Lxi Reit Share Discussion Threads

[skinny] 02/11/2018 09:28

All looking promising here - new high @119.50p - albeit only 32 shares.

[bennywin] 24/10/2018 07:10

They ceartainly don’t hang about.

It takes my wife longer to buy a pair of shoes.

[skinny] 24/10/2018 06:10

FIVE ACQUISITIONS WITH A COMBINED PURCHASE PRICE OF £109 MILLION

Following the successful closing of its capital raise announced on 12 October, the Board of LXi REIT plc (ticker: LXI), the specialist inflation-protected very long income REIT, is pleased to announce the following five property acquisitions, from separate vendors/developers, with a combined total consideration of approximately £109 million (excluding costs).

The Company is in solicitors' hands on further acquisitions which will fully deploy the balance of the £175 million capital raised in the next few weeks. Further acquisition announcements will be made shortly.



Forward funding of Travelodge hotel, Edinburgh

The Company has exchanged contracts to provide forward funding for the pre-let development of a 70-bedroom Travelodge hotel at Edinburgh Park, Edinburgh. The development represents a total investment by the Company of £6.6 million, reflecting a 5.4% net initial yield (net of acquisition costs to the Company).

The property has been fully pre-let to Travelodge Hotels Limited, the principal trading company of the Travelodge hotel group, on an unbroken 25-year lease from completion of the building works, with five yearly rent reviews index-linked to the Consumer Prices Index (capped at 4% pa and collared at 1% pa compound).

Founded in 1985, Travelodge is one of the UK's leading hotel brands, operating over 550 hotels and over 41,000 rooms in the UK, Spain and Ireland.

The well-located property is within the South Gyle Business District, which is two miles south east of Edinburgh International Airport and five miles west of Edinburgh city centre. The immediate area is one of the UK's premier business locations housing a wide range of corporate occupiers, including Aegon, BT, Diageo, JP Morgan, Scottish & Newcastle and Tesco Bank.

Planning consent has been granted, the agreement for lease has exchanged and the Company is forward funding the project on a fixed price basis. The Company will receive an income from the developer during the construction period. The Company is not developing the site or assuming development risk. The building works are due to complete in Q3 2019.

Forward funding of Lidl foodstore and B&M, East Fife

The Company has exchanged contracts to provide forward funding for the pre-let development of a 19,310 sq ft Lidl foodstore and 20,000 sq ft B&M discount store to be built at Cowdenbeath, East Fife, for £8.5 million, reflecting a 6.0% net initial yield (net of acquisition costs to the Company).

The Lidl property has been fully pre-let to Lidl UK GmbH, the principal UK trading company of the Schwarz Gruppe GmbH (a top four global retail group that owns and operates the Lidl and Kaufland brands, operating over 10,000 stores across 26 countries), on a 25-year lease from completion of the building works (with a tenant break right at year 15), with five yearly rent reviews index-linked to the Consumer Prices Index (capped at 3% pa and collared at 1% pa compound).

The B&M property has been fully pre-let to B&M Retail Limited, the principal trading company of B&M European Value Retail SA, on an unbroken 15-year lease from completion of the building works, with five yearly upward only open market rent reviews.

B&M European Value Retail SA, a London Stock Exchange listed company with a market capitalisation of £3.9 billion, is the UK's leading general merchandise value retailer, operating over 580 stores.

The property is well located in Cowdenbeath, a town in west Fife, approximately five miles north-east of Dunfermline and 18 miles north of Edinburgh, with a catchment population of 265,189.

Planning consent has been granted, the agreements for lease have exchanged and the Company is forward funding the project on a fixed price basis. The Company will receive an income from the developer during the construction period. The Company is not developing the site or assuming development risk. The building works are due to complete in Q3 2019.

Jurys Inn hotel, Plymouth

The Company has completed the acquisition of a 247-bedroom Jurys Inn hotel in Plymouth for £30 million, reflecting a 5.7% net initial yield (net of acquisition costs to the Company).

The property is fully let to Jurys Hotel Management (UK) Limited, the principal trading company of the Jurys Inn group, with an unbroken 24-year unexpired lease term, with five yearly rent reviews index-linked to the uncapped Retail Prices Index.

The hotel, which was purpose-built in 2007 and fully refurbished in 2016, trades very well and includes a bar, restaurant and 11 conference and meeting rooms. It is well-located on Exeter Street, near Plymouth's Historic Quarter and other tourist attractions such as the National Marine Aquarium and the Royal William Yard, and a short walk to the city centre and train station.

The hotel is one of the largest in Devon and draws significant custom from (i) leisure tourism, with many overseas visitors, including bus tours, using the hotel as a base from which to explore Devon and Cornwall; (ii) businesses linked to the maritime docks; and (iii) a strong relationship with the university.

The Jurys Inn portfolio comprises 36 hotels and 8,013 rooms in strategic locations in economically-strong and attractive destinations and transport hubs across the UK and Ireland. The group was acquired in December 2017 by Fattal Group, an Israeli hotel group operating 160 hotels in 17 countries, for £800 million.

