Lxi Reit Share Discussion Threads

[spectoacc] 10/2/2022 06:54

They don't want you staggers ;)

Would normally agree, but they did say they already had in excess of the higher amount - I think it'll still be a good one. Time will tell.

[apollocreed1] 09/2/2022 20:09

Today's announcement did the dirty on us. I wouldn't have applied for so much if I knew that they were aiming to raise £250m. When you a company raises a smaller amount, the large institutions get scaled back so they often buy more shares on the open market to achieve a meaningful position in their fund. This usually pushes the price up in the subsequent days, but LXI suckered me in to subscribe for more than I am comfortable with because I felt I would have the opportunity to sell some of my allocation in the short term at a profit, or I would get scaled down to a comfortable size anyway.

[spectoacc] 09/2/2022 13:47

Most use "..Index linked..", which I suppose is accurate, but yes - if there's say a 1%/3% collar/cap, and it's to CPI not RPI (not that that matters for the moment), it's not inflation protected.

SUPR, AIRE, SIR, LXI all in that boat. Some baked-in rise is better than none at all, and RPI is disappearing before long, and would eg 7% annual rent increases cause tenants problems. But still - it's not inflation-protected, far from it. If inflation continues, it's guaranteeing significantly below-inflation increases.

CityWire has suggested renewables ITs for genuine index-linking, but they suffer for not owning perpetual assets - most are leases for 25 years, and the business model only works thanks to trading at a premium and regularly issuing new shares to invest in more 25yrs cashflows.

[speedsgh] 09/2/2022 13:34

Yes, partially inflation-protected might be more accurate in view of caps/collars on most rent increases.

[spectoacc] 09/2/2022 13:26

"Supposed" is def correct. Still looking for one that will genuinely see 7%+ income uplifts if RPI averages that for a year.

Though I see some are now predicting CPI to spike to that for a single reading.

[speedsgh] 09/2/2022 13:12

I suspect that the supposed 'inflation-protected income' offered by LXI may be a large part of the attraction setting it apart from many of its peers who might otherwise be viewed as currently offering better value.

[spectoacc] 09/2/2022 10:28

Doubled and already over the doubled amount - has encouraged me to apply for some before the deadline today.

Agree it's odd how much demand at just over NAV, when there's many seemingly better value. But happy to be along for the ride.

[nickrl] 09/2/2022 09:53

speedsgh interesting that so much money is chasing this already trading at a premia with a reasonable yield but value elsewhere in the market. Perhaps the wealth managers promoting are on commission!

[speedsgh] 09/2/2022 07:23

Pretty impressive in the context of current markets where several recent fundraisings have struggled to get anywhere near their target. Due to strength of demand the placing target has been increased from £125m to £250m. Demand already exceeds the £250m max fundraise size so presumably there will still be a scaling back exercise but on a lesser scale now that the target has been increased.

Results of the issue should be announced tomorrow...

Increase in Subsequent Issue Size -

Further to the Company's announcements on 18 and 20 January 2022, the Board of LXi REIT has decided to increase the target size of the Subsequent Issue from approximately £125 million to £250 million. This decision has been made after careful consideration of (i) the strong level of support received from investors, which already materially exceeds the new £250 million maximum size of the fundraise, and (ii) the depth of the Investment Advisor's pipeline of nearer term investment opportunities, which has grown to a level now in excess of £350 million...

[jg231] 31/1/2022 13:52

I think I had lost the will to live once I'd read through the announcement in Skinny's post! Should've read yours first.

[speedsgh] 31/1/2022 11:45

To be fair I think the announcements have been consistently clear that the new shares will not qualify for the dividend for the quarter ending 31/12/21 which has been declared since the announcement of the Proposed Subsequent Issue...

"For the avoidance of doubt, the dividend for the quarter ending 31 December 2021 (if declared) will have a record date prior to the issue of the New Ordinary Shares pursuant to the Subsequent Issue and, accordingly, holders of New Ordinary Shares issued pursuant to the Subsequent Issue will not be entitled to receive this (if declared) in respect of those shares."

[jg231] 31/1/2022 11:32

The placing is up on Interactive Investor as of this morning.

It's not very clear from the various announcements, but I just checked and the share issue is ex-div. So currently trading about 144p vs the issue price of 142p.

[speedsgh] 28/1/2022 12:15

Dividend Declaration -

The Board of LXi REIT plc (ticker: LXI), th e specialist inflation-protected very long income REIT, is pleased to declare an interim quarterly dividend in respect of the quarter ended 31 December 2021 of 1.5 pence per ordinary share, payable on 25 March 2022 to shareholders on the register at 11 February 20221 (the "Dividend") The ex-dividend date will be 10 February 2022.

