Andrew Jones, CEO of listed prop co LondonMetric Property whose strongest conviction play is urban warehouses, says the ‘outlook is improving’ as the company delivered full year results and news of a takeover.
LondonMetric managed to increase the dividend after a 10.3% rise in annual net rental income despite a valuation decrease from £3.6 bn to £3 bn amid a ‘deterioration in macroeconomic backdrop’ over the past year.
At the same time, the company said it had a recommended offer on the table for CT Property Trust in a £198 mln (€227 mln) deal.
Jones said: ‘The last year has seen a weaker economic backdrop, elevated inflation and a significantly higher interest rate environment. Not surprisingly, this has led to a recalibration of real estate values and conditions that have undoubtedly impacted our approach to leverage and interest rate exposure.’
‘Whilst risks and uncertainty remain, the outlook is improving and some confidence is returning. History teaches us that periods of uncertainty always pass and eventually inflation will be tamed and interest rates will stabilise.’
‘What is even clearer is that the strong occupational fundamentals supporting our chosen sectors remain intact. Broadening occupational demand and constrained supply are creating ideal conditions for continued rental growth, particularly for our urban warehouses, which remain our strongest conviction call.’
