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LondonMetric Property Plc www.londonmetric.com Disclaimer (1) Nothing in this document or in any accompanying management discussion of this document constitutes, nor is it intended to constitute: (i) an invitation or inducement to engage in any


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www.londonmetric.com

LondonMetric Property Plc

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Disclaimer (1)

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Nothing in this document or in any accompanying management discussion of this document constitutes, nor is it intended to constitute: (i) an invitation or inducement to engage in any investment activity, whether in the United Kingdom, Canada, the United States or in any other jurisdiction; (ii) any recommendation or advice in respect of the shares ("Shares") in LondonMetric Property plc ("LMP"); or (iii) any offer for the sale, purchase or subscription of any Shares. This document does not constitute an offer to sell to or solicitation of an offer to purchase from any investor or in any jurisdiction in which such an offer or solicitation is not permitted or would be unlawful. Each investor must comply with all legal requirements in each jurisdiction in which it purchases, offers or sells the Shares, and must obtain any consent, approval or permission required by it. This document and/or any accompanying management discussion of this document is strictly confidential and is being provided to you solely for your information and may not be reproduced in any form or further distributed to any other person or published in whole or in part, for any purpose. You shall treat and safeguard as private and confidential all information contained in this document and/or any accompanying management discussion and take all reasonable steps to preserve such confidentiality. Any failure to comply with these restrictions may constitute a violation of applicable securities laws This document has not been approved by a person authorised under the Financial Services & Markets Act 2000 ("FSMA") for the purposes of section 21 FSMA. This document is limited to and intended for distribution in the United Kingdom only to persons who (i) are qualified investors (within the meaning of the Prospectus Directive 2003/71/EC) and (ii) who have professional experience in matters relating to investments who fall within the definition of "investment professionals" in Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (the "FPO") and/or to high net worth bodies corporate, unincorporated associations and partnerships and trustees of high value trusts as described in Article 49(2)(a) to (d) of the FPO or to those persons to whom it may otherwise be lawfully communicated. The recipients of this document should not engage in any behaviour which would or might amount to market abuse or insider dealing for the purposes of the Market Abuse Regulation (EU No. 596/2014), FSMA or any other applicable legislation. Although LMP has attempted to ensure the contents of this document and/or any accompanying management discussion of this document are accurate in all material respects, no representation or warranty, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or opinions contained herein and/or therein. All data is sourced by LMP unless identified as otherwise. None of LMP, Peel Hunt LLP (“Peel Hunt”), J.P. Morgan Securities plc ("JPMC"), or any their respective shareholders, directors, officers, employees, agents, advisors or representatives shall have any responsibility or liability whatsoever (for negligence or otherwise) for any loss howsoever arising from any use of this document or its contents or

  • therwise arising in connection with this document. Nothing in this paragraph shall exclude, however, liability for any representation or statement made fraudulently. The information set out herein may be

subject to updating, completion, revision, verification and amendment and such information may change materially. The information communicated in this document and/or any accompanying management discussion of this document contains (or may contain) certain statements that are or may be forward looking. These statements typically contain words such as "expects" and "anticipates" and words of similar import. By their nature forward looking statements involve risk and uncertainty because they relate to events and depend on circumstances that will occur in the future. LMP and its advisors and representatives expressly disclaim any obligation or undertaking to disseminate any updates or revisions to any forward- looking statements contained herein to reflect any change in their expectations with regard thereto or any change in events, conditions or circumstances on which any such statement is based. Where reference has been made to past performance, it is worth noting that past performance is not a guide to future performance and the value of any investment or the income derived from it may go down as well as up and you may not get back the full amount originally invested. This document, and the information contained herein, is not for publication or distribution, directly or indirectly, in any jurisdiction where its publication or distribution would breach any applicable law or regulation except in compliance with applicable securities laws.

