uncertainties,
its business model, strategy and its approach to Responsible
Business and ESG is contained in the Strategic report on pages 1 to
86 and should be read as part of this report.
The Annual Report contains certain forward looking statements
with respect to the operations, performance and financial
condition of the Group. By their nature, these statements involve
risk and uncertainty because they relate to future events and
circumstances which can cause results and developments to differ
from those anticipated. The forward looking statements reflect
knowledge and information available at the date of preparation
of this Annual Report. Nothing in this Annual Report should be
construed as a profit forecast.
On behalf of the Board, it is my pleasure to present the Report of
the Directors together with the audited financial statements for
the year ended 31 March 2026.
Annual General Meeting (‘AGM’)
The AGM of the Company will be held on 9 July 2026 at 10 am
at The Connaught, Carlos Place, Mayfair, London, W1K 2AL.
The Notice of AGM on pages 204 to 209 sets out the proposed
resolutions and voting details.
The Board believes the resolutions support the Company’s
success and are in the best interests of its shareholders.
Report of the Directors
Information Relevant section Page
Review of business and future developments Strategic report Page 1
Section 172 Statement Governance – Section 172 Statement Page 99
Principal risks Strategic report – Risk management and internal control Page 75
Greenhouse gas emissions Strategic report – Responsible Business and ESG review Page 54
Internal financial control Governance – Audit Committee report Page 115
Strategic report – Risk management and internal control Page 71
Diversity and inclusion Governance – Nomination Committee report Page 107
Monitoring culture Governance Page 96
Viability Statement Strategic report – Risk management and internal control Page 86
Financial instruments Financial statements – note 14 Page 180
Directors’ details Governance – biographies Page 92
Financial risk management policies Financial statements – note 14 Page 178
Directors’ interests Governance – Remuneration Committee report Page 145
Interest capitalised Financial statements – note 5 Page 171
Long term incentive schemes Governance – Remuneration Committee report Page 142
Related party transactions Financial statements – note 20 Page 185
Stakeholder engagement Strategic report – Responsible Business and ESG review Page 55
Post balance sheet events Financial statements – note 21 Page 185
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LondonMetric Property Plc Annual Report and Accounts 2026
149
There is only one class of share in issue and there are no
restrictions on the size of a holding or on the transfer of shares.
None of the shares carry any special rights of control over the
Company. There were no persons with significant direct or indirect
holdings in the Company other than those listed as substantial
shareholders below.
The rules governing appointments, replacement and powers of
Directors are contained in the Company’s Articles of Association,
the Companies Act 2006 and the UK Corporate Governance
Code. These include powers to authorise the issue and buy back of
shares by the Company. The Company’s Articles can be amended
by Special Resolution in accordance with Companies Act 2006.
Purchase of own shares
The Company was granted authority at the Annual General
Meeting in 2025 to purchase its own shares up to an aggregate
nominal value of 10% of the issued nominal capital. That authority
expires at this year’s AGM and a resolution will be proposed for its
renewal. No ordinary shares were purchased under this authority
during the year.
Shares held in the Employee Benefit Trust
As at 31 March 2026, the Trustees of the LondonMetric Long Term
Incentive Plan held 9,959,415 shares in the Company in trust to
satisfy awards under the Company’s Long Term Incentive and
Deferred Bonus Plans. The Trustees have waived their right to
receive dividends on shares held in the Company.
Substantial shareholders
The Directors have been notified that the following shareholders
have a disclosable interest of 3% or more in the ordinary shares of
the Company at the date of this report:
Shareholder
Number
of shares %
BlackRock Inc 227,746,539 9.71
Norges Bank Investment Management 173,337,164 7.39
The Vanguard Group Inc 124,701,004 5.32
Rathbones Group Plc 81,254,917 3.47
Artemis Fund Managers Limited 80,049,652 3.41
Directors
The present membership of the Board and biographical details of
Directors are set out on pages 92 to 93.
The interests of the Directors and their connected persons in
the shares of the Company are set out in the Remuneration
Committee report on page 145.
In accordance with the UK Corporate Governance Code and in line
with previous years, all of the Directors will offer themselves for
election and re-election by the shareholders at the forthcoming
AGM on 9 July 2026. Details of Directors’ service contracts can be
found in the Remuneration Committee report on page 148.
The powers of Directors are described in their Terms of Reference,
which are available on request.
Directors’ and Officers’ liability insurance
The Company has arranged Directors’ and Officers’ liability
insurance cover in respect of legal action against its Directors,
which is reviewed and renewed annually and remains in force at
the date of this report.
Stakeholders
The Group’s long term success is dependent on its relationships
with key stakeholders.
In the Responsible Business and ESG review from page 55,
we outline the ways in which we have engaged with our key
stakeholders, any issues raised and how they have influenced
the Board’s decision making, which is also reported in the S172
statement on pages 99 to 101.
Employees
At 31 March 2026, the Group had 54 employees including the
Executive Directors.
The Company promotes employee involvement and consultation
and invests time in ensuring staff are informed of the Group’s
transactions, activities and performance through its dedicated
internal portal and through half yearly presentations by the
Executive Directors ahead of results announcements.
The Board recognises the importance of attracting, developing
and retaining the right people.
Results and dividends
The Group reported a profit for the year attributable to equity
shareholders of £295.7 million (2025: £347.9 million). The first two
quarterly dividends for 2026 totalling 6.1p per share were paid in
the year as Property Income Distributions (‘PIDs’).
The third quarterly dividend of 3.05p was paid following the year
end on 17 April 2026 as a PID. The Directors have approved a
fourth quarterly dividend of 3.3p per share payable on 9 July 2026
to shareholders on the register at the close of business on 5 June
2026, of which 1.5p will be paid as a PID.
The total dividend charge for the year to 31 March 2026 was
12.45p per share, an increase of 3.8% over the previous year.
Of this, 10.65p was payable as a PID as required by REIT
legislation, after deduction of withholding tax at the basic rate
of income tax. The balance of 1.8p was payable as an ordinary
dividend which is not subject to withholding tax.
Investment properties
A valuation of the Group’s investment properties at 31 March
2026 was undertaken by CBRE Limited, Savills (UK) Limited
and Knight Frank LLP. The fair value of investment property,
including the Group’s share of joint venture property and
excluding the NCI share, was £7,912.1 million at 31 March 2026
(2025: £6,427.2 million), which included an income strip gross
up of £237.1 million (2025: £231.0 million) and right of use
assets of £54.4 million (2025: £40.9 million) that were not
subject to an external valuation as reflected in note 9 to the
financial statements.
Share capital
As at 31 March 2026, there were 2,344,406,347 ordinary shares of
10p in issue, each carrying one vote and all fully paid.
The Company issued 24,210,964 ordinary shares as consideration
for the acquisition of Highcroft Investments plc on 21 May
2025 and 257,864,451 ordinary shares as consideration for
the acquisition of Urban Logistics REIT Plc on 23 June 2025.
The Company also issued 14,222,516 new ordinary shares under
the terms of its Scrip Dividend Scheme. Post year end, the
Company issued a further 375,711 ordinary shares in relation to the
third quarterly dividend scrip alternative.
Report of the Directors continued
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150
Greenhouse gas reporting
In accordance with Schedule 7 of the Large and Medium-Sized
Companies and Groups (Accounts and Reports) Regulations
2008, information regarding the Company’s greenhouse gas
emissions can be found on page 54.
Suppliers
The Group aims to settle supplier accounts in accordance with
their individual terms of business.
The number of creditor days outstanding for the Group at
31 March 2026 was 15 days (2025: 12 days).
Charitable and political contributions
This year we have supported 98 charitable causes and have
made donations of £222,000 (2025: £159,000) as set out in the
Responsible Business and ESG review on page 59.
No political donations were made during the year (2025: £nil).
Provisions on change of control
Under the Group’s credit facilities, the lending banks may require
repayment of the outstanding amounts on any change of control.
The Group’s Long Term Incentive Plan and Deferred Share Bonus
Plan contain provisions relating to the vesting of awards in the
event of a change of control of the Company.
There are no agreements between the Company and its Directors
or employees providing for compensation for loss of office or
employment that occurs specifically because of a takeover bid,
except for the provisions within the Company’s share schemes as
noted above.
Disclosure of information to auditor
So far as the Directors who held office at the date of approval
of this Directors’ report are aware, there is no relevant audit
information of which the auditor is unaware and each Director has
taken all steps that he or she ought to have taken as a Director to
make himself or herself aware of any relevant audit information
and to establish that the auditor is aware of that information.
Auditor
Deloitte is willing to be reappointed as the external auditor to the
Company and Group. Their reappointment has been considered
by the Audit Committee and recommended to the Board.
A resolution will be proposed at the AGM on 9 July 2026.
By order of the Board
Martin McGann
Chief Financial Officer
21 May 2026
The Company operates a non discriminatory employment policy
which provides equal opportunities for all employees irrespective
of gender, race, colour, disability, sexual orientation, religious
beliefs and marital status.
A significant number of employees are eligible to participate in
the annual bonus and LTIP arrangements, helping to develop
an interest in the Group’s performance and align rewards with
Directors’ incentive arrangements. All employees will participate
in the 2026 LTIP award.
The Company provides retirement benefits for its employees and
Executive Directors.
Kitty Patmore was appointed the designated workforce Non
Executive Director following Andrew Livingston’s retirement from
the Board in May 2025.
The designated workforce Non Executive Director acts as a liaison
between the Board and employees and a channel through which
staff can share their views and raise concerns.
Further details of how we engage with employees can be found in
the Governance report on page 96 and the Responsible Business
and ESG review on page 57.
The environment
Details of our approach to Responsible Business and its
aims and activities can be found on the Company’s website
www.londonmetric.com, where a full version of the Responsible
Business report can be downloaded.
An overview of our Responsible Business activity can be found on
pages 48 to 62 of this report.
The Group recognises the importance of minimising the
adverse impact of its operations on the environment and the
management of energy consumption and waste recycling.
The Group strives to maximise opportunities to improve
the resilience of assets to climate change and the impact
of transitioning to a low carbon economy, as set out in the
Responsible Business and ESG review.
Report of the Directors continued
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151
In preparing the Group financial statements, International
Accounting Standard 1 requires that Directors:
• Properly select and apply accounting policies;
• Present information, including accounting policies, in a
manner that provides relevant, reliable, comparable and
understandable information;
• Provide additional disclosures when compliance with the
specific requirements in IFRSs are insufficient to enable users to
understand the impact of particular transactions, other events
and conditions on the entity’s financial position and financial
performance; and
• Make an assessment of the Company’s ability to continue as a
going concern.
The Directors are responsible for keeping adequate accounting
records that are sufficient to show and explain the Company’s
transactions and disclose with reasonable accuracy at any time
the financial position of the Company and to enable them to
ensure that the financial statements comply with the Companies
Act 2006. They are also responsible for safeguarding the assets
of the Company and hence for taking reasonable steps for the
prevention and detection of fraud and other irregularities.
The Directors are responsible for the maintenance and
integrity of the corporate and financial information included
on the Company’s website. Legislation in the UK governing the
preparation and dissemination of financial statements may differ
from legislation in other jurisdictions.
Responsibility statement
We confirm that to the best of our knowledge:
• The financial statements, prepared in accordance with the
relevant financial reporting framework, give a true and fair
view of the assets, liabilities, financial position and profit or
loss of the Company and the undertakings included in the
consolidation taken as a whole;
• The Strategic report includes a fair review of the development
and performance of the business and the position of the
Company and the undertakings included in the consolidation
taken as a whole, together with a description of the principal
risks and uncertainties that they face; and
• The Annual Report and financial statements, taken as a
whole, are fair, balanced and understandable and provide
the information necessary for shareholders to assess the
Company’s performance, business model and strategy.
By order of the Board
Andrew Jones
Chief Executive
21 May 2026
Martin McGann
Chief Financial Officer
21 May 2026
The Directors are responsible for preparing the Annual Report
and the financial statements in accordance with applicable law
and regulations.
Company law requires the Directors to prepare financial
statements for each financial year. Under that law the Directors
are required to prepare the Group financial statements in
accordance with UK-adopted international accounting standards
in conformity with the requirements of the Companies Act 2006.
The financial statements also comply with International Financial
Reporting Standards (‘IFRSs’) as issued by the International
Accounting Standards Board. The Directors have elected to
prepare the Company financial statements in accordance with
Financial Reporting Standard 101 (‘FRS 101’) ‘Reduced Disclosure
Framework’. Under Company law the Directors must not approve
the accounts unless they are satisfied that they give a true and fair
view of the state of affairs of the Company and of the profit or loss
of the Company for that period.
In preparing the Company financial statements, the Directors are
required to:
• Select suitable accounting policies and then apply
them consistently;
• Make judgements and accounting estimates that are reasonable
and prudent;
• State whether applicable FRS 101 ‘Reduced Disclosure
Framework’ has been followed, subject to any material
departures disclosed and explained in the financial statements;
and
• Prepare the financial statements on the going concern basis
unless it is inappropriate to presume that the Company will
continue in business.
Directors’ Responsibilities Statement
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The Group financial
statements that follow
in this section have been
prepared in accordance
with IFRS. The Company
financial statements
have been prepared in
accordance with FRS 101.
The Independent Auditor’s
Report that supports the
financial statements is
reflected from page 154.
Martin McGann
Chief Financial Officer
Financial
statements
In this section
Independent Auditor’s Report 154
Group income statement 161
Group statement of
comprehensive income
161
Group balance sheet 162
Group statement of changes in equity 163
Group cash flow statement 164
Notes forming part of the Group
financial statements
165
Company balance sheet 186
Company statement of changes
in equity
186
Notes forming part of the Company
financial statements
187
Supplementary information 193
Glossary 201
Notice of Annual General Meeting 204
Financial calendar 210
Shareholder information 210
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153
Independent Auditor’s Report
INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS
OF LONDONMETRIC PROPERTY PLC
Report on the audit of the financial statements
1. Opinion
In our opinion:
• the financial statements of LondonMetric Property Plc (the
‘Company’) and its subsidiaries (the ‘Group’) give a true and fair
view of the state of the Group’s and of the Company’s affairs
as at 31 March 2026 and of the Group’s profit for the year
then ended;
• the Group financial statements have been properly prepared
in accordance with United Kingdom adopted international
accounting standards and IFRS Accounting Standards as issued
by the International Accounting Standards Board (IASB);
• the Company financial statements have been properly
prepared in accordance with United Kingdom Generally
Accepted Accounting Practice, including Financial Reporting
Standard 101 “Reduced Disclosure Framework”; and
• the financial statements have been prepared in accordance with
the requirements of the Companies Act 2006.
We have audited the financial statements which comprise:
• the Group income statement;
• the Group statement of comprehensive income;
• the Group and Company balance sheets;
• the Group and Company statements of changes in equity;
• the Group cash flow statement;
• The material accounting policy information; and
• the related notes 1 to 21 for the Group and i to xi for the Company.
The financial reporting framework that has been applied in the
preparation of the Group financial statements is applicable law,
United Kingdom adopted international accounting standards and
IFRS Accounting Standards as issued by the IASB. The financial
reporting framework that has been applied in the preparation of
the Company financial statements is applicable law and United
Kingdom Accounting Standards, including FRS 101 “Reduced
Disclosure Framework” (United Kingdom Generally Accepted
Accounting Practice).
2. Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities
under those standards are further described in the auditor’s responsibilities for the audit of the financial statements section of our report.
We are independent of the Group and the Company in accordance with the ethical requirements that are relevant to our audit of the
financial statements in the UK, including the Financial Reporting Council’s (the ‘FRC’s’) Ethical Standard as applied to listed public interest
entities, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We confirm that we have not
provided any non audit services prohibited by the FRC’s Ethical Standard to the Group or the Company.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
3. Summary of our audit approach
Key audit matters The key audit matters that we identified in the current year were:
• Valuation of investment property, and;
• The acquisition of Urban Logistics REIT Plc (‘ULR’)
Within this report, key audit matters are identified as follows:
Newly identified
Increased level of risk
Similar level of risk
Decreased level of risk
Materiality The materiality that we used for the Group financial statements was £81.0 million which was determined on the
basis of 1% of total assets as of 31 March 2026.
We have changed the benchmark this year from 2% of net assets used in the prior year to 1% of total assets in
line with the growth in the group’s business and aligned with the benchmark used for other FTSE listed real estate
companies. We also consider that total assets provide us with the most appropriate basis for determining materiality
given that key users of the group’s financial statements are focused on the value of investment property.
For the testing of balances which impact EPRA earnings (refer to the Materiality section on page 157) we used a
lower materiality of £15.3 million, which was based on 5% of EPRA earnings for the year ended 31 March 2026.
Scoping The Group was audited as a single component. The audit work in response to the risks of material misstatements
was performed directly by the Group engagement team.
Significant changes in our
approach
Due to the material acquisition of ULR by the Group this year, and the significant judgment around this transaction
we identified it as a key audit matter in the current year.
We changed our materiality benchmark which is explained above.
There were no other significant changes to our approach from the prior year.
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Independent Auditor’s Report continued
5. Key audit matters
Key audit matters are those matters that, in our professional judgement, were of most significance in
our audit of the financial statements of the current period and include the most significant assessed
risks of material misstatement (whether or not due to fraud) that we identified. These matters
included those which had the greatest effect on the overall audit strategy; the allocation of resources
in the audit; and directing the efforts of the engagement team.
These matters were addressed in the context of our audit of the financial statements as a whole, and
in forming our opinion thereon, and we do not provide a separate opinion on these matters.
5.1. Valuation of investment property
Key audit matter
description
The Group holds an investment property portfolio which is valued at
£7,819.0 million as at 31 March 2026 (2025: £6,383.9 million). The increase in
the investment property portfolio is mainly related to the ULR acquisition in
June 2025.
Investment property valuation is subjective in nature with significant estimation
in critical assumptions, increasing the risk of fraud or material error. The property
valuation, which is performed by external valuers, is determined using factual
data at the balance sheet date and applies a range of subjective assumptions
based on market evidence and the valuer’s expertise. Therefore, we identified
the valuation of investment property is a key audit matter.
The Group uses professionally qualified external valuers to fair value the
Group’s portfolio at six monthly intervals. The valuers are engaged by the
Directors and performed their work in accordance with the Royal Institution
of Chartered Surveyors (‘RICS’) Valuation – Professional Standards.
We consider the key assumptions to comprise the yields and expected rental
values (ERV).
The valuation exercise also relies on the integrity of the underlying lease
information provided to the valuers by management. Therefore, we have
determined the ability of management to manipulate the information
provided to the valuers, of which the valuer’s methodology is heavily
dependent on, as a potential area for fraud.
For key sources of estimation uncertainty disclosures and further details of
the group’s valuation method and assumptions, refer to notes 1 and 9 of the
financial statements. The valuation of investment properties is also discussed
in the Audit Committee report on page 114.
4. Conclusions relating to going concern
In auditing the financial statements, we have concluded that the Directors’ use of the going concern
basis of accounting in the preparation of the financial statements is appropriate.
Our evaluation of the Directors’ assessment of the Group’s and Company’s ability to continue to
adopt the going concern basis of accounting included the following procedures:
• Obtained an understanding of the relevant controls over the going concern assessment process;
• Assessed financial and other indicators to identify if there are any doubts or material uncertainties
in respect of going concern;
• Assessed management’s historical forecasting accuracy by comparing the prior year forecasts to
the current year’s actual results;
• Assessed the forecast cash flows, including revenue and costs assumptions by considering the impacts
of future contractual rent reviews and inflation and evaluated reasonable worst case downside
sensitivities over the going concern period identified by management, being 12 months from the date of
approving the financial statements;
• Assessed the covenant position of the Group and evaluated if any would be particularly sensitive
to changes in the market value of the investment property and cash flows;
• Evaluated the sufficiency of the undrawn facilities available to the Group to cover the required debt
repayments maturing within the going concern period;
• Evaluated the respective loan agreements, including those issued during the year, to determine
whether the terms align to the forecasts;
• Tested the arithmetical accuracy of management’s model used to prepare the Group’s forecast
and related scenarios;
• Assessed any market uncertainties or contradictory evidence with regards to the real estate market
and interest rate expectations; and
• Analysed the events that occurred after the reporting period and assessed their impact on the Group’s
and Company’s financial statements.
• Assessed the appropriateness of the Group’s disclosure concerning the going concern basis
of preparation
Based on the work we have performed, we have not identified any material uncertainties relating to
events or conditions that, individually or collectively, may cast significant doubt on the Group’s and
Company’s ability to continue as a going concern for a period of at least twelve months from when
the financial statements are authorised for issue.
In relation to the reporting on how the Group has applied the UK Corporate Governance Code,
we have nothing material to add or draw attention to in relation to the Directors’ statement in the
financial statements about whether the Directors considered it appropriate to adopt the going
concern basis of accounting.
Our responsibilities and the responsibilities of the Directors with respect to going concern are described
in the relevant sections of this report.
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LondonMetric Property Plc Annual Report and Accounts 2026
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Independent Auditor’s Report continued
How the scope of our
audit responded to the
key audit matter
We performed the following procedures:
• Obtained an understanding and tested the relevant controls over the
valuation process, including management’s review of the information
provided to valuers;
• Assessed management’s process for reviewing and assessing the work of the
external valuers;
• Assessed the competence, capabilities and objectivity of the external valuers
and read their terms of engagement with the group to determine whether
there were any matters that might have affected their objectivity or may have
imposed scope limitations on their work;
• Obtained the external valuation reports and, with the involvement of our
real estate specialists, assessed the valuation process, performance of the
portfolio and significant assumptions and critical judgement areas, including
expected rental values (ERV) and yields;
• Assessed the valuation methodology used and evaluated any departures
from the RICS guidance as well as testing the integrity of the model which is
used by the external valuer;
• Met with the external valuers of the portfolio to discuss the results of their
work and, for a sample of properties of audit interest, we challenged the yield
assumptions and valuation by benchmarking it to market evidence;
• Assessed the accuracy and completeness of a sample of the information
provided to the external valuer by agreeing the tenant lease schedule, which is
the key information source, to underlying lease agreements; and
• Evaluated the appropriateness of the disclosures provided in the financial
statements relating to the valuation of investment property.
Key observations
We concluded the fair value of the Group’s property portfolio to be
appropriate. We did not find any material issues with the completeness and
accuracy of the information shared by management with the external valuers.
5.2. Acquisition of Urban Logistics REIT Plc
Key audit matter
description
The Group completed the acquisition of ULR on 23 June 2025.
This acquisition was a significant transaction with a deal value of
£726.8 million. The acquisition was effected through the issue of new
ordinary shares totalling £521.4 million, and cash consideration totalling
£196.7 million. The Group’s existing shareholding in ULR was valued at
£8.7 million on acquisition and was included as part of the consideration paid,
which in aggregate was £726.8 million.
Management has accounted for the acquisition as a business combination
in accordance with IFRS 3 Business Combinations with relevant assets and
liabilities recognised as part of the purchase price allocation (‘PPA’).The
group used professionally qualified external valuers to fair value the acquired
investment property at 23 June 2025 (the acquisition date). The fair value of
net assets acquired was £726.7 million, with investment properties having a
fair value of £1,144.6 million.
The difference between the consideration paid and the fair value of net
assets acquired of £0.1 million has been recognised as goodwill in the
period and has been fully impaired as the future cash flows arising in the
form of rental income were fully incorporated into the fair value of the
assets acquired.
The acquisition of ULR is identified as a key audit matter due to the material
value of the transaction relative to the financial statements and the significant
judgment around the treatment of this transaction as a business combination
in accordance with IFRS 3.
For further details on the accounting policy refer to note 1 and disclosures in
note 15 to the financial statements. The acquisition of ULR is also discussed in
the Audit Committee report on page 114.
