Lxi Reit Share Discussion Threads

[skinny] 15/4/2019 15:26

Jon :-)

Today will be 10 consecutive up days - nice though it is, it makes me nervous.

It's looking slightly overbought chart wise.

[jonwig] 15/4/2019 15:07

"A period of consolidation wouldn't go amiss."

Why, are you after getting more of these, Skinny? 😉

[skinny] 15/4/2019 14:56

A period of consolidation wouldn't go amiss.


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[skinny] 12/4/2019 08:52

That's 130 breached.


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[skinny] 02/4/2019 10:51

A new high @126.60p.

[jonwig] 27/3/2019 07:08

March factsheet:



Notice virtually zero retail exposure. Ditto London.

[jonwig] 18/3/2019 06:29

"Travelodge has reported rising annual sales and profits, with the budget hotels chain set to create 3,000 new jobs over the coming years as it continues to expand."

Will open 100 new hotels over the next five years.



LXI seems to be a prolific landlord for this group, currently owns eight!

[ironstorm] 27/2/2019 16:39

I recently bought in here and already am very happy with the progress.

Deal velocity is good. Financials great. Quality customer base on long term contracts, Funding in place. And dare I say it nicely under-valued with positive momentum. These 0.5p - 1p increases per day feel good.

[skinny] 27/2/2019 12:35

A new high @126p.

[bennywin] 25/2/2019 07:21

Another nice acquisition.

[skinny] 14/2/2019 07:25

The Board of LXi REIT plc (ticker: LXI), the specialist inflation-protected very long income REIT, is pleased to declare today an interim quarterly dividend in respect of the period from 1 October to 31 December 2018 of 1.375 pence per ordinary share, payable on 29 March 2019 to shareholders on the register at 8 March 2019. The ex-dividend date will be 7 March 2019. The dividend reflects an annualised rate of 5.50 pence per ordinary share, in line with the Company's current annual dividend target*.


more.....

[skinny] 13/2/2019 08:28

Link corrected!

Jonwig - its proving to be fairly fraught free as an investment!

[jonwig] 13/2/2019 07:43

Interesting kind of investment, at under £2m apiece. Pretty solid tenants.

Leaves them still with £50m to spend using the new debt facility, then (I guess later this year) more equity tapping!

[skinny] 13/2/2019 07:16

The Board of LXi REIT plc (ticker: LXI), the specialist inflation-protected very long income REIT, is pleased to announce that the Company has exchanged contracts to provide forward funding for the pre-let development of a portfolio of 13 separate Starbucks and Costa drive-thru format coffee shops for a combined consideration of £23.4 million, reflecting a 5.7% net initial yield (net of acquisition costs to the Company).

The acquisitions are being funded utilising the Company's new Scottish Widows loan.

12 of the properties have been pre-let to Starbucks Coffee Company (UK) Limited and one has been pre-let to Costa Limited, each on unbroken leases of 15 years from completion of the building works, with five yearly rent reviews index-linked to RPI inflation (collared at 1% per annum and capped at 4% per annum compound).

Starbucks Coffee Company (UK) Limited is the principal UK trading company of the Starbucks Corporation, the leading coffee retailer which operates over 29,000 stores globally and is listed on the NASDAQ stock exchange with a market capitalisation of $87 billion.

Costa Limited is the principal UK trading company of the Costa Coffee group, the UK's largest and the world's second largest coffee shop chain with over 2,000 UK outlets and more than 1,240 in 31 overseas markets. The group was acquired by The Coca-Cola Company in January 2019 for £3.9 billion.

Each property will comprise a new drive-thru format coffee shop and the sites are well located across Great Britain in Barry, Blackpool, Cambourne, Canvey Island, Cardiff, Carmarthen, Newcastle Under Lyme, Northampton, Nottingham, Peterborough, Preston, Redditch and Stoke.

The Company is not developing the sites or assuming development risk and is forward funding each property on a fixed price basis. The building works are due to complete in Q3 2019. The Company will receive an income from the developer during the construction period.

more.....

[skinny] 29/1/2019 16:19

A new high @124p

[jonwig] 07/1/2019 07:12

Acquisitions and disposals:



Sale for a 19% uplift in under a year, and a 2.99% loan fixed for 15 years!

Latest NAV was 113p (30/09) - this must be one of the very few commercial property companies currently trading at a premium. Remarkable progress.

