LONDONMETRIC PROPERTY PLC (“LondonMetric” or the “Group” or the “Company”) ANNUAL RESULTS FOR THE YEAR ENDED 31 MARCH 2021 SECTOR ALIGNMENT AND ASSET SELECTION DELIVER RELIABLE AND GROWING INCOME WITH STRONG PORTFOLIO OUTPERFORMANCE LondonMetric today announces its annual results for the year ended 31 March 2021. EPRA1,2 IFRS Income Statement 2021 2020 2021 2020 Net rental income (£m) 123.3 115.9 119.7 111.1 Earnings/Reported Profit (Loss)(£m) 85.6 74.5 257.3 (5.7) Earnings per share (p) 9.52 9.26 28.6 (0.7) Dividend per share (p) 8.65 8.30 8.65 8.30 EPRA1,2 IFRS Balance Sheet 2021 2020 2021 2020 NTA3 / NAV (£m) 1,731.9 1,437.2 1,731.3 1431.8 NTA3 / NAV per share (p) 190.3 170.3 191.3 171.0 LTV (%) 32.3 35.9 32.3 35.9 1. Including share of joint ventures, excluding non-controlling interest 2. Further details on alternative performance measures can be found in the Financial Review and definitions can be found in the Glossary 3. EPRA net tangible assets (NTA) is a new reporting measure that replaces EPRA net asset value this year. Discussed further in the Financial review and note 8 to the financial statements Continued focus on reliable, repetitive and growing income increases earnings and dividend • Net rental income up 6% to £123.3m, on an IFRS basis increased by 8% • Rent collection strong with less than 1% forgiven or outstanding for the year • EPRA earnings up 15% to £85.6m, +3% on a per share basis • IFRS reported profit up 400% to £257.3m, after adjusting prior year for exceptional costs • Dividend progression of 4.2% to 8.65p, 110% covered, including Q4 dividend declared today of 2.35p • Continued progression expected with Q1 22 dividend guidance of 2.2p, a 4.8% progression on Q1 21 Sector alignment and asset selection delivering strong portfolio valuation uplift • Total Property Return of 13.4%, outperforming IPD All Property which delivered 1.2% • Capital return of 8.0% (IPD All Property: -3.2%), urban logistics assets delivered a capital return of 15.5% • EPRA NTA per share increased by 11.7% to 190.3p, driven by 19.3p valuation gain, on an IFRS basis increased by 11.9% • Total Accounting Return of 16.7% Distribution weighting at 71%, including urban logistics at 39% and grocery/roadside at 11% • £245m of acquisitions let to strong credits with a WAULT of 17 years and 87% of rent subject to contractual uplifts • £159m of disposals, largely shorter let urban logistics and long income assets, with a WAULT of nine years • Post year end, £68m acquired, increasing urban logistics portfolio to £1.1 billion, representing 41% of the portfolio 173 asset management initiatives completed and strong progress on developments • £5.3m pa income uplift and 3.1% like for like income growth, with open market rent reviews +18% • Lettings signed with WAULT of 13 years, including a pre-let of 120,000 sq ft to Amazon at Tyseley • Under offer on 172,000 sq ft at Bedford Link development and in discussions on letting of the last unit Resilient £2.6bn portfolio focused on operationally light assets with strong income characteristics • Occupancy of 98.7% with long income portfolio 100% let • WAULT of 11.4 years with only 8% of income expiring in next three years • Gross to net income ratio of 98.6% and contractual rental uplifts on 56.8% of income Balance sheet strengthened • £120m equity raise in year and £780m of refinancing with green framework post year end • LTV of 32.3% with weighted average debt maturity increased to 8.2 years (2020: 4.7 years) and cost of debt at 2.5% • EPRA cost ratio reduced further to 13.6% (-60bps) 1 Andrew Jones, Chief Executive of LondonMetric, commented: “Whilst we have all experienced a truly unprecedented last 12 months, in many ways Covid-19 has merely accelerated longer term trends that were already being driven by technological advancement and changing consumer behaviour. Logistics, healthcare and grocery real estate have been significant beneficiaries of this acceleration delivering standout performances and enjoying an ever-wider margin of victory over other real estate sectors. “The performance of our portfolio during the year reflects our alignment to the winning sectors and increasingly wanting to own the best assets. Our £2.6 billion portfolio has weathered the storm in fine shape evidenced by very strong rent collection, continued earnings growth and significant valuation uplift, all of which are as a result of longer term decisions to align to the winning macro trends. The urban logistics sector in particular, where we have now amassed over £1 billion of assets, has been our main conviction call for a number of years and is enjoying truly exceptional demand/supply dynamics resulting in material jumps in rents. “Our strong shareholder alignment, disciplined approach and focus