LSE:LMP

Stock Analysis Report

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Market Cap

UK£2.1b

Last Updated

2021/06/17 23:04 UTC

Data Sources

Company Financials +

Executive Summary

LondonMetric is a FTSE 250 REIT that owns one of the UK's leading listed logistics platforms alongside a diversified long income portfolio, with 16 million sq ft under management. More Details


Snowflake Analysis

Established dividend payer with mediocre balance sheet.


Similar Companies

Share Price & News

How has LondonMetric Property's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: LMP is less volatile than 75% of UK stocks over the past 3 months, typically moving +/- 2% a week.

Volatility Over Time: LMP's weekly volatility (2%) has been stable over the past year.


Market Performance


7 Day Return

0.08%

LMP

-1.0%

GB REITs

0.1%

GB Market


1 Year Return

5.4%

LMP

-15.3%

GB REITs

18.7%

GB Market

Return vs Industry: LMP exceeded the UK REITs industry which returned -15.3% over the past year.

Return vs Market: LMP underperformed the UK Market which returned 18.7% over the past year.


Shareholder returns

LMPIndustryMarket
7 Day0.08%-1.0%0.1%
30 Day4.4%2.1%1.4%
90 Day12.4%9.3%7.2%
1 Year9.4%5.4%19.1%-15.3%24.6%18.7%
3 Year41.7%25.8%2.0%3.5%14.5%1.3%
5 Year93.5%56.6%11.9%6.4%47.6%19.9%

Long-Term Price Volatility Vs. Market

How volatile is LondonMetric Property's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is LondonMetric Property undervalued compared to its fair value and its price relative to the market?

8.22x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: LMP (£2.35) is trading above our estimate of fair value (£2.2)

Significantly Below Fair Value: LMP is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: LMP is good value based on its PE Ratio (8.2x) compared to the UK REITs industry average (15.4x).

PE vs Market: LMP is good value based on its PE Ratio (8.2x) compared to the UK market (25.6x).


Price to Earnings Growth Ratio

PEG Ratio: LMP's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: LMP is overvalued based on its PB Ratio (1.2x) compared to the GB REITs industry average (0.9x).


Future Growth

How is LondonMetric Property forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

-14.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: LMP's earnings are forecast to decline over the next 3 years (-14.7% per year).

Earnings vs Market: LMP's earnings are forecast to decline over the next 3 years (-14.7% per year).

High Growth Earnings: LMP's earnings are forecast to decline over the next 3 years.

Revenue vs Market: LMP's revenue (3% per year) is forecast to grow slower than the UK market (5.3% per year).

High Growth Revenue: LMP's revenue (3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: LMP's Return on Equity is forecast to be low in 3 years time (4.7%).


Past Performance

How has LondonMetric Property performed over the past 5 years?

8.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: LMP has a large one-off gain of £163.2M impacting its March 31 2021 financial results.

Growing Profit Margin: LMP became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: LMP's earnings have grown by 8.9% per year over the past 5 years.

Accelerating Growth: LMP has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: LMP has become profitable in the last year, making it difficult to compare its past year earnings growth to the REITs industry (42%).


Return on Equity

High ROE: LMP's Return on Equity (14.8%) is considered low.


Financial Health

How is LondonMetric Property's financial position?


Financial Position Analysis

Short Term Liabilities: LMP's short term assets (£62.3M) exceed its short term liabilities (£46.0M).

Long Term Liabilities: LMP's short term assets (£62.3M) do not cover its long term liabilities (£842.7M).


Debt to Equity History and Analysis

Debt Level: LMP's debt to equity ratio (48.2%) is considered high.

Reducing Debt: LMP's debt to equity ratio has reduced from 65.9% to 48.2% over the past 5 years.

Debt Coverage: LMP's debt is not well covered by operating cash flow (11.9%).

Interest Coverage: LMP's interest payments on its debt are well covered by EBIT (5.7x coverage).


Balance Sheet


Dividend

What is LondonMetric Property current dividend yield, its reliability and sustainability?

3.68%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: LMP's dividend (3.68%) is higher than the bottom 25% of dividend payers in the UK market (1.28%).

High Dividend: LMP's dividend (3.68%) is low compared to the top 25% of dividend payers in the UK market (4.02%).


Stability and Growth of Payments

Stable Dividend: LMP's dividends per share have been stable in the past 10 years.

Growing Dividend: LMP's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (72.7%), LMP's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: LMP's dividends in 3 years are forecast to be covered by earnings (97% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

10.9yrs

Average management tenure


CEO

Andrew Jones (52 yo)

8.42yrs

Tenure

UK£2,904,000

Compensation

Mr. Andrew M. Jones, BSc (Hons), MRICS, has been the Chief Executive Officer and Executive Director of LondonMetric Property Plc since January 25, 2013. Mr. Jones manages dialogue and communication with sh...


CEO Compensation Analysis

Compensation vs Market: Andrew's total compensation ($USD4.05M) is above average for companies of similar size in the UK market ($USD1.65M).

Compensation vs Earnings: Andrew's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: LMP's management team is seasoned and experienced (10.9 years average tenure).


Board Members

Experienced Board: LMP's board of directors are considered experienced (7.8 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: LMP insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 7.6%.


Top Shareholders

Company Information

LondonMetric Property Plc's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: LondonMetric Property Plc
  • Ticker: LMP
  • Exchange: LSE
  • Founded: 2007
  • Industry: Diversified REITs
  • Sector: Real Estate
  • Market Cap: UK£2.119b
  • Shares outstanding: 900.98m
  • Website: https://www.londonmetric.com

Number of Employees


Location

  • LondonMetric Property Plc
  • One Curzon Street
  • 1st Floor
  • London
  • East Lothian
  • W1J 5HB
  • United Kingdom

Listings


Biography

LondonMetric is a FTSE 250 REIT that owns one of the UK's leading listed logistics platforms alongside a diversified long income portfolio, with 16 million sq ft under management. It owns and manages desir...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/06/17 23:04
End of Day Share Price2021/06/17 00:00
Earnings2021/03/31
Annual Earnings2021/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.