Lxi Reit Share Discussion Threads

[jonwig] 20/6/2017 18:51

Think of it as an almost totally secure investment. Yield starts at 6% and inflation is unlikely to rise much above 5% soon. If it did (think of the 1970s) equities wouldn't keep up.

[wingrove4] 20/6/2017 16:41

I don't like the sound of (collared and capped at 2% p.a. and 5% p.a. compound). Anybody any thoughts with inflation taking off that Cap could be limiting on revenues

[toffeeman] 05/6/2017 10:27

Interesting that Acadia are selling off the freehold they acquired when they purchased Priory - presumably they are trying to reduce debt?

[daveofdevon] 05/6/2017 06:32

When I saw the word Care Home I visualised some of the struggling basket cases that end up busing their clients out as the receivers move in. This however looks to be a much sounder investment. Happy days and back to sleep.

[skinny] 05/6/2017 06:16

The Board of LXi REIT plc (ticker: LXI) is pleased to announce that the Company has exchanged contracts to acquire the Priory Care Home, Leeds (the "Property") for £8.4 million, reflecting a net initial yield of 6.3% (net of acquisition costs to the Company).

The Property is fully let to Priory Elderly Care Limited and guaranteed by its parent company, Priory Investments Holdings Limited ("the Priory Group"), a leading provider of mental health and elderly care services. The Priory Group is ultimately owned by NASDAQ-listed Acadia Healthcare which has a market capitalisation of $4 billion and operates a network of over 570 facilities with over 17,000 beds.

The lease has an unexpired term of just under 23 years (expiring in March 2040), without a break, and is subject to annual upward only rent reviews index-linked to the Retail Price Index (collared and capped at 2% p.a. and 5% p.a. compound). The next rent review is due in March 2018.

Purpose-built as a care home in 2010, the Property spans three storeys with 75 en-suite bedrooms. It is well-located, approximately two miles to the east of Leeds city centre, in a predominantly residential area within the suburb of Osmondthorpe.

The acquisition is being funded from equity resources, with senior debt finance expected to be introduced in the near term. Completion is due to occur within the next week.

John White, Partner of LXi REIT Advisors Limited, commented:

"We are pleased to have acquired the Priory Care Home, Leeds, which provides the Company with an attractive net initial yield of 6.3% and a long, secure income stream with rare annual RPI rent reviews. This acquisition, our tenth since IPO, means that the Company now has 12 strong tenants with exposure to six distinct sub-sectors and has deployed 80% of its net equity."

[alan@bj] 02/6/2017 20:35

Thanks njb

[njb67] 02/6/2017 20:10

alan
I IPO'd DSM via HL and the bonus shares were credited a week or two after first dealing day.

[alan@bj] 02/6/2017 16:30

I got the number I applied for through H-L but the bonus shares haven't been credited. Probably early days for them to be credited, but I've emailed H-L nevertheless asking them to look into the matter.

[jonwig] 02/6/2017 16:10

alan - we applied for some (wife's acc) and should have been filled. May get more sub-100p if chance arises!

[alan@bj] 02/6/2017 15:39

Did you buy a few AEW Long Lease REIT, JW?

[jonwig] 02/6/2017 06:49

Ninth acquisition, and a general remark:

"The Company has now acquired nine assets, deploying just under 75% of its net equity, at an attractive blended net initial yield of 5.85% and with a long WAULT to first break of 23 years, since Admission on 27 February 2017. We are also in solicitors' hands on a number of additional forward funding and built transactions which will fully absorb the balance of the Company's net equity in short order."

That's quick progress!

[njb67] 20/5/2017 08:03

jonwig
Thanks for pointing out error. Moneyweek were negative about PRS.

[jonwig] 20/5/2017 07:30

njb67 - they're negative on the PRS REIT (see my thread PRSR) but AEW ... ?

[njb67] 20/5/2017 07:11

Edit: removed post as was incorrect

[daveofdevon] 19/5/2017 11:36

Just had an email From H-L about AEW UK Reit. Apply through them and get 0.75% free bonus shares i.e. apply fot £2500 and get 18 extra shares free. Interesting idea but I wish we could go back to the days of warrants, I used to trade them a lot.

[jonwig] 11/5/2017 08:11

Intention to float: AEW UK Long Lease REIT:



Looks very similar to LXI, but target dividend 5.5p on launch price of 100p.

On that basis, could trade at 115p.

[jonwig] 05/5/2017 06:25

New acquisition for a development in Bradford:



But the Bradford local paper says that planning application was only lodged last month:

[jonwig] 02/5/2017 13:02

It's in the prospectus - subsequent placing programme ending Feb 2018. (Up to a further 200m shares at a premium, I think.)

[tyranosaurus] 02/5/2017 12:30

What will they do when all the money has been committed or spent ?
Will they be content with what they have acquired or raise more money to acquire more ?

[jonwig] 24/4/2017 06:07

Another acquisition, and this statement of progress to date:

In the two months since Admission on 27 February 2017, the Company has now invested or contractually committed 50% of its net equity across six properties at a blended net initial yield of 5.65%, with a weighted average unexpired lease term to first break of over 23 years and diversified across a wide range of strong tenants, sub-sectors and locations.

The Company is also at an advanced stage on the acquisition of a number of additional pre-let forward funding and built assets, which are expected to exchange shortly.

[alan@bj] 22/3/2017 07:35

Do we get a discount?

[hiddendepths] 22/3/2017 07:14

And another Travelodge!

[jonwig] 10/3/2017 07:23

Summary:

Sheffield .... £19.1m ... yield 5.2%
Bath ......... £ 6.2m ... ..... 5.9%
Northumberland £11.1m ... ..... 5.8%

£100m to go!