Lxi Reit Share Discussion Threads

[speedsgh] 01/7/2021 17:03

LXI have raised £100m via the Placing and a further £4m via the PrimaryBid Offer...

Results of the Placing and PrimaryBid Offer -

"The Placing was significantly oversubscribed above the £100 million cap and a scaling-back exercise was therefore carried out."

[speedsgh] 30/6/2021 11:03

Increase in placing size from £75m to £100m due to strong investor demand and the increased depth of the Investment Advisor's pipeline of investment opportunities...

Increase in Placing Size -

[skinny] 24/6/2021 09:13

Plus ex-dividend today.

[igbertsponk] 24/6/2021 09:12

PrimaryBid offer at 133p, hence the drop.

[evendimmer] 04/3/2021 00:03

Milly85
My application to take up rights + excess was rejected by EQi because I had not applied until 1march!

[milly85] 02/3/2021 19:00

Would anybody like to make a comment on the fund raising
We have until 5th March to make our decision

[skinny] 11/2/2021 07:19

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Annual dividend guidance

Throughout the pandemic, the Company has maintained a policy to continue to pay dividends which are covered by net income. The Board is pleased to report that, following successive quarters of strong rent collection and rental growth, the Company is targeting an annual dividend of 6.0 pence per ordinary share for the 12-month period commencing 1 April 2021* (the "Annual Dividend Target").

The Annual Dividend Target assumes that rent collection levels remain in line with forecasts and the resulting dividend will be fully covered by net rental income. The Annual Dividend Target will be payable in equal quarterly instalments of 1.50 pence per share and represents a 4.3% increase on the Company's pre-Covid-19 dividend rate of 5.75 pence per share.

Quarterly dividend declaration

As guided in its announcement on 5 October 2020, the Board is pleased to declare an interim quarterly dividend in respect of the quarter ended 31 December 2020 of 1.44 pence per ordinary share, payable on 26 March 2021 to shareholders on the register at 26 February 2021. The ex-dividend date will be 25 February 2021.

The dividend will be paid as a Property Income Distribution ("PID") in respect of the Company's tax exempt property rental business.

As announced on 18 January 2021, the Board reaffirms that it is targeting a dividend of 1.46 pence per ordinary share for the quarter that commenced on 1 January 2021, as a result of its 98% rent collection.

* These are guidance levels or targets only and not a profit forecast. In setting this target the Board has applied sensitivities to contracted rental income that reflect the possible impact of the Covid-19 pandemic and assessed the effect of such sensitivities on the net earnings and liquidity of the Group. The target assumes that future rent collection is not materially lower than that achieved so far throughout the pandemic and the Board reserves the right to withdraw or amend guidance in the event that rent collection materially worsens.

There can be no assurance that this target will be met and it should not be taken as an indication of the Group's expected future results which may be impacted by events or circumstances existing or arising after the date of this announcement.

[skinny] 26/1/2021 07:02

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TRADING UPDATE

The Company is pleased to provide a trading update for the quarter ended 31 December 2020.

Portfolio update

The Group's portfolio has been valued by its independent valuer as at 31 December 2020 at GBP907.25 million, reflecting a 1.7% like-for-like increase on the 30 September 2020 valuation.

The key drivers behind this increase are the continued outperformance of two of the sectors where the Group has some of its largest exposures, industrial and foodstores, which are benefitting from attractive supply and demand fundamentals and a strong investment market, as well as the effect of the embedded income growth within the portfolio. The portfolio has an average EPRA NIY of 5.0% which reflects a small amount of yield compression in industrials and foodstores, with the yield remaining stable in the Group's other sectors.

The Company's portfolio comprises 125 properties let or pre-let to over 50 institutional quality tenants on long, index-linked leases with over 21 years unexpired to first break on a weighted average basis. The portfolio is 100% let on full repairing and insuring, triple-net leases.