5.1. Valuation of investment property continued
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Independent Auditor’s Report continued
6. Our application of materiality
6.1. Materiality
We define materiality as the magnitude of misstatement in the financial statements that makes it probable
that the economic decisions of a reasonably knowledgeable person would be changed or influenced.
We use materiality both in planning the scope of our audit work and in evaluating the results of our work.
Based on our professional judgement, we determined materiality for the financial statements as a
whole as follows:
Group financial statements Company financial statements
Materiality
£81.0 million (2025: £82.5 million)
We consider EPRA earnings as a
critical performance measure for the
Group and therefore we have applied
a lower threshold of £15.3 million
(2025: £13.4 million) for testing of all
balances that impact EPRA earnings,
specifically, certain income statement
balances, share based payments, accrued
interest and other accruals, trade and other
receivables, trade and other payables,
prepayments and accrued income.
£72.4 million
(2025: £71.2 million)
Basis for
determining
materiality
Materiality for the Group is based on 1%
of total assets (2025: 2% of net assets).
For the lower level of materiality, the basis
used is 5% of EPRA earnings (2025: 5% of
EPRA earnings).
Materiality for the Company
is based on 1% of total assets
(2024: 2% of net assets).
Rationale for the
benchmark applied
We have changed the benchmark this
year from 2% net assets used in the
prior year to 1% total assets in line with
the growth in the Group’s business and
aligned with the benchmark used for
other FTSE listed real estate companies.
We also consider that total assets
provide us with the most appropriate
basis for determining materiality given
that key users of the Group’s financial
statements are focused on the value of
investment property.
As an investment holding
company, the focus of
management is to generate
long term capital value from the
Group’s underlying real estate
assets and, therefore, we have
changed the benchmark this
year from 2% net assets used in
the prior year to 1% total assets
to align with the Group and the
benchmark used for other FTSE
listed real estate companies.
How the scope of our
audit responded to the
key audit matter
We performed the following procedures:
• Evaluated whether the acquisition of ULR meets the criteria of a business
combination in accordance with IFRS 3;
• Obtained an understanding of relevant controls over the judgement and
accounting of the transaction;
• Evaluated whether the identification of the acquirer, and determination of
the acquisition date and control passing were in accordance with IFRS 3;
• Assessed the completeness of assets and liabilities that should have been
recognised as part of the PPA;
• Evaluated whether the consideration transferred by the acquirer has been
recognised in accordance with IFRS 3;
• Involved our Deloitte Real Estate Advisory (‘DREA’) specialists when
assessing the valuation of the investment property at the acquisition date,
including assessing the assumptions taken by the external valuer and the
methodology adopted in the valuation approach;
• Assessed the competence, capabilities and objectivity of the
external valuer;
• Evaluated whether acquisition-related costs have been recognised in
accordance with IFRS 3; and
• Evaluated the appropriateness of the disclosures provided in the
financial statements in relation to the business combination against the
requirements of IFRS 3.
Key observations
We concluded the acquisition of ULR is appropriately accounted and disclosed
in the financial statement.
5.2. Acquisition of Urban Logistics REIT Plc continued
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Independent Auditor’s Report continued
6.1. Materiality continued
6.2. Performance materiality
We set performance materiality at a level lower than materiality
to reduce the probability that, in aggregate, uncorrected and
undetected misstatements exceed the materiality for the financial
statements as a whole.
Group financial statements Company financial statements
Performance
materiality
70% (2025: 70%) of
Group materiality
70% (2025: 70%) of
Company materiality
Basis and
rationale for
determining
performance
materiality
In determining performance materiality, we considered
the following factors:
a) Our past experience of the audit, which has
indicated a low number of corrected and uncorrected
misstatements identified in prior periods; and
b) Our risk assessment, including our assessment of the
Groups’ overall control environment.
6.3. Error reporting threshold
We agreed with the Audit Committee that we would report to
the Committee all audit differences in excess of £4.1 million
(2025: £4.1 million), as well as differences below that threshold that, in
our view, warranted reporting on qualitative grounds. We also report
to the Audit Committee on disclosure matters that we identified
when assessing the overall presentation of the financial statements.
In mitigation, management aim to comply with sustainability
targets and future Minimum Energy Efficiency Standards
(‘MEES’). The principal risk identified is consistent with that
identified through our own risk assessment process.
We have read the annual report to consider whether the ESG
disclosures, including climate change, are materially consistent
with the financial statements and our knowledge obtained in
the audit. In addition, we have reviewed the TCFD disclosures
included within pages 63 to 69 of the annual report. We have
also evaluated the appropriateness of disclosures included in the
financial statements in note 1d(iv).
Management has concluded there to be no material impact
arising from climate change on the judgements and estimates
made in the financial statements as noted on page 166.
8. Other information
The other information comprises the information included in
the annual report, other than the financial statements and our
auditor’s report thereon. The Directors are responsible for the
other information contained within the annual report.
Our opinion on the financial statements does not cover the
other information and, except to the extent otherwise explicitly
stated in our report, we do not express any form of assurance
conclusion thereon.
Our responsibility is to read the other information and, in
doing so, consider whether the other information is materially
inconsistent with the financial statements, or our knowledge
obtained in the course of the audit, or otherwise appears to be
materially misstated.
If we identify such material inconsistencies or apparent material
misstatements, we are required to determine whether this
gives rise to a material misstatement in the financial statements
themselves. If, based on the work we have performed, we
conclude that there is a material misstatement of this other
information, we are required to report that fact.
We have nothing to report in this regard.
Total assets
Group materiality
Audit Committee reporting
threshold £4.1m
Group Materiality
£81.0m
Total assets £8,156.1m
Parent company
performance materiality
£50.7m
threshold £4.1m
Total assets
Group materiality
Audit Committee reporting
threshold £4.1m
Group Materiality
£81.0m
Total assets £8,156.1m
Parent company
performance materiality
£50.7m
threshold £4.1m
Total assets
Group materiality
Audit Committee reporting
threshold £4.1m
Group Materiality
£81.0m
Total assets £8,156.1m
Parent company
performance materiality
£50.7m
threshold £4.1m
Total assets
Group materiality
Audit Committee reporting
threshold £4.1m
Group Materiality
£81.0m
Total assets £8,156.1m
Parent company
performance materiality
£50.7m
threshold £4.1m
7. An overview of the scope of our audit
7.1. Identification and scoping of components
Our Group audit was scoped by obtaining an understanding of
the Group and its environment, including groupwide controls, and
assessing the risks of material misstatement at the Group level.
The Group was audited as a single component. For the audit
of the Company a performance materiality of £50.7 million
(2025: £49.8 million) was used.
The audit work in response to the risks of material misstatement
was performed directly by the Group engagement team.
Our audit also included testing of the consolidation process.
The Group operates across the UK and therefore is audited
directly by the Group engagement team in London.
7.2. Our consideration of the control environment
With involvement of our IT specialists we assessed the relevant
controls over key IT systems. Working with our IT specialists,
we identified and obtained an understanding of the relevant
risks arising from each relevant IT system. We obtained an
understanding of the IT environment as part of these risk
assessment procedures.
We have obtained an understanding of the relevant controls such
as those relating to the financial reporting, revenue and valuation of
investment property business cycles. We have performed testing
over the relevant controls over the investment property cycle;
however we do not take a controls reliance approach and adopt a
fully substantive approach. The Directors’ overview of the control
environment is discussed on pages 70 to 71 of the annual report.
7.3. Our consideration of climate-related risks
In planning our audit, we have considered the potential impact
of environmental, social and governance (‘ESG’) related risks,
including climate change.
We have made enquiries of management to understand
the processes in place to assess the potential impact of
climate change on the business and the financial statements.
Management considers there to be a principal risk in respect
of sustainability and, in particular, the management of climate
risk where non-compliance could lead to reputational damage.
Total assets
Group materiality
Audit Committee reporting
threshold £4.1m
Group Materiality
£81.0m
Total assets £8,156.1m
Parent company
performance materiality
£50.7m
threshold £4.1m
Total assets
Group materiality
Audit Committee reporting
threshold £4.1m
Group Materiality
£81.0m
Total assets £8,156.1m
Parent company
performance materiality
£50.7m
threshold £4.1m
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158
9. Responsibilities of Directors
As explained more fully in the Directors’ responsibilities
statement, the Directors are responsible for the preparation of
the financial statements and for being satisfied that they give a
true and fair view, and for such internal control as the Directors
determine is necessary to enable the preparation of financial
statements that are free from material misstatement, whether
due to fraud or error.
In preparing the financial statements, the Directors are
responsible for assessing the Group’s and the Company’s ability
to continue as a going concern, disclosing as applicable, matters
related to going concern and using the going concern basis of
accounting unless the Directors either intend to liquidate the
Group or the Company or to cease operations, or have no realistic
alternative but to do so.
10. Auditor’s responsibilities for the audit of the
financial statements
Our objectives are to obtain reasonable assurance about whether
the financial statements as a whole are free from material
misstatement, whether due to fraud or error, and to issue an
auditor’s report that includes our opinion. Reasonable assurance
is a high level of assurance but is not a guarantee that an audit
conducted in accordance with ISAs (UK) will always detect a
material misstatement when it exists. Misstatements can arise
from fraud or error and are considered material if, individually or
in the aggregate, they could reasonably be expected to influence
the economic decisions of users taken on the basis of these
financial statements.
A further description of our responsibilities for the audit of
the financial statements is located on the FRC’s website at:
www.frc.org.uk/auditorsresponsibilities. This description forms
part of our auditor’s report.
11. Extent to which the audit was considered capable
of detecting irregularities, including fraud
Irregularities, including fraud, are instances of non-compliance
with laws and regulations. We design procedures in line with our
responsibilities, outlined above, to detect material misstatements
in respect of irregularities, including fraud.
The extent to which our procedures are capable of detecting
irregularities, including fraud is detailed below.
11.1. Identifying and assessing potential risks related
to irregularities
In identifying and assessing risks of material misstatement in
respect of irregularities, including fraud and non-compliance with
laws and regulations, we considered the following:
• the nature of the industry and sector, control environment
and business performance including the design of the Group’s
remuneration policies, key drivers for Directors’ remuneration,
bonus levels and performance targets;
• the Group’s own assessment of the risks that irregularities may
occur either as a result of fraud or error that was approved by
the board;
• results of our enquiries of management, the Directors and
the Audit Committee about their own identification and
assessment of the risks of irregularities, including those that are
specific to the Group’s sector;
• any matters we identified having obtained and reviewed the
Group’s documentation of their policies and procedures relating to:
– identifying, evaluating and complying with laws and
regulations and whether they were aware of any instances
of non-compliance;
– detecting and responding to the risks of fraud and whether they
have knowledge of any actual, suspected or alleged fraud;
– the internal controls established to mitigate risks of fraud or
non-compliance with laws and regulations; and
• the matters discussed among the audit engagement team and
relevant internal specialists, including tax, valuation, IT and real
estate specialists regarding how and where fraud might occur in
the financial statements and any potential indicators of fraud.
As a result of these procedures, we considered the opportunities
and incentives that may exist within the organisation for fraud
and identified the greatest potential for fraud in the valuation of
investment property. In common with all audits under ISAs (UK),
we are also required to perform specific procedures to respond to
the risk of management override.
Independent Auditor’s Report continued
We also obtained an understanding of the legal and regulatory
framework that the Group operates in, focusing on provisions
of those laws and regulations that had a direct effect on the
determination of material amounts and disclosures in the financial
statements. The key laws and regulations we considered in this
context included the UK Companies Act, Listing Rules, as well as
relevant provisions of tax legislation, including REIT rules.
In addition, we considered provisions of other laws and
regulations that do not have a direct effect on the financial
statements but compliance with which may be fundamental
to the Group’s ability to operate or to avoid a material penalty.
These included the Group’s health and safety regulation.
11.2. Audit response to risks identified
As a result of performing the above, we identified the valuation
of investment property to be a key audit matter related to the
potential risk of fraud. The key audit matters section of our report
explains the matter in more detail and also describes specific
procedures we performed in response to that key audit matter.
In addition to the above, our procedures to respond to risks
identified included the following:
• reviewing the financial statement disclosures and testing
to supporting documentation to assess compliance with
provisions of relevant laws and regulations described as having
a direct effect on the financial statements;
• enquiring of management, the Audit Committee and external
legal counsel concerning actual and potential litigation
and claims;
• performing analytical procedures to identify any unusual or
unexpected relationships that may indicate risks of material
misstatement due to fraud;
• reading minutes of meetings of those charged with governance,
reviewing internal audit reports; and
• in addressing the risk of fraud through management override
of controls, testing the appropriateness of journal entries and
other adjustments; assessing whether the judgements made in
making accounting estimates are indicative of a potential bias; and
evaluating the business rationale of any significant transactions
that are unusual or outside the normal course of business.
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LondonMetric Property Plc Annual Report and Accounts 2026
159
11.2. Audit response to risks identified continued
We also communicated relevant identified laws and regulations
and potential fraud risks to all engagement team members
including internal specialists and remained alert to any indications
of fraud or non-compliance with laws and regulations throughout
the audit.
Report on other legal and regulatory requirements
12. Opinions on other matters prescribed by the
Companies Act 2006
In our opinion the part of the Directors’ remuneration report to
be audited has been properly prepared in accordance with the
Companies Act 2006.
In our opinion, based on the work undertaken in the course of
the audit:
• the information given in the Strategic report and the Directors’
report for the financial year for which the financial statements
are prepared is consistent with the financial statements; and
• the Strategic report and the Directors’ report have been
prepared in accordance with applicable legal requirements.
In the light of the knowledge and understanding of the Group and
the Company and their environment obtained in the course of the
audit, we have not identified any material misstatements in the
Strategic report or the Directors’ report.
13. Corporate Governance Statement
The Listing Rules require us to review the Directors’ statement
in relation to going concern, longer term viability and that part
of the Corporate Governance Statement relating to the Group’s
compliance with the provisions of the UK Corporate Governance
Code specified for our review.
Based on the work undertaken as part of our audit, we have
concluded that each of the following elements of the Corporate
Governance Statement is materially consistent with the financial
statements and our knowledge obtained during the audit:
• the Directors’ statement with regards to the appropriateness
of adopting the going concern basis of accounting and any
material uncertainties identified set out on page 85;
• the Directors’ explanation as to its assessment of the Group’s
prospects, the period this assessment covers and why the
period is appropriate set out on page 85;
• the Directors’ statement on fair, balanced and understandable
set out on page 152;
• the Board’s confirmation that it has carried out a robust assessment
of the emerging and principal risks set out on page 73;
• the section of the annual report that describes the review of
effectiveness of risk management and internal control systems
set out from page 70; and
• the section describing the work of the Audit Committee set out
on page 111-117.
14. Matters on which we are required to report
by exception
14.1. Adequacy of explanations received and accounting records
Under the Companies Act 2006 we are required to report to you
if, in our opinion:
• we have not received all the information and explanations we
require for our audit; or
• adequate accounting records have not been kept by the
Company, or returns adequate for our audit have not been
received from branches not visited by us; or
• the Company financial statements are not in agreement with
the accounting records and returns.
We have nothing to report in respect of these matters.
14.2. Directors’ remuneration
Under the Companies Act 2006 we are also required to report if
in our opinion certain disclosures of Directors’ remuneration have
not been made or the part of the Directors’ remuneration report
to be audited is not in agreement with the accounting records
and returns.
We have nothing to report in respect of these matters.
15. Other matters which we are required to address
15.1. Auditor tenure
Following the recommendation of the Audit Committee, we were
appointed on 19 September 2013 by the Directors of the Group to
Independent Auditor’s Report continued
audit the financial statements for the year ending 31 March 2014
and subsequent financial periods. Following a competitive tender
process, we were reappointed as auditor of the Group for the year
ending 31 March 2024 and subsequent financial periods.
The period of total uninterrupted engagement including previous
renewals and reappointments of the firm is 13 years, covering the
years ending 31 March 2014 to 31 March 2026.
15.2. Consistency of the Auditor’s Report with the additional
report to the Audit Committee
Our audit opinion is consistent with the additional report to the
Audit Committee we are required to provide in accordance with
ISAs (UK).
16. Use of our report
This report is made solely to the Company’s members, as a body,
in accordance with Chapter 3 of Part 16 of the Companies Act
2006. Our audit work has been undertaken so that we might
state to the Company’s members those matters we are required
to state to them in an auditor’s report and for no other purpose.
To the fullest extent permitted by law, we do not accept or
assume responsibility to anyone other than the Company and the
Company’s members as a body, for our audit work, for this report,
or for the opinions we have formed.
As required by the Financial Conduct Authority (‘FCA’) Disclosure
Guidance and Transparency Rule (‘DTR’) 4.1.15R – DTR 4.1.18R,
these financial statements will form part of the Electronic Format
Annual Financial Report filed on the National Storage Mechanism
of the FCA in accordance with DTR 4.1.15R – DTR 4.1.18R.
This auditor’s report provides no assurance over whether the
Electronic Format Annual Financial Report has been prepared in
compliance with DTR 4.1.15R – DTR 4.1.18R.
Rachel Argyle
(Senior statutory auditor)
For and on behalf of Deloitte LLP
Statutory Auditor
London, United Kingdom
21 May 2026
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LondonMetric Property Plc Annual Report and Accounts 2026
160
| 2026 | 2025 | ||
| Note | £m | £m | |
Revenue | 3 | ||
Cost of sales | ( | ( | |
Net income | |||
Administrative costs | 4a | ( | ( |
Goodwill impairment | 15c | ( | |
Acquisition costs | 15c | ( | |
Profit on revaluation of investment properties | |||
(Loss)/profit on revaluation of investments | ( | ||
Loss on sale of investment properties | ( | ( | |
Share of profits of joint ventures | 10 | ||
Operating profit | |||
Finance income | 5a | ||
Finance costs | 5b | ( | ( |
Profit before tax | |||
Taxation | 6 | ( | ( |
Profit for the year | |||
| Attributable to: | |||
Equity shareholders | |||
Non-controlling interest | 20b | ( | |
| Earnings per share | |||
Basic | 8b | ||
Diluted | 8b |
| 2026 | 2025 | ||
| Note | £m | £m | |
Profit for the year | |||
Foreign exchange translation loss | ( | ( | |
Other comprehensive expense for the year | ( | ( | |
Total comprehensive income for the year | |||
| Attributable to: | |||
Equity shareholders | |||
Non-controlling interest | ( |
All amounts relate to continuing activities. There are no items in other comprehensive income that will not be
reclassified to profit and loss. The notes on pages 165 to 185 form part of these financial statements.
Group income statement
For the year ended 31 March
Group statement of comprehensive income
For the year ended 31 March
LondonMetric Property Plc Annual Report and Accounts 2026161
Strategic report Governance Financial statements
| 2026 | 2025 | ||
| Note | £m | £m | |
| Non current assets | |||
Investment properties | 9a | ||
Investment in equity accounted joint ventures | 10 | ||
Other investments and tangible assets | |||
Derivative financial instruments | 14c | ||
| Current assets | |||
Assets held for sale | 9b | ||
Trading properties | |||
Trade and other receivables | 11 | ||
Cash and cash equivalents | 12 | ||
Total assets | |||
| Current liabilities | |||
Trade and other payables | 13 | ||
Bank borrowings | 14a(i) | ||
Other financial liabilities | 14a(ii) | ||
Lease liabilities | 16 | ||
| Non current liabilities | |||
Bank borrowings | 14a(i) | ||
Other financial liabilities | 14a(ii) | ||
Lease liabilities | 16 | ||
Deferred tax | 6 | ||
Total liabilities | |||
Net assets |
| 2026 | 2025 | ||
| Note | £m | £m | |
| Equity | |||
Called up share capital | 17,18 | ||
Share premium | 17,18 | ||
Capital redemption reserve | 18 | ||
Other reserve | 18 | ||
Retained earnings | 18 | ||
Equity shareholders’ funds | |||
Non-controlling interest | 20b | ||
Total equity | |||
IFRS net asset value per share | 8c |
Registered in England and Wales, No 7124797
The notes on pages 165 to 185 form part of these financial statements.
Group balance sheet
As at 31 March
LondonMetric Property Plc Annual Report and Accounts 2026162
Strategic report Governance Financial statements
Group statement of changes in equity
For the year ended 31 March
| Capital | Equity | Non- | |||||||
| Share | Share | redemption | Other | Retained | shareholders’ | controlling | Total | ||
| capital | premium | reserve | reserves¹ | earnings | funds | interest | equity | ||
| Note | £m | £m | £m | £m | £m | £m | £m | £m | |
At | |||||||||
Profit/(loss) for the year | ( | ||||||||
Other comprehensive expense in the year | ( | ( | ( | ||||||
Total comprehensive (expense)/income for the year | ( | ( | |||||||
Share issue on acquisition | |||||||||
Purchase of shares held in Employee Benefit Trust | ( | ( | ( | ||||||
Vesting of shares held in Employee Benefit Trust | ( | ( | ( | ||||||
Distribution to non-controlling interest | 20b | ( | ( | ||||||
Share based awards | |||||||||
Dividends | 7 | ( | ( | ( | |||||
At |
1 Other reserves include merger relief reserve, Employee Benefit Trust shares and a foreign currency exchange reserve as set out in note 18
| Capital | Equity | Non- | |||||||
| Share | Share | redemption | Other | Retained | shareholders’ | controlling | Total | ||
| capital | premium | reserve | reserves¹ | earnings | funds | interest | equity | ||
| Note | £m | £m | £m | £m | £m | £m | £m | £m | |
At 1 April 2024 | |||||||||
Profit for the year | |||||||||
Other comprehensive expense for the year | ( | ( | ( | ||||||
Total comprehensive (expense)/income for the year | ( | ||||||||
Purchase of shares held in Employee Benefit Trust | ( | ( | ( | ||||||
Vesting of shares held in Employee Benefit Trust | ( | ( | ( | ||||||
Distribution to non-controlling interest | 20b | ( | ( | ||||||
Share based awards | |||||||||
Dividends | 7 | ( | ( | ( | |||||
At 31 March 2025 |
1 Other reserves include merger relief reserve, Employee Benefit Trust shares and a foreign currency exchange reserve as set out in note 18
The notes on pages 165 to 185 form part of these financial statements.
LondonMetric Property Plc Annual Report and Accounts 2026163
Strategic report Governance Financial statements
Group cash flow statement
For the year ended 31 March
| 2026 | 2025 | ||
| Note | £m | £m | |
| Cash flows from operating activities | |||
Profit before tax | |||
| Adjustments for non cash items: | |||
Profit on revaluation of investment properties | ( | ( | |
Loss/(profit) on revaluation of investments | ( | ||
Loss on sale of investment properties | |||
Share of post tax profit of joint ventures | ( | ( | |
Movement in lease incentives | ( | ( | |
Share based payment | |||
Goodwill | |||
Net finance costs | |||
Cash flows from operations before changes in working capital | |||
Change in trade and other receivables | |||
Change in trade and other payables | ( | ( | |
Cash flows from operations | |||
Tax paid | ( | ( | |
Cash flows from operating activities | |||
| Investing activities | |||
Net cash paid for the acquisition of Highcroft | ( | ||
Net cash paid for the acquisition of ULR | 15c | ( | |
Purchase of investment and development properties | ( | ( | |
Capital expenditure on investment properties | ( | ( | |
Purchase of investments and tangible assets | ( | ( | |
Lease incentives paid | ( | ( | |
Sale of investment properties | |||
Distributions from joint ventures | 10 | ||
Interest received | |||
Net cash used in investing activities | ( | ( |
| 2026 | 2025 | ||
| Note | £m | £m | |
| Financing activities | |||
Dividends paid | 7 | ( | ( |
Distribution to non-controlling interest | 20b | ( | ( |
Purchase of shares held in Employee Benefit Trust | ( | ( | |
Settlement of shares held in Employee Benefit Trust | ( | ( | |
New borrowings and amounts drawn down | 19 | ||
Repayment of loan facilities | 19 | ( | ( |
Purchase of derivative financial instruments | ( | ( | |
Financial arrangement fees and break costs | ( | ( | |
Lease liabilities and other financial liabilities paid | ( | ( | |
Interest paid | ( | ( | |
Net cash from/(used in) financing activities | ( | ||
Net increase/(decrease) in cash and cash equivalents | 19 | ( | |
Opening cash and cash equivalents | |||
Closing cash and cash equivalents |
The notes on pages 165 to 185 form part of these financial statements.
