LondonMetric Property : Report & Accounts and AGM Form of Proxy

Realestate for reliable income

Annual Report and

Accounts 2024

In this report

Strategic report	01
An overview, purpose and strategy
Introduction	01
Performance highlights	02
Adapt and evolve	03
Chair's statement	10
At a glance	12
Chief Executive's review	15
The world around us	24
Creating value
Our markets	26
Key market trends	28
Business model	30
Key performance indicators	32
A review of our performance
Property review	34
Financial review	47
Our sustainability performance
Responsible Business and ESG review	55
TCFD Recommendation and Alignment	77
A review of our risk
Risk management and internal controls	86
A review of our principal risks	92
Going concern and viability	99

Governance	101
Chair's introduction	102
Governance overview	104
Board leadership and Company purpose
Board of Directors	106
Management team	108
Our purpose, strategy, values and culture	110
How we monitor culture	111
The Board in action	113
Section 172 Statement	116
Stakeholders	117
Board meetings and attendance	118
Division of responsibilities
Leadership framework	119
Leadership roles and responsibilities	120
Committee Reports
Nomination Committee report	122
Audit Committee report	130
Remuneration Committee report	137
Report of the Directors	156
Directors' Responsibilities Statement	159
Financial statements	160

04 Reliable income, lowest cost

p03

Adapt & evolve

p15

Chief Executive's review

Strategic		Governance		Financial
report			statements

06 Shaped by market trends

08 Fit for the future

p34

A review of our performance

p104

Governance overview

LondonMetric Property Plc

Annual Report and Accounts 2024

Strategic		Governance		Financial
report			statements

LondonMetric

is a real estate company that owns £6.0 billion of structurally supported assets. It is the UK's leading Triple Net Lease REIT with contracted rent of £340 million per annum.

Our purpose is to become the UK's most enduring real estate partner delivering dependable income.

Our aim is to build on our position as the UKs leading Triple Net Lease REIT. By investing in mission critical and key real estate assets that benefit from structural drivers, we will deliver reliable, repetitive and growing income over the long term.

Our approach focuses on our four strategic pillars of owning the right real estate, managing and enhancing our assets, collaborating with our stakeholders and generating strong income-led returns.

LondonMetric Property Plc

01

Annual Report and Accounts 2024

Strategic		Governance		Financial
report			statements

Performance Highlights 2024

IFRS reported profit (for equity shareholders)

£118.7m £625m

2024			118.7
2023		-506.3
2022					734.5
2021				257.3

IFRS net assets
£3,969.5m	99%
2024				3,969.5
				1,995.2
2023
				2,569.8
2022
				1,731.7
2021

Cost of debt
3.9%		50bps
2024		3.9
			3.4
2023
		2.6
2022
	2.5
2021

WAULT
19.4 yrs	7.5 yrs
2024			19.4
		11.9
2023
		11.9
2022
		11.4
2021

EPRA EPS
10.9p	5.4%
2024		10.9
				10.3
2023
			10.0
2022
		9.5
2021

EPRA net tangible assets per share
191.7p	3.6%
2024			191.7
			198.9
2023
				261.1
2022
			190.3
2021

Average debt maturity
5.4 yrs	0.6 years
2024			5.4
				6.0
2023
		6.5
2022
		4.2
2021

Total property return
4.7%		1670bps
2024				4.7
2023				-12.0
2022					28.2
2021				13.4

Dividend per share
10.2p	7.4%
2024		10.2
				9.5
2023
			9.25
2022
		8.65
2021

EPRA cost ratio
11.6%	10bps
2024		11.6
			11.7
2023
				12.5
2022
					13.6
2021

Loan to value ratio
33.2%	40bps
2024		33.2
				32.8
2023
		28.8
2022
			32.3
2021

Alternative performance measures

The Group financial statements are prepared in accordance with IFRS. Management reviews the performance of the business principally on a proportionately consolidated basis which includes the Group's share of joint ventures and excludes any non-controlling interest.

Alternative performance measures are financial measures not specified under IFRS but are used by management as they highlight the underlying performance of the Group's property rental business and are based on the EPRA Best Practice Recommendations ('BPR') reporting framework.

