Property firm to increase dividend after "strong performance" led by disposals and rent collection

A London-based property firm has announced plans to increase its quarterly dividend after a “strong performance” propelled by rent collection and disposals.

LondonMetric Property is set to increase its first quarterly dividend for the financial year ending March 31 2021 after a rise in its rent collections following the disruption of COVID-19 as well as completing multi-million pound disposals.

The firm has reported that 95 per cent of rent has been collected up to June 24, with a further 3 per cent expected to be received imminently and the remaining 2 per cent in discussions.

In addition, the company has completed on £54.5m of disposals, comprising two distribution warehouses in Doncaster as well as an Audi car dealership in Cheltenham

Andrew Jones, chief executive of LondonMetric, commented: “Our high levels of rent collection for this quarter continue to reflect both the strength and resilience of the portfolio and our deep occupier relationships.

“It is particularly encouraging that rent collection of 95 per cent compares favourably with the last quarter where, at the same stage in April, the equivalent number was 85 per cent.

“This strong performance, along with the rapid deployment of the proceeds of our equity raise, gives us the confidence to announce our intention to increase our first quarterly dividend.”