on quality assets that deliver a reliable, repetitive and growing income has positioned us well for the future as we progress towards our ambition of becoming a dividend aristocrat. After all, income compounding is the bedrock for attractive returns.” For further information, please contact: LONDONMETRIC PROPERTY PLC: +44 (0)20 7484 9000 Andrew Jones (Chief Executive) Martin McGann (Finance Director) Gareth Price (Investor Relations) FTI CONSULTING: +44 (0)20 3727 1000 Dido Laurimore [email protected] Richard Gotla Andrew Davis Meeting and audio webcast A live audio webcast and conference call will be held at 8.30 am today. The conference call dial-in for the meeting is: +44 (0) 330 336 9434 (Participant Passcode: 5638111). For the live webcast see: https://webcasting.brrmedia.co.uk/broadcast/6065d079560fbf10fcc50f21 An on demand recording will be available shortly after the meeting from the same link and from: https://www.londonmetric.com/investors/report-presentation/year/2021 Notes to editors LondonMetric is a FTSE 250 REIT that owns one of the UK’s leading listed logistics platforms alongside a diversified long income portfolio, with 15 million sq ft under management. It owns and manages desirable real estate that meets occupiers’ demands, delivers reliable, repetitive and growing income-led returns and outperforms over the long term. Further information is available at www.londonmetric.com Neither the content of LondonMetric’s website nor any other website accessible by hyperlinks from its website are incorporated in, or form part of this announcement nor, unless previously published by means of a recognised information service, should any such content be relied upon in reaching a decision to acquire, continue to hold, or dispose of shares in LondonMetric. This announcement may contain certain forward-looking statements with respect to LondonMetric’s expectations and plans, strategy, management objectives, future developments and performance, costs, revenues and other trend information. These statements and forecasts involve risk and uncertainty because they relate to future events and circumstances. There are a number of factors which could cause actual results or developments to differ materially from those expressed or implied by these forward-looking statements and forecasts. Certain statements have been made with reference to forecast price changes, economic conditions and the current regulatory environment. Any forward-looking statements made by or on behalf of LondonMetric speak only as of the date they are made. LondonMetric does not undertake to update forward-looking statements to reflect any changes in LondonMetric’s expectations with regard thereto or any changes in events, conditions or circumstances on which any such statement is based. Nothing in this announcement should be construed as a profit forecast. Past share price performance cannot be relied on as a guide to future performance. Alternative performance measures: The Group financial statements are prepared in accordance with IFRS where the Group’s interests in joint ventures and non-controlling interests are shown as single line items on the income statement and balance sheet. Management reviews the performance of the business principally on a proportionately consolidated basis, which includes the Group’s share of joint ventures and excludes non-controlling interests on a line by line basis. Alternative performance measures are financial measures which are 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 which is widely recognised and used by public real estate companies. 2 Chair’s statement Due to the pandemic, we have had to work from home for most of the last financial year. Thanks to the incredible efforts of all of the team they have managed that difficulty, and delivered record results in testing conditions. I cannot thank them enough. When we reported last year, I hoped that the world would be able to recover in the calendar year 2020. The coming of the variants put paid to that hope. Thankfully, the speed and effectiveness of the UK vaccine rollout, alongside extensive Government support schemes have allowed us to start to return to normal. We must offer our heartfelt thanks to the brilliant people who devised, mass produced and delivered vast numbers of high grade vaccines. There are some parts of our lives that won’t return to being as they were before. Covid-19 continues to challenge many long established practices and accelerated existing structural change. There is no doubt that some of the changes, such as routine internet shopping and working from home part time will continue to impact the way we live, work and socialise. The enormous impact that the pandemic has had on commercial property is clear to see.