Therefore, unless specifically stated, the performance metrics and financial results reflected in the Strategic report and on this page, reflect the proportionately consolidated results of the Group and the EPRA BPR reporting framework. Further details can be found on page 48 of the Financial review and definitions are set out in the Glossary from page 212.

LondonMetric Property Plc

02

Annual Report and Accounts 2024

Adapt &

evolve

The key to success.

In a dynamic world that is constantly changing, businesses that succeed are not necessarily the biggest, but the ones who continually adapt.

In real estate, this means that the shape and structure of the portfolio is continually focused on owning assets that have enduring occupier appeal.

Strategic		Governance		Financial
report			statements

	£830m merger of
2013	London & Stamford and
Metric Property creating
	LondonMetric Property
	Portfolio repositioned away
2014-	from offices and retail parks
increase logistics exposure
2017
	Further repositioning of
2018-	portfolio into logistics with
strong emphasis on urban
2022
logistics, including the
	£413m merger with
	A&J Mucklow in 2019
	Disciplined approach to
2023-	creating the UK's leading
NNN lease REIT aligned
2024
to structurally supported
	sectors through LXi Merger
	and CT Property Trust
	acquisition

+46%

Dividend per share growth since formation in 2013

+157%

Total Accounting Return since 2013

+223%

Total Shareholder Return since 2013

LondonMetric Property Plc

03

Annual Report and Accounts 2024

Strategic		Governance		Financial
report			statements

Adapt and evolve

Reliable income,

lowest cost.

The Triple Net REIT advantage

A Real Estate Investment Trust that primarily invests in properties wholly leased to tenants where the occupier is responsible for paying the property's operating expenses including property taxes, insurance and maintenance costs in addition to rent.

A Triple Net REIT invests in long leases from creditworthy tenants where the building expenses are met by the occupier under the lease contract. This structure delivers stable returns with growing income through a combination of inflation-linked, fixed uplift or open market rent reviews to drive income and give the greatest potential for long term capital appreciation.

LondonMetric Property Plc

04

Annual Report and Accounts 2024

Strategic		Governance		Financial
report			statements

Reliable and	High cost efficiency	Long term	Creditworthy
growing income	with low operating	leases with guaranteed	and structurally
	expenses	rental growth	supported occupiers

LondonMetric Property Plc

05

Annual Report and Accounts 2024

Strategic		Governance		Financial
report			statements

Adapt and evolve

Shaped by

market trends.

Continued focus on macro trends

Our focus on the macro trends and how they define the winners and losers in real estate has served us well over the years.

This continues to shape our business with the LXi merger doubling the value of our portfolio in mission critical assets that are aligned to long term structural drivers in the marketplace. The recent LXi merger gives us ownership of significant assets across sectors, but logistics remains a core focus.

LondonMetric Property Plc

06

Annual Report and Accounts 2024

Strategic		Governance		Financial
report			statements

Logistics

Urban

-24%

loss of industrial land in London to alternative uses over 20 years

Mega & regional

+22%

growth in online sales penetration from 2022 to 2027

Long income Entertainment & leisure

+10%

growth in spend on UK hospitality and leisure spend in 2023

Convenience

+24%

growth in UK convenience channel spend over five years to 2028

Healthcare & education

+19%

growth in over 60 year olds in the UK by 2030

LondonMetric Property Plc

07

Annual Report and Accounts 2024

Strategic		Governance		Financial
report			statements

Adapt and evolve

Fit for

the future.

Playing a leading role in decarbonising

Most stakeholders - from shareholders, to employees, to occupiers, to communities, and governments - now expect companies to act with integrity and long term vision.

Opinion and reputation can impact capital allocation decisions, and potentially even the long term value of a company. We look to bring together our approach, market trends and desirable assets to ensure reliable income and fit for the future assets.

Our responsible approach

Where our actions take into consideration the long-term interests of all our stakeholders and ensure that we maintain a high standard of business conduct.

Read more Responsible Business and ESG review page 55

LondonMetric Property Plc

08

Annual Report and Accounts 2024