BCA logistics facility, Corby

The Company has completed the acquisition of a 121-acre car storage facility in Corby, Northamptonshire, for £60 million, reflecting a 5.25% net initial yield (net of acquisition costs to the Company), rising to over 6.0% at the next five yearly rent review in three years' time.

The property is fully let to BCA Group Europe Limited, part of BCA Marketplace plc, with an unbroken 18-year unexpired lease term, with five yearly rent reviews index-linked to the uncapped Retail Prices Index.

BCA Marketplace plc, a London Stock Exchange listed company with a market capitalisation of £1.7 billion, is Europe's leading used vehicle distributor and remarketing company, operating 50 branches in 13 countries and selling over one million vehicles per annum. BCA's brands include "WeBuyAnyCar.com".

The property comprises a substantial and strategic logistics holding with a capacity for over 18,000 cars and from which BCA operate a number of long term contracts, including for BMW Finance and Vauxhall's primary vehicle storage/resale centres. It is rail terminal connected and has excellent connections to the M1 southbound, the M6 and A1(M) via the A14 dual carriageway.

Corby is an established and strategic distribution location in the heart of the East Midlands, which attracts major distribution operators given its access to 80% of the UK population within a 4.5-hour HGV drive time and a number of major occupiers include Matalan, Morrisons, Staples and Wincanton.

The property adjoins the Midlands Logistics Park, a new logistics park to the south of Corby, which has recently attracted new developments including an 845,000 sq ft regional distribution facility for Eddie Stobart and a 950,000 sq ft national distribution centre for Bosch-Siemens group.

The purchase price, equating to a low £495,000 per acre, is significantly underpinned by vacant possession value.

The Range, Carlisle

The Company has completed the acquisition of a 33,500 sq ft discount store in Carlisle for £4.3 million, reflecting a 6.0% net initial yield (net of acquisition costs to the Company).

The property is fully let to CDS Superstores (International) Limited, trading as The Range, with an unbroken 19.5-year unexpired lease term, with fixed five yearly rental uplifts of 2% pa. The rent reflects a very low £8 per sq ft.

The Range is one of the fastest growing discounters in the UK, operating 140 discount stores and stocks some 65,000 products across its home, leisure and garden departments. The property is located approximately one mile south of Carlisle city centre in a successful trading location, with nearby operators including Asda, B&M and Iceland.

Simon Lee, Partner of LXi REIT Advisors Limited, commented:

"We are pleased to be investing just over £109 million from our £175 million capital raising announced on 12 October. These are five high quality assets, diversified across a wide range of robust sub-sectors, leased to institutional grade tenants on very long term leases with inflation linked rents.

The Company is in solicitors' hands on a range of further accretive acquisitions that meet our selective investment strategy and will deliver further value to our investors. These acquisitions will result in the full deployment of the recent capital raise in the next few weeks."

[skinny] 15/10/2018 06:04

LXi REIT plc (ticker: LXI), the specialist inflation-protected very long income REIT, will announce its half year results for the period ended 30 September 2018 on Thursday, 29 November 2018.

A Company presentation for analysts and investors will be held at 10.30am on the day at the offices of Newgate, Sky Light City Tower, 50 Basinghall Street, EC2V 5DE. The presentation will also be accessible via a live conference call and on-demand via the Company website:

Those wishing to attend the presentation or access the live conference call are kindly asked to contact Newgate on [e-mail] or by telephone on [phone].

[skinny] 12/10/2018 06:18

The Issue of New Ordinary Shares will be split as follows:

• 91,438,880 New Ordinary Shares under the Initial Placing, raising gross proceeds of approximately £103.1 million;

• 26,734,137 New Ordinary Shares under the Open Offer (including the Excess Application Facility), raising gross proceeds of approximately £30.1 million;

• 17,723,022 New Ordinary Shares under the Placing, raising gross proceeds of approximately £20 million;

• 17,489,325 New Ordinary Shares under the Offer for Subscription, raising gross proceeds of approximately £19.7 million; and

• 2,047,801 New Ordinary Shares under the Intermediaries Offer, raising gross proceeds of approximately £2.3 million

All valid applications received under the Open Offer (including valid applications under the Excess Application Facility) will be met in full.

[jonwig] 12/10/2018 06:07

Successfully got the issue away and over-subscribed!

Further to its announcement on 24 September 2018, the Board of Directors of LXi REIT, the specialist inflation-protected long income REIT, is pleased to announce that it has successfully raised gross proceeds of £175 million pursuant to the issue of a total of 155,433,165 ordinary shares in the Company, at an Issue Price of 112.75 pence per New Ordinary Share. The result of the Issue was well in excess of the target fundraising size and also oversubscribed at the maximum issue size.

[skinny] 11/10/2018 11:22

Further to its announcement on 24 September 2018, the board of directors of LXi REIT (ticker: LXI), the specialist inflation-protected long income REIT, is pleased to announce that both of the resolutions put forward at its General Meeting held earlier today were passed. The resolutions were in connection with the proposed issue of further ordinary shares ("New Ordinary Shares") in the Company, as detailed in the prospectus published by the Company on 24 September 2018 (the "Prospectus").