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

The Dividend is in line with t he Company's target dividend of 6 pence per ordinary share for the year which commenced on 1 April 2021. The Company is targeting a dividend of 6.3 pence per ordinary share for the year commencing on 1 April 20222 as previously announced.

[speedsgh] 20/1/2022 16:50

From the prospectus:

"The Company is targeting an issue of approximately £125 million (gross) through the issue of 88,261,608 New Ordinary Shares pursuant to the Subsequent Issue. If overall demand exceeds this target, the Directors have reserved the right, following consultation with the Joint Bookrunners, to increase the size of the Subsequent Issue to a maximum of 224,410,424 New Ordinary Shares (being the total number of Ordinary Shares remaining available for issue under the Share Issuance Programme) by increasing the size of the Subsequent Placing, the Offer for Subscription and/or the
Intermediaries Offer.

The Subsequent Issue will be the final issue under the Share Issuance Programme."

[Maximum amount that can be raised under this issue is £318.66m]

"Assuming 88,261,608 New Ordinary Shares are issued pursuant to the Subsequent Issue (being the target number of New Ordinary Shares to be issued thereunder):
~ Qualifying Shareholders who take up their full Open Offer Entitlement (excluding any New Ordinary Shares acquired through the Excess Application Facility) will not suffer any dilution to their ownership and voting interests in the Company by virtue of the issue of New Ordinary Shares pursuant to the Subsequent Issue; and
~ Qualifying Shareholders who do not take up any of their Open Offer Entitlement and Shareholders who are not eligible to participate in the Open Offer will suffer a maximum dilution of approximately 10.7 per cent. to their ownership and voting interests in the Company by virtue of the issue of New Ordinary Shares pursuant to the Subsequent Issue."

[skinny] 20/1/2022 07:24

.




EXPECTED TIMETABLE


2022

Record Date for entitlements under the close of business on 17
Open Offer January
Publication of the Prospectus and the 20 January
Application Forms and Subsequent Issue
opens
Ex entitlement date for the Open Offer 8.00 a.m. on 20 January
Open Offer Entitlements and Excess CREST as soon as possible on
Open Offer Entitlements enabled in CREST 21 January
and credited to stock accounts of Qualifying
CREST Shareholders
Recommended latest time and date for 4.30 p.m. on 2 February
requesting withdrawal of Open Offer
Entitlements and Excess CREST Open Offer
Entitlements from CREST
Recommended latest time and date for 3.00 p.m. on 3 February
depositing Open Offer Entitlements and
Excess CREST Open Offer Entitlements
into CREST
Recommended latest time for splitting 3.00 p.m. on 4 February
Open Offer Application Forms (to satisfy
bona fide market claims only)
Latest time and date for receipt of 11.00 a.m. on 8 February
completed Open Offer Application Forms
and payment in full under the Open Offer
or settlement of relevant CREST instructions
Latest time and date for receipt of 11.00 a.m. on 9 February
completed Offer for Subscription Application
Forms and, if applicable, Tax Residency
Self-Certification Forms, and payment
in full under the Offer for Subscription
Latest time and date for receipt of 3.00 p.m. on 9 February
completed applications from the Intermediaries
in respect of the Intermediaries Offer
Latest time and date for commitments 3.00 p.m. on 9 February
under the Subsequent Placing
Announcement of results of the Subsequent 10 February
Issue
Subsequent Admission and dealings in 8.00 a.m. on 14 February
New Ordinary Shares commence
CREST accounts credited with uncertificated as soon as possible on
New Ordinary Shares in respect of the 14 February
Subsequent Issue
Where applicable, definitive share certificates 21 February
in respect of the New Ordinary Shares
issued pursuant to the Subsequent Issue
despatched by post in the week commencing(1)
(1) Underlying Applicants who apply to Intermediaries for New
Ordinary Shares under the Intermediaries Offer will not receive
share certificates.

The dates and times specified in the timetable above are subject to change without further notice. All references to times in this Securities Note are to London time unless otherwise stated. Any changes to the expected timetable will be notified by an RIS announcement.

The above times and/or dates may be subject to change and, in the event of such change, the revised times and/or dates will be notified to Shareholders by an announcement through a Regulatory Information Service.

All references to times in this announcement are to London times.