Strategic report Governance Financial statements
LondonMetric Property Plc Annual Report and Accounts 2026
164
Notes forming part of the Group financial statements
Strategic report Governance Financial statements
LondonMetric Property Plc Annual Report and Accounts 2026
165
Notes forming part of the Group financial statements continued
1 Material accounting policy information continued
Name | Description |
Amendments to IAS 21 | Lack of exchangeability |
Name | Description |
Amendments to IFRS 9 and IFRS 7 | Amendments to the classification and measurement of |
| financial instruments | |
| Annual Improvements to IFRS | Volume 11 |
| Accounting Standards | |
IFRS 18 | Presentation and disclosures in financial statements |
IFRS 19 | Subsidiaries without public accountability: disclosures |
Strategic report Governance Financial statements
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166
Notes forming part of the Group financial statements continued
1 Material accounting policy information continued
iii) Non-controlling interest continued
Strategic report Governance Financial statements
LondonMetric Property Plc Annual Report and Accounts 2026
167
Notes forming part of the Group financial statements continued
1 Material accounting policy information continued
Strategic report Governance Financial statements
LondonMetric Property Plc Annual Report and Accounts 2026
168
Notes forming part of the Group financial statements continued
1 Material accounting policy information continued
i) Tax continued
2 Segmental information
a) Property value
| 2026 | 2025 | |
| As at 31 March | £m | £m |
Logistics | 4,023.7 | 2,837.9 |
Long income | 3,471.7 | 3,159.7 |
Other¹ | 81.0 | 125.9 |
Total portfolio² | 7,576.4 | 6,123.5 |
Income strip gross up | 237.1 | 231.0 |
Head lease assets | 54.4 | 40.9 |
7,867.9 | 6,395.4 |
1 Other property assets include a retail park, four offices, a life science asset and trading property
2 Total portfolio includes trading assets of £1.1 million (2025: £1.1 million) and assets held for sale of £47.8 million (2025: £10.4 million)
b) Gross rental income
| 2026 | 2025 | |
| For the year to 31 March | £m | £m |
Logistics | 209.0 | 143.3 |
Long income | 246.2 | 241.4 |
Other | 6.5 | 10.8 |
461.7 | 395.5 |
c) Net rental income
| 2026 | 2025 | |
| For the year to 31 March | £m | £m |
Logistics | 204.8 | 141.3 |
Long income | 244.0 | 239.1 |
Other | 6.5 | 10.2 |
455.3 | 390.6 |
An operating segment is a distinguishable component of the Group that engages in business activities, earns
revenue and incurs expenses, whose results are reviewed by the Group’s Chief Operating Decision Makers
(‘CODMs’) and for which discrete financial information is available.
Gross rental income represents the Group’s revenues from its tenants and net rental income is the principal
profit measure used to determine the performance of each sector. Total assets and liabilities are not monitored
by segment. However, property assets are reviewed on an ongoing basis.
The Group operates predominantly in the United Kingdom and no geographical split is provided in information
reported to the Board.
Included within the logistics operating segment are the sub-categories of urban logistics, regional distribution
and mega distribution and within the long income operating segment are the sub-categories of convenience,
entertainment and leisure and healthcare.
However the sub-category results are not separately reviewed by the CODMs as they are not considered
separate operating segments. Instead the CODMs review the logistics and long income sectors as a whole as
their own operating segments.
The income strip gross up and head lease assets are not considered separate operating segments and are
included in this note for reconciliation purposes only.
Strategic report Governance Financial statements
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169
Notes forming part of the Group financial statements continued
| 2026 | 2025 | |
| For the year to 31 March | £m | £m |
Gross rental income | 461.7 | 395.5 |
Property management fees | 0.9 | 1.0 |
Other income | 2.0 | 0.2 |
Revenue | 464.6 | 396.7 |
| 2026 | 2025 | |
| For the year to 31 March | £m | £m |
Gross rental income | 461.7 | 395.5 |
Cost of sales – property operating expenses | (6.4) | (4.9) |
Net rental income | 455.3 | 390.6 |
| 2026 | 2025 | |
| For the year to 31 March | £m | £m |
Staff costs | 22.7 | 20.7 |
Auditor’s remuneration | 1.0 | 0.7 |
Depreciation | 1.0 | 0.6 |
Other administrative costs | 5.5 | 5.1 |
30.2 | 27.1 |
| 2026 | 2025 | |
| For the year to 31 March | £m | £m |
| Employee costs, including those of Directors, comprise the following: | ||
Wages and salaries | 17.1 | 15.7 |
Less staff costs capitalised in respect of development projects | (2.0) | (1.9) |
15.1 | 13.8 | |
Social security costs | 1.4 | 1.2 |
Pension costs | 0.5 | 0.4 |
Share based payment | 5.7 | 5.3 |
22.7 | 20.7 |
| 2026 | 2025 | |
| For the year to 31 March | £m | £m |
Remuneration for management services | 4.2 | 4.0 |
Entitlement to pension scheme contributions | 0.1 | 0.1 |
4.3 | 4.1 |
| 2026 | 2025 | |
| For the year to 31 March | £m | £m |
Short term employee benefits | 12.9 | 11.6 |
Share based payments | 4.6 | 4.1 |
17.5 | 15.7 |
| 2026 | 2025 | |
| Number | Number | |
Property and administration | 47 |
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LondonMetric Property Plc Annual Report and Accounts 2026
170
Notes forming part of the Group financial statements continued
4 Administrative costs continued
| 2026 | 2025 | |
| For the year to 31 March | £'000 | £'000 |
| Audit services: | ||
Audit of the Group and Company financial statements | 733.0 | 572.0 |
Audit of the Company’s subsidiaries | 50.1 | 48.0 |
| Other fees: | ||
Issuance of comfort letter for the EMTN programme | 80.0 | – |
Audit-related assurance services - Interim Review | 103.8 | 95.0 |
Total fees for audit and other services | 966.9 | 715.0 |
| 2026 | 2025 | |
| For the year to 31 March | £m | £m |
Interest received on bank deposits | 2.4 | 1.9 |
Interest receivable from interest rate derivatives | 13.2 | 20.6 |
Interest receivable from forward funded developments | 2.4 | 1.2 |
Total finance income | 18.0 | 23.7 |
| 2026 | 2025 | |
| For the year to 31 March | £m | £m |
Interest payable on bank loans | 115.1 | 98.5 |
Unwinding of discount on fixed rate debt acquired | 5.9 | 4.6 |
Debt and hedging early close out costs | 16.9 | – |
Amortisation of loan issue costs | 5.2 | 4.3 |
Interest on lease and other financial liabilities | 17.5 | 15.2 |
Commitment fees and other finance costs | 6.5 | 5.3 |
Total borrowing costs | 167.1 | 127.9 |
Less amounts capitalised on developments | (3.5) | (3.4) |
Net borrowing costs | 163.6 | 124.5 |
Fair value loss on derivative financial instruments | 9.7 | 11.1 |
Total finance costs | 173.3 | 135.6 |
6 Taxation
| 2026 | 2025 | |
| For the year to 31 March | £m | £m |
| Current tax | ||
UK corporation tax | 0.5 | 0.9 |
German corporate income tax | 0.5 | 0.6 |
| Deferred tax | ||
Deferred tax on German asset | 0.7 | 0.7 |
Total tax charge | 1.7 | 2.2 |
As the Group is a UK REIT, any profits and gains arising from its property rental business are exempt from UK
corporation tax and there is no provision for deferred tax arising on the revaluation of properties.
The UK corporation tax charge relates to tax arising on income attributable to the Group’s non-controlling
interest and other residual tax. The Group has one German property and is subject to German corporate income
tax at an effective rate of 15.825%, which resulted in a tax charge of £0.5 million in the year (2025: £0.6 million).
An associated deferred tax liability is recognised and the revaluation movement of £0.7 million has been
reflected in the year along with an adverse currency movement of £0.5 million, resulting in a deferred tax liability
of £11.3 million at the year end (2025: £10.1 million).
The reconciliation of the total tax charge in the year to the tax assessed on profits at the standard rate of
corporation tax in the UK is set out below.
| 2026 | 2025 | |
| For the year to 31 March | £m | £m |
Profit before tax | 297.1 | 352.8 |
Tax charge at the standard rate of corporation tax in the UK of 25% (2025: 25%) | 74.3 | 88.2 |
| Effects of: | ||
Items not taxable | (2.4) | (20.7) |
Share of post tax profits of joint ventures | (1.2) | (1.5) |
REIT exemption on income and gains | (68.3) | (63.5) |
Other | (0.7) | (0.3) |
Tax charge on profit | 1.7 | 2.2 |
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171
Notes forming part of the Group financial statements continued
7 Dividends
| 2026 | 2025 | |||
| For the year to 31 March | £m | £m | ||
| Ordinary dividends paid | ||||
2024 | Third quarterly interim dividend | 2.4p per share | – | 26.2 |
2024 | Fourth quarterly interim dividend | 3.0p per share | – | 61.1 |
2025 | First quarterly interim dividend | 2.85p per share | – | 58.1 |
2025 | Second quarterly interim dividend | 2.85p per share | – | 58.3 |
2025 | Third quarterly interim dividend | 3.0p per share | 61.2 | – |
2025 | Fourth quarterly interim dividend | 3.3p per share | 68.2 | – |
2026 | First quarterly interim dividend | 3.05p per share | 71.2 | – |
2026 | Second quarterly interim dividend | 3.05p per share | 71.2 | – |
271.8 | 203.7 | |||
| Ordinary dividend payable | ||||
2026 | Third quarterly interim dividend | 3.05p per share | 71.2 | |
2026 | Fourth quarterly interim dividend | 3.3p per share | 77.0 | |
The Company paid its third quarterly interim dividend in respect of the financial year to 31 March 2026 of 3.05p
per share, wholly as a Property Income Distribution (‘PID’), on 17 April 2026 to ordinary shareholders on the
register at the close of business on 13 March 2026.
The fourth quarterly interim dividend for 2026 of 3.3p per share, of which 1.5p is payable as a PID, will be payable
on 9 July 2026 to shareholders on the register at the close of business on 5 June 2026. A scrip dividend alternative
will be offered to shareholders as it was for the first three quarterly dividend payments. Neither dividend has
been included as a liability in these accounts. Both dividends will be recognised as an appropriation of retained
earnings in the year to 31 March 2027.
During the year, the Company issued 14.2 million ordinary shares under the terms of the Scrip Dividend Scheme,
which reduced the cash dividend payment by £26.5 million to £245.3 million.
| 2026 | 2025 | |
| For the year to 31 March | £m | £m |
EPRA earnings | 305.3 | 268.0 |
Revaluation of property and investments | 64.6 | 106.9 |
Fair value of derivatives | (9.7) | (11.1) |
Loss on disposal | (19.0) | (13.0) |
Impact of inflation volatility relating to the income strip | (4.8) | (3.7) |
Debt and hedging early repayment costs | (16.9) | – |
Goodwill impairment | (9.6) | – |
Acquisition costs | (16.3) | – |
Deferred tax | (0.7) | (0.7) |
JV and NCI share of adjustments | 2.8 | 1.5 |
IFRS reported profit | 295.7 | 347.9 |
| 2026 | 2025 | |
| For the year to 31 March | £m | £m |
Basic and diluted earnings | 295.7 | 347.9 |
EPRA adjustments above | 9.6 | (79.9) |
EPRA earnings | 305.3 | 268.0 |
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172
Notes forming part of the Group financial statements continued
8 Earnings and net assets per share continued
b) Earnings per ordinary share attributable to equity shareholders continued
| 2026 | 2025 | |
| Number of | Number of | |
| shares | shares | |
| For the year to 31 March | (millions) | (millions) |
Weighted ordinary share capital | 2,278.9 | 2,044.2 |
Shares held in the Employee Benefit Trust | (9.6) | (4.5) |
Weighted average number of ordinary shares – basic | 2,269.3 | 2,039.7 |
Employee share schemes | 7.9 | 6.2 |
Weighted average number of ordinary shares – fully diluted | 2,277.2 | 2,045.9 |
| Earnings per share | ||
Basic | 13.0p | 17.1p |
Diluted | 13.0p | 17.0p |
| EPRA earnings per share | ||
Basic | 13.5p | 13.1p |
Diluted | 13.4p | 13.1p |
| EPRA net | EPRA net | EPRA net | |
| tangible | disposal | reinstatement | |
| assets | value | value | |
| As at 31 March 2026 | £m | £m | £m |
Equity shareholders’ funds | 4,714.3 | 4,714.3 | 4,714.3 |
Deferred tax on fair value gains of investment property | – | – | 11.3 |
Fair value of Group derivatives | (16.2) | – | (16.2) |
Mark to market of fixed rate debt | – | 86.0 | – |
Mark to market of public bond | – | 16.7 | – |
Purchasers’ costs¹ | – | – | 518.2 |
EPRA net asset value | 4,698.1 | 4,817.0 | 5,227.6 |
| EPRA net | EPRA net | EPRA net | |
| tangible | disposal | reinstatement | |
| assets | value | value | |
| As at 31 March 2025 | £m | £m | £m |
Equity shareholders’ funds | 4,094.2 | 4,094.2 | 4,094.2 |
Deferred tax on fair value gains of investment property | 0.5 | – | 10.1 |
Fair value of Group derivatives | (23.7) | – | (23.7) |
Mark to market of fixed rate debt | – | 87.6 | – |
Purchasers’ costs 1 | – | – | 418.6 |
EPRA net asset value | 4,071.0 | 4,181.8 | 4,499.2 |
| 2026 | 2025 | |
| Number of | Number of | |
| shares | shares | |
| As at 31 March | (millions) | (millions) |
Ordinary share capital | 2,344.4 | 2,048.1 |
Shares held in Employee Benefit Trust | (10.0) | (10.5) |
Number of ordinary shares – basic | 2,334.4 | 2,037.6 |
Employee share schemes | 8.1 | 6.4 |
Number of ordinary shares – fully diluted | 2,342.5 | 2,044.0 |
IFRS net asset value per share | 202.7p | 202.4p |
EPRA net tangible assets per share | 200.6p | 199.2p |
EPRA net disposal value per share | 205.6p | 204.6p |
EPRA net reinstatement value per share | 223.2p | 220.1p |
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Notes forming part of the Group financial statements continued
9 Investment properties
a) Investment properties
| Under | 2026 | Under | 2025 | |||
| Completed | development | Total | Completed | development | Total | |
| As at 31 March | £m | £m | £m | £m | £m | £m |
Opening balance | 6,327.6 | 15.4 | 6,343.0 | 6,146.4 | 38.2 | 6,184.6 |
Acquisitions | 1,526.6 | 82.1 | 1,608.7 | 284.7 | 10.8 | 295.5 |
Capital expenditure | 14.9 | 16.2 | 31.1 | 24.7 | 11.9 | 36.6 |
Disposals | (293.0) | – | (293.0) | (293.8) | (21.4) | (315.2) |
Property transfers¹ | (26.5) | (21.3) | (47.8) | 17.0 | (27.4) | (10.4) |
Revaluation movement² | 54.5 | 7.6 | 62.1 | 97.8 | 3.2 | 101.0 |
Foreign currency | 5.8 | – | 5.8 | (2.9) | – | (2.9) |
| Movement in income strip | ||||||
gross up 2,3 | 6.1 | – | 6.1 | 9.5 | – | 9.5 |
and rent free uplifts | 48.5 | 0.1 | 48.6 | 44.2 | 0.1 | 44.3 |
Property portfolio | 7,664.5 | 100.1 | 7,764.6 | 6,327.6 | 15.4 | 6,343.0 |
Head lease assets | 54.4 | – | 54.4 | 40.9 | – | 40.9 |
7,718.9 | 100.1 | 7,819.0 | 6,368.5 | 15.4 | 6,383.9 |
Movement in tenant incentives
1 Properties totalling £47.8 million (2025: £10.4 million) have been transferred to current assets and separately disclosed as assets held for sale as
reflected in note 9b
2 Revaluation and income strip movements are reflected together as profit on revaluation of investment properties in the income statement of
£68.2 million (2025: £106.0 million)
3 Prior year movement of £9.5 million comprises an adjustment of £4.5 million to incorporate an inflation adjustment and a gross up of £5.0 million
which is included in the income statement
Investment properties are stated at fair value as at 31 March 2026 based on external valuations performed by
professionally qualified and independent valuers CBRE Limited (‘CBRE’), Savills (UK) Limited (‘Savills’) and
Knight Frank LLP (‘Knight Frank’). The valuations have been prepared in accordance with the RICS Valuation –
Global Standards 2025 on the basis of fair value. There has been no change in the valuation technique in the
year. The total fees earned by each valuer from the Company represent less than 5% of their total UK revenues.
A reconciliation of the total portfolio valuation to the valuers’ reports is provided below:
| 2026 | 2025 | ||
As at 31 March | Note | £m | £m |
Property portfolio valuation | 9a | 7,764.6 | 6,343.0 |
Assets held for sale | 9b | 47.8 | 10.4 |
Less income strip gross up | (237.1) | (231.0) | |
Portfolio valuation from external valuation reports | 7,575.3 | 6,122.4 |
As part of the LXi merger, the Group acquired a financial liability associated with the sale of a 65 year income
strip of Alton Towers and Thorpe Park in 2022 as set out in note 14a(ii). The income strip balance included within
investment properties represents the gross up of the asset values as the external valuation is based on net cash
flows after deducting income strip payments.
The movement in the year of £6.1 million comprises a gross up which is included in the income statement within
the movement in revaluation of investment properties.
Completed properties include buildings that are occupied or are available for occupation. Properties under
development include land under development and investment property under construction. Internal staff costs
of the development team of £2.0 million (2025: £1.9 million) have been capitalised in the year, being directly
attributable to the development projects in progress.
Long term leasehold values included within investment properties amount to £1,332.3 million
(2025: £1,169.8 million). Almost half relates to theme park assets which are let on 999 year leases. All other
properties are freehold.
The historical cost of all of the Group’s investment properties at 31 March 2026 was £6,850.4 million
(2025: £5,484.0 million).
Included within the investment property valuation is £205.5 million (2025: £156.9 million) in respect of
unamortised lease incentives and rent free periods. The movement in the year reflects lease incentives paid of
£1.4 million (2025: £8.2 million) and rent free and amortisation movements of £51.2 million (2025: £47.9 million),
offset by incentives written off on disposal of £4.0 million (2025: £11.8 million).
Capital commitments have been entered into amounting to £49.6 million (2025: £107.2 million) which have not
been provided for in the financial statements.
b) Assets held for sale
| 2026 | 2025 | |
| As at 31 March | £m | £m |
Opening balance | 10.4 | 8.5 |
Disposals | (10.4) | (8.5) |
Property transfers | 47.8 | 10.4 |
Closing balance | 47.8 | 10.4 |
The valuation of freehold and leasehold property held for sale at 31 March 2026 was £47.8 million
(2025: £10.4 million), representing £18.6 million logistics and £29.2 million long income assets which are
expected to complete within the next six months.
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Notes forming part of the Group financial statements continued
All of the Group’s properties are categorised as Level 3 in the fair value hierarchy as defined by IFRS 13 fair
value measurement. There have been no transfers of properties between Levels 1, 2 and 3 during the year
ended 31 March 2026. The fair value at 31 March 2026 represents the highest and best use of the properties.
When considering the highest and best use, the valuers will look at existing and potential uses which are viable.
i) Technique
The valuation techniques described below are consistent with IFRS 13 and use significant ‘unobservable’ inputs
such as Expected Rental Value (‘ERV’) and yield. There have been no changes in valuation techniques since the
prior year.
Yield capitalisation – for commercial investment properties, market rental values are capitalised with a market
capitalisation rate. The resulting valuations are cross-checked against the net initial yields and the fair market
values per square foot derived from recent market transactions.
Residual – for certain investment properties under development, the fair value of the property is calculated by
estimating the fair value of the completed property using the yield capitalisation technique less estimated costs
to completion and a risk premium which includes but is not limited to construction and letting risk.
ii) Sensitivity
A 5% increase or decrease in ERV would increase or decrease the fair value of the Group’s investment properties
by £160.8 million or £164.9 million respectively.
An increase or decrease of 25bps to the equivalent yield would decrease or increase the fair value of the Group’s
investment properties by £311.8 million or £334.1 million respectively. An increase or decrease of 50bps to the
equivalent yield would decrease or increase the fair value of the Group’s investment properties by £613.3 million
or £739.5 million respectively. The Directors consider these thresholds to be appropriate in order to demonstrate
a reasonable movement in the underlying significant estimates and their impact on the valuation of the property
portfolio based on historical movements and consider their presentation to be in line with market practice.
There are interrelationships between the valuation inputs and they are primarily determined by market conditions.
The effect of an increase in more than one input could be to magnify the impact on the valuation. However, the
impact on the valuation could be offset by the interrelationship of two inputs moving in opposite directions, for
example an increase in rent may be offset by a decrease in occupancy, resulting in no net impact on the valuation.
iii) Process
The valuation reports produced by CBRE, Savills and Knight Frank are based on:
• Information provided by the Group, such as current rents, lease terms, capital expenditure and comparable
sales information, which is derived from the Group’s financial and property management systems and is
subject to the Group’s overall control environment; and
• Assumptions applied by the valuers such as ERVs and yields which are based on market observation and their
professional judgement.