96% of the Company's rental income is either index-linked or contains fixed uplifts. The index-linked reviews are predominantly RPI-based. During the quarter, the Company completed 28 rent reviews (representing 14% of the portfolio rent roll) with a weighted average uplift of 2.1% pa. The average increase outperformed both RPI and CPI inflation over the period and reflects the benefit of the collared and fixed rental uplifts which are contained in 72% of the portfolio's rent reviews (by rental value).

The Company's portfolio remains focused on structurally supported sectors, including industrial (21%), budget hotels (21%), foodstores and essentials (20%), healthcare (13%), car parks (8%) and drive-thru coffee (4%).

The Group remains prudently geared at 30% LTV, with long-term loans averaging 13 years to expiry at an average fixed rate of 2.84% pa.

Net asset value ("NAV") and net tangible assets ("NTA")

The updated portfolio valuation results in an estimated unaudited EPRA net tangible assets ("NTA") and IFRS NAV of 123.2 pence per share, as at 31 December 2020. This represents an increase of 2% over the quarter with the Group's quarterly total return, comprising growth in the EPRA NTA and dividends paid, being 3.1%.

The growth in NAV reflects the like-for-like portfolio valuation increase and the value achieved through redeployment of the capital proceeds generated from disposals, invested into 'off-market' asset acquisitions and forward fundings.

Disposals, acquisitions and investment pipeline

During the quarter, the Company sold its BCA Facility in Corby for GBP68 million, reflecting a low 4.45% exit yield and crystallising a 14% geared IRR following its pro-active re-gear of the occupational lease to 25 years. The Company reinvested the sale proceeds at a materially higher average net initial yield of 5.7% across 13 assets let on long, index-linked leases to grocery tenants, including Aldi, Lidl, Waitrose and the Co-op.

The new assets, acquired through both pre-let forward funding and built asset structures, reflect the Company's current focus on smaller lot-sized foodstores (10,000 sq ft to 30,000 sq ft) with online connectivity through home delivery/click and collect and low, sustainable rents (averaging GBP14 per sq ft).

In addition, the Company, alongside its tenant partners, has been rolling out both electric vehicle charging and solar panelling initiatives across many of its sites.

The Company continues to see interesting investment opportunities in long, index-linked assets in structurally supported sectors and believes material value can still be generated in these sectors, especially when targeting pre-let forward fundings in smaller lot sizes.

Simon Lee, Co-Manager of LXI REIT plc, commented:

"Whilst these remain challenging times, the Company's diversified long income portfolio continues to perform strongly with robust ongoing rent collection and further growth in the underlying valuations and rents during the quarter. We continue to see some exciting investment opportunities in the market, in particular through pre-let forward fundings, as demonstrated by our acquiring GBP61 million of right-sized and attractively priced foodstores in November."

[nickrl] 18/1/2021 10:40

Skinny they are being a bit bold given the amount of hotels they have in the portfolio. I wouldn't put in past Travelodges owners to launch another CVA if restrictions drag on beyond March although staycations will be main form of holidaying this year me thinks as I can't see a rush back to international travel being allowed in any great numbers.

Puts them in >5% yield group, just, but trades at close to NAV but with long leases with many on RPI uplifts may attract a bit of interest from those who need reliable income.

[skinny] 18/1/2021 07:04

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NEW INCREASED QUARTERLY DIVIDEND GUIDANCE

Q1 2021 rent collection of 98%

The Company has continued to actively engage with all of its tenants and is pleased to report rent collection to date of 96% for the quarter ending March 2021 (Q1 2021).

This figure is calculated on the basis of cash received versus contractual rent due and does not include rent deferrals. Rent collection will increase to 98% following receipt of rent deferrals agreed with tenants.

New increased quarterly dividend guidance

As a result of its robust rent collection, the Board is pleased to report that it has today increased its dividend target to 1.46 pence per share for the quarter ending 31 March 2021*. This dividend is expected to be fully covered by net rental income for the quarter and is a higher level than the pre-Covid quarterly dividend rate.

