INVESTOR PRESENTATION September 2019 www.londonmetric.com - PowerPoint PPT Presentation

LONDONMETRIC PROPERTY PLC INVESTOR PRESENTATION September 2019 www.londonmetric.com

LondonMetric background Objective is to deliver attractive and dependable income-led returns to shareholders over the long term FTSE 250 UK REIT, £1.8bn market cap WAULT 1 12 years ‘All weather’ portfolio benefiting from technological & demographic change • Occupancy 1 Logistics, long income and convenience assets • 98% Urban logistics footprint increased with £415m acquisition of Mucklow • Indexation on portfolio 1 63% REIT delivering reliable, repetitive and growing income returns • Geographical focus Progressive and covered dividend • London, SE & Midlands WAULT of 12 years, single let income • Strong alignment of interest • Internally managed, strict internal competition for capital • Management is 8 th largest shareholder • “Compounding is the 8th Wonder of the World: those who understand it, earn it, those who don’t, pay it” 2 1. Portfolio metrics as reported at 31 March 2019

Delivering Long Term Shareholder Returns Our key focus is to drive earnings and distribute Net Rental Earnings Dividend Shareholder Return Total Shareholder Return Income (£m) Growth (pps) (rebased to 100) 1,2 (rebased to 100) 1,2 100 10.0 180 260 Dividend Share price 170 80 8.0 160 220 150 60 6.0 140 180 40 4.0 130 120 140 20 2.0 110 0 - 100 100 3 1. Source: Bloomberg as at 31 March 2019, dividend return assumes reinvestment 2. Based on financial year end. First year shown is for FY 13/14

Market Backdrop Income quality & growth will define the investment winners Buy the MARKET Buy the right SECTORS Own the right ASSETS 2019 + 2012 – 2015 – 2015 2018 Buy any assets, any sectors Align to sectors with structural Own the right assets in the right support sectors by focusing on Yield arbitrage highly attractive • across all property sectors • Logistics • Geography All boats rise on the same tide • Convenience • Credit strength of occupier • and benefit from re-pricing • Student accommodation • WAULT • Healthcare • Occupier contentment • Long income • Income growth prospects 4

Online shopping driving demand for logistics Channel shift from bricks to clicks is permanent and profound • Online adoption continues to grow UK Online Retail +31% growth in online spend by 2023 • Consumer expectations continue to increase Percentage of UK non-food retail online • Creating strong demand/supply dynamics for logistics 28% 26.9% 27.5% 26.1% 26% 25.3% Distribution take-up remains strong • 24.3% 24% 23.2% • Record take up in 2018 22.0% 22% Long leases • 20% 2017(a) 2018 2019 2020 2021 2022 2023 • Typically index linked UK Distribution Take-up • Very high gross: net income ratios • Minimal operational/ obsolescence capex But supply responding in Big Box • • Increase in speculative development for big box logistics Supply highly constrained in Urban • • Generating strong rental growth in urban logistics Blackstone: “Logistics is our highest conviction global investment theme” 5

Significant portfolio re-alignment since merger in 2013 Objective is to deliver attractive and dependable income-led returns to shareholders over the long term Rotation out of London office, residential and multi-let retail • Investment into logistics and long income assets • More recent focus into urban logistics, out of larger box logistics • March 2013 March 2019 (pro forma) 1,2 Urban 31% Multi-let industrial 4% Retail Parks Acquired & Developed London 26% £2.1bn Resi & £1.2bn Office Long Regional £2.3bn 48% Income 18% Sold 20% Long £1.7bn Income 5% Retail Distribution Parks 21% Office Mega 4% & Resi 19% 4% 6 1. LondonMetric data as at 31 March 2019, long Income includes convenience & leisure assets 2. Pro forma adjusts for Mucklow portfolio based on 30 April 2019 values

Our Core Portfolio 72% of portfolio providing end to end logistics Mega & Regional Distribution 1 Urban Logistics 1 Long Income & convenience-led retail 1,4 17 assets, 6.6m sq ft 55 assets, 3.3m sq ft 60 assets, 1.9m sq ft • • • £37.5m rent (£5.80 psf) £21.5m rent (£6.70 psf) £24.7m rent (£18.60 psf) • • • NIY 2 4.3%, EY 4.8% NIY 2 5.7% NIY 2 4.3%, EY 5.0% • • • WAULT 15 years WAULT 10 years WAULT 12 years • • • Occupancy 98% Occupancy 95% Occupancy 100% • • • Contractual uplifts on 88% Contractual uplifts on 44% Contractual uplifts on 52% • • • TPR +10% TPR +16% TPR +5% • • • Rent reviews +8% ahead 3 Rent reviews +28% ahead 3 Rent reviews +15% ahead 3 • • • 7 1. As at 31 March 2019. Rent, NIY & WAULT on Investment Portfolio, excluding A&J Mucklow assets 2. Topped up NIY 3. Ahead of passing on 5 yearly equivalent basis 4. Includes long income, convenience & leisure, excludes retail parks