9 Investment properties continued
c) Valuation technique and quantitative information
ERV | Net initial yield | Reversionary yield | |||||||||
| Segmental | Under | Trading | Fair value | Weighted | Weighted | Weighted | |||||
| split (note 2) | development | assets | 2026¹ | Valuation | average | Range | average | Range | average | Range | |
| Asset type | £m | £m | £m | £m | technique | (£ per sq ft) | (£ per sq ft) | % | % | % | % |
Logistics | 4,023.7 | (80.8) | – | 3,942.9 | Yield capitalisation | 9.52 | 1.80–37.10 | 5.0 | 1.7–10.1 | 6.2 | 3.1–21.7 |
Long income | 3,471.7 | (19.3) | – | 3,452.4 | Yield capitalisation | 19.43 | 1.10–191.60 | 5.6 | 1.3–13.3 | 5.6 | 3.2–16.7 |
Other | 81.0 | – | (1.1) | 79.9 | Yield capitalisation | 14.32 | 5.70–70.10 | 5.6 | 4.6–10.6 | 8.5 | 5.3–11.2 |
Development | – | 100.1 | – | 100.1 | Residual | 14.22 | 12.50–55.60 | 4.9 | 3.8–5.7 | 5.3 | 5.1–6.3 |
ERV | Net initial yield | Reversionary yield | |||||||||
| Segmental | Under | Trading | Fair value | Weighted | Weighted | Weighted | |||||
| split (note 2) | development | assets | 2025¹ | Valuation | average | Range | average | Range | average | Range | |
| Asset type | £m | £m | £m | £m | technique | (£ per sq ft) | (£ per sq ft) | % | % | % | % |
Logistics | 2,837.9 | (6.2) | – | 2,831.7 | Yield capitalisation | 9.82 | 2.50–37.10 | 4.7 | 2.0–12.4 | 5.7 | 4.0–11.6 |
Long income | 3,159.7 | (9.2) | – | 3,150.5 | Yield capitalisation | 20.97 | 3.50–191.60 | 5.5 | 1.3–13.4 | 4.2 | 3.0–30.1 |
Other | 125.9 | – | (1.1) | 124.8 | Yield capitalisation | 16.84 | 5.70–60.80 | 4.8 | 4.1–11.5 | 7.0 | 4.6–11.5 |
Development | – | 15.4 | – | 15.4 | Residual | 26.40 | 22.50–55.60 | 5.7 | 5.5–5.7 | 5.8 | 5.7–6.7 |
1 As reflected in notes 2 and 9 and including assets held for sale of £47.8 million (2025: £10.4 million) but excluding trading properties classified as development of £1.1 million (2025: £1.1 million)
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Notes forming part of the Group financial statements continued
| Country of incorporation | |||
or registration 1 | Property sectors | Group share | |
Metric Income Plus Partnership (‘MIPP’) | England | Long income | 50.0% |
| 2026 | 2025 | |
| As at 31 March | £m | £m |
Opening balance | 71.9 | 69.2 |
Share of profit for the year | 4.7 | 6.1 |
Distributions received¹ | (9.1) | (3.4) |
67.5 | 71.9 |
| Group | Group | |||
| Total | share | Total | share | |
| 2026 | 2026 | 2025 | 2025 | |
| Summarised income statement | £m | £m | £m | £m |
Gross rental income | 8.2 | 4.1 | 7.8 | 3.9 |
Property costs | (0.5) | (0.3) | (0.4) | (0.2) |
Net rental income | 7.7 | 3.8 | 7.4 | 3.7 |
Management fees | (1.1) | (0.5) | (1.1) | (0.6) |
Revaluation gain | 2.6 | 1.3 | 5.8 | 2.9 |
Profit on disposal | 0.1 | – | – | – |
Net finance income | 0.1 | 0.1 | 0.1 | 0.1 |
Profit after tax | 9.4 | 4.7 | 12.2 | 6.1 |
Group share of profit after tax | 4.7 | 6.1 | ||
| EPRA adjustments: | ||||
Revaluation gain | (2.6) | (1.3) | (5.8) | (2.9) |
Profit on disposal | (0.1) | – | – | – |
EPRA earnings | 6.7 | 3.4 | 6.4 | 3.2 |
Group share of EPRA earnings | 3.4 | 3.2 | ||
| Summarised balance sheet | ||||
Investment properties | 131.2 | 65.5 | 139.8 | 69.9 |
Other current assets | 0.4 | 0.2 | 0.5 | 0.2 |
Cash | 6.0 | 3.0 | 5.5 | 2.8 |
Current liabilities | (2.5) | (1.2) | (2.1) | (1.0) |
Net assets | 135.1 | 67.5 | 143.7 | 71.9 |
Group share of net assets | 67.5 | 71.9 |
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Notes forming part of the Group financial statements continued
| 2026 | 2025 | |
| As at 31 March | £m | £m |
Trade receivables | 10.1 | 3.6 |
Prepayments and accrued income | 4.3 | 4.6 |
Other receivables | 13.5 | 5.5 |
27.9 | 13.7 |
| 2026 | 2025 | |
| As at 31 March | £m | £m |
Trade payables | 10.1 | 3.7 |
Amounts payable on property acquisitions and disposals | 2.4 | 1.8 |
Rent received in advance | 93.0 | 63.1 |
Accrued interest | 14.5 | 4.7 |
Tax liabilities | 10.8 | 16.9 |
Other payables | 28.1 | 31.5 |
Other accruals and deferred income | 22.7 | 20.8 |
181.6 | 142.5 |
| 2026 | 2025 | |
| As at 31 March | £m | £m |
Secured bank loans | 533.5 | 799.3 |
Unsecured bank loans | 2,418.8 | 1,273.9 |
2,952.3 | 2,073.2 | |
Unamortised finance costs | (14.7) | (14.6) |
2,937.6 | 2,058.6 |
| Floating | Unamortised | Weighted | ||||
| Total debt | rate | Fixed rate | fair value | Total gross | average | |
| facility | debt drawn | debt drawn | adjustments | debt | maturity | |
| As at 31 March 2026 | £m | £m | £m | £m | £m | (years) |
| Secured bank loans: | ||||||
Rothesay (Mucklow) | 60.0 | – | 60.0 | 1.3 | 61.3 | 5.7 |
Canada Life (CTPT) | 90.0 | – | 90.0 | (0.6) | 89.4 | 0.6 |
Scottish Widows (LXi) | 170.0 | – | 170.0 | (13.2) | 156.8 | 7.7 |
Handelsbanken (Highcroft) | 27.2 | – | 27.2 | (0.9) | 26.3 | 2.7 |
Aviva (ULR) | 210.0 | – | 210.0 | (10.3) | 199.7 | 4.4 |
| Unsecured bank loans: | ||||||
Public bond 2025 | 500.0 | – | 500.0 | (1.2) | 498.8 | 5.2 |
Revolving credit facilities 2026 (syndicate) | 755.0 | 245.0 | – | – | 245.0 | 4.7 |
Revolving credit facilities 2026 (Lloyds) | 150.0 | 145.0 | – | – | 145.0 | 4.6 |
Term loan 2025 (syndicate) | 180.0 | 180.0 | – | – | 180.0 | 2.3 |
Term loan 2025 (CCB) | 50.0 | 50.0 | – | – | 50.0 | 2.6 |
Term loans 2026 (syndicate) | 545.0 | 545.0 | – | – | 545.0 | 2.5 |
Term loans 2026 (Lloyds) | 50.0 | 50.0 | – | – | 50.0 | 2.5 |
Private placement 2016 (syndicate) | 25.0 | – | 25.0 | – | 25.0 | 2.5 |
Private placement 2018 (syndicate) | 150.0 | – | 150.0 | – | 150.0 | 4.8 |
Private placement 2021 (syndicate) | 380.0 | – | 380.0 | – | 380.0 | 6.2 |
Private placement 2025 (syndicate) | 150.0 | – | 150.0 | – | 150.0 | 5.1 |
3,492.2 | 1,215.0 | 1,762.2 | (24.9) | 2,952.3 | 4.4 | |
Total debt drawn | 2,977.2 |
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Notes forming part of the Group financial statements continued
14 Borrowings and financial instruments continued
i) Secured and unsecured loans continued
| Unamortised | Weighted | |||||
| Total debt | Floating rate | Fixed rate | fair value | Total gross | average | |
| facility | debt drawn | debt drawn | adjustments | debt | maturity | |
| As at 31 March 2025 | £m | £m | £m | £m | £m | (years) |
| Secured bank loans: | ||||||
Scottish Widows (Mucklow) | 60.0 | – | 60.0 | 1.5 | 61.5 | 6.7 |
Canada Life (CTPT) | 90.0 | – | 90.0 | (1.7) | 88.3 | 1.6 |
L&G (LXi) | 62.5 | – | 62.5 | (0.2) | 62.3 | 0.4 |
AIG (LXi) | 286.2 | – | 286.2 | (0.8) | 285.4 | 0.5 |
Scottish Widows (LXi) | 170.0 | – | 170.0 | (14.9) | 155.1 | 8.7 |
Canada Life (LXi) | 148.0 | – | 148.0 | (1.3) | 146.7 | 14.1 |
| Unsecured bank loans: | ||||||
Revolving credit facility 2021 (syndicate) | 225.0 | 145.0 | – | – | 145.0 | 1.1 |
Wells Fargo revolving credit facility | 175.0 | 55.0 | – | – | 55.0 | 1.1 |
Revolving credit facility 2022 (syndicate) | 275.0 | 135.0 | – | – | 135.0 | 2.6 |
Revolving credit facility 2024 (syndicate) | 560.0 | 152.1 | – | – | 152.1 | 3.8 |
SMBC revolving credit facility 2025 | 175.0 | 91.8 | – | – | 91.8 | 4.7 |
Term loan 2024 (syndicate) | 140.0 | 140.0 | – | – | 140.0 | 1.8 |
Private placement 2016 (syndicate) | 25.0 | – | 25.0 | – | 25.0 | 3.5 |
Private placement 2018 (syndicate) | 150.0 | – | 150.0 | – | 150.0 | 5.8 |
Private placement 2021 (syndicate) | 380.0 | – | 380.0 | – | 380.0 | 7.2 |
2,921.7 | 718.9 | 1,371.7 | (17.4) | 2,073.2 | 4.7 | |
Total drawn debt | 2,090.6 |
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14 Borrowings and financial instruments continued
| One to | Three | ||||||
| Less than | three | months to | One to | Two to | More than | ||
| one month | months | one year | two years | five years | five years | Total | |
| As at 31 March 2026 | £m | £m | £m | £m | £m | £m | £m |
Bank loans | 10.1 | 20.5 | 184.2 | 509.4 | 1,746.0 | 1,027.3 | 3,497.5 |
Other financial liabilities | 0.8 | 1.5 | 7.1 | 9.7 | 31.0 | 1,760.0 | 1,810.1 |
| Derivative financial | |||||||
instruments | (0.6) | (0.9) | (4.0) | (2.5) | (2.4) | – | (10.4) |
10.3 | 21.1 | 187.3 | 516.6 | 1,774.6 | 2,787.3 | 5,297.2 |
| One to | Three | ||||||
| Less than | three | months to | One to | Two to | More than | ||
| one month | months | one year | two years | five years | five years | Total | |
| As at 31 March 2025 | £m | £m | £m | £m | £m | £m | £m |
Bank loans | 8.9 | 16.2 | 411.7 | 494.0 | 758.8 | 804.4 | 2,494.0 |
Other financial liabilities | 0.7 | 1.5 | 6.8 | 9.2 | 29.0 | 1,324.6 | 1,371.8 |
| Derivative financial | |||||||
instruments | (1.4) | (2.8) | (12.6) | (9.6) | (4.9) | (5.5) | (36.8) |
8.2 | 14.9 | 405.9 | 493.6 | 782.9 | 2,123.5 | 3,829.0 |
| 2026 | 2025 | |
| As at 31 March | £m | £m |
Net debt | 3,085.2 | 2,230.9 |
Shareholders’ equity | 4,714.3 | 4,094.2 |
7,799.5 | 6,325.1 |
Notes forming part of the Group financial statements continued
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Notes forming part of the Group financial statements continued
14 Borrowings and financial instruments continued
| Measured at | ||||
amortised cost | Measured at fair value | |||
| 2026 | 2025 | 2026 | 2025 | |
| As at 31 March | £m | £m | £m | £m |
| Non current assets | ||||
Derivative financial instruments (see 14c (iii)) | – | – | 16.2 | 23.7 |
| Current assets | ||||
Cash and cash equivalents (note 12) | 143.4 | 81.2 | – | – |
Trade receivables (note 11) | 10.1 | 3.6 | – | – |
Other receivables (note 11) | 13.5 | 5.5 | – | – |
167.0 | 90.3 | 16.2 | 23.7 | |
| Non current liabilities | ||||
Borrowings (note 14a (i)) | 2,844.2 | 1,710.9 | – | – |
Other financial liabilities (note 14a (ii)) | 227.7 | 222.0 | – | – |
Lease liabilities (note 16) | 54.8 | 40.8 | – | – |
| Current liabilities | ||||
Borrowings (note 14a (i)) | 93.4 | 347.7 | – | – |
Other financial liabilities (note 14a (ii)) | 9.4 | 9.0 | – | – |
Lease liabilities (note 16) | 0.8 | 0.7 | – | – |
Contingent consideration | – | – | 2.9 | 1.4 |
Trade payables (note 13) | 10.1 | 3.7 | – | – |
Accrued interest (note 13) | 14.5 | 4.7 | – | – |
3,254.9 | 2,339.5 | 2.9 | 1.4 |
As at 31 March | Average rate | Notional amount | Fair value | |||
| 2026 | 2025 | 2026 | 2025 | 2026 | 2025 | |
| Interest rate swaps – expiry | % | % | £m | £m | £m | £m |
Less than one year | 2.4 | – | 101.3 | – | – | – |
One to two years | 2.8 | 2.4 | 365.0 | 97.1 | 5.6 | (0.5) |
Two to five years | 3.1 | 3.1 | 350.0 | 725.0 | 10.3 | 15.5 |
2.9 | 3.0 | 816.3 | 822.1 | 15.9 | 15.0 |
As at 31 March | Average rate | Notional amount | Fair value | |||
| 2026 | 2025 | 2026 | 2025 | 2026 | 2025 | |
| Interest rate caps – expiry | % | % | £m | £m | £m | £m |
Less than one year | 2.0 | – | 443.7 | – | 0.3 | – |
One to two years | – | 2.0 | – | 441.8 | – | 8.7 |
2.0 | 2.0 | 443.7 | 441.8 | 0.3 | 8.7 | |
Total fair value | 16.2 | 23.7 |
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Notes forming part of the Group financial statements continued
15 Business combinations
a) Acquisition of Urban Logistics REIT Plc
On 23 June 2025, the Company acquired the entire issued share capital of Urban Logistics REIT Plc ('ULR').
The acquisition was implemented by way of a Scheme of Arrangement under Part 26 of the Companies Act and
was effected through the issue of 257.9 million new ordinary shares at 202.2p per share totalling £521.4 million,
and cash consideration of 42.8p per share totalling £196.7 million. The Group’s existing shareholding in ULR was
valued at £8.7 million on acquisition and was included as part of the consideration paid, which in aggregate was
£726.8 million.
The exchange ratio was based on an adjusted net tangible assets (‘NTA’) to adjusted NTA approach, taking into
account the fair value of property and debt and the acquisition of Logistics Asset Management Newco Limited as
reflected in note 15b.
The fair value of the identifiable net assets acquired was £726.7 million as reflected in the table opposite.
The difference between the consideration paid and the fair value of net assets acquired of £0.1 million has been
recognised as goodwill in the year and has been fully impaired as the future cash flows arising in the form of
rental income were fully incorporated into the fair value of the assets acquired.
Acquisition-related costs of £16.0 million have been recognised separately in the income statement.
The fair value adjustments required under IFRS 3 are as follows:
• Borrowings – secured debt with a nominal value of £267.2 million was fair valued to £255.1 million, a
£12.1 million reduction. The fair value adjustment is offset by £3.9 million of unamortised issue costs
associated with debt which was derecognised on completion. The fair value adjustment will be amortised to
other finance costs over the remaining term of the debt facility.
• Trade debtors and receivables – an impairment provision of £1.8 million was recognised on acquisition along
with other provisions against lease incentives and dilapidation income receivable of £4.1 million. After these
adjustments, the amortised cost of trade debtors and receivables approximates to their fair value.
Acquisition of Urban Logistics REIT Plc
| Book value | Fair value | Fair value | Other | Fair value | |
| as at 23 June | of fixed rate | of prepaid | fair value | as at | |
| 2025 | debt | finance costs | adjustments | 23 June 2025 | |
| £m | £m | £m | £m | £m | |
Investment properties 1 | 1,144.6 | – | – | – | 1,144.6 |
Derivative financial instruments | 1.2 | – | – | – | 1.2 |
Trade and other receivables | 18.3 | – | – | (5.9) | 12.4 |
Cash and cash equivalents | 41.9 | – | – | – | 41.9 |
Total assets | 1,206.0 | – | – | (5.9) | 1,200.1 |
Trade and other payables | (22.3) | – | – | – | (22.3) |
Rent received in advance | (15.6) | – | – | – | (15.6) |
Borrowings | (437.2) | 12.1 | – | – | (425.1) |
Prepaid finance costs | 3.9 | – | (3.9) | – | – |
Lease liabilities | (10.4) | – | – | – | (10.4) |
Total liabilities | (481.6) | 12.1 | (3.9) | – | (473.4) |
Fair value of net assets acquired | 724.4 | 12.1 | (3.9) | (5.9) | 726.7 |
Issue of 257.9 million ordinary shares | 521.4 | ||||
Cash consideration paid | 196.7 | ||||
Shares held in Urban Logistics REIT Plc | 8.7 | ||||
Fair value of consideration paid | 726.8 | ||||
Goodwill recognised on acquisition and subsequently impaired | 0.1 |
1 Includes urban logistics warehouses of £1,134.5 million and head lease assets of £10.1 million
Strategic report Governance Financial statements
LondonMetric Property Plc Annual Report and Accounts 2026
181
Notes forming part of the Group financial statements continued
15 Business combinations continued
b) Acquisition of Logistics Asset Management Newco Limited
On 24 June 2025, alongside the acquisition noted in 15a above, we completed the acquisition of Logistics Asset
Management Newco Limited, which held the investment advisory contract for ULR, for total consideration of
£8.1 million which included £1.0 million of contingent consideration at fair value. The contingent consideration is
payable over two years and is based on growth in the LondonMetric average share price and aggregated rent roll.
The fair value of net assets acquired was £0.1 million and the resulting goodwill generated on acquisition of
£8.0 million has been fully impaired and recognised in the income statement. Additional transaction costs of
£0.3 million have been recognised separately within the income statement.
c) Summary of ULR acquisition disclosures
| Logistics Asset | |||
| Urban Logistics | Management | ||
| REIT Plc | Newco Limited | Total | |
| £m | £m | £m | |
Fair value of net assets acquired | 726.7 | 0.1 | 726.8 |
| Fair value of consideration paid: | |||
Shares | 521.4 | – | 521.4 |
Cash | 196.7 | 8.1 | 204.8 |
Shares held in Urban Logistics REIT Plc | 8.7 | – | 8.7 |
Total consideration paid | 726.8 | 8.1 | 734.9 |
Goodwill recognised on acquisition and subsequently impaired | 0.1 | 8.0 | 8.1 |
Acquisition costs recognised in the income statement | 16.0 | 0.3 | 16.3 |
The cost of the ULR acquisition reflected in the Group cash flow statement of £162.2 million reflects cash
consideration paid of £204.8 million noted above less contingent consideration payable of £1.0 million and less
cash acquired of £41.9 million (as reflected in note 15a) and includes costs relating to the issuance of share capital
of £0.3 million charged to equity.
The goodwill charge in the income statement of £9.6 million reflects the goodwill recognised on acquisition
of ULR of £8.1 million as noted in the table above and also additional contingent consideration of £1.5 million
relating to the acquisition of LXi REIT Advisors Limited.
The acquisition of ULR has contributed £54.6 million to gross rental income, £42.9 million to EPRA earnings
and £42.8 million to retained profit since acquisition. Had ULR been part of the Group since 1 April 2025, the
combined Group’s gross rental income, EPRA earnings and retained profits for the year to 31 March 2026 would
have been £475.0 million, £311.8 million and £286.6 million respectively.
16 Leases
The Group’s minimum lease rentals receivable under non cancellable leases, excluding joint ventures, are as follows:
| 2026 | 2025 | |
| As at 31 March | £m | £m |
Less than one year | 434.1 | 346.1 |
Between one and five years | 1,608.1 | 1,354.3 |
Between six and ten years | 1,736.3 | 1,562.8 |
Between 11 and 15 years | 1,198.1 | 1,184.6 |
Between 16 and 20 years | 827.4 | 790.0 |
Over 20 years | 2,851.6 | 2,155.2 |
8,655.6 | 7,393.0 |
In accordance with IFRS 16, the Group has recognised a right of use asset for its head office lease and other head
lease obligations. The Group’s minimum lease payments are due as follows:
| Present value of | Present value of | |||
| Undiscounted | minimum lease | minimum lease | ||
| minimum lease | payments | payments | ||
| payments | Interest | 2026 | 2025 | |
| As at 31 March | £m | £m | £m | £m |
Less than one year | 3.2 | (2.4) | 0.8 | 0.7 |
Between one and two years | 3.2 | (2.4) | 0.8 | 0.7 |
Between two and five years | 7.6 | (6.9) | 0.7 | 1.3 |
Over five years | 230.1 | (176.8) | 53.3 | 38.8 |
244.1 | (188.5) | 55.6 | 41.5 |
Strategic report Governance Financial statements
LondonMetric Property Plc Annual Report and Accounts 2026
182
Notes forming part of the Group financial statements continued
| 2026 | 2026 | 2025 | 2025 | |
| As at 31 March | Number | £m | Number | £m |
| Issued, called up and fully paid | ||||
Ordinary shares of 10p each | 2,344,406,347 | 234.4 | 2,048,108,416 | 204.8 |
| Ordinary shares | Ordinary shares | Share premium | |
| Share capital issued, called up and fully paid | Number | £m | £m |
At 31 March 2024 | 2,036,519,647 | 203.7 | 404.7 |
Issued under scrip share scheme | 11,588,769 | 1.1 | 21.2 |
At 31 March 2025 | 2,048,108,416 | 204.8 | 425.9 |
Issued on acquisition | 282,075,415 | 28.2 | – |
Issued under scrip share scheme | 14,222,516 | 1.4 | 25.1 |
At 31 March 2026 | 2,344,406,347 | 234.4 | 451.0 |
| Ordinary shares | Ordinary shares | |
| Shares held by the Employee Benefit Trust | Number | £m |
At 31 March 2024 | 2,589,207 | 0.3 |
Shares issued under employee share schemes | (1,968,850) | (0.2) |
Shares acquired by the Employee Benefit Trust | 9,852,125 | 0.9 |
At 31 March 2025 | 10,472,482 | 1.0 |
Shares issued under employee share schemes | (2,189,496) | (0.2) |
Shares acquired by the Employee Benefit Trust | 1,676,429 | 0.2 |
At 31 March 2026 | 9,959,415 | 1.0 |
Share capital | The nominal value of shares issued. |
Share premium | The premium paid for new ordinary shares issued above the nominal value. |
Capital redemption reserve | Amounts transferred from share capital on redemption of issued ordinary shares. |
Other reserve | A reserve relating to the application of merger relief in the acquisition of |
| LondonMetric Management Limited, Metric Property Investments Plc, | |
| A&J Mucklow Group Plc, CT Property Trust Limited, LXi REIT plc, Highcroft | |
| Investments plc and Urban Logistics REIT Plc by the Company, the cost of shares | |
| held in trust to provide for the Company’s future obligations under share award | |
| schemes and a foreign currency exchange reserve. | |
| A breakdown of other reserves is provided for the Group below and for the | |
| Company on page 192. | |
Retained earnings | The cumulative profits and losses after the payment of dividends. |
| Foreign | Foreign | |||||||
| Merger | Employee | currency | 2026 | Merger | Employee | currency | 2025 | |
| relief | Benefit | exchange | Total other | relief | Benefit | exchange | Total other | |
| reserve | Trust shares | reserve | reserves | reserve | Trust shares | reserve | reserves | |
| As at 31 March | £m | £m | £m | £m | £m | £m | £m | £m |
| Opening | ||||||||
balance | 2,337.5 | (19.9) | 0.1 | 2,317.7 | 2,337.5 | (5.6) | 0.5 | 2,332.4 |
Share issue on acquisitions | 540.3 | – | – | 540.3 | – | – | – | – |
| Foreign currency | ||||||||
exchange | – | – | (0.6) | (0.6) | – | – | (0.4) | (0.4) |
| Employee share | ||||||||
| schemes: | ||||||||
Purchase of shares | – | (3.1) | – | (3.1) | – | (18.2) | – | (18.2) |
Vesting of shares | – | 4.0 | – | 4.0 | – | 3.9 | – | 3.9 |
Closing balance | 2,877.8 | (19.0) | (0.5) | 2,858.3 | 2,337.5 | (19.9) | 0.1 | 2,317.7 |
Strategic report Governance Financial statements
LondonMetric Property Plc Annual Report and Accounts 2026
183
Notes forming part of the Group financial statements continued
| Non cash movements | |||||||
| Debt issue and close | Interest charge | ||||||
| Acquisition of | out costs and foreign | Fair value | and unwinding | ||||
| 1 April 2025 | Cash flows | subsidiaries | exchange | movements | of discount | 31 March 2026 | |
| £m | £m | £m | £m | £m | £m | £m | |
Secured and unsecured loans | 2,073.2 | 415.9 | 451.2 | 6.1 | – | 5.9 | 2,952.3 |
Derivative financial instruments | (23.7) | (1.0) | (1.2) | – | 9.7 | – | (16.2) |
Unamortised finance costs | (14.6) | (5.3) | – | 5.2 | – | – | (14.7) |
Other finance costs | – | (6.5) | – | 6.5 | – | – | – |
Interest payable | 4.7 | (126.6) | 4.4 | 16.9 | – | 115.1 | 14.5 |
Other financial liabilities | 231.0 | (9.0) | – | – | – | 15.1 | 237.1 |
Lease liabilities | 41.5 | (3.7) | 10.4 | – | 5.0 | 2.4 | 55.6 |
Total liabilities from financing activities | 2,312.1 | 263.8 | 464.8 | 34.7 | 14.7 | 138.5 | 3,228.6 |
Cash and cash equivalents | (81.2) | (62.2) | – | – | – | – | (143.4) |
Net debt | 2,230.9 | 201.6 | 464.8 | 34.7 | 14.7 | 138.5 | 3,085.2 |
| Non cash movements | ||||||
| Interest charge | ||||||
| Debt issue costs and foreign | Fair value | and unwinding | ||||
| 1 April 2024 | Cash flows | exchange | movements | of discount | 31 March 2025 | |
| £m | £m | £m | £m | £m | £m | |
Secured and unsecured loans | 2,087.4 | (16.7) | (2.1) | – | 4.6 | 2,073.2 |
Derivative financial instruments | (32.6) | (2.2) | – | 11.1 | – | (23.7) |
Unamortised finance costs | (13.3) | (5.6) | 4.3 | – | – | (14.6) |
Other finance costs | – | (5.3) | 5.3 | – | – | – |
Interest payable | 4.9 | (98.7) | – | – | 98.5 | 4.7 |
Other financial liabilities | 221.5 | (8.5) | – | 4.5 | 13.5 | 231.0 |
Lease liabilities | 48.1 | (1.6) | – | (6.7) | 1.7 | 41.5 |
Total liabilities from financing activities | 2,316.0 | (138.6) | 7.5 | 8.9 | 118.3 | 2,312.1 |
Cash and cash equivalents | (111.9) | 30.7 | – | – | – | (81.2) |
Net debt | 2,204.1 | (107.9) | 7.5 | 8.9 | 118.3 | 2,230.9 |
Strategic report Governance Financial statements
LondonMetric Property Plc Annual Report and Accounts 2026
184
Notes forming part of the Group financial statements continued
Management fees | Distributions | ||||
| 2026 | 2025 | 2026 | 2025 | ||
For the year to 31 March | Group interest | £m | £m | £m | £m |
Metric Income Plus Partnership | 50% | 1.1 | 1.1 | 6.3 | 3.4 |
21 Post balance sheet events
Post year end we have exchanged or completed asset acquisitions and sales for £39.8 million and £65.5 million
respectively, of which £22.8 million of sales had exchanged in the year.