[johnrxx99] 25/12/2020 07:30

Tenant can afford it, just reduce their divi. LXI could distrain and have a few bed for sale, lol.

[nickrl] 23/12/2020 13:41

These have five Premier Inns that Whitbread want a 50% rental discount for next qtr albeit they have been paying fully since the start of outbreak so wont make a big dent. Hotels are 24% of portfolio but at least the Travelodge element is baked into the price already so a short term impact and thats if landlords make a concession anyhow.

[nickrl] 26/11/2020 23:42

Good to see BCA sale proceeds recycled so quickly although looks like the Aldi wont generate cash til next year.

[skinny] 26/11/2020 07:05

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The Board of LXi REIT plc (ticker: LXI), th e specialist inflation-protected very long income REIT, is pleased to report the acquisition of 11 foodstores and two discount stores from five different vendors/developers for a total cost of GBP61 million ("the Acquisitions").

The Acquisitions have been acquired at an attractive average net initial yield of 5.7% (net of acquisition costs) and with a strong and diversified tenant base in the form of Aldi, Lidl, Waitrose, Co-op, Iceland, B&M and The Range.

The Acquisitions deploy the disposal proceeds of the Group's recently sold BCA facility in Corby ("the BCA Facility") at a yield which is materially higher than both the 4.45% exit yield on the BCA Facility and the Group's latest portfolio valuation yield of 5.1%.

The Acquisitions reflect the Company's yield-disciplined focus on smaller sized foodstores which are currently the primary focus for our grocery tenants being right-sized for their preferred product range, but also offering online fulfilment through either or both of home delivery and click & collect.

The Acquisitions are let or pre-let on long, index-linked or fixed uplift leases with low current rents (averaging GBP14 per sq ft) and low capital value pricing (averaging GBP230 per sq ft).

The Group's whole portfolio now has a long WAULT to first break of 22 years, with 96% index-linked or fixed uplift rent reviews and is well diversified across the following robust sub-sectors: Industrial (21%), Budget Hotels (21%), Foodstores and Essentials (20%), Healthcare (13%), Car Parks (8%), Pubs (5%), Drive-thru Coffee (4%) and Other (8%).

Aldi foodstore forward funding, Northumberland

The Company has exchanged contracts on the pre-let forward funding of an Aldi-anchored scheme in Berwick-upon-Tweed, Northumberland.

The foodstore, which will extend to 19,000 sq ft, has been fully pre-let to Aldi Stores Limited (the principal UK trading company of the Aldi group) on an unbroken 20-year lease commencing on completion of the building works, with five-yearly RPI inflation-linked reviews. The starting rent is a low GBP16 per sq ft.

The adjoining 10,000 sq ft unit has been fully pre-let to Iceland Foods Limited, trading as Food Warehouse (the principal trading company of the Iceland Foods group) on an unbroken 10-year lease, with upwards only rent reviews and a low starting rent of GBP16.40 per sq ft.

Lidl foodstore, Hampshire

The Company has acquired a 26,800 sq ft foodstore in Portsmouth, Hampshire. The property, which was purpose built for the tenant in 2017 and trades strongly, is fully let to Lidl UK GMBH (the principal UK trading company of the Lidl group), with 22 years until expiry and 17 years until first break.

The rent is reviewed on a five-yearly basis at a fixed growth rate of 2% per annum compounded. At the next rent review, which will take place in two years' time, the rent will still be at a very low rate of GBP12 per sq ft.

Waitrose foodstore, Cheshire

The Company has acquired a 25,000 sq ft foodstore in Poynton, Cheshire. The property, which was purpose built for the tenant in 2010 and trades strongly, is fully let to Waitrose Limited (the principal trading company of the Waitrose group), with 15 years unexpired until first break.

The rent is reviewed on a five-yearly basis at a fixed growth rate of 2.5% per annum compounded.

The store is the dominant foodstore in its locality, which draws on an affluent catchment population, and benefits from a material online delivery capability.