A&J Mucklow Group plc acquisition Created one of the UK’s leading listed logistics & distribution platforms £415m acquisition of an income focused UK listed REIT • Attractive & well located real estate 1 – Family business founded in 1933, extended family owned c.30% Rent £26.1m (£6.90 psf) – c65% in new shares, c35% cash - NAV for NAV approach Value £453m (£119 psf) Occupancy 97.6% Compelling strategic, operational & portfolio rationale • WAULT 7.2 years – Further increased urban logistics exposure where rental growth is superior Location 86% - Midlands – Combined portfolio larger & more resilient 10% - London & SE – Significant upside from more intensive asset management & enhancement Financial benefits support progressive dividend policy • Strong income growth prospects 1 NIY 5.4% – Immediately earnings accretive through economies of scale & synergies Equivalent Yield 6.1% – Rental reversions & portfolio activity will deliver further benefits Near term 135,000 sq ft – PC Q4 19 – Improved liquidity & optionality in equity and debt markets Development 190,000 sq ft – Pipeline Conservative LTV approach • – Mucklow LTV of 16% – Combined LTV marginally increased from 32% to 35% 8 1. Mucklow portfolio value as at 30 April 2019, all other stats as at 31 December 2018 Bosch, Worcester

A&J Mucklow acquisition (cont.) Complementary assets totalling £2.3 billion, focused on distribution and long income LondonMetric 1,2 Mucklow 3 Combined 2,4 Urban Multi-let Urban 31% 27% industrial 15% Multi-let industrial 4% Office £1.85bn 15% £0.45bn £2.3bn Regional Long Urban Regional Long 5.1% EY 22% Income 54% 18% 6.1% EY 5.3% EY Income 20% 22% Long Income Retail 14% Parks Retail Mega Office Retail Mega 4% Parks 23% & Resi 19% Parks 5% Resi 4% 2% 1% Enlarged end-to-end distribution portfolio of £1.65bn • Increased LondonMetric’s urban logistics exposure from 27% to 35% 4 • Distribution & 79% weighting to superior geographies - South East and Midlands • Long Income focused REIT Increases income diversification – top 10 tenants exposure falls from 51% to 39% • Combined Rent of £115.8m • Combined WAULT of 11.3 years and occupancy of 97.8% • 9 1. LondonMetric data as at 31 March 2019 2. Long Income includes convenience & leisure 3. Mucklow data as at 30 April 2019, split by LondonMetric classification 4. Mucklow’s logistics/multi-let industrial assets classified as urban logistics

Investment Activity (FY 19) 1 Asset selection is increasingly critical – focussing on the right assets in the right sectors Disposals - £238m Acquisitions - £163m £115.6m mega/regional – including Wakefield and Sheffield £106.6m urban – including Milton Keynes and Orpington £43.9m retail parks in Ipswich and Launceston £35.8m convenience – including Durham and London • 3.7% NIY (5.3% NIY ex-vacant sales) • 4.6% NIY, rising to 5.3% in 5 years • 8.8 years WAULT (31% vacant) • 14.0 years WAULT • Weaker geographies • Superior geographies - South East focused Cambridgeshire Wakefield (Ex Poundworld) Sheffield (Ex M&S) Milton Keynes Howdens Ipswich Doncaster Hemel Hempstead Orpington 10 1. See Appendix for FY 2020 YTD transactions

Asset Management & Development 50 Lettings & Rent Reviews in FY 2019 Distribution Development 6.0% Like for Like (LFL) 130 • 19 lettings, 11 years WAULT Pipeline L4L Cumulative 5.0% 125 Let • 31 rent reviews, 11.7% ahead 1 4.0% 120 3.0% 115 • £3.2m rental income uplift Let 2.0% 110 • 5.7% L-F-L (2.9% ex one-off gains) 1.0% 105 Available 0.0% 100 FY15 FY16 FY17 FY18 FY19 Bedford Link Rent reviews 1 , 4.2m sq ft Lettings & regears, 2.0m sq ft • 188,000 sq ft completed at 6.4% YOC, Urban Logistics Mega & Regional 73% let ~ £1.0m rent +28% • 500,000 sq ft pipeline at 7.3% YOC 1.3m sq ft, 11.3 years • £7.5m total rent • Regional Croda Funding +11% • 232,000 sq ft in construction at 5.2% YOC, 100% let ~ £1.3m rent Urban Logistics Mega Tyseley +7% 0.6m sq ft, 9.5 years • • 135,000 sq ft in construction ~ £1.0m rent • 190,000 sq ft pipeline +17% uplift on regears • Long Income 2 Swindon +18% • 55,000 sq ft extension in construction 11 1. 5 yearly equivalent basis 2. Including convenience, leisure, retail parks