In a rapid inflationary environment such as the one we are seeing today, stocks with high earnings expectations baked-in increasingly will require proof of value. LondonMetric Property has strengthened its case with a £34 million package of disposals, a combined price that is 35 per cent above book value at the end of September.
The assets sold by the commercial landlord were let on long leases, a class of property in high demand by investors seeking reliable, inflation-linked income and one that accounts for just over a fifth of LondonMetric’s portfolio. Those sit alongside the core pool of warehouse assets, a sector that has become the unlikely hero of the commercial property market.
The beefy premiums attached to industrial property stocks have been prohibitive for