On 12 May 2026, a joint announcement was made under Rule 2.4 of the City Code on Takeovers and Mergers
regarding a proposed non-binding, indicative all-share offer by the Company and Schroder Real Estate
Investment Trust Limited (‘SREIT’) for the entire issued and to be issued share capital of Picton Property Income
Limited (‘Picton’).
Based on closing share prices on 11 May 2026, the proposed offer implied a value of approximately
£403.4 million for Picton's share capital. Under the proposed terms, the Company would acquire approximately
46% of Picton's gross asset value, with the remaining approximately 54% to be acquired by SREIT. No firm offer
has been made and there can be no certainty that a firm offer will be made.
Strategic report Governance Financial statements
LondonMetric Property Plc Annual Report and Accounts 2026
185
Company balance sheet
As at 31 March
Company statement of changes in equity
For the year ended 31 March
Note
2026
£m
2025
£m
Non current assets
Investment in subsidiaries iii 4,455.0 3,604.9
Investment properties iv 1.6 1.9
Amounts due from subsidiary undertakings v – 28.8
Other investments and tangible assets 33.0 21.4
Derivative financial instruments 16.2 23.7
4,505.8 3,680.7
Current assets
Other receivables v 2,664.4 1,250.7
Cash at bank 72.6 37.5
2,737.0 1,288.2
Total assets 7,242.8 4,968.9
Current liabilities
Trade and other payables vi 114.2 142.3
Lease liabilities viii 0.7 0.5
Non current liabilities
Borrowings vii 2,406.1 1,262.2
Lease liabilities viii 1.0 1.5
2,407.1 1,263.7
Total liabilities 2,522.0 1,406.5
Net assets 4,720.8 3,562.4
Equity
Called up share capital 234.4 204.8
Share premium 451.0 425.9
Capital redemption reserve 9.6 9.6
Other reserve x 2,357.4 1,822.1
Retained earnings 1,668.4 1,100.0
Equity shareholders’ funds 4,720.8 3,562.4
As permitted by Section 408 Companies Act 2006, the income statement of the Company is not presented as
part of these financial statements. The reported profit of the Company was £839.3 million (2025: £137.9 million).
The financial statements were approved and authorised for issue by the Board of Directors on 21 May 2026 and
were signed on its behalf by:
Martin McGann
Chief Financial Officer
Registered in England and Wales, No 7124797
Share
capital
£m
Share
premium
£m
Capital
redemption
reserve
£m
Other
reserves
£m
Retained
earnings
£m
Total
£m
At 1 April 2025 204.8 425.9 9.6 1,822.1 1,100.0 3,562.4
Profit for the year – – – – 839.3 839.3
Other comprehensive expense for the year – – – (5.9) – (5.9)
Total comprehensive (expense)/income for
the year
– – – (5.9) 839.3 833.4
Share issue on acquisition 28.2 – – 540.3 – 568.5
Purchase of shares held in Employee
Benefit Trust
– – –
(3.1) – (3.1)
Vesting of shares held in Employee
Benefit Trust
– – –
4.0 (4.8) (0.8)
Share based awards – – – – 5.7 5.7
Dividends 1.4 25.1 – – (271.8) (245.3)
At 31 March 2026 234.4 451.0 9.6 2,357.4 1,668.4 4,720.8
Share
capital
£m
Share
premium
£m
Capital
redemption
reserve
£m
Other
reserves
£m
Retained
earnings
£m
Total
£m
At 1 April 2024 203.7 404.7 9.6 1,834.3 1,164.9 3,617.2
Profit for the year – – – – 137.9 137.9
Other comprehensive income for the year – – – 2.1 – 2.1
Total comprehensive income for the year – – – 2.1 137.9 140.0
Purchase of shares held in Employee
Benefit Trust – – – (18.2) – (18.2)
Vesting of shares held in Employee
Benefit Trust – – – 3.9 (4.4) (0.5)
Share based awards – – – – 5.3 5.3
Dividends 1.1 21.2 – – (203.7) (181.4)
At 31 March 2025 204.8 425.9 9.6 1,822.1 1,100.0 3,562.4
The notes on pages 187 to 192 form part of these financial statements.
Strategic report Governance Financial statements
LondonMetric Property Plc Annual Report and Accounts 2026
186
i Accounting policies
Accounting convention
The separate financial statements of the Company are presented as required by the Companies Act 2006.
They have been prepared in accordance with FRS 101 (Financial Reporting Standard 101) ‘Reduced Disclosure
Framework’ as issued by the Financial Reporting Council.
As permitted by FRS 101, the Company has taken advantage of the disclosure exemptions available under that
standard in relation to share based payments, financial instruments, capital management, presentation of a cash
flow statement, fair value measurement, impairment, standards in issue and not yet effective and certain related
party transactions. The key source of estimation uncertainty relevant to the Company relates to the impairment
of investment in subsidiaries. The determination of the recoverable amount of the subsidiaries is underpinned by
the valuation of the underlying properties owned by each subsidiary. In determining this recoverable amount, the
use of estimates and assumptions is required which are consistent with the key sources of estimation uncertainty
disclosed in notes 1 and 9 for the Group. The accounting policies relevant to the Company are the same as those
set out in the accounting policies for the Group, except as noted below.
Subsidiary undertakings
Investments in subsidiary undertakings are stated at cost less any provision for impairment.
Amounts due from subsidiary undertakings
Amounts owed by subsidiaries are unsecured, have no fixed date of repayment and are repayable on demand.
Amounts due from subsidiary undertakings included within current assets are expected to be repaid within one
year and are measured for impairment in accordance with IFRS 9. Amounts due from subsidiary undertakings
included within non current assets are repayable within two to three years and are also measured for impairment
in accordance with IFRS 9.
ii Profit attributable to members of the parent undertaking
All employees within the Group are employed by the Company. Details of employee numbers and staff costs
can be found in note 4 to the Group accounts. Audit fees in relation to the Company only were £285,000
(2025: £277,000).
iii Fixed asset investments
Subsidiary
cost
£m
Subsidiary
impairment
£m
Total
undertakings
£m
At 1 April 2025 4,331.6 (726.7) 3,604.9
Additions 947.2 – 947.2
Impairment of investment – (97.1) (97.1)
At 31 March 2026
Of the additions in the year, £801.8 million relate to the acquisitions of Highcroft and ULR and are discussed in
detail throughout the Strategic report.
The carrying value of the Company’s investments was impaired by £97.1 million following an impairment review
to assess the recoverable amount based on the net assets of the subsidiary companies. The resulting impairment
loss was due to property sales and dividend payments.
The recoverable amount of investments in subsidiary undertakings has been determined based on their fair
value less cost of disposal. The Directors believe that this approximates to their net assets due to the investment
property that they hold being valued using the valuation techniques and the key assumptions disclosed in note 9
Investment property to the Group financial statements.
The Company is incorporated in England and is the ultimate holding company of the Group with the subsidiary
undertakings detailed in the tables on pages 188 to 190.
Except where disclosed, the Group owns the entire share capital of each undertaking comprising of ordinary
shares. All subsidiaries are consolidated in the Group’s consolidated financial statements.
Notes forming part of the Company financial statements
For the year ended 31 March 2026
Strategic report Governance Financial statements
LondonMetric Property Plc Annual Report and Accounts 2026
187
iii Fixed asset investments continued
Audit exemption taken for subsidiaries
Certain UK subsidiaries are exempt from the requirement of the Companies Act 2006 relating to the audit of
individual accounts by virtue of Section 479A of that Act.
Subsidiaries for which Section 479A
Companies Act 2006 exemption taken
Country of
incorporation
or registration
Companies
House
registered
number
Nature
of business
A & J Mucklow & Co Limited
1
England 00384508 Property trading
A & J Mucklow (Halesowen) Limited
1
England 04848576 Property investment
A & J Mucklow (Properties) Limited
1
England 00758764 Property investment
A & J Mucklow Group Limited England 00717658 Holding company
Alco 1 Limited
1,3
England 10975411 Property investment
Axcess 10 Management Company Limited
1
England 03195337 Property management
Belgrave Land (Wisbech) Limited
1
England 04232556 Property investment
Charcoal Midco 2 Limited
1
England 05934849 Holding company
Highcroft Investments Limited (formerly
Highcroft Investments Plc)
England 00224271 Holding company
LondonMetric Asset Management Newco
Limited (formerly Logistics Asset Management
Newco Limited)
England 16514355 Management company
LondonMetric Bognor Regis Limited England 09409081 Property investment
LondonMetric Crawley Limited England 10120420 Property investment
LondonMetric Derby Limited
England 08568072 Property investment
LondonMetric Development Limited England 13481500 Property investment
LondonMetric Distribution Limited England 09269541 Property investment
LondonMetric Droitwich Limited England 11245371 Property investment
LondonMetric DT Limited England 14124064 Property investment
LondonMetric Hospitality Limited England 14250176 Property investment
LondonMetric Leisure Limited
England 11357686 Property investment
LondonMetric Logistics Limited England 10882805 Property investment
LondonMetric Milton Keynes Limited England 13033223 Property investment
LondonMetric Retail Distribution I Limited England 08524540 Property investment
LondonMetric Retail Distribution II Limited England 08644584 Property investment
LondonMetric Retail Limited England 09062484 Property investment
Subsidiaries for which Section 479A
Companies Act 2006 exemption taken
Country of
incorporation
or registration
Companies
House
registered
number
Nature
of business
LondonMetric Saturn Limited England 08336260 Property investment
LondonMetric Swindon Limited England 08989820 Property investment
LondonMetric Unitholder 2 Limited England 13743626 Holding company
LondonMetric Urban Limited England 13249056 Property investment
LSI (Investments) Limited England 03539331 Property investment
LXi Cornbow Limited
1
England 04229308 Property investment
LXi Cowdenbeath Limited
1
England 11549590 Property investment
LXi Finco Limited
1
England 14078874 Holding company
LXi Finco 1 Limited
1
England 14645400 Property investment
LXi Finco 2 Limited
1
England 14645267 Holding company
LXi Limited England 10535081 Property investment
LXi Holdco 1 Limited
1
England 14645196 Holding company
LXi Holdco 2 Limited
1
England 14645226 Holding company
LXi Property Holdings 2 Limited
1
England 10702790 Property investment
LXi Property Holdings 4 Limited
1
England 11722559 Property investment
LXi Property Holdings 4A Limited
1
England 12107631 Property investment
LXi Property Holdings 5 Limited
1
England 13919357 Property investment
LXi Property Holdings 5A Limited
1
England 13940934 Property investment
LXi Property Holdings 6 Limited
1
England 14279870 Property investment
LXi REIT Advisors Limited England 10537567 Management company
LXi SIR Holdco Limited
1
England 06064259 Holding company
MCL Omega PropCo Limited England 12133819 Property investment
Metric LP Income Plus Limited
1
England 07780077 Holding company
Metric Property Coventry Limited England 07347027 Property investment
Metric Property Investments Limited England 07172804 Holding company
Rodenhurst Estates Limited
1
England 00197661 Property investment
SIR ATH Limited
1
England 06127445 Property investment
SIR ATP Limited
1
England 06127443 Property investment
SIR Duchy Limited
1
England 06181995 Property investment
SIR Fitzwilliam Limited
1
England 06182061 Property investment
Notes forming part of the Company financial statements continued
Strategic report Governance Financial statements
LondonMetric Property Plc Annual Report and Accounts 2026
188
Subsidiaries for which Section 479A
Companies Act 2006 exemption taken
Country of
incorporation
or registration
Companies
House
registered
number
Nature
of business
Urban Logistics Acquisitions 6 Limited
1
England 13718099 Property investment
Urban Logistics Acquisitions 7 Limited
1
England 13718259 Property investment
Urban Logistics Acquisitions 8 Limited
1
England 13767118 Property investment
Urban Logistics Acquisitions 9 Limited
1
England 13984944 Property investment
Urban Logistics Dundee Limited
1,11
Scotland SC707008 Property investment
Urban Logistics Holdings Limited
1
England 09910577 Holding company
Urban Logistics Prop Co 1 (AC) Limited
1
England 01881625 Property investment
Urban Logistics REIT Limited (formerly Urban
Logistics REIT Plc) England 09907096 Holding company
Certain UK associates are exempt from the requirement of the Companies Act 2006 relating to the audit of
individual accounts by virtue of Section 477 of that Act.
Associate for which Section 477
Companies Act 2006 exemption taken
Country of
incorporation
or registration
Companies
House
registered
number
Nature
of business
County Square (Chelmsford) Management
Company Limited
1,5,6
England 2536487 Management company
Nexus Point Management Company Number 2
Limited
1,7
England 3794394 Management company
Subsidiaries and associates for which
Section 479A or 477 Companies
Act 2006 exemption not taken
Country of
incorporation
or registration
Nature
of business
A & J Mucklow (Investments) Limited
1
England Property investment
LXi Property Holdings 1 Limited
1
England Property investment
LXi Property Holdings 3 Limited
1
England Property investment
Penbrick Limited¹ England Property investment
Metric GP Income Plus Limited
1,5
England Holding company
Metric Income Plus Limited Partnership
1,5
England Property investment
Metric Income Plus Nominees Limited
1,5
England Administrative company
LMP Steel LP
1,2
England Property investment
LMP Steel GP LLP
2
England Limited partner
A & J Mucklow (Birmingham) Limited
1,2
England Dormant
A & J Mucklow (Callowbrook Estate) Limited
1,2
England Dormant
Subsidiaries for which Section 479A
Companies Act 2006 exemption taken
Country of
incorporation
or registration
Companies
House
registered
number
Nature
of business
SIR Fulwood Limited
1
England 06181972 Property investment
SIR Healthcare 1 Limited
1
England 09736611 Holding company
SIR Healthcare 2 Limited
1
England 09736648 Holding company
SIR Hospital Holdings Limited
1
England 05863307 Holding company
SIR Hospitals Propco Limited
1
England 04707153 Holding company
SIR HP Limited
1
England 06273038 Property investment
SIR Lisson Limited
1
England 05956505 Property investment
SIR Maple 2 Limited
1
England 11206104 Property investment
SIR Maple 3 Limited
1
England 11206142 Property investment
SIR Maple 4 Limited
1
England 11206129 Property investment
SIR Maple Holdco Limited
1
England 11211060 Holding company
SIR Midlands Limited
1
England 06182040 Property investment
SIR Oaklands Limited
1
England 06181969 Property investment
SIR Oaks Limited
1
England 06181967 Property investment
SIR Pinehill Limited
1
England 06181975 Property investment
SIR Rivers Limited
1
England 06182038 Property investment
SIR Springfield Limited
1
England 06182035 Property investment
SIR Theme Park Subholdco Limited
1
England 05947888 Holding company
SIR Theme Parks Limited
1
England 06129606 Holding company
SIR TP Limited
1
England 06127481 Property investment
SIR Umbrella Limited
1
England 09736612 Holding company
SIR WC Limited
1
England 06127452 Property investment
SIR Woodland Limited
1
England 06182008 Property investment
SIR Yorkshire Limited
1
England 06181984 Property investment
SM Plymouth Hotel Limited
1
England 05521374 Property investment
Urban Logistics Acquisitions 1 Limited
1
England 10052284 Holding company
Urban Logistics Acquisitions 2 Limited
1
England 10943082 Property investment
Urban Logistics Acquisitions 3 Limited
1
England 12726726 Property investment
Urban Logistics Acquisitions 4 Limited
1
England 12873450 Property investment
Urban Logistics Acquisitions 5 Limited
1
England 13508956 Property investment
iii Fixed asset investments continued
Notes forming part of the Company financial statements continued
Strategic report Governance Financial statements
LondonMetric Property Plc Annual Report and Accounts 2026
189
Subsidiaries and associates for which
Section 479A or 477 Companies
Act 2006 exemption not taken
Country of
incorporation
or registration
Nature
of business
A & J Mucklow (Estates) Limited
1,2
England Dormant
A & J Mucklow (Ettingshall Estate) Limited
1,2
England Dormant
A & J Mucklow (Lancashire) Limited
1,2
England Dormant
A & J Mucklow (Wollescote Estate) Limited
1,2
England Dormant
A and J Mucklow (Lands) Limited
1,2
England Dormant
Barr’s Industrial Limited
1,2
England Dormant
Belfont Homes (Birmingham) Limited
1,2
England Dormant
BL (Wisbech) Limited
1,2
England Dormant holding company
Goresbrook Property Limited
2
England Dormant
LSI Developments Limited
2
England Dormant
Metric Property Finance 1 Limited
2
England Dormant
Metric Property Finance 2 Limited
2
England Dormant
NNN Income REIT Limited
2
England Dormant
Thomas Rivers Limited
1,2
England Dormant
Triple Net Income REIT Limited
2
England Dormant
Arrow Valley Management Company (No.1)
Limited
1,2,8
England Dormant management company
Riverbend Management Company Limited
1,2,9
England Dormant management company
Frimley Logistics City Limited
1,2,10
England Dormant management company
IPT Property Holdings Limited
1,2
Guernsey Property investment
IRP Holdings Limited
1,2
Guernsey Property investment
L&S Highbury Limited
2
Guernsey Property investment
LMP Bell Farm Limited
2
Guernsey Property investment
LMP Bude Limited
2
Guernsey Holding company
LMP Dagenham Limited
2
Guernsey Property investment
LMP Green Park Cinemas Limited
2
Guernsey Property investment
LMP Omega II Limited
2
Guernsey Property investment
LMP Retail Warehouse JV Holdings Limited
2,4
Guernsey Property investment
LMP Thrapston Limited
2
Guernsey Property investment
LondonMetric Management Limited
2
Guernsey Management company
Notes forming part of the Company financial statements continued
iii Fixed asset investments continued
Subsidiaries and associates for which
Section 479A or 477 Companies
Act 2006 exemption not taken
Country of
incorporation
or registration
Nature
of business
LXi Spirit Limited
1,2
Isle of Man Property investment
EOS Property Unit Trust
1,2
Jersey Property investment
Grove Property Unit Trust 6
1,2
Jersey Property investment
Grove Property Unit Trust 7
1,2
Jersey Property investment
Grove Property Unit Trust 12
1,2
Jersey Property investment
Grove Property Unit Trust 13
1,2
Jersey Property investment
Grove Property Unit Trust 14
1,2
Jersey Property investment
Grove Property Unit Trust 15
1,2
Jersey Property investment
Grove Property Unit Trust 16
1,2
Jersey Property investment
LMP Burton & Evesham Limited
2
Jersey Property investment
LMP Steel Property Unit Trust
2
Jersey Intermediate holding entity
MIF 1 Unit Trust
1,2
Jersey Property investment
SIR Hotels Jersey 2 Limited
1,2
Jersey Property investment
SIR Maple 1 Limited
1,2
Jersey Holding company
SIR Unitholder 3 Limited
1,2
Jersey Holding company
SIR Unitholder 4 Limited
1,2
Jersey Holding company
SIR Unitholder 5 Limited
1,2
Jersey Holding company
Welling Property Limited
1,2
Jersey Property investment
1 Undertakings held indirectly by the Company
2 Exempt from the requirement to file audited accounts
3 In the process of being liquidated
4 The Company owns 100% of the voting rights and 100% of the A ordinary shares representing 69.14% of the beneficial interest in the share capital
5 The Company owns a 50% beneficial interest
6 Registered office: 10 Ambassador Place, Stockport Road, Altrincham, Cheshire, WA15 8DB
7 Registered office: 10 Oxford Street, Nottingham, England, NG1 5BG, 15.2% beneficial interest
8 Registered office: 19th Floor 51 Lime Street, London, EC3M 7DQ, 33.3% beneficial interest
9 Registered office: 2 Steuber Drive, Irlam, Manchester, Greater Manchester, M44 5AL, 75% beneficial interest
10 Registered office: C/O Hurst Warne Commercial Property Management Ltd Atlantic House, 96a Clarence Road, Fleet, Hampshire, GU51 3XU,
33.3% beneficial interest
11 Registered office: C/O Shepherd and Wedderburn, 9 Haymarket Square, Edinburgh, Scotland, EH3 8FY
Strategic report Governance Financial statements
LondonMetric Property Plc Annual Report and Accounts 2026
190
iii Fixed asset investments continued
The registered address for companies incorporated in England, unless otherwise stated, is One Curzon Street,
London, W1J 5HB.
The registered address for companies incorporated in Guernsey is PO Box 25, Martello Court, Admiral Park,
St Peter Port, Guernsey, GY1 3AP.
The registered address for the Isle of Man incorporated company is First Names House, Victoria Road, Douglas,
IM2 4DF.
The registered address for LMP Steel Property Unit Trust it is 3rd Floor, Gaspé House, 66-72 The Esplanade,
St Helier, Jersey, JE1 2LH and for EOS Property Unit Trust it is 47 Esplanade, St Helier, Jersey, JE1 0BD. For all
other Jersey entities it is 1st Floor, Liberation House, Castle Street, St Helier, Jersey, JE1 1GL.
