Londonmetric looks to raise £100m, nudges dividend higher

Real estate investment trust Londonmetric announced plans to raise up £100m of fresh equity in order to capitalise on opportunities presented to it as a result of the Covid-19 pandemic.

Londonmetric, which confirmed its fourth-quarter dividend of 2.3p per share, for a full-year payout of 8.3p, said uncertainties created by the coronavirus outbreak had created "quality investment opportunities" that were "seldom available in a normalised market".

In 2019, the company paid out 8.2p in dividends.

The FTSE 250-listed group will use £60m to fund the acquisition of a long income portfolio of five assets, while £10m will go on a sale and leaseback deal with an unnamed convenience store and £30m would be set aside for an urban logistics warehouse in London.

Londonmetric also noted that earnings per share for the year ended 31 March were up 6% at 9.3p, while net rental income was 24% higher to £116m. The group's net asset value dipped to 172p from 175pp.

As of 0850 BST, Londonmetric shares were up 2.96% at 188.10p.