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(Sharecast News) - Real estate investment trust LondonMetric Property said on Thursday that it had made further progress reshaping its portfolio, completing £105m of investment activity since its July trading update, including the sale of two Ramsay Health Care hospitals.
LondonMetric said it had sold seven assets for £85m, a net initial yield of 5.3% and broadly in line with March 2026 book values, with the disposals including two Ramsay hospitals in Truro and Salford, let for another eleven years and sold together for £59.1m.
Once completed, LondonMetric's ownership of Ramsay hospitals will fall from eleven to nine, with rental exposure to the operator reducing to 8.4% of total rent from 9.1%.
The FTSE 100-listed group also sold two logistics warehouses in Ripon and Normanton for £13m, a Lidl store in Basildon for £8.8m, and two Travelodge hotels in Chippenham for £4.1m.
LondonMetric has now sold seventeen Travelodge hotels this financial year, cutting its rental exposure to the chain to 4.1% of total rent from 4.9%. In total, the company has sold thirtytwo assets for £175m so far this year.
Acquisitions reached £62m, at a yield of 5.9%, including a newly agreed £20m forwardfunding deal for a 50,000 square foot foodstore in Nuneaton, prelet to Tesco on a twentyyear lease.
LondonMetric added that it was under offer on a further £140m of acquisitions at yields above 6%, largely comprising longlet assets with occupiers such as Lidl, M&S, Tesco and Waitrose.
Chief executive Andrew Jones said: "Despite a challenging macroeconomic backdrop, we have made excellent progress in selling further non-core assets over the past two months. Our activity has helped reduce our Ramsay exposure and further improve our NNN income quality, longevity and granularity."
"Whilst the investment market is generally quieter over the summer, we have been heavily engaged on reinvestment opportunities that have higher growth prospects, particularly those emanating from pension funds. We expect to transact on a number of these shortly."
As of 1100 BST, LondonMetric shares were up 0.28% at 182.71p.
Reporting by Iain Gilbert at Sharecast.com
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