Andrew Jones, founder and chief executive of LondonMetric Property Reit, has developed a consumer-focused real estate portfolio that has demonstrated consistent growth and resilience. Since founding the company in 2010 with an initial capital raise of £175 million, Jones has strategically steered LondonMetric towards acquiring retail parks, warehouses, distribution centers, and industrial assets, with a portfolio now valued at approximately £7.6 billion.
Jones, a former British Land director and career estate agent, emphasizes a selective approach to property types, particularly avoiding traditional office spaces. He has repeatedly expressed skepticism about the long-term viability of offices, describing them as “melting ice cubes.” Instead, LondonMetric’s holdings encompass well-known retail brands such as Primark and Tesco, leisure sites including Thorpe Park and Alton Towers theme parks, and hotel chains like Travelodge and Premier Inn. The company achieved £455 million in net rent last year, the majority of which is distributed to shareholders under real estate investment trust (Reit) regulations.
One distinguishing feature of LondonMetric is its status as a net, net, net (NNN) Reit, meaning its leases are structured so that tenants assume responsibility for property taxes, insurance, and maintenance costs. This arrangement provides greater predictability in cash flow and dividends, as operating expenses fall directly on tenants rather than the Reit. Jones believes this model contributes to the firm’s financial stability, noting, “The rent is the rent and there is no deduction.”
LondonMetric has pursued growth both organically and through acquisitions, often targeting smaller Reits trading below net asset value (NAV) to achieve scale and operational efficiencies. After several significant transactions, including a pending takeover of Picton Property Income in partnership with Schroder Reit—which will add approximately £320 million in assets predominantly consisting of industrial and warehouse properties—LondonMetric’s equity stands at about £4.6 billion, supported by £3 billion in borrowings.
Jones attributes the firm’s success partly to his focus on tenants with strong customer engagement and the company’s ability to adapt to shifting consumer trends, such as the gradual move from physical retail toward online shopping. Among LondonMetric’s largest tenants are Ramsay Health Care, Merlin Entertainment, and Travelodge, reflecting a diversified tenant base beyond pure retail.
Despite the strong track record, potential risks remain. As a Reit, LondonMetric must distribute at least 90 percent of its taxable rental profits to avoid corporation tax, limiting its ability to retain earnings and build reserves. This could create challenges in periods of tenant insolvencies or rising interest rates, though Jones points to a historically low incidence of tenant failures as evidence of prudent management. The firm has maintained a rising dividend for 12 consecutive years, underscoring its consistent profitability.
Looking ahead, Jones acknowledges questions over the sustainability of growth driven by acquisitions and reliant on favorable borrowing conditions. However, he emphasizes that expanding scale is coupled with improving operational efficiency, which has helped reduce the firm’s overall cost of debt. At 7.7 percent, LondonMetric reports the lowest European Public Real Estate Association (EPRA) cost ratio in its sector, reflecting administrative and operational expenses relative to rental income.
Analysts have lauded LondonMetric’s ability to deliver steady increases in rents, earnings, and dividends under Jones’s leadership. The company also maintains £5 million key-person insurance on Jones, recognizing his central role in steering its strategic direction.