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Disclaimer (2)

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This document and/or any accompanying management discussion of this document may contain unpublished price sensitive information with regard to the Company and/or its securities. Recipients of this document should not deal or encourage any other any other person to deal in the securities of the Company whilst they remain in possession of such unpublished price sensitive information and until the transaction described in this document is announced. Dealing in securities of the Company when in possession of unpublished price sensitive information could result in liability under the insider dealing restrictions set out in the Criminal Justice Act 1993 or the market abuse provisions of Market Abuse Regulation (EU No. 596/2014). This document is not for publication, release or distribution, directly or indirectly, and may not be taken or transmitted, in or into the United States, Canada (including to persons subject to the securities laws of Canada), Japan, the Republic of South Africa or Australia and may not be copied, forwarded, distributed or transmitted in or into the United States, Canada, Japan, the Republic of South Africa or Australia or any other jurisdiction where to do so would be unlawful. The distribution of this document in any other jurisdictions may be restricted by law and persons into whose possession this document comes should inform themselves about, and observe any such restrictions. Any failure to comply with such restrictions may constitute a violation of the laws of the United States, Canada, Japan, the Republic of South Africa or Australia or any other such jurisdiction. By accepting this document, you agree to be bound by these restrictions. The Shares have not been and will not be registered under the US Securities Act of 1933, as amended, (the ‘‘US Securities Act’’) or under any securities laws of any state or other jurisdiction of the United States and may not be offered, sold, resold, taken up, exercised, renounced, transferred or delivered, directly or indirectly, within the United States or to, or for the account or benefit of, any person with a registered address in, or who is resident or ordinarily resident in, or a citizen of, the United States except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the US Securities Act. There will be no public offer of the Shares in the United States. Neither the US Securities and Exchange Commission nor any securities regulatory body

  • f any state or other jurisdiction of the United States of America, nor any securities regulatory body of any other country or political subdivision thereof, has approved or disapproved of this document
  • r the Shares or passed on or endorsed the merits of the offering or the accuracy or adequacy of the contents of this document. Any representation to the contrary is a criminal offence in the United

States. The Shares will also not be registered under, nor offered pursuant to an exemption from the prospectus requirements of, the applicable securities laws of Canada, Japan, the Republic of South Africa or Australia and, subject to certain exemptions, may not be offered, sold, taken up, exercised, resold, renounced, transferred or delivered, directly or indirectly, within such jurisdictions except pursuant to an applicable exemption from and in compliance with any applicable securities laws. Peel Hunt, which is authorised and regulated in the United Kingdom by the FCA, is acting solely for the Company in relation to the transaction described in this document and no-one else and will not be responsible to anyone other than the Company for providing the protections afforded to clients of Peel Hunt nor for providing advice in relation to the transaction described in this document. JPMC, which is authorised in the United Kingdom by the Prudential Regulation Authority (the "PRA") and regulated by the PRA and the FCA is acting solely for the Company in relation to the transaction described in this document and no-one else and will not be responsible to anyone other than the Company for providing the protections afforded to clients of JPMC nor for providing advice in relation to the transaction described in this document. Apart from the responsibilities and liabilities, if any, which may be imposed on each of them by the FSMA, each of Peel Hunt and JPMC accordingly disclaims to the fullest extent permitted by law all and any responsibility and liability whether arising in tort, contract or otherwise which it might otherwise have in respect of this document. By attending this presentation and/or accepting a copy of this document, you agree to be bound by the foregoing limitations and, in particular, will be taken to have represented, warranted and undertaken that you have read and agree to comply with the contents of this notice including without limitation the obligation to keep this document, its contents and any accompanying management discussion of this document confidential.