[speedsgh] 18/1/2022 08:04

~ Significant pipeline of additional assets identified, mostly sourced off-market.
~ £272m pipeline assets with average unexpired lease term of over 20yrs, blended net initial yield of 5.2% (net of acquisition costs) and 97% index-linked or fixed uplifts.
~ Open Offer: 3-new-for-every-25-existing.
~ Board reserves the right to increase the size of the issue.
~ New shares will not qualify for the dividend for the quarter ending 31 December 2021.

Proposed Subsequent Issue to raise target of £125M -

Commenting on today's announcement, Stephen Hubbard, Chairman of LXi REIT plc, said:

"This proposed subsequent issue will provide the capital to enable the Company to capitalise in short order on its £272 million near term pipeline of accretive assets. The pipeline will further enhance and diversify the Company's portfolio of properties and is available at an average net initial yield of approximately 5.2 per cent., which is higher than the current portfolio valuation yield of 4.5 per cent. The pipeline assets are diversified across a range of defensive and structurally supported sub-sectors and let to institutional-grade tenants with strong financial covenants on long term leases, 97 per cent. of which are indexed-linked or contain fixed uplifts.

Our portfolio continues to perform strongly, benefiting from the embedded inflation linkage in our rents, and its exposure to attractive sub-sectors of the real estate market including grocery and industrial. Meanwhile our recent acquisitions have further diversified our portfolio, including into areas such as life sciences and education, and clearly demonstrate our ability to create additional value outperformance for shareholders by sourcing attractive off-market properties and forward funding opportunities.

We expect the Group's portfolio to continue to deliver attractive, defensive inflation protected income returns and capital growth to our shareholders going forward."

EXPECTED TIMETABLE

Prospectus published and Subsequent Issue opens: Mid-January 2022
Subsequent Issue closes: Early-February 2022
Announcement of the results of the Subsequent Issue: Early-February 2022

The results of the Subsequent Issue are expected to be announced in early February 2022 and a full timetable will be published in the Prospectus [expected to be published later this week].

[skinny] 18/1/2022 07:57

Shareholders who qualify for the Open Offer ("Qualifying Shareholders") will be offered the opportunity to participate in the Open Offer on the basis of 3 New Ordinary Shares for every 25 Existing Ordinary Shares (the "Open Offer Entitlement")

[income investor] 18/1/2022 07:45

Placing, Open Offer and Subscription Offer at 142p announced today!

[janeann] 10/1/2022 13:34

Yes thanks skyship; very timely for me as contemplating LXI. Already hold srei & PCTN. Also like to buy the dips and try and avoid overpaying, and also wary of reits with a high retail investment portfolio.

[toffeeman] 10/1/2022 12:26

>> Skyship

You are a gem - I don't know another poster who takes as much time and trouble to inform others as you do.

[bull19] 10/1/2022 11:48

Thanks again skyship

[skyship] 10/1/2022 11:10

Yes indeed. Incidentally, buying back into UKCM today. Usually an institutional stock trading 1%-10% discount; but at the moment anomalously on a 20.6% discount; though admittedly on only a 3.43% yield. Likely to re-rate...

[bull19] 10/1/2022 10:36

Hi skyship, many thank for taking the time to reply. I'll check out the other thread. Out of interest, if you don't buy REITs at a premium, does that also mean you tend to sell them when they go from discount to premium?

[skyship] 10/1/2022 10:26

Hi bull

If new to the excellent REIT sector, then I recommend you follow the CP+ thread for discussion across most if not all the players.

Interesting to note LXI share price performance over the past year v. a number of peers. You will note that the two laggards are the two trading at a premium to their underlying NAV, ie LMP & LXI.

Personally I'll never buy a property company trading at a premium.

Propco valuations are based upon many factors: WAULT, LTV, Debt Cost, Tenant profile, Geographical split, Sector split (Office, Industrial etcetcetc) - but the two most important factors remain NAV Prem/Disc & Yield.

With the discounts closing in from the crazy levels of a year ago, the average on my 20 company spreadsheet is down to 13.4%; or 17.6% if I exclude LMP, LXI & WHR.

My current holdings are AIRE, EPIC, HCFT & SREI. My thoughts on the current Best Buy would be the minnow HCFT. They usually trade on an horrific spread; but never as outlandish as it looks, ie they are currently available at 902.5p rather than the headline 920p! IMO the 23.8% discount & 6.32% yield places them in the good value category.




free stock charts from uk.advfn.com

[bathcoup] 10/1/2022 10:12

" ... its estimated net asset value per share at December 31 was 139.5p. At September 30 the company's NAV per share was 135.5p, a 3.0% increase over three months."

I think LXI deserves a bigger premium than 4.7% (at 146p).