11/12/2024

London & Cambridge Properties Ltd (LCP), a leading owner and manager of retail and light industrial properties across the UK, Poland, Romania and Germany, is pleased to announce strong financial results for the year ending FY24. This performance reflects the Group’s continued focus on disciplined acquisitions, intensive property management, and strategic expansion.

The past financial year presented a challenging real estate market, but LCP capitalised on its financial capacity and in-depth market knowledge to make strategic acquisitions during the favourble market conditions. The Group achieved a gross annual rental income of £161 million, representing a 19% increase from the prior year, while core underlying profit before tax rose to £79 million, up from £75 million. This performance is especially notable given an increase in net interest costs of £12 million year-on-year.

Revenue growth was driven by a blend of organic and ancillary income growth, which contributed 5%, and a 14% growth from acquisitions, totaling £328 million in acquisitions and developments across the UK and Europe.

Marking a significant milestone, LCP expanded into Romania, acquiring 25 retail park assets from Mitiska for €217 million. This acquisition, the largest single-country transaction in Central and Eastern Europe (CEE) in 2023, provided critical mass in Romania, aligning with LCP’s strategic goals. Additionally, new agreements have been signed for the development of standalone food retail stores in Romania, further enhancing LCP’s presence in the region.

The Group continued to strengthen its position in the UK, with £119 million invested in retail property acquisitions, underscoring its ability to leverage market cycles and acquire quality assets at competitive valuations.

LCP’s strong balance sheet remains a cornerstone of its operations, with total assets reaching £2.54 billion, net assets of £1.20 billion, and a net loan-to-value ratio of 41%. This financial strength provides the Group with a solid foundation for continued growth through both acquisitions and underlying performance.

LCP’s property portfolio remains diversified across sectors and geographies, with assets in the UK, Poland, Romania and Germany. The tenant base is highly granular, with no single tenant representing more than 2% of the total rent roll, providing stability and risk mitigation across market cycles.

LCP is committed to long-term stable growth through both existing operations and strategic acquisitions. With its focus on intensive asset management, the Group will continue to invest in its properties, people, and systems to maintain sustainable growth and adapt to evolving market conditions. Additionally, the Group’s asset management role within the M Core collective adds further growth potential, as LCP oversees acquisitions, disposals, and property management across this profitable family of property businesses in Europe.

As LCP moves forward, its strategy of focused, data-driven asset management and investment will continue to yield strong cash-on-cash returns, driving robust performance across market cycles and ensuring a resilient, diversified portfolio. 

LCP is a leading property company specialising in retail and light industrial assets across the UK and Europe, with a growing footprint in Central and Eastern Europe. Known for its disciplined approach to acquisitions and strong asset management, LCP is dedicated to delivering long-term value and stability for its stakeholders.