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Overview

Actively generating long term secure and sustainable income with value upside

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Portfolio positioned around strong fundamentals

Logistics and long income assets benefiting from structural support Continued rotation into distribution and last mile fulfilment New pre-lettings increases committed development programme

Strict internal competition for capital Equity raising to accelerate our exposure to distribution

Fund £42m distribution development and £58m acquisition programme c75% of expected net proceeds deployed within six months

Distribution Exposure

c60%

Short term target: 70%+

WAULT

>12 years

Provides security of income

Occupancy

99.6%

Fully occupied

Distribution Developments

560k sq ft

Delivery within 9-12 months

Last mile distribution

16%

  • f distribution portfolio
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Distribution Portfolio

Providing end to end logistics

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Regional Mega

7 £24.7m (£5.25 psf) 4.9% 14.2 years 74% fixed/ RPI +9%

‘Last Mile’

22 £8.9m (£6.40 psf) 6.1% 8.0 years 10% fixed/ RPI +17%

1. As at March 2017, split by value 2. Topped up NIY 3. 5 yearly uplift on rent reviews (FY 17- YTD)

Investment market remains strong and competitively bid 180,000 sq ft Dagenham extension 137,000 sq ft Stoke pre-let

12 £16.3m (£5.90 psf) 5.4% 10.5 years 60% fixed/ RPI +10%

Rent Yield2

WAULT

Rent reviews3

53% 31% 16%

Distribution split1 Near term activity

110,000 sq ft Crawley development Pipeline of acquisitions

Fixed Uplifts Assets

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Use of proceeds

£42 million of short cycle distribution developments

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Crawley

  • New 110,000 sq ft development
  • Pre-letting agreed for 30% on new 15 year lease
  • Strong interest on remaining 75,000 sq ft
  • Capex £11m, 6.3% YOC
  • PC targeted December 17

Stoke Dagenham

  • New 137,000 sq ft pre-let to Michelin
  • New 15 year lease with fixed uplifts
  • Look to build remaining 130,000 sq ft on completion of Michelin building
  • Capex £15m, 6.3% YOC
  • PC targeted December 17 for initial building
  • New 180,000 sq ft redevelopment pre-let to Eddie Stobart
  • New 26 year lease with RPI linked reviews
  • Enlarged 436,000 sq ft
  • Capex £16m, 5.75% YOC1
  • PC targeted April 18

1. YOC on marginal capex

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Use of proceeds

£58 million of investment opportunities in last mile and regional assets

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Pipeline

  • Continued pipeline of attractive last mile and regional assets
  • Potential to invest £30m at NIY 6.0% to 6.5%
  • Target to invest within the next 6 months

Leeds Wakefield & Dartford

  • Two further last mile assets acquired in Leeds
  • 100,000 sq ft on Leeds ring road let to Vision Alert Automotives for 15 years
  • 49,000 sq ft close to Leeds City Centre let to Siemens for 3 years
  • £12.0m, NIY 6.0% & reversionary yield of 6.5%
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wo recent acquisitions in Wakefield & Dartford

  • 120,000 sq ft Wakefield regional unit let to One Stop Stores for 6 years
  • 49,000 sq ft Dartford last mile unit let to Antalis for 10 years
  • £15.8m, NIY 5.8% & reversionary yield of 6.4%

Coming Soon

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Outlook

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Distribution Market Structural trends continue to drive consumer behaviour and shopping patterns Occupational and investment market remain robust Supply continues to be constrained IPD Distribution Warehouse capital return +3.1% over last 4 months Company Target to be 70%+ distribution within next 12 months Continued rotation out of multi-let retail into distribution

  • Selling mature retail parks once business plans complete

Progressing pipeline developments

  • Purifying planning at Bedford development & anticipate land purchase in Q2 2017
  • In discussions on further opportunities

Financial Net placing proceeds deployed quickly – c60% expected within 3 months, 75% within 6 months Earnings accretive once fully deployed Progressive and covered dividend policy unchanged Equity raise complementary to unsecured credit facility with marginal 1.5% cost of debt

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Placing Overview

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Structure Cash placing for 9.9% of issued share capital Gross proceeds c.£97m US restrictions: Rule 144A (QIBs only) Timetable Announcement date 23 March 2017 Expected admission and settlement date 27 March 2017 Bookrunners J.P. Morgan Cazenove and Peel Hunt

1. Based on closing price on 22 March 2017 of 155p

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www.londonmetric.com