All the Guernsey, Isle of Man and Jersey companies listed above are tax resident in the UK. The Jersey trusts are
tax resident in Jersey.
iv Investment property
At 31 March 2026, investment properties included £1.6 million (2025: £1.9 million) for the head lease right of use
asset in accordance with IFRS 16.
v Other receivables
As at 31 March
2026
£m
2025
£m
Prepayments and accrued income 0.6 0.6
Amounts due from subsidiary undertakings 2,663.8 1,278.9
2,664.4 1,279.5
vi Trade and other payables
As at 31 March
2026
£m
2025
£m
Trade payables 1.6 0.4
Other accruals and deferred income 25.4 11.2
Other payables 9.5 6.6
Amounts due to subsidiary undertakings 77.7 124.1
114.2 142.3
vii Borrowings and financial instruments
Borrowings
As at 31 March
2026
£m
2025
£m
Unsecured bank loans – total debt drawn 2,420.0 1,273.9
Fair value adjustment (1.2) –
Unsecured bank loans – total gross debt 2,418.8 1,273.9
Unamortised finance costs (12.7) (11.7)
2,406.1 1,262.2
The following table shows the contractual maturity profile of the Company’s financial liabilities assuming
settlement on the earliest repayment date.
As at 31 March
Bank
loans
£m
Finance
costs
£m
Interest
payable
£m
2026
£m
2025
£m
Less than one year – (3.2) 13.3 10.1 (4.7)
One to two years 297.5 (3.2) – 294.3 337.1
Two to five years 1,517.5 (5.7) – 1,511.8 634.4
More than five years 605.0 (0.6) – 604.4 294.5
2,420.0 (12.7) 13.3 2,420.6 1,261.3
Derivative financial instruments
The Company is exposed to market risk through interest rate fluctuations. It is the Company’s policy that a
reasonable portion of external bank borrowings are at a fixed interest rate in order to manage this risk.
The Company uses interest rate derivatives and fixed rates to manage its interest rate exposure and hedge future
interest rate risk for the term of the bank loan. Although the Board accepts that this policy neither protects the
Company entirely from the risk of paying rates in excess of current market rates nor eliminates fully the cash
flow risk associated with interest payments, it considers that it achieves an appropriate balance of exposure to
these risks.
In accordance with accounting standards, fair value is estimated by calculating the present value of future cash
flows, using appropriate market discount rates. For all derivative financial instruments this equates to a Level 2
fair value measurement as defined by IFRS 13 Fair Value Measurement. The valuation therefore does not reflect
the cost or gain to the Company of cancelling its interest rate protection at the balance sheet date, which is
generally a marginally higher cost (or smaller gain) than a market valuation.
Further information on financial risk management policies and practices can be found in note 14 to the Group
financial statements.
Notes forming part of the Company financial statements continued
Strategic report Governance Financial statements
LondonMetric Property Plc Annual Report and Accounts 2026
191
Notes forming part of the Company financial statements continued
viii Leases
In accordance with IFRS 16, the Group has recognised a right of use asset for its head office lease obligations.
The Group’s minimum lease payments are due as follows:
As at 31 March
Undiscounted
minimum lease
payments
£m
Interest
£m
Present value of
minimum lease
payments
2026
£m
Present value of
minimum lease
payments
2025
£m
Less than one year 0.8 (0.1) 0.7 0.5
Between one and five years 1.0 – 1.0 1.5
1.8 (0.1) 1.7 2.0
ix Related party transactions
Related party transactions for the Company are as noted for the Group in note 20 to the Group
financial statements.
x Reserves
The Company statement of changes in equity is shown on page 186. The nature and purpose of each reserve
within equity is described in note 18 to the Group financial statements.
Merger
relief
reserve
£m
Employee
Benefit Trust
shares
£m
Foreign
currency
exchange
reserve
£m
2026
Total other
reserves
£m
Merger
relief
reserve
£m
Employee
Benefit Trust
shares
£m
Foreign
currency
exchange
reserve
£m
2025
Total other
reserves
£m
Opening balance 1,840.1 (19.9) 1.9 1,822.1 1,840.1 (5.6) (0.2) 1,834.3
Share issue on
acquisition 540.3 – – 540.3 – – – –
Foreign currency
exchange – – (5.9) (5.9) – – 2.1 2.1
Employee share
schemes:
Purchase of shares – (3.1) – (3.1) – (18.2) – (18.2)
Vesting of shares – 4.0 – 4.0 – 3.9 – 3.9
Closing balance 2,380.4 (19.0) (4.0) 2,357.4 1,840.1 (19.9) 1.9 1,822.1
The movement in the merger relief reserve in the year reflects the share issues on the acquisitions of Highcroft
and ULR and is calculated as the difference between the nominal value of shares issued of 10p and the share
price on acquisition of 196.5p and 202.2p respectively. The shares were issued as consideration for the issued
share capital of Highcroft and ULR and therefore qualify for merger relief.
xi Share capital and share premium
The movement in the share capital and share premium of the Company during the year is reflected in note 17 to
the Group accounts on page 183.
Strategic report Governance Financial statements
LondonMetric Property Plc Annual Report and Accounts 2026
192
i EPRA summary table
2026 2025
EPRA earnings per share 13.5p 13.1p
EPRA net tangible assets per share 200.6p 199.2p
EPRA net disposal value per share 205.6p 204.6p
EPRA net reinstatement value per share 223.2p 220.1p
EPRA vacancy rate 2.3% 1.9%
EPRA cost ratio (including vacant property costs) 7.7% 7.8%
EPRA cost ratio (excluding vacant property costs) 7.1% 7.5%
EPRA loan to value 39.2% 34.7%
EPRA net initial yield 5.1% 5.0%
EPRA ‘topped up’ net initial yield 5.3% 5.1%
The definition of these measures can be found in the Glossary from page 201.
ii EPRA proportionally consolidated income statement
For the year to 31 March
100%
owned
£m
JV
£m
NCI
£m
Total
2026
£m
100%
owned
£m
JV
£m
NCI
£m
Total
2025
£m
Gross rental income 461.7 4.1 (2.2) 463.6 395.5 3.9 (2.4) 397.0
Property costs (6.4) (0.3) – (6.7) (4.9) (0.2) 0.1 (5.0)
Net rental income 455.3 3.8 (2.2) 456.9 390.6 3.7 (2.3) 392.0
Management fees and other income 2.9 (0.5) 0.1 2.5 1.2 (0.6) 0.1 0.7
Administrative costs (30.2) – – (30.2) (27.1) – – (27.1)
Net finance (costs)/income¹ (123.9) 0.1 0.5 (123.3) (97.1) 0.1 0.5 (96.5)
Tax (1.0) – 0.4 (0.6) (1.5) – 0.4 (1.1)
EPRA earnings 303.1 3.4 (1.2) 305.3 266.1 3.2 (1.3) 268.0
1 Group net finance costs reflect net borrowing costs of £163.6 million (2025: £124.5 million) (note 5b) and finance income of £18.0 million (2025: £23.7 million) (note 5a) less debt and hedging early close out costs of £16.9 million (2025: £nil) and the impact of inflation volatility relating to the income strip of
£4.8 million (2025: £3.7 million)
Supplementary information
(not audited)
Strategic report Governance Financial statements
LondonMetric Property Plc Annual Report and Accounts 2026
193
ii EPRA proportionally consolidated income statement continued
The reconciliation of EPRA earnings to IFRS profit is set out below.
For the year to 31 March
100%
owned
£m
JV
£m
NCI
£m
Total
2026
£m
100%
owned
£m
JV
£m
NCI
£m
Total
2025
£m
EPRA earnings 303.1 3.4 (1.2) 305.3 266.1 3.2 (1.3) 268.0
Revaluation of property 68.2 1.3 0.6 70.1 106.0 2.9 (1.4) 107.5
Revaluation of investments (3.6) – – (3.6) 0.9 – – 0.9
Fair value of derivatives (9.7) – – (9.7) (11.1) – – (11.1)
(Loss)/profit on disposal (19.0) – 0.9 (18.1) (13.0) – – (13.0)
Impact of inflation volatility relating to the income strip (4.8) – – (4.8) (3.7) – – (3.7)
Debt and hedging early repayment costs (16.9) – – (16.9) – – – –
Goodwill impairment (9.6) – – (9.6) – – – –
Acquisition costs (16.3) – – (16.3) – – – –
Deferred tax (0.7) – – (0.7) (0.7) – – (0.7)
IFRS reported profit 290.7 4.7 0.3 295.7 344.5 6.1 (2.7) 347.9
iii EPRA proportionally consolidated balance sheet
As at 31 March
100%
owned
£m
JV
£m
NCI
£m
Total
2026
£m
100%
owned
£m
JV
£m
NCI
£m
Total
2025
£m
Investment property 7,819.0 65.5 (21.3) 7,863.2 6,383.9 69.9 (38.1) 6,415.7
Assets held for sale 47.8 – – 47.8 10.4 – – 10.4
Trading property 1.1 – – 1.1 1.1 – – 1.1
7,867.9 65.5 (21.3) 7,912.1 6,395.4 69.9 (38.1) 6,427.2
Gross debt (2,952.3) – – (2,952.3) (2,073.2) – – (2,073.2)
Cash 143.4 3.0 (1.6) 144.8 81.2 2.8 (0.8) 83.2
Other net liabilities (409.8) (1.0) 4.3 (406.5) (374.6) (0.8) 9.2 (366.2)
EPRA net tangible assets 4,649.2 67.5 (18.6) 4,698.1 4,028.8 71.9 (29.7) 4,071.0
Derivatives 16.2 – – 16.2 23.7 – – 23.7
Deferred tax movement – – – – (0.5) – – (0.5)
IFRS equity shareholders' funds 4,665.4 67.5 (18.6) 4,714.3 4,052.0 71.9 (29.7) 4,094.2
IFRS net assets 4,665.4 67.5 – 4,732.9 4,052.0 71.9 – 4,123.9
Loan to value 36.7% – – 36.7% 32.7% – – 32.7%
Cost of debt 4.0% – – 4.0% 4.0% – – 4.0%
Undrawn facilities 515.0 – – 515.0 831.1 – – 831.1
Supplementary information continued
(not audited)
Strategic report Governance Financial statements
LondonMetric Property Plc Annual Report and Accounts 2026
194
iv EPRA cost ratio
For the year to 31 March
2026
£m
2025
£m
Property operating expenses 6.4 4.9
Administrative costs 30.2 27.1
Share of joint venture and NCI property costs, administrative costs and
management fees
0.7 0.6
Less:
Property management fees (0.9) (1.2)
Ground rents (1.7) (1.3)
Total costs including vacant property costs (A) 34.7 30.1
Vacant property costs (2.5) (1.1)
Total costs excluding vacant property costs (B) 32.2 29.0
Gross rental income 461.7 395.5
Other income 2.0 –
Share of joint venture gross rental income 4.1 3.9
Share of NCI gross rental income (2.2) (2.4)
465.6 397.0
Less:
Ground rents and income strip (13.2) (11.7)
Total gross rental income (C) 452.4 385.3
Total EPRA cost ratio (including vacant property costs) (A)/(C) 7.7% 7.8%
Total EPRA cost ratio (excluding vacant property costs) (B)/(C) 7.1% 7.5%
Supplementary information continued
(not audited)
v EPRA net initial yield and ‘topped up’ net initial yield
As at 31 March
2026
£m
2025
£m
Investment property – wholly owned
1
7,575.3 6,122.4
Investment property – share of joint ventures 65.5 69.9
Trading property 1.1 1.1
Less development properties (101.2) (16.5)
Less non-controlling interest (21.3) (38.1)
Completed property portfolio 7,519.4 6,138.8
Allowance for:
Estimated purchasers’ costs
511.3 417.4
Estimated costs to complete 42.4
25.3
EPRA property portfolio valuation (A) 8,073.1 6,581.5
Annualised passing rental income
412.6 326.8
Share of joint ventures 3.7 4.0
Less development properties (1.4) –
Annualised net rents (B)
414.9 330.8
Contractual rental increase across the portfolio 9.7 4.1
‘Topped up’ net annualised rent (C) 424.5 334.9
EPRA net initial yield (B/A) 5.1% 5.0%
EPRA ‘topped up’ net initial yield (C/A) 5.3% 5.1%
1 Wholly owned investment property includes assets held for sale of £47.8 million (2025: £10.4 million)
vi EPRA vacancy rate
As at 31 March
2026
£m
2025
£m
Annualised estimated rental value of vacant premises
11.1 7.1
Portfolio estimated rental value¹
476.6 368.9
EPRA vacancy rate 2.3% 1.9%
1 Excludes development properties
Strategic report Governance Financial statements
LondonMetric Property Plc Annual Report and Accounts 2026
195
vii EPRA capital expenditure analysis
As at 31 March
100%
owned
5
£m
JV
£m
NCI
£m
Total
2026
£m
100%
owned
5
£m
JV
£m
NCI
£m
Total
2025
£m
Opening valuation 6,395.4 69.9 (38.1) 6,427.2 6,241.8 67.1 (36.4) 6,272.5
Acquisitions
1
1,526.6 – – 1,526.6 284.7 – – 284.7
Developments
2,4
95.8 – – 95.8 20.5 – – 20.5
Investment properties
– incremental lettable space
3
2.3 – – 2.3 13.6 – – 13.6
– no incremental lettable space
3
11.7 1.9 (0.7) 12.9 10.0 0.2 (0.2) 10.0
– tenant incentives⁹ 48.5 (0.1) 0.3 48.7 44.2 (0.3) (0.1) 43.8
Capitalised interest
4
3.5 – – 3.5 3.4 – – 3.4
Total EPRA capex 1,688.4 1.8 (0.4) 1,689.8 376.4 (0.1) (0.3) 376.0
Disposals⁶ (303.4) (7.5) 16.6 (294.3) (323.7) – – (323.7)
Revaluation⁷ 62.1 1.3 0.6 64.0 101.0 2.9 (1.4) 102.5
Foreign currency 5.8 – – 5.8 (2.9) – – (2.9)
Income strip gross up
7,8
6.1 – – 6.1 9.5 – – 9.5
ROU asset 13.5 – – 13.5 (6.7) – – (6.7)
Closing valuation 7,867.9 65.5 (21.3) 7,912.1 6,395.4 69.9 (38.1) 6,427.2
1 Group acquisitions in the year include completed investment properties as reflected in note 9 to the financial statements
2 Group developments include acquisitions, capital expenditure and lease incentive movements on properties under development as reflected in note 9 after excluding capitalised interest noted in footnote 4 below
3 Group capital expenditure on completed properties, as reflected in note 9 to the financial statements after excluding capitalised interest noted in footnote 4 below
4 Capitalised interest on investment properties of £0.9 million (2025: £1.1 million) and development properties of £2.6 million (2025: £2.3 million)
5 Including trading property of £1.1 million (2025: £1.1 million) and assets held for sale of £47.8 million (2025: £10.4 million)
6 Group disposals include assets held for sale
7 Group revaluation and income strip movements are reflected together as profit on revaluation of investment properties in the income statement of £68.2 million (2025: £106.0 million)
8 Prior year movement of £9.5 million comprises an adjustment of £4.5 million to incorporate an inflation adjustment and a gross up of £5.0 million which is included in the income statement
9 Reflects rent free movements, rent smoothing of fixed and minimum uplifts and amortisation of incentives
Supplementary information continued
(not audited)
Strategic report Governance Financial statements
LondonMetric Property Plc Annual Report and Accounts 2026
196
viii Total accounting return
For the year to 31 March
2026
pence per share
2025
pence per share
EPRA net tangible assets per share
– at end of year 200.6 199.2
– at start of year 199.2 191.7
Increase in the year 1.4 7.5
Dividend paid 12.4 11.1
Total increase
13.8 18.6
Total accounting return
1
6.9% 9.7%
1 Total accounting return after adjusting for M&A costs is 7.7%
ix Portfolio split and valuation
As at 31 March
100%
owned
£m
JV
£m
NCI
£m
2026
£m
2026
%
2025
£m
2025
%
Mega distribution 316.5 – – 316.5 4.2 315.1 5.1
Regional distribution 802.8 – – 802.8 10.5 726.8 11.8
Urban logistics 2,904.4 – – 2,904.4 38.1 1,796.0 29.2
Logistics
4,023.7 – – 4,023.7 52.8 2,837.9 46.1
Convenience 1,010.6 65.5 (21.3) 1,054.8 13.8 977.7 15.9
Entertainment & leisure 1,539.6 – – 1,539.6 20.2 1,297.8 21.1
Healthcare & education 921.5 – – 921.5 12.1 931.1 15.1
Long income 3,471.7 65.5 (21.3) 3,515.9 46.1 3,206.6 52.1
Other 81.0 – – 81.0 1.1 110.8 1.8
Total property portfolio 7,576.4 65.5 (21.3) 7,620.6 100.0 6,155.3 100.0
Income strip gross up¹ 237.1 – – 237.1 231.0
Head lease assets 54.4 – – 54.4 40.9
7,867.9 65.5 (21.3) 7,912.1 6,427.2
1 Represents the gross up of assets associated with the sale of a 65 year income strip of Alton Towers and Thorpe Park in 2022, as reflected
in note 14a(ii)
x Investment portfolio yields
As at 31 March
EPRA NIY
%
EPRA
topped up NIY
%
2026
Equivalent
yield
%
EPRA NIY
%
EPRA
topped up NIY
%
2025
Equivalent
yield
%
Logistics 4.8 5.0 6.2 4.6 4.6 5.8
Long income 5.5 5.6 6.7 5.5 5.5 6.7
Other 5.4 5.6 7.4 4.9 4.9 6.9
Investment portfolio 5.1 5.3 6.4 5.0 5.1 6.3
xi Investment portfolio – Key statistics
As at 31 March 2026
Area
’000 sq ft
WAULT
to expiry
years
WAULT
to first break
years
Occupancy
%
Average rent
£ per sq ft
Logistics 27,326 10.3 8.7 96.7 8.1
Long income¹ 8,773 23.3 22.0 98.8 20.0
Other 502 18.5 18.2 100.0 9.4
Investment portfolio 36,601 16.9 15.5 97.7 11.0
1 Due to having minimal internal areas, car parks and theme parks have been excluded from the long income average rent per sq ft
xii Total property returns
For the year to 31 March
All property
2026
%
All property
2025
%
Capital return 1.4 2.5
Income return 5.6 5.7
Total return 7.1 8.3
Supplementary information continued
(not audited)
Strategic report Governance Financial statements
LondonMetric Property Plc Annual Report and Accounts 2026
197
xiii Net contracted rental income¹
As at 31 March
2026
£m
2025
£m
Logistics 210.7 142.7
Long income 209.0 189.5
Other 4.8 6.0
Investment portfolio 424.5 338.2
Development 7.6 2.2
Total portfolio 432.1 340.4
1 Contracted rent net of income strip and head lease payments
xiv Rent subject to expiry
As at 31 March 2026
Within
3 years
%
Within
5 years
%
Within
10 years
%
Within
15 years
%
Within
20 years
%
Within
25 years
%
Logistics 13.0 24.3 56.3 81.4 92.3 97.2
Long income
2.3 6.5 15.6 45.1 60.3 67.8
Other 6.0 14.8 26.1 30.8 30.8 90.7
Investment portfolio 7.5 15.3 35.5 62.6 75.5 82.3
xv Contracted rent subject to inflationary or fixed uplifts
As at 31 March
2026
£m
2026
%
2025
£m
2025
%
Logistics 103.1 48.7 85.4 59.6
Long income
194.2 88.7 179.4 90.1
Other 2.9 60.0 4.2 70.0
Investment portfolio 300.2 69.0 269.0 77.2
xvi Top ten assets (by value)
As at 31 March 2026
Area
’000
sq ft
Net contracted
rent
£m
Occupancy
%
WAULT
to expiry
years
WAULT
to first break
years
Alton Towers Park n/a 9.9 100 51.3 51.3
Ramsay Rivers Hospital
193 10.2 100 11.1 11.1
Thorpe Park
n/a 7.4 100 51.3 51.3
Bedford Link, Bedford
715 6.0 100 15.2 13.4
Primark, Islip
1,062 6.2 100 14.5 14.5
Great Bear, Dagenham
454 4.8 100 17.5 17.5
Ramsay Springfield Hospital
85 5.9 100 11.1 11.1
Heide Park
n/a 6.0 100 51.4 51.4
Argos, Bedford 658 4.8 100 8.0 8.0
THG, Warrington 686 4.7 100 18.7 18.7
xvii Top ten occupiers
As at 31 March 2026
Net contracted
rental income
£m
Net contracted
rental income
%
Ramsay Health Care 39.4 9.1
Merlin Entertainments 33.6 7.8
Travelodge 21.1 4.9
Premier Inn 14.0 3.3
Booker 9.7 2.2
Marks & Spencer 8.1 1.9
Great Bear 7.0 1.6
Tesco 6.6 1.5
Primark 6.2 1.4
Amazon 5.7 1.3
Total 151.4 35.0
Supplementary information continued
(not audited)
Strategic report Governance Financial statements
LondonMetric Property Plc Annual Report and Accounts 2026
198
xviii Loan to value
As at 31 March
100%
owned
£m
JV
£m
NCI
£m
2026
£m
2025
£m
Gross debt
2,952.3 – – 2,952.3 2,073.2
Less: Fair value adjustments
24.9 – – 24.9 17.4
Less: Cash balances
(143.4) (3.0) 1.6 (144.8) (83.2)
Net debt
2,833.8 (3.0) 1.6 2,832.4 2,007.4
Acquisitions exchanged in the year
– – – – 14.7
Disposals exchanged in the year
1
(53.9) – – (53.9) (10.6)
Adjusted net debt (A)
2,779.9 (3.0) 1.6 2,778.5 2,011.5
Exclude:
Acquisitions exchanged in the year
– – – – (14.7)
Disposals exchanged in the year
1
53.9 – – 53.9 10.6
Include:
Net payables
153.7 1.0 1.0 155.7 129.3
EPRA net debt (B)
2,987.5 (2.0) 2.6 2,988.1 2,136.7
Investment properties at fair value
7,527.5 65.5 (21.3) 7,571.7 6,143.8
Properties held for sale
47.8 – – 47.8 10.4
Trading properties
1.1 – – 1.1 1.1
Total property portfolio
7,576.4 65.5 (21.3) 7,620.6 6,155.3
Acquisitions exchanged in the year
– – – – 14.7
Disposals exchanged in the year
2
(47.8) – – (47.8) (10.4)
Adjusted property portfolio (C)
7,528.6 65.5 (21.3) 7,572.8 6,159.6
Exclude:
Acquisitions exchanged in the year
– – – – (14.7)
Disposals exchanged in the year
2
47.8 – – 47.8 10.4
Include:
Financial assets
5.3 – – 5.3 8.9
EPRA property portfolio (D)
7,581.7 65.5 (21.3) 7,625.9 6,164.2
Loan to value (A)/(C)
36.7% 32.7%
EPRA Loan to value (B)/(D)
39.2% 34.7%
1 Reflects disposal proceeds of assets held for sale of £48.4 million and other completed sales of £5.5 million
2 Reflects the book value of assets held for sale of £47.8 million as stated in note 9b
xix Acquisitions and disposals
As at 31 March
2026
£m
2025
£m
Acquisition costs
Completed in the year
1,526.6 284.7
Exchanged in the previous year
(14.7) (2.3)
Exchanged but not completed in the year
– 14.7
Forward funded investments classified as developments 49.9 58.6
Transaction costs and other (13.2) (12.6)
Exchanged in the year
1,548.6 343.1
Disposal proceeds
Completed in the year – Group
288.4 322.5
Completed in the year – share of JV and NCI
(12.8) –
Exchanged in the previous year
(15.3) (9.3)
Exchanged but not completed/received in the year
1
53.9 15.3
Transaction costs and other
3.9 13.4
Exchanged in the year
318.1 341.9
1 Reflects disposal proceeds of assets held for sale of £48.4 million and other completed sales of £5.5 million (2025: £15.3 million)
Supplementary information continued
(not audited)
Strategic report Governance Financial statements
LondonMetric Property Plc Annual Report and Accounts 2026
199
xx Cash earnings cover
For the year to 31 March Note
2026
£m
EPRA earnings
8 305.3
Rent free and amortisation adjustments
1
9 (51.2)
Capitalised costs
2
4,5 (5.5)
Share based payment
4 5.7
Unwinding of discount on fixed rate debt acquired
5 5.9
Amortisation of loan issue costs
5 5.2
Movement rent provisions
11 0.5
Other 10.5
Cash earnings A 276.4
Dividend charge for the year net of scrip saving
3
B 275.9
Cash earnings cover
A/B 100%
1 Reflects the smoothing of rent free periods and fixed and minimum uplifts
2 Capitalised interest of £3.5 million (note 5) and staff costs of £2.0 million (note 4)
3 Based on the average scrip take up over the preceding 12 months of 5%
Supplementary information continued
(not audited)
Strategic report Governance Financial statements
LondonMetric Property Plc Annual Report and Accounts 2026
200
Glossary
CRREM Modelling
The Carbon Risk Real Estate Monitor (‘CRREM’) tool models an
asset’s performance to determine the year it will become ‘stranded’.