[skinny] 07/1/2019 07:12

The Board of LXi REIT plc (ticker: LXI), the specialist inflation-protected very long income REIT, is pleased to announce the following profitable disposals and accretive acquisitions.

Travelodge hotels disposals

Following receipt of an unsolicited approach, the Company has sold two of its older Travelodge hotels, in Haverhill and Ipswich, to an institutional buyer for £12.6 million in aggregate:

· reflecting a low exit yield of 5.0%, which compares favourably to the acquisition yields of 5.92% and 6.12% paid by the Company in March and July 2017, respectively;

· representing a 19% uplift on acquisition cost and a 5% premium to the latest book value as at 30 September 2018; and

· generating an attractive geared IRR for the Company of 23% per annum.

Two industrial acquisitions, West Midlands

The Company has acquired two industrial properties, by way of purchase and leaseback, for a combined purchase price of £11.7 million, reflecting a 5.7% net initial yield (net of acquisition costs to the Company).

The properties have been acquired with new, unbroken 25-year leases in place to West Midlands Travel Ltd, with a guarantee from its parent, National Express Group PLC, a FTSE 250 listed leading transport provider delivering services in the UK, Continental Europe, North Africa, North America and the Middle East, with a market capitalisation of approximately £1.9 billion.

The new leases benefit from annual Retail Price Index linked rent reviews (collared at 2% per annum and capped at 4% per annum compound).

The properties comprise two purpose-built bus depots totalling 93,000 sq ft and 102,000 sq ft, with a range of accommodation including parking halls, workshops, vehicle inspection pits, refuelling areas, stores, bus wash areas and associated offices.

The properties are both well located in the West Midlands: (i) in the southern Birmingham suburb of Yardley Wood, which lies 6.6 miles to the south of Birmingham city centre; and (ii) in West Bromwich, which lies 6.4 miles to the north west of Birmingham city centre.

The properties are being acquired at a low capital cost and low rental base and benefit from strong alternative use values.

Forward funding acquisition of Aldi-anchored scheme, Evesham

The Company has exchanged contracts to provide forward funding for the pre-let development of an Aldi foodstore-anchored property in Evesham, Worcestershire for £12.15 million, reflecting a 5.4% net initial yield (net of acquisition costs to the Company).

Anchoring the scheme will be a new 18,578 sq ft foodstore, which has been pre-let to Aldi Stores Limited, the principal UK trading company of the Aldi group, a leading global discount food retailer with 10,000 stores across 18 countries. The property will benefit from a new 15-year lease (with no tenant break right), with five yearly upward only RPI inflation-linked rent reviews.

The second unit, comprising 12,935 sq ft, has been pre-let to T. J. Morris Limited (trading as Home Bargains), a leading discount retailer of both food and non-food products, with over 400 stores throughout the UK. This has been pre-let on a new 15-year lease (with no tenant break right), with five yearly upward only open market rent reviews.

The final unit, comprising 10,000 sq ft, has been pre-let to TJX UK Limited (trading as TK Maxx), a leading discount fashion retailer and the principal UK trading company of The TJX Companies Inc., a New York Stock Exchange listed leading off-price apparel and home fashions retailer in the U.S. and worldwide with a market capitalisation of $54 billion. This unit has been pre-let on a new 15-year lease (with a tenant break right in year 10), with five yearly upward only open-market rent reviews.

The property, which benefits from 196 parking spaces on a 3.9 acre site, lies one mile south of Evesham town centre and close to the main A46 bypass, providing good access to the national motorway system. Evesham is an affluent town situated in the heart of Worcestershire, approximately 14 miles south west of Stratford-upon-Avon, 16 miles north east of Cheltenham and 17 miles south east of Worcester.

Planning consent has been granted, the agreements for lease have exchanged and the Company is forward funding the property 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 July 2019.

Scottish Widows loan - 2.99% per annum all-in fixed rate over 15-year term

Following the Company's announcement on 13 November 2018, reporting terms having been agreed for a new 15-year £75 million term loan with Scottish Widows Limited (the "New Loan") to gear the proceeds of its recent equity issue, the Company is pleased to report that it has now completed the New Loan and has fixed the all-in rate at 2.99% per annum until maturity of the facility in December 2033.

The New Loan takes the Company's:

· weighted average all-in debt cost to 2.94% per annum across all facilities;

· weighted average debt maturity to over 12 years across all facilities; and

· loan-to-value ratio to 30%, when fully drawn (below the Company's maximum level of aggregate borrowings of 35% of the Company's gross assets).