The text of all the resolutions can be found in the Notice of Meeting contained in the circular published by the Company on 24 September 2018.

more.....

[jonwig] 08/10/2018 21:09

jdepp, would have had unspent cash eàrning no revenue. Cash drag would lead to uncovered divided.Agreed offer not so attractive.

[jdepp5] 08/10/2018 20:59

can't help thinking that they will be lucky to get the 100m, or extra allowed, placing away.
It was a classic ramp to get the stock to 118 and publicise a 4.4% discount after divs at price of 112.75.
I have been a big holder in the past but cannot help feeling that this is priced a tad high given current market. They should have raised earlier before the inc in NAV

[skinny] 04/10/2018 06:23

The Board of LXi REIT plc (ticker: LXI), the specialist inflation-protected very long income REIT, is pleased to announce an interim quarterly dividend in respect of the period from 1 July to 30 September 2018 of 1.375 pence per ordinary share, payable on 21 December 2018 to shareholders on the register at 12 October 2018. The ex-dividend date will be 11 October 2018. The dividend reflects an annualised rate of 5.50 pence, in line with the Company's current annual dividend target*.

[jonwig] 26/9/2018 15:48

Prospectus for equity raise:

[jonwig] 24/9/2018 06:10

Issue of equity. Includes open offer (7:31 at 112.75p):

[jonwig] 17/9/2018 06:48

Thanks Skinny.

So they could borrow another £22m to reach their target LTV, and increase net rents by £0.9m. That's 0.4p on the dividend. That would be a bit rash at this stage in the cycle though!

[jonwig] 10/9/2018 07:06

Great progress:

The Board of LXi REIT plc (ticker: LXI), the specialist inflation-protected very long income REIT, is pleased to announce that its unaudited EPRA Net Asset Value ("NAV") per ordinary share was 113.2 pence as at 1 September 2018.*

The NAV represents an increase of 5.5 pence per share, or 5.1% from the 107.7 pence per share audited EPRA NAV as at 31 March 2018 and an increase of 15.2 pence per share, or 15.5% from the 98 pence per share NAV at IPO in February 2017.

[skinny] 06/8/2018 13:48

Yes I totally missed it earlier

[jonwig] 06/8/2018 13:37

You're a bit late today, Skinny! Must be the heat on the Med?

Equity raise? If (as they say) a prospectus, that suggests an open offer rather than just a placing with instis.

[skinny] 06/8/2018 13:12

Interim Dividend

The Board of LXi REIT plc (ticker: LXI), the specialist inflation-protected very long income REIT, is pleased to announce an interim quarterly dividend in respect of the period from 1 April 2018 to 30 June 2018 of 1.375 pence per ordinary share, payable on 28 September 2018 to shareholders on the register at 7 September 2018. The ex-dividend date will be 6 September 2018. The dividend reflects an annualised rate of 5.50 pence, in line with the Company's current annual dividend target.*

1.355 pence of this dividend will be paid as a Property Income Distribution ("PID") and 0.02 pence will be paid as an ordinary UK dividend ("non-PID"). PID dividends are paid out of tax-exempt property rental income. Dividends paid from licence fee income that the Company receives from developers during the construction period on forward funding projects are treated as non-PID dividends.

Shareholders entitled to elect to receive PID distributions without deduction for withholding tax should complete the declaration form which is available in the Investors section of the Company's website, www.lxireit.com and return to the Company's registrar, Link Asset Services, at The Registry, 34 Beckenham Road, Beckenham, Kent, BR3 4TU.

Update

The Company, having successfully deployed the £293 million of equity and debt capital raised since its IPO in February 2017, is contemplating an equity raise in 2018 to fund further investments in line with its investment policy and objectives and with a view to delivering further value for its shareholders. Any such raise is expected to follow the publication of an updated net asset value for the Company and a prospectus. A further announcement will follow in due course.

[jonwig] 25/6/2018 06:35

Profitable disposal of two care homes and purchase of Stobart facility:



I'm personally pleased they've sold the care homes (bad sector) and the Stobart is sale-and-leaseback over 22.5 yrs without break. Stobart are having some boardroom ructions, other than that I know nothing about them.

[gswredland] 14/6/2018 04:37

Share doingbreally well anyway!

[jonwig] 12/6/2018 06:49

LXI acquired a Motorpoint showroom in Lancashire last August, and some posters worried that it might be the wrong sector to invest in. Anyway, Motorpoint issued some very good results this morning so wrong sector maybe, but right company!

premium to nav now about 6%.

[skinny] 04/6/2018 08:57

Possibly - Friday's volume was the highest this year.

[jonwig] 01/6/2018 15:40

Skinny - a lot of boring REITs floated last year, seem to be doing nothing, or less. I'm pleased to have landed in this one - maybe other investors are switching to get some expertise?

[skinny] 01/6/2018 15:09

Interesting rise today.