Stranding is the point in time when the asset will not meet future
energy efficiency standards and whose energy upgrade will not be
financially viable.
Debt Maturity
Weighted average period to expiry of debt drawn.
Distribution
The term is used synonymously with ‘Logistics’ and means the
organisation and implementation of operations to manage the flow
of physical items from origin to the point of consumption by the
end user.
Embodied Carbon
Embodied carbon refers to the emissions associated with materials
and construction processes throughout the whole life cycle of a
building or infrastructure. It is typically associated with any processes,
materials, or products used to construct, maintain, repair, refurbish,
and repurpose a building. LondonMetric’s development-related
emissions account only for upfront embodied carbon, which refers
to the emissions up to practical completion before the building
begins to be used by an occupier.
Energy Performance Certificate (‘EPC’)
Required certificate whenever a property is built, sold or rented.
An EPC gives a property an energy efficiency rating from A (most
efficient) to G (least efficient) and is valid for ten years. An EPC
contains information about a property’s energy use and typical
energy costs, and recommendations about how to reduce energy
use and save money.
EPRA Cost Ratio
Administrative and operating costs (including and excluding costs of
direct vacancy) as a percentage of gross rental income.
EPRA Earnings per share (‘EPS’)
Earnings from the Group’s property rental business divided by the
weighted average number of shares in issue over the period.
Building Research Establishment Environmental
Assessment Methodology (‘BREEAM’)
An assessment and certification method for buildings.
Carbon Neutral
Companies, processes, and buildings become carbon neutral when
they calculate their carbon emissions and compensate for what they
have produced via carbon offsetting projects.
Capital Return
The valuation movement on the property portfolio adjusted for
capital expenditure and expressed as a percentage of the capital
employed over the period.
Chief Operating Decision Makers (‘CODMs’)
The Executive Directors, Senior Leadership Team members and
other senior managers.
CO
2
e
Carbon dioxide equivalents (CO
2
e) provide a unit for expressing
greenhouse gas (GHG) emissions, converting gases such as methane
and nitrous oxide into the equivalent amount of carbon dioxide
(CO
2
) based on their warming potential. Emissions are reported in
kilograms or tonnes of CO
2
equivalent (kgCO
2
e and tCO
2
e).
Code
The UK Corporate Governance Code published by the
Financial Reporting Council in January 2024, publicly available
at www.frc.org.uk which sets out principles of good corporate
governance for listed companies. The 2024 Code applies to
financial years beginning on or after 1 January 2025, other than
Provision 29 which will apply to financial years beginning on or
after 1 January 2026.
Contracted Rent
The annualised rent excluding rent free periods.
Cost of Debt
Weighted average interest rate payable.
EPRA Loan to Value (‘LTV’)
Net debt and net current payables if applicable, divided
by the total property portfolio value including net current
receivables if applicable and financial assets due from the non-
controlling interest.
EPRA Net Disposal Value per share
Represents the shareholders’ value under a disposal scenario, where
assets are sold and/or liabilities are not held to maturity. Therefore,
this measure includes an adjustment to mark to market the Group’s
fixed rate debt and public bond.
EPRA Net Reinstatement Value per share
This reflects the value of net assets required to rebuild the entity,
assuming that entities never sell assets. Assets and liabilities,
such as fair value movements on financial derivatives that are not
expected to crystallise in normal circumstances, are excluded.
Investment property purchasers’ costs are included.
EPRA Net Tangible Assets per share (‘NTA’)
This reflects the value of net assets on a long term, ongoing basis
assuming entities buy and sell assets. Assets and liabilities, such as
fair value movements on financial derivatives that are not expected
to crystallise in normal circumstances, are excluded.
EPRA Net Initial Yield
Annualised rental income based on cash rents passing at the
balance sheet date, less non recoverable property operating
expenses, expressed as a percentage of the market value of the
property, after inclusion of estimated purchaser’s costs.
EPRA Topped Up Net Initial Yield
EPRA net initial yield adjusted for expiration of rent free periods
or other lease incentives such as discounted rent periods and
stepped rents.
EPRA Vacancy
The Estimated Rental Value (‘ERV’) of immediately available vacant
space as a percentage of the total ERV of the Investment Portfolio.
LondonMetric Property Plc Annual Report and Accounts 2026201
Strategic report Governance Financial statements
Glossary continued
GRESB
Global Real Estate Sustainability Benchmark (‘GRESB’) is an
investor-driven global sustainability benchmark and reporting
framework for property companies, funds, developers, and investors
in real estate.
Gross Rental Income
Rental income for the period from let properties reported under
IFRS, after accounting for lease incentives and rent free periods.
Gross rental income will include, where relevant, turnover based
rent, surrender premiums and car parking income.
Group
LondonMetric Property Plc and its subsidiaries.
Highcroft Investments plc (‘Highcroft’)
Incorporated in the UK with company number 00224271.
Highcroft Acquisition/Takeover
The acquisition of the entire issued share capital of Highcroft
Investments plc implemented by way of a Scheme of Arrangement
under Part 26 of the Companies Act 2006.
IFRS
The International Financial Reporting Standards issued by the
International Accounting Standards Board and adopted by the UK.
IFRS Net Assets
The Group’s equity shareholders’ funds at the period end including
the net assets attributable to the non-controlling interest.
IFRS Net Assets per share
IFRS net assets divided by the number of shares in issue at the
balance sheet date.
IFRS Reported Profit
The Group’s equity shareholders’ profit for the period excluding the
profit for the period attributable to the non-controlling interest.
Income Return
Net rental income expressed as a percentage of capital employed
over the period.
Equivalent Yield
The weighted average income return expressed as a percentage
of the market value of the property, after inclusion of estimated
purchaser’s costs.
ESOS
Energy Savings Opportunity Scheme (‘ESOS’) is a mandatory
energy assessment scheme designed to identify tailored, cost
effective measures that enable participating organisations to save
energy and reduce carbon emissions and costs.
Estimated Rental Value (‘ERV’)
The external valuers’ opinion of the open market rent which, on the
date of valuation, could reasonably be expected to be obtained on
a new letting or rent review of a property.
European Public Real Estate Association (‘EPRA’)
EPRA is the industry body for European Real Estate Investment
Trusts (‘REITs’).
European Single Electronic Format (‘ESEF’)
ESEF is the electronic reporting format required from 1 January
2021 to facilitate access, analysis and comparison of annual
financial reports.
Financial Conduct Authority (‘FCA’)
The Financial Conduct Authority is a regulatory body, operating
independently of the UK Government, which regulates financial
firms providing services to consumers and maintains the integrity
of the financial markets in the UK.
GHG
Greenhouse gases (‘GHG’) are gases that contribute directly to
climate change by trapping heat in the Earth’s atmosphere. The most
common of these gases is carbon.
Green Lease
A green lease is a standard form lease with additional clauses that
provide for the management and improvement of a building’s
environmental performance by both owner and occupier(s).
For LondonMetric, this includes clauses around data sharing, EPC
rating preservation, smart metering, and yielding up.
Income Strip
Through the sale of a 65 year income strip of Alton Towers and
Thorpe Park in 2022, the Group has an obligation to pay rental
income equivalent to 30% of the annual rental income received
from the tenant and the ability to acquire the freehold back in
2087 for £1.
Investment Portfolio
The Group’s property portfolio excluding development, land
holdings and residential properties.
Investment Property Databank (‘IPD’)
IPD is a wholly owned subsidiary of MSCI producing an independent
benchmark of property returns and the Group’s portfolio returns.
IPCC
The Intergovernmental Panel on Climate Change (‘IPCC’) is the
United Nations body for assessing the science related to climate
change. They developed the Representative Concentration
Pathways (‘RCPs’), which describe four different 21st-century
pathways of greenhouse gas (‘GHG’) emissions and atmospheric
concentrations, air pollutant emissions and land use.
Like for Like Income Growth (‘LFL’)
The movement in contracted rental income on properties owned
through the period under review, excluding properties held for
development and residential.
Listing Rules
The listing rules of the FCA made under the Financial Services and
Markets Act 2000 as amended from time to time.
Loan to Value (‘LTV’)
Net debt expressed as a percentage of the total property portfolio
value at the period end, adjusted for deferred completions on sales
and acquisitions that exchanged in the period.
Logistics
The term is used synonymously with ‘Distribution’ and means the
organisation and implementation of operations to manage the flow
of physical items from origin to the point of consumption by the
end user.
LondonMetric Property Plc Annual Report and Accounts 2026202
Strategic report Governance Financial statements
NNN REIT
Also known as Triple Net Lease Real Estate Investment Trust, is
a type of real estate investment trust (‘REIT’) that specialises in
properties leased to tenants under triple net leases. In a triple net
lease, the tenant agrees to pay all ongoing operating expenses
associated with the property, in addition to rent and utilities.
Occupancy Rate
The ERV of the let units as a percentage of the total ERV of the
Investment Portfolio.
Operational Control Consolidated Approach
Under the operational control consolidated approach, a company
accounts for 100% of emissions from operations over which it or
one of its subsidiaries has operational control. It does not account for
GHG emissions from operations in which it owns an interest but has
no control.
Passing Rent
The gross rent payable by tenants under operating leases, less any
ground rent payable under head leases and the income strip.
Property Income Distribution (‘PID’)
Dividends from profits of the Group’s tax-exempt property rental
business under the REIT regulations. The PID dividend is paid after
deducting withholding tax at the basic rate.
Real Estate Investment Trust (‘REIT’)
A listed property company which qualifies for and has elected
into a tax regime which is exempt from corporation tax on profits
from property rental income and UK capital gains on the sale of
investment properties.
REGOs
Renewable Energy Guarantees of Origin Certificates (‘REGOs’)
demonstrate that electricity has been generated from
renewable sources.
Total Accounting Return (‘TAR’)
The movement in EPRA Net Tangible Assets per share plus the
dividend paid during the period expressed as a percentage of the
EPRA net tangible assets per share at the beginning of the period.
Low carbon heating
Low carbon heating refers to systems that reduce the reliance on
fossil fuels and their associated carbon emissions to heat properties.
These include but are not limited to heat pumps, electric boilers,
biomass boilers, micro-CHP systems, solar water heating, and other
hybrid systems.
LXi Acquisition/Merger
The acquisition of the entire issued share capital of LXi REIT plc
implemented by way of a Scheme of Arrangement under Part 26
of the Companies Act 2006 and deemed a reverse takeover and
Class 1 transaction pursuant to the Listing Rules.
LXi REIT plc (‘LXi’)
LXi REIT plc (now LXi Limited). Incorporated in the UK with company
number 10535081.
MEES
The Minimum Energy Efficiency Standards (‘MEES’) Regulations
establish a minimum level of energy efficiency for rented property
in England and Wales. From April 2023, they require private rented
properties to have a minimum Energy Performance Certificate
(‘EPC’) rating of E unless they have registered a valid exemption.
This is set to rise to EPC ‘B’ by 2030.
Net Debt
The Group’s secured and unsecured loans net of cash balances at
the period end.
Net Rental Income
Gross rental income receivable after deduction for ground rents and
other net property outgoings including void costs and net service
charge expenses.
Net Zero
Companies, processes, and buildings become Net Zero when they
reduce their absolute carbon emissions to a minimum, with only the
remaining hard-to-abate residual emissions being offset.
NNN
NNN, or Triple Net Lease, is a type of lease agreement commonly
used in commercial real estate. In a NNN lease, the tenant is
responsible for paying key expenses in addition to the base rent.
Total Property Return (‘TPR’)
Unlevered weighted capital and income return of the property
portfolio as calculated by MSCI.
Total Shareholder Return (‘TSR’)
The movement in the ordinary share price as quoted on the London
Stock Exchange plus dividends per share assuming that dividends
are reinvested at the time of being paid.
Triple Net Lease
Triple Net Lease, or NNN, is a type of lease agreement commonly
used in commercial real estate. In a NNN lease, the tenant is
responsible for paying key expenses in addition to the base rent.
Triple Net Lease REIT
Also known as NNN REIT, is a type of real estate investment trust (‘REIT’)
that specialises in properties leased to tenants under triple net leases.
In a triple net lease, the tenant agrees to pay all ongoing operating
expenses associated with the property, in addition to rent and utilities.
UK Sustainability Reporting Standards (‘SRS’)
UK SRS S1 and UK SRS S2 set out a framework for corporate
disclosures. UK SRS S1 includes the general framework for applying
UK SRS, as well as requirements on general sustainability-related
risks and opportunities. UK SRS S2 sets out requirements on
climate-related risks and opportunities.
Urban Logistics REIT Plc (‘ULR’ or ‘Urban Logistics REIT’)
Urban Logistics REIT Plc (now Urban Logistics REIT Limited).
Incorporated in the UK with company number 09907096.
ULR Acquisition/Takeover
The acquisition of the entire issued share capital of Urban Logistics
REIT Plc implemented by way of a Scheme of Arrangement under
Part 26 of the Companies Act 2006.
Weighted Average Interest Rate
The total loan interest and derivative costs per annum (including the
amortisation of finance costs) divided by the total debt in issue at the
period end.
Weighted Average Unexpired Lease Term (‘WAULT’)
Average unexpired lease term across the Investment Portfolio
weighted by Contracted Rent.
Glossary continued
LondonMetric Property Plc Annual Report and Accounts 2026203
Strategic report Governance Financial statements
Notice of Annual General Meeting
10. That Robert Fowlds be re-elected as a Director.
11. That Katerina Patmore be re-elected as a Director.
12. That Suzy Neubert be re-elected as a Director.
13. That Nicholas Leslau be re-elected as a Director.
14. That Sandra Gumm be re-elected as a Director.
15. That the Directors be and they are hereby generally and
unconditionally authorised in accordance with Section 551 of
the Companies Act 2006 (the ‘2006 Act’), in substitution for
all existing authorities:
a. to exercise all the powers of the Company to allot shares and
to make offers or agreements to allot shares in the Company
or grant rights to subscribe for or to convert any security into
shares in the Company (together ‘Relevant Securities’) up
to a maximum aggregate nominal amount of £78,159,402,
such amount to be reduced by the nominal amount of any
equity securities (within the meaning of Section 560 of the
2006 Act) allotted under paragraph 15b below in excess of
£78,159,402; and
b. to exercise all the powers of the Company to allot equity
securities (within the meaning of Section 560 of the
2006 Act) up to a maximum aggregate nominal amount
of £156,318,804, such amount to be reduced by any
Relevant Securities allotted or granted under paragraph
15a above, provided that this authority may only be used
in connection with a rights issue in favour of holders of
ordinary shares and other persons entitled to participate
therein where the equity securities respectively attributable
to the interests of all those persons at such record date as
the Directors may determine are proportionate (as nearly
as may be) to the respective numbers of equity securities
held by them or are otherwise allotted in accordance with
the rights attaching to such equity securities subject to such
exclusions or other arrangements as the Directors may
consider necessary or expedient to deal with fractional
entitlements or legal difficulties under the laws of any
territory or the requirements of a regulatory body or stock
exchange or by virtue of shares being represented by
depositary receipts or any other matter whatsoever,
This document is important and requires your immediate attention.
If you are in any doubt as to the action you should take, you should
seek your own personal financial advice from your stockbroker,
bank manager, solicitor, accountant, or other financial advisor
authorised under the Financial Services and Markets Act 2000.
If you have sold or otherwise transferred all your ordinary shares,
please send this document, together with the accompanying
documents, as soon as possible to the purchaser or transferee, or
to the stockbroker, bank or other agent through whom the sale or
transfer was effected, for delivery to the purchaser or transferee.
Notice is hereby given that the Annual General Meeting of the
members of LondonMetric Property Plc (Registered number
7124797) will be held at The Connaught Hotel, Carlos Place,
Mayfair, London W1K 2AL on 9 July 2026 at 10.00 am.
Resolutions 1 to 15 (inclusive) will be proposed as ordinary
resolutions and resolutions 16 to 19 (inclusive) will be proposed as
special resolutions. Voting on all resolutions will be by way of poll.
1. That the Annual Report and Accounts for the year ended
31 March 2026 be received.
2. That the Annual Report on Remuneration in the form set out in
the Annual Report and Accounts for the year ended 31 March
2026 be approved.
3. That the Directors’ Remuneration Policy in the form set out in
the Annual Report and Accounts for the year ended 31 March
2026 be approved and that the proposed amendment to the
rules of the 2023 Long Term Incentive Plan (the ‘LTIP’), as
summarised in the explanatory notes section of this Notice,
be approved and the Directors be authorised to adopt such
amendment and do all such other acts and things as they may
consider appropriate to implement such amendment.
4. That Deloitte LLP be reappointed as auditor of the Company,
to hold office until the conclusion of the next general meeting
at which accounts are laid before the Company.
5. That the Directors be authorised to determine the
remuneration of the auditor.
6. That Andrew Jones be re-elected as a Director.
7. That Martin McGann be re-elected as a Director.
8. That Alistair Elliott be re-elected as a Director.
9. That Suzanne Avery be re-elected as a Director.
provided that the authorities in paragraphs 15a and 15b shall
expire at the conclusion of the next Annual General Meeting of
the Company after the passing of this resolution (or, if earlier,
on the date which is 15 months after the date of this Annual
General Meeting), except that the Company may before such
expiry make an offer or agreement which would or might
require Relevant Securities or equity securities as the case
may be to be allotted (and treasury shares to be sold) after
such expiry and the Directors may allot Relevant Securities
or equity securities (and sell treasury shares) in pursuance
of any such offer or agreement as if the authority
in question had not expired.
16. That, if resolution 15 is passed, the Directors be and are
empowered, in accordance with Sections 570 and 573 of the
2006 Act, to allot equity securities (as defined in Section 560(1)
of the 2006 Act) for cash pursuant to the authority conferred
by resolution 15 and/or by way of a sale of treasury shares as
if Section 561(1) of the 2006 Act did not apply to any such
allotment or sale, provided that this power shall be limited to:
a. the allotment of equity securities and sale of treasury
shares for cash in connection with an offer of, or invitation
to apply for, equity securities made to (but in the case of
the authority conferred by paragraph 15b of resolution 15
above, by way of a rights issue only):
(i) to ordinary shareholders in proportion (as nearly as may
be practicable) to their existing holdings; and/or
(ii) to holders of other equity securities as required by the
rights of those securities,
or, if the Directors otherwise consider necessary, and so
that the Directors may impose any limits or restrictions and
make any arrangements which they consider necessary
or appropriate to deal with any treasury shares, fractional
entitlements, record dates, legal, regulatory or practical
problems in, or under the laws of, any territory or any other
matter; and
b. the allotment of equity securities or sale of treasury shares
(otherwise than under paragraph 16a above), up to a
maximum aggregate nominal amount of £23,447,821,
LondonMetric Property Plc Annual Report and Accounts 2026204
Strategic report Governance Financial statements
18. That the Company be and is hereby generally and
unconditionally authorised, in accordance with Section 701 of
the 2006 Act, to make market purchases (within the meaning
of Section 693(4) of the 2006 Act) of ordinary shares of 10p
each in the capital of the Company (‘ordinary shares’) on such
terms and in such manner as the Directors may from time to
time determine provided that:
a. the maximum aggregate number of ordinary shares
authorised to be purchased is 234,478,206;
b. the minimum price which may be paid for an ordinary
share is 10p being the nominal amount thereof (exclusive
of expenses payable by the Company);
c. the maximum price which may be paid for an ordinary
share (exclusive of expenses payable by the Company)
cannot be more than the higher of:
(i) 105% of the average market value of an ordinary share
as derived from the London Stock Exchange’s Daily
Official List for the five business days prior to the day on
which the ordinary share is contracted to be purchased;
and
(ii) the value of an ordinary share calculated on the basis of
the higher of: (A) the last independent trade of; or (B)
the highest current independent bid for, any number of
ordinary shares on the trading venue where the market
purchase by the Company will be carried out; and
d. this authority shall expire at the conclusion of the next
Annual General Meeting of the Company (or, if earlier, on
the date which is 15 months after the date of this Annual
General Meeting) except that the Company may before
such expiry make a contract to purchase its own shares
which will or may be completed or executed wholly or
partly after such expiry and the Company may purchase
its ordinary shares pursuant to such contract as if this
authority had not expired.
provided that this power shall expire at the conclusion of the
next Annual General Meeting of the Company (or, if earlier,
on the date which is 15 months after the date of this Annual
General Meeting) but prior to its expiry the Company may
make offers, and enter into agreements, which would, or might,
require equity securities to be allotted (and treasury shares to
be sold) after the authority expires and the Directors may allot
equity securities (and sell treasury shares) under any such offer
or agreement as if the authority had not expired.
17. That, if resolution 15 is passed, the Directors be and are
empowered, in accordance with Sections 570 and 573 of the
2006 Act, in addition to any authority granted under resolution
16 to allot equity securities (as defined in Section 560(1) of
the 2006 Act) for cash pursuant to the authority conferred
by resolution 15 and/or by way of a sale of treasury shares as
if Section 561(1) of the 2006 Act did not apply to any such
allotment or sale, such power to be:
a. limited to the allotment of equity securities or sale of
treasury shares up to a maximum aggregate nominal
amount of £23,447,821; and
b. used only for the purposes of financing (or refinancing,
if the authority is to be used within six months after the
original transaction) a transaction which the Directors
determine to be an acquisition or other capital investment
of a kind contemplated by the Statement of Principles on
Disapplying Pre-Emption Rights most recently published
by the Pre-Emption Group prior to the date of this notice,
provided that this power shall expire at the end of the next
Annual General Meeting of the Company (or, if earlier, on the
date which is 15 months after the date of this Annual General
Meeting) but, in each case, prior to its expiry the Company may
make offers, and enter into agreements which would, or might,
require equity securities to be allotted (and treasury shares to
be sold) after the authority expires and the Directors may allot
equity securities (and sell treasury shares) under any such offer
or agreement as if the authority in question had not expired.
19. That the Company is authorised to call any general meeting of
the Company other than the Annual General Meeting by notice
of at least 14 clear days during the period beginning on the date
of the passing of this resolution and ending on the conclusion
of the next Annual General Meeting of the Company.
By order of the Board
Jadzia Duzniak
Company Secretary
21 May 2026
Notice of Annual General Meeting continued
LondonMetric Property Plc Annual Report and Accounts 2026205
Strategic report Governance Financial statements
The app is available to download on both the Apple App Store
and Google Play, or by scanning the relevant QR code below.
Alternatively, you may access the Investor Centre via a web
browser at: https://uk.investorcentre.mpms.mufg.com/.
You will need to log into your Investor Centre account or register
if you have not previously done so. Once you have setup your
account you will need to add your shareholding by clicking ‘Add
Holding’ in the ‘Portfolio’ section and following the on-screen
instructions. You will require your Investor Code (IVC) to add your
shareholding. You can find your IVC on your share certificate or
by contacting our Registrar, MUFG Corporate Market by emailing
them at shareholderenquiries@cm.mpms.mufg.com or by
calling on 0371 664 0300.
