Lxi Reit Share Discussion Threads

[spectoacc] 24/3/2020 15:27

WTB have said they're paying Premier Inn's rent for this qtr, tho are also closing.

[jonwig] 20/3/2020 12:50

Our next-door neighbour might have a problem: he's colour blind to red-green.
(He doesn't trade stocks, though.)

[skinny] 20/3/2020 12:45

I still can't believe what I did yesterday - how hard can it be!

[jonwig] 20/3/2020 07:07

Comment on virus and current market conditions:



Anyone selling this is crazy or desperate!

[winsome] 19/3/2020 13:06

Much of Travelodge rooms booked well in advance on the non-refundable Saver rate. Premier Inn can reportedly withstand a temporary shutdown and may even have some hotels used for Covid patients. Starbucks cafes still in construction phase so unaffected at present.

But on one cares. Cash isn't just king at the moment, its God.

[skinny] 19/3/2020 13:04

Well how annoying - I thought I'd added another 1000 earlier in the mid 60s - turns out I've sold 1000!!!

[jonwig] 19/3/2020 12:50

Spec - LXI's LTV was 20% at 30 Sept.

Travelodge at Companies House:



A strong balance sheet - shouldn't have much trouble paying its rent.

Reckoned one of the safest UK REITs until just the last couple of weeks. (Lots of others getting the treatment, of course.)

[jonwig] 19/3/2020 11:05

Travelodge is a big tenant.

[jonwig] 18/2/2020 07:18

Disposal and acquisition:



The money-go-round continues!

[skinny] 13/2/2020 07:04

.

The Board of LXi REIT plc (ticker: LXI), the specialist inflation-protected very long income REIT, has today declared the third interim dividend in respect of the year ending 31 March 2020 of 1.4375 pence per ordinary share, payable on 27 March 2020 to shareholders on the register at 6 March 2020. The ex-dividend date will be 5 March 2020. The dividend reflects an annualised rate of 5.75 pence per ordinary share, in line with the Company's current annual dividend target*.

The dividend will be paid as a Property Income Distribution ("PID").

.

The Board of Directors of LXi REIT (ticker: LXI), the specialist inflation-protected very long income REIT, has approved the extension of the term of the Company's Investment Advisory Agreement with LXi REIT Advisors Limited to 31 March 2025, with the original term due to end on 31 March 2022. There are no changes to the fees provision and no material changes to the contractual arrangements in the Investment Advisory Agreement.

The Board has also approved the extension of the term of the Company's AIFM Agreement with LJ Administration (UK) Limited so that it remains coterminous with the term of the Investment Advisory Agreement.

more.....

[jonwig] 03/2/2020 13:20

Agree - rental streams from properties with good tenants on long leases tend to be pretty safe.

[toffeeman] 03/2/2020 12:50

some think that the yields on a number of ftse stocks are not sustainable and dividends may well be cut.

In theory this should be safer given the investment structure

[starpukka] 03/2/2020 12:23

Please excuse my ignorance but as an income play, because this investment will incur an annual charge, isn't it better to buy a high yield share instead ? Is it simply that your capital is more secure here than even a ftse 100 share; so you are paying for that security ?

[jonwig] 31/1/2020 06:37

A tip for this week in IC. Summary:

LXI has a conservative loan-to-value ratio of 20 per cent, well below a medium-term target ceiling of 35 per cent, and an average debt maturity of 12 years. Management is targeting a dividend of 5.75p a share for the March 2020 financial year, which at the current price leaves the shares offering a potential yield of 4.3 per cent. Considering the defensive, inflation-linked income on offer, we think this looks a very attractive income play in the current low interest rate environment. Buy.

Last IC View: Buy, 116.5p, 29 Nov 2018

[jonwig] 05/12/2019 07:06

"The Board of Directors of LXi REIT (ticker: LXI), the specialist inflation-protected long income REIT, is pleased to announce that FTSE Russell has confirmed that the Company will be added as a constituent of the FTSE 250 Index effective from after the market close on Friday, 20 December 2019."

[rambutan2] 30/11/2019 19:48

Out of interest, and perhaps partly helps explain how they are able to source the deals they do:

The Investment Advisor (LXi REIT Advisors Limited) is owned by the principals, shareholders and directors of Osprey Equity Partners Limited ("Osprey"). Osprey was formed in 2011 and is 50% owned by Alvarium (formerly LJ Partnership). Alvarium was established in 2009 and has grown to become a substantial, international multi-family office and asset manager, managing US$14 billion of assets, including US$6.5 billion of real estate assets, for families, private individuals and institutions. It has over 250 employees and offices in Europe, the US and Asia.

[winsome] 27/11/2019 10:20

They stated the LTV will rise to 30% once they've funded current commitments, or so I gathered when I sped read the results.

[bathcoup] 27/11/2019 09:45

Now that LTV is only 20%, LXI is probably not in a hurry to raise fund by issuing more shares. What is the rational that you think the company need another fundraise soon?

[jombaston] 26/11/2019 11:13

I expected a fundraise today but clearly that hasn't happened so I have bought shares in the market.

As Jonwig rightly says, another fundraise is now unlikely until before March year-end. I would add that the results won't be out until May; they have pointed to a further rise in NAV as the forward-funded (and pre-let) developments will be finished by then. So if that is the case they should wait at least until May 2020.

Interestingly, they mention the possibility of recycling assets as they often get unsolicited enquiries about their properties. I wonder if we will see some sales where they have offers that are too good to refuse. This would reduce the pressure to raise more equity.

All in all, I'm very impressed at how they have managed to raise and deploy so much money while reporting continued asset growth and a covered dividend (albeit on an adjusted EPRA eps basis). It bodes well for the full-year numbers.

[jonwig] 26/11/2019 11:03

@ bathcoup - my error, sorry! I did mean 119.6p which makes my point better!

Thank you.

[bathcoup] 26/11/2019 10:13

@jonwig - I wonder why you say: "Now the nav is 116p..." Are you referring to EPRA NAV (119.6p on 30 Sep. 2019 as the company has reported).

[jonwig] 26/11/2019 08:32

Quite honestly I don't see another fundraising before the year end (30/03). The May one was announced at 118p when the share price was around 130p and the nav 115p: quite a big space to park it in.

Now the nav is 119.6p [CORRECTED] and the share price 123p: too tight.

They raised £200m and have spent about £213m but they've also got an increased RCF "to gear the net proceeds of the Company's recent equity raise".

All just my opinion, of course! The market seems unimpressed by the results, though maybe the shares were just getting too rich.

EDIT: share price 126p now, but I can't update regularly!