The Company is in solicitors' hands on a wide range of further accretive acquisitions which will fully deploy the New Loan in short order.

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

"We are pleased to have completed the disposal of two Travelodge hotels at a significant premium to acquisition cost and book value and to have immediately recycled the proceeds into two accretive industrial properties let to a strong tenant on 25 year, RPI-linked leases.

Our new 15-year loan facility with Scottish Widows locks in a very attractive 2.99% all-in funding cost over the long term, reflecting the high quality and secure nature of our property portfolio. We continue to deploy the facility across a range of quality assets underpinned by long term leases, defensive sectors and robust tenants with accretive yields."

[jonwig] 17/12/2018 07:13

December factsheet:

[jonwig] 29/11/2018 07:47

Yes! Outstanding the way they create value here.

[bennywin] 29/11/2018 07:33

Nice solid set of results.

[skinny] 29/11/2018 07:09

· Total net asset value ("NAV") return per share (inclusive of dividends) for the six month period was 8.08%. This represents significant over delivery on the Company's annual target of 8%1

· EPRA NAV per share increased in the six month period by 5.33 pence or 4.95% to 113.00 pence at 30 September 2018

· Dividend per share ("DPS") declared for the six month period of 2.75 pence putting the Company on track to meet its full year target of 5.50 pence1

· DPS fully covered by EPRA earnings per share ("EPS") of 2.80 pence for the half-year which excludes developer licence fees and Adjusted EPS of 3.17 pence including developer licence fees2

· Operating profit of £18.39 million comprising income from the Group's property portfolio and changes in fair value of investment property net of administrative and other expenses

· Portfolio independently valued by Knight Frank LLP at £318.79 million as at 30 September 2018 including all commitments on forward funded assets, representing a like for like uplift of 12% from acquisition price (excluding acquisition costs)3

· Loan to value reducing from 31 March 2018 to 29% with material headroom to our medium term maximum of 35%

· Low all-in fixed cost of debt of 2.90% and long average debt maturity of 11 years underpinning our ability to grow investor returns through inflation-linked rent reviews

· Total shareholder return since IPO in February 2017 of 21% reflecting the strong performance of the Company's portfolio, increased dividend targets, dividend payments and share price

more.....

[skinny] 26/11/2018 14:41

Half year results this Thursday, 29 November 2018.

[jonwig] 13/11/2018 07:56

"The New Loan Facility is interest-only and benefits from a low margin of 1.55% per annum, which is highly accretive to the Company's earnings per share."

It's fixed rate, so why do they call it a "margin", which is usually tied to libor? (It's good, anyway!)

[skinny] 13/11/2018 07:23

SIX ACQUISITIONS WITH A COMBINED PURCHASE PRICE OF £62.4 MILLION

UPDATE OF FULL EQUITY DEPLOYMENT, NEW LOAN FACILITY & CONSTRUCTION WORKS

The Board of LXi REIT plc (ticker: LXI), the specialist inflation-protected very long income REIT, is pleased to announce six further property acquisitions (the "Acquisitions"), with a combined total consideration of £62.4 million (excluding costs). This takes the Company to full deployment of its recent £175 million equity raise announced on 12 October 2018.

The Acquisitions are highly accretive to the Company's existing portfolio yield and rent review profile.

· Of the combined passing rents of the Acquisitions, 100% are RPI-linked.

· The weighted average unexpired lease term ("WAULT") to first break of the Acquisitions is 22.1 years.

· The weighted average net initial acquisition yield of the Acquisitions is 5.7%.

The Company is also in solicitors' hands and under offer on further accretive acquisitions, comprising pre-let forward fundings, to deploy its new debt facility, on which further details are set out below.

Five Travelodge hotels

The Company has acquired five Travelodge budget hotels for a combined total consideration of £45.2 million, reflecting a 5.8% net initial yield (net of acquisition costs to the Company).

Each property is fully let to Travelodge Hotels Limited, the principal trading company of the Travelodge hotel group, with a WAULT to first break of 24 years. Each benefit from five yearly rent reviews index-linked to the uncapped Retail Prices Index.

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 properties trade well with strong occupancy levels and are well-located to city centre amenities and/or strong communications links, with good geographic diversification:

· Aberdeen: 97 bedrooms

· Brighton: 94 bedrooms

· Liverpool: 105 bedrooms

· Llanelli: 51 bedrooms

· Nuneaton: 40 bedrooms

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