Proxy votes should be submitted as early as possible and, in
any event, no later than 10.00 am on 7 July 2026 (or, in the
event of an adjournment, not less than two business days
before the stated time of the adjourned meeting).
You may request a hard copy proxy form directly from
the Company’s registrars, MUFG Corporate Markets by
emailing shareholderenquiries@cm.mpms.mufg.com or by
post at MUFG Corporate Markets, PXS 1, Central Square, 29
Wellington Street, Leeds, LS1 4DL. To be valid, any hard copy
proxy form (and the power of attorney or other authority,
if any, under which it is signed or a notarially certified copy
thereof) must be received by post or (during normal business
hours only) by hand at the Company’s registrars, MUFG
Corporate Markets, Central Square, 29 Wellington Street,
Leeds, LS1 4DL by no later than 10.00 am on 7 July 2026 (or,
in the event of an adjournment, not less than two business
days before the stated time of the adjourned meeting).
Where you have appointed a proxy using the hard copy proxy
form and would like to change the instructions using another
hard copy proxy form, please contact MUFG Corporate
Notes to the Notice of the Annual General Meeting:
(i) Shareholders entitled to attend and vote at the meeting may
appoint one or more proxies (who need not be shareholders)
to attend, speak and vote on their behalf, provided that each
proxy is appointed to exercise the rights attaching to the
different shares held by him or her.
(ii) Your proxy could be the Chair, another Director of the
Company or another person who has agreed to attend and
represent you. Your proxy will vote as you instruct and must
attend the meeting for your vote to be counted. Details of
how to appoint the Chair (or another person) as your proxy are
set out in the notes to the proxy form.
(iii) Any person to whom this Notice is sent who is a person
nominated under Section 146 of the 2006 Act to enjoy
information rights (a ‘Nominated Person’) may, under an
agreement between him/her and the shareholder by whom
he/she was nominated, have a right to be appointed (or to
have someone else appointed) as a proxy for the Annual
General Meeting. If a Nominated Person has no such proxy
appointment right, or does not wish to exercise it, he/she may,
under any such agreement, have a right to give instructions to
the shareholder as to the exercise of voting rights.
The statement of rights of shareholders in relation to the
appointment of proxies in paragraph (i) above does not apply
to Nominated Persons. The rights described in that paragraph
can only be exercised by shareholders of the Company.
(iv) To have the right to attend and vote at the meeting you must
hold ordinary shares in the Company and your name must be
entered on the share register of the Company in accordance
with note (vi) below.
(v) You will not have received a hard copy proxy form for the
Annual General Meeting in the post. Shareholders can instead
vote electronically via the Investor Centre, a free app for
smartphone and tablet provided by MUFG Corporate Markets
(the company’s registrar). It allows you to securely manage
and monitor your shareholdings in real time, take part in
online voting, keep your details up to date, access a range of
information including payment history and much more.
Markets at PXS 1, Central Square, 29 Wellington Street, Leeds,
LS1 4DL. The deadline for receipt of proxy appointments (see
above) also applies in relation to amended instructions.
Completion and return of a proxy form will not preclude
members from attending and voting at the meeting should
they wish to do so. Unless otherwise indicated on the Form
of Proxy, CREST, Proxymity or any other electronic voting
instruction, the proxy will vote as they think fit or, at their
discretion, withhold from voting.
Any attempt to terminate or amend a proxy appointment
received after the relevant deadline will be disregarded.
Where two or more valid separate appointments of proxy
are received in respect of the same share in respect of the
same meeting, the one which is last sent shall be treated as
replacing and revoking the other or others.
If you need help with voting online, or require a paper proxy
form, please contact the Company’s registrars, MUFG Corporate
Markets by email at: shareholderenquiries@cm.mpms.mufg.
com, or you may call MUFG Corporate Markets on 0371 664
0300 if calling from the UK, or +44 (0) 371 664 0300 if calling
from outside of the UK. Calls are charged at the standard
geographic rate and will vary by provider. Calls outside the
United Kingdom will be charged at the applicable international
rate; lines are open 9.00 am to 5.30 pm, Monday to Friday
excluding public holidays in England and Wales.
(vi) The time by which a person must be entered on the register
of members in order to have the right to attend or vote at the
meeting is close of business on 7 July 2026. If the meeting is
adjourned, the time by which a person must be entered on
the register of members in order to have the right to attend
or vote at the adjourned meeting is close of business on the
day that is two business days before the date fixed for the
adjourned meeting. Changes to entries on the register of
members after such times shall be disregarded in determining
the rights of any person to attend or vote at the meeting.
(vii) CREST members who wish to appoint a proxy or proxies by
utilising the CREST electronic proxy appointment service
may do so by utilising the procedures described in the CREST
Manual. CREST Personal Members or other CREST sponsored
Notice of Annual General Meeting continued
LondonMetric Property Plc Annual Report and Accounts 2026206
Strategic report Governance Financial statements
(ix) The Company may treat as invalid a CREST Proxy Instruction
in the circumstances set out in Regulation 35(5)(a) of the
Uncertificated Securities Regulations 2001.
(x) CREST members and, where applicable, their CREST sponsors
or voting service providers should note that Euroclear UK
& International Limited does not make available special
procedures in CREST for any particular messages.
Normal system timings and limitations will therefore apply
in relation to the input of CREST Proxy Instructions. It is
the responsibility of the CREST member concerned to take
(or, if the CREST member is a CREST personal member
or sponsored member or has appointed a voting service
provider(s), to procure that his or her CREST sponsor or voting
service provider(s) take(s)) such action as shall be necessary to
ensure that a message is transmitted by means of the CREST
system by any particular time.
In this connection, CREST members and, where applicable,
their CREST sponsors or voting system providers are referred,
in particular, to those sections of the CREST Manual concerning
practical limitations of the CREST system and timings.
Proxymity Voting - if you are an institutional investor you may
also be able to appoint a proxy electronically via the Proxymity
platform, a process which has been agreed by the Company
and approved by the Registrar. For further information regarding
Proxymity, please go to www.proxymity.io. Your proxy must be
lodged by 10.00 am on 7 July 2026 in order to be considered
valid or, if the meeting is adjourned, by the time which is 48
hours before the time of the adjourned meeting. Before you can
appoint a proxy via this process you will need to have agreed
to Proxymity’s associated terms and conditions. It is important
that you read these carefully as you will be bound by them
and they will govern the electronic appointment of your proxy.
An electronic proxy appointment via the Proxymity platform may
be revoked completely by sending an authenticated message via
the platform instructing the removal of your proxy vote.
(xi) Any corporation which is a member can appoint one or more
corporate representatives who may exercise on its behalf all
of its powers as a member provided that they do not do so in
relation to the same shares.
members, and those CREST members who have appointed a
voting service provider(s), should refer to their CREST sponsor
or voting service provider(s), who will be able to take the
appropriate action on their behalf.
(viii) In order for a proxy appointment or instruction made using
the CREST service to be valid, the appropriate CREST message
(a CREST Proxy Instruction) must be properly authenticated
in accordance with Euroclear UK & International Limited’s
specifications and must contain the information required for
such instruction, as described in the CREST Manual (available
via www.euroclear.com). The message, regardless of whether
it constitutes the appointment of a proxy or is an amendment
to the instruction given to a previously appointed proxy must,
in order to be valid, be transmitted so as to be received by the
Company’s registrars (ID: RA10) by 10.00 am on 7 July 2026
for receipt of proxy appointments. For this purpose, the time
of receipt will be taken to be the time (as determined by the
time stamp applied to the message by the CREST Application
Host) from which the issuer’s agent is able to retrieve the
message by enquiry to CREST in the manner prescribed by
CREST. After this time, any change of instructions to proxies
appointed through CREST should be communicated to the
appointee through other means.
CREST members and, where applicable, their CREST
sponsors or voting service providers should note that
Euroclear UK & International Limited does not make available
special procedures in CREST for any particular messages.
Normal system timings and limitations will therefore apply
in relation to the input of CREST Proxy Instructions. It is
the responsibility of the CREST member concerned to take
(or, if the CREST member is a CREST personal member
or sponsored member or has appointed a voting service
provider(s), to procure that his CREST sponsor or voting
service provider(s) take(s)) such action as shall be necessary to
ensure that a message is transmitted by means of the CREST
system by any particular time. In this connection, CREST
members and, where applicable, their CREST sponsors or
voting service providers are referred, in particular, to those
sections of the CREST Manual concerning practical limitations
of the CREST system and timings (www.euroclear.com).
(xii) You may not use any electronic address provided either in this
Notice of Annual General Meeting or any related documents
(including the form of proxy) to communicate with the
Company for any purposes other than those expressly stated.
(xiii)As at 20 May 2026 (being the closest practical business day
before the publication of this Notice), the Company’s issued
share capital consisted of 2,344,782,058 ordinary shares
carrying one vote each.
(xiv)Members satisfying the thresholds in Section 527 of the 2006
Act can require the Company to publish a statement on its
website setting out any matter relating to:
a. the audit of the Company’s accounts (including the
Auditor’s report and the conduct of the audit) that are to be
laid before the meeting; or
b. any circumstances connected with an auditor of the
Company ceasing to hold office since the last Annual General
Meeting, that the members propose to raise at the meeting.
The Company cannot require the members requesting the
publication to pay its expenses. Any statement placed on the
website must also be sent to the Company’s auditor no later
than the time it makes its statement available on the website.
The business which may be dealt with at the meeting includes
any statement that the Company has been required to publish
on its website.
(xv) Any member attending the meeting has the right to ask
questions. The Company must cause to be answered any
such question relating to the business being dealt with at the
meeting but no such answer need be given if:
a. to do so would interfere unduly with the preparation
for the meeting or involve the disclosure of
confidential information;
b. the answer has already been given on a website in the form
of an answer to a question; or
c. it is undesirable in the interests of the Company or the
good order of the meeting that the question be answered.
Notice of Annual General Meeting continued
LondonMetric Property Plc Annual Report and Accounts 2026207
Strategic report Governance Financial statements
Resolution 1 – To receive the Annual Report and Accounts
The Chair will present the Annual Report and Accounts for the
year ended 31 March 2026 to the meeting. Resolution 1 is to
receive the Report of the Directors, the financial statements and
the Independent Auditor’s report on the financial statements and
on the auditable part of the Annual Report on Remuneration for
the financial year ended 31 March 2026.
Resolution 2 – Annual Report on Remuneration
Resolution 2 is an ordinary resolution to approve the Annual
Report on Remuneration relating to the implementation of the
Company’s existing Remuneration Policy. Section 439 of the
2006 Act requires UK incorporated listed companies to put their
Annual Report on Remuneration to an advisory shareholder vote.
As the vote is advisory it does not affect the actual remuneration
paid to any individual Director. The Annual Report on
Remuneration is set out in full in the Annual Report and Accounts.
Resolution 3 – Directors’ Remuneration Policy and LTIP
Resolution 3 is an ordinary resolution to approve a new Directors’
Remuneration Policy (which will replace the Company’s existing
Remuneration Policy) and an increase to the limit on grants in a
year under the rules of the LTIP from 225% to 275% of salary to any
individual. This is in line with the maximum grant that will be possible
to an Executive Director under the proposed changes to the new
Directors’ Remuneration Policy. No further changes are proposed
to the rules of the LTIP. Shareholders are invited to approve the
Directors’ Remuneration Policy which is set out on pages 123 to 135 of
the Annual Report and Accounts (the ‘Policy’). The Policy, which sets
out the Company’s forward looking policy on Directors’ remuneration,
is subject to a binding shareholder vote by ordinary resolution at least
every three years. Once the Policy has been approved, all payments
by the Company to the Directors and any former Directors must be
made in accordance with the Policy (unless a payment has separately
been approved by shareholder resolution). If the Company wishes to
change the Policy, it will need to put a revised Directors’ Remuneration
Policy to a shareholder vote again before it can implement any
payments pursuant to an amended Directors’ Remuneration Policy.
If the Policy remains unchanged, the 2006 Act requires the Company
to put the Policy to shareholders for approval again no later than
at the Company’s 2029 Annual General Meeting.
(xvi) A copy of this Notice, and other information required
by Section 311A of the 2006 Act, can be found at
www.londonmetric.com.
(xvii) The following documents are available for inspection at the
registered office of the Company during normal business
hours on each weekday (public holidays excluded) from the
date of this Notice until the conclusion of the Annual General
Meeting and at the place of the Annual General Meeting for
15 minutes prior to and during the meeting:
a. copies of the Executive Directors’ service contracts
with the Company;
b. copies of letters of appointment of Non Executive Directors;
c. a copy of the Articles of Association of the Company; and
d. the amended rules of the LTIP.
Should a shareholder wish to inspect any of these documents
please submit a request to info@londonmetric.com.
(xviii) In the case of joint registered holders, the signature of one
holder on a proxy card will be accepted and the vote of the
senior holder who tenders a vote, whether in person or by proxy,
shall be accepted to the exclusion of the votes of the other joint
holders. For this purpose, seniority shall be determined by the
order in which names stand on the register of members of the
Company in respect of the relevant joint holding.
(xix) Voting on all resolutions at the Annual General Meeting will
be by way of poll. The Company believes that this is the best
way of representing the view of as many shareholders as
possible in the voting process.
(xx) This Notice (including these notes) reflects the intention of
the Board with respect to the AGM given the law in force, and
relevant guidance, as at the latest practicable date before the
publication of this Notice.
Shareholders should check our website to ensure they have the
most up to date information available regarding the AGM.
Explanatory notes:
The information below is an explanation of the business to be
considered at the Annual General Meeting.
A copy of the rules of the LTIP in the proposed amended form
will be available for inspection from the date of this Notice on
the National Storage Mechanism and will also be available for
inspection for at least 15 minutes before and during the AGM.
Resolutions 4 and 5 – Reappointment of auditors
Resolution 4 relates to the reappointment of Deloitte LLP as the
Company’s auditor to hold office until the next Annual General
Meeting of the Company and Resolution 5 authorises the
Directors to set their remuneration.
Resolutions 6 to 14 – Re-election of Directors
Resolutions 6 to 14 deal with re-election of the Directors
(as applicable). Biographies of each of the Directors seeking
re-election can be found on pages 92 and 93 of the Annual Report
and Accounts. The Board has confirmed, following a performance
review, that all Directors standing for re-election continue to
perform effectively and demonstrate commitment to their role.
Resolution 15 – Allotment of share capital
At the last Annual General Meeting of the Company the Directors
were given authority to allot ordinary shares in the capital of the
Company. This authority expires at the conclusion of the Annual
General Meeting (or, if earlier, on the date which is 15 months after
the date of the Annual General Meeting).
Your Board considers it appropriate that a similar authority be
granted to allot ordinary shares in the capital of the Company up
to a maximum nominal amount of £78,159,402 (representing
approximately one third of the Company’s issued ordinary
share capital as at 20 May 2026) during the period up to the
conclusion of the next Annual General Meeting of the Company.
Such authority is sought in paragraph 15a of Resolution 15.
In accordance with the guidelines issued by the Investment
Association, paragraph 15b of Resolution 15 will allow Directors to
allot, including the shares referred to in paragraph 15a of Resolution
15, shares in the Company in connection with a pre-emptive offer
by way of a rights issue to shareholders up to a maximum nominal
amount of £156,318,804 (representing approximately two thirds of
the issued ordinary share capital of the Company as at 20 May 2026).
Your Board considers it appropriate to seek this additional allotment
authority at the Annual General Meeting in order to take advantage
Notice of Annual General Meeting continued
LondonMetric Property Plc Annual Report and Accounts 2026208
Strategic report Governance Financial statements
The aggregate nominal amount represents approximately
an additional 10% of the issued ordinary share capital of the
Company as at 20 May 2026.
The Statement of Principles state that, in addition to the standard
annual disapplication of pre-emption rights which permits
companies to issue for cash on a non-pre-emptive basis equity
securities representing no more than 10% of the Company’s
issued ordinary share capital, the Pre-Emption Group is supportive
of extending the general disapplication power by an amount equal
to 10% of a company’s issued ordinary share capital for certain
purposes. In accordance with the provisions of the Statement of
Principles, the Company confirms its intention that the additional
power sought by the Company pursuant to this resolution (equal
to 10% of the issued ordinary share capital of the Company) can
be used in connection with one or more acquisitions or specified
capital investments, which are announced contemporaneously
with the relevant issue. The Pre-Emption Group recommends that
this additional 10% authority be sought in a separate resolution,
which is the approach the Company has taken.
Resolution 18 – Authority to purchase own shares
Resolution 18 gives the Company authority to buy back its own
ordinary shares in the market as permitted by the 2006 Act.
The authority limits the number of shares that could be purchased to
a maximum of 234,478,206 shares (representing approximately 10%
of the Company’s issued ordinary share capital as at 20 May 2026)
and sets minimum and maximum prices. This authority will expire at
the conclusion of the next Annual General Meeting of the Company.
The Directors have no present intention of exercising the
authority to purchase the Company’s ordinary shares but will
keep the matter under review, taking into account the financial
resources of the Company, the Company’s share price and future
funding opportunities. The authority will be exercised only after
consideration by the Directors of the effect on net asset value and
if the Directors believe that to do so would be in the interests of
shareholders generally. Any purchases of ordinary shares would be
by means of market purchases through the London Stock Exchange.
Listed companies purchasing their own shares are allowed
to hold them in treasury as an alternative to cancelling them.
of the flexibility it offers. However, the Board has no present
intention of exercising either authority (except in relation to the
Company’s scrip dividend scheme, its share schemes and (only
to the extent relevant) the Company’s proposed acquisition of
Picton Property Income Limited). If they do exercise the authority,
the Directors intend to follow best practice as regards its use, as
recommended by the Investment Association.
As at the date of this Notice the Company does not hold any
ordinary shares in the capital of the Company in treasury.
Resolutions 16 and 17 – General and additional authority
to disapply pre-emption rights
At the last Annual General Meeting of the Company the Directors
were also given authority to allot equity securities for cash without
first being required to offer such shares to existing shareholders.
This authority expires at the conclusion of the Annual General
Meeting (or, if earlier, on the date which is 15 months after the date
of last year’s Annual General Meeting).
The passing of Resolutions 16 and 17 would allow the Directors
to allot equity securities (or sell any shares which the Company
may purchase and hold in treasury) without first offering them to
existing holders in proportion to their existing holdings.
The authority set out in Resolution 16 is limited to: (a) allotments
or sales in connection with pre-emptive offers and offers to
holders of other equity securities if required by the rights of
those shares; or (b) otherwise than in connection with a pre-
emptive offer, up to an aggregate nominal amount of £23,447,821
(representing approximately 10% of the issued ordinary share
capital of the Company as at 20 May 2026).
The authority set out in Resolution 17 is limited to allotments
or sales of up to an aggregate nominal amount of £23,447,821
in addition to the authority set out in Resolution 16 which is to
be used only for the purposes of financing (or refinancing, if
the authority is to be used within six months after the original
transaction) a transaction which the Directors determine to be an
acquisition or other capital investment of a kind contemplated by
the Statement of Principles on Disapplying Pre-Emption Rights
most recently published by the Pre-Emption Group prior to the
date of this notice (the ‘Statement of Principles’).
No dividends are paid on shares whilst held in treasury and no
voting rights attach to treasury shares.
If Resolution 18 is passed at the Annual General Meeting, it is the
Company’s current intention to hold in treasury the majority of
the shares it may purchase pursuant to the authority granted to it.
However, in order to respond properly to the Company’s capital
requirements and prevailing market conditions, the Directors
will need to reassess at the time of any and each actual purchase
whether to hold the shares in treasury or cancel them, provided it
is permitted to do so. The Company may hold a maximum of up
to 10% of its issued share capital in treasury in accordance with
guidelines issued by the Investment Association.
As at 20 May 2026 (the latest practicable date before publication
of this Notice), there were share awards over 10,904,263 ordinary
shares in the capital of the Company representing approximately
0.47% of the Company’s issued ordinary share capital. If the
authority to purchase the Company’s ordinary shares was
exercised in full, these awards would represent approximately
0.52% of the Company’s issued ordinary share capital.
Resolution 19 – Notice period for general meetings
It is proposed in Resolution 19 that shareholders should approve
the continued ability of the Company to hold general meetings
other than the Annual General Meeting on 14 clear days’ notice.
This resolution is required under Section 307A of the 2006 Act.
Under that section, a traded company which wishes to be able
to call general meetings (other than an Annual General Meeting)
on 14 clear days’ notice must obtain shareholders’ approval.
Resolution 19 seeks such approval.
The resolution is valid up to the next Annual General Meeting of
the Company and needs to be renewed annually. The Company
will also need to meet the requirements for voting by electronic
means under Section 307A of the 2006 Act before it can call a
general meeting on 14 days’ notice.
The shorter notice period would not be used as a matter of routine
for general meetings, but only where the flexibility is merited by
the business of the meeting and is thought to be to the advantage
of shareholders as a whole.
Notice of Annual General Meeting continued
LondonMetric Property Plc Annual Report and Accounts 2026209
Strategic report Governance Financial statements
Financial calendar Shareholder information
Advisors to the Company
Financial Advisors and Brokers
Peel Hunt LLP
7th Floor
100 Liverpool Street
London EC2M 2AT
JP Morgan Securities Limited
25 Bank Street
Canary Wharf
London E14 5JP
Barclays Bank Plc
1 Churchill Place
London E14 5HP
Auditor
Deloitte LLP
2 New Street Square
London EC4A 3BZ
Property Valuers
CBRE Limited
Henrietta House
Henrietta Place
London W1G 0NB
Savills (UK) Limited
33 Margaret Street
London W1G 0JD
Knight Frank LLP
55 Baker Street
London W1U 8AN
Tax Advisors
PricewaterhouseCoopers LLP
1 Embankment Place
London WC2N 6RH
Remuneration Advisors
Korn Ferry
Ryder Court, 14 Ryder Street
London SW1Y 6QB
Announcement of results 21 May 2026
Annual General Meeting 9 July 2026
Solicitors to the Company
CMS Cameron McKenna
Nabarro Olswang LLP
78 Cannon Place
Cannon Street
London EC4N 6AF
Registrar
MUFG Corporate Markets
The Registry
Central Square
29 Wellington Street
Leeds LS1 4DL
Secretary and Registered Address
Jadzia Duzniak
One Curzon Street
London W1J 5HB
www.londonmetric.com
REIT status and taxation
As a UK REIT, the Group is exempt from corporation tax on
rental income and UK property gains. Dividend payments to
shareholders are split between Property Income Distributions
(‘PIDs’) and non PIDs.
For most shareholders, PIDs will be paid after deducting
withholding tax at the basic rate. However, certain categories
of shareholder are entitled to receive PIDs without
withholding tax, principally UK resident companies, UK public
bodies, UK pension funds and managers of ISAs, PEPs and
Child Trust Funds. There is a form on the Company’s website
for shareholders to certify that they qualify to receive PIDs
without withholding tax.
Payment of dividends
Shareholders who would like their dividends paid direct
to a bank or building society account should notify MUFG
Corporate Markets. Tax vouchers will continue to be sent to
the shareholder’s registered address.
LondonMetric Property Plc Annual Report and Accounts 2026210
Strategic report Governance Financial statements
Design and production
Radley Yeldar – www.ry.com
CBP025439
This Annual Report is printed on Magno Satin, an FSC® certified material*.
This document was printed by Pureprint Group, a CarbonNeutral® company,
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LondonMetric Property Plc
One Curzon Street
London W1J 5HB
United Kingdom
Telephone +44 (0) 20 7484 9000
Find us online
www.londonmetric.com
Find us online
www.londonmetric.com
LondonMetric Property Plc
Telephone +44 (0) 20 7484 9000