Co-Op portfolio

The Company has acquired a portfolio of seven Co-Op foodstores in Blackpool, Glasgow, Pontypridd, Sandbach, Southport, Wallasey and Wrexham, from a mortgagee.

Each property is let to the Co-Operative Group Limited (the principal company of the Co-op group) with over 16 years unexpired to first break and with annual rental uplifts fixed at 2.25% per annum.

The portfolio benefits from a low average rent of GBP15.80 per sq ft and a liquid average lot size of 12,000 sq ft. The properties also have the advantage of a high number of parking spaces, averaging 51 per store, which help ensure a good customer experience with quick and easy access to the store as well as assisting the tenant in their provision of additional services and sales channels such as click & collect.

B&M and The Range, Yorkshire

[nickrl] 25/11/2020 19:27

LXI trade very close to NAV so little opportunity here but divi restored to pre covid yielding 4.8%. Good lease lengths with negligible breaks within 10 years although that means nothing in this environment.

Post year end have sold the BCA Corby for £68m (NRI £3.2m) and say they have acquisition in hand to acquire 13 other assets at yield of 5.7%.

They have 12 travelodge hotels 6 of which suffered no rental loss rest have extended leases but lower rent and thats reduced the NAV in this part of the portfolio by 7.7%. Still biggest tenant though at 9% and the reliability of them questionable despite CVA.

LTV around 30% and 13 years to run with no covenant issues at fixed rate of 2.85% vs portfolio yield of 5.2% but with most rents on RPI opportunity for dividends to keep pace with RPI.

More excitement elsewhere but reliable income stream and may have a few if it drops back below 110p.

[skinny] 10/11/2020 07:06

LXi REIT plc (ticker: LXI), the specialist inflation-protected very long income REIT, will announce its results for the six months ended 30 September 2020 on Monday, 23 November 2020.

A Company presentation for investors and analysts will take place via a live webcast and conference call at 9.00am on the day .

For those who wish to access the live webcast, please register here:

[cwa1] 05/11/2020 08:28

More grist to the positive mill...

[skinny] 05/11/2020 08:17

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The Board of LXi REIT plc (ticker: LXI), th e specialist inflation-protected very long income REIT, is pleased to report that it has exchanged contracts unconditionally for the sale of the Group's BCA facility in Corby for GBP68 million, reflecting a low exit yield of 4.45%, to a UK pension fund. Completion will occur on 30 November 2020.

The sale price represents an 11% premium to the latest book value of GBP61 million (31 March 2020) and generates an attractive geared 14% pa IRR.

The sale follows the Company's proactive re-gear of the BCA lease in July 2020 - which increased the remaining term from 16 years to 25 years, at no cost to the Company - and reflects the Company's view that the asset's value has been maximised.

The Company is under offer and in solicitors' hands on a range of pre-let forward funding and built asset acquisitions which will fully deploy in short order the proceeds of the BCA sale across a number of long-let, index-linked assets secured to strong tenant covenants in robust sectors at a materially higher entry yield. Further details will be provided shortly.

[cwa1] 03/11/2020 07:38

Moderately positive news

[skinny] 03/11/2020 07:06

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The Loans will now carry a reduced all-in fixed interest rate to maturity of 2.85% per annum, which is expected to generate a cash saving for the Group of approximately GBP2 million over the extended loan term, which has increased to 13 years for each facility (expiry 12 December 2033).

As part of the agreement the existing security pools have been cross collateralised to provide further diversification to the lender and enhanced operational flexibility to the Group.

The Loans previously carried a weighted average all-in fixed rate of 2.94% per annum and had a weighted average term to maturity of 10 years.

The level of borrowings under the Loans (GBP170 million) and all other commercial terms remain as before. No arrangement fee has been charged and no break cost will be incurred.

[skinny] 20/10/2020 16:35

Decent (comparative) volume yesterday and today.

[giant slalom] 20/10/2020 08:34

knocking what out the park?

[spectoacc] 20/10/2020 08:31

Not a holder, but LXI still knocking it out the park.