The REIT continues to trim legacy assets and rotate capital into long-let grocery and logistics property.
LondonMetric Property (LSE: LMP) has sold two private hospitals let to Ramsay Health Care in Truro and Salford for £59.1m, part of a wider £105m round of disposals and purchases as the trust presses on with reshaping its portfolio away from older, shorter-let assets.
The sales, alongside two logistics warehouses, a Lidl store and two Travelodge hotels, took total disposals since LondonMetric's July update to £85m across seven assets, all transacted at prices in line with book value, easing concerns that the group might need to accept discounts to exit non-core holdings.
The Ramsay deal cuts LondonMetric's stake in the hospital operator's estate from 11 sites to nine, continuing a deliberate trimming of exposure to both Ramsay and Travelodge that dates back to earlier corporate acquisitions which brought these assets into the portfolio in the first place.
Since the start of the financial year, LondonMetric has now sold 32 assets for a combined £175m, recycling proceeds into what it calls long-let, income-resilient property. So far that has meant £62m of acquisitions at a 5.9% yield, including a £20m forward-funded Tesco foodstore in Nuneaton, with a further £140m under offer at yields above 6%, largely tied to grocers such as Lidl, M&S, Tesco and Waitrose.
With no share price reaction disclosed in the update, investors will be watching whether the additional £140m of grocery-anchored deals completes at the guided yields, and whether continued disposals at book value confirm management's view that its legacy hospital and hotel assets remain fairly priced in the current market.
This report is based on LondonMetric Property’s announcement and coverage by UK Investor Magazine. Company announcements can be tracked via London Stock Exchange RNS and Investegate, and the full results calendar is worth watching for the next update.
This article is for general information only and does not constitute investment advice or a recommendation to buy or sell any security. Photo: National Cancer Institute on Unsplash.
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