Lxi Reit Share Discussion Threads

[jonwig] 13/6/2019 06:30

Further to its announcement on 20 May 2019, 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 approximately £200 million pursuant to the issue of a total of 169,111,138 ordinary shares in the Company (the "Issue"), at an Issue Price of 118 pence per New Ordinary Share. The result of the Issue was well in excess of the target fundraising size and also significantly oversubscribed at the maximum issue size.

[jonwig] 08/6/2019 05:24

darren - no, sorry.

"The New Ordinary Shares will, following Admission, rank pari passu in all respects with the Existing Ordinary Shares and will carry the right to receive all dividends and distributions declared, made or paid in respect of the Ordinary Shares by reference to a record date after Admission."

The admission date is 12 June.

[darrenp746] 07/6/2019 22:23

Hi there,
So details of the offer are as below, so if you are allocated new shares will you also get the dividend?

On website says
Offer close: 12 June 2019 (1pm)
Result announced: 13 June 2019
Unconditional dealing starts: 17 June 2019 (8am)

Then there was an rns about the dividend

FIRST INTERIM DIVIDEND

The Board of LXi REIT plc (ticker: LXI), the specialist inflation-protected very long income REIT, has today declared the first interim dividend in respect of the year ending 31 March 2020 of 1.4375 pence per ordinary share, payable on 23 September 2019 to shareholders on the register at 14 June 2019. The ex-dividend date will be 13 June 2019. The dividend reflects an annualised rate of 5.75 pence per ordinary share, in line with the Company's current annual dividend target*.

[winsome] 07/6/2019 13:44

I'll be taking up full allocation plus subscribing for more. Pretty low risk exercise given that the share price is unlikely to dip below 118p. Worked well for me with BBOX's latest fund raise.

Re comparisons with SHED, Warehouse Reit, etc, I think LXI is much more diversified and with strong tenants. I like the idea of adding more warehouse reits to my portfolio on top of BBOX but there's always a niggling worry of having too many eggs in one basket

[toffeeman] 05/6/2019 17:38

5000 shares £10 dealing costs no stamp duty or dealing to buy at IPO - clear £340 for a few mouse clicks - seems worth it to me!

[njb67] 05/6/2019 15:47

Hardly worth it after dealing costs and spread.

[toffeeman] 05/6/2019 10:34

I DK why those who still hold from the original IPO don't sell and buy back at 118.

[skinny] 05/6/2019 06:21

The Board of LXi REIT plc (ticker: LXI), the specialist inflation-protected very long income REIT, has today declared the first interim dividend in respect of the year ending 31 March 2020 of 1.4375 pence per ordinary share, payable on 23 September 2019 to shareholders on the register at 14 June 2019. The ex-dividend date will be 13 June 2019. The dividend reflects an annualised rate of 5.75 pence per ordinary share, in line with the Company's current annual dividend target*.

[ironstorm] 29/5/2019 17:23

Certainly they are focusing on the premium end of the market. Which probably helps.

If the others (and I do not know this) are focusing on the 2nd tier smaller industrial units in northern towns for example - they can see rapid growth in letting a bit they do have a lot more risk associated with them. However they will be those times when lots of money can be made. Depends where you view the cycle.

[apollocreed1] 29/5/2019 14:19

There's also AEW UK REIT, Warehouse REIT, Regional REIT - and they are at discounts. But I see your point if LXI have really good management then you may have more faith in them, as AEW released a small drop in NAV last month, so maybe LXI has the management and the momentum to make them worth the premium.

[ironstorm] 29/5/2019 07:42

I don’t know SHED but just looking here - they are trading at a premium but they are doing the deals growing the company and the momentum is with them.

After this fund raise they can do much more of the same. So momentum will continue imho.

When they announced need their fund raise they fell right back to support but no more. A good sign.

I am taking up my full allocation.

[jonwig] 29/5/2019 04:37

apollo - fair point. But a lot of shares and sectors trade at premium for years: infrastructure funds (until the Corbyn threat), renewables funds, top-class ITs with a proven long-term record, etc.

I don't know SHED, but if you rate it and it's at a discount, then go for it, sure.

Having bouight LXI on IPO (so virtually at par) and seen the premium expand, I don't feel ready to sell on just that basis, but being cautious, I won't be taking up my full allocation.

[apollocreed1] 28/5/2019 22:03

I'm looking at SHED which released some great results a few days ago, and I'm wondering why anyone would pay a premium for LXI when SHED (and a few other good property companies) are trading at discounts.

[jonwig] 21/5/2019 05:43

Informative article explaining how LXI can apparently buy properties at knockdown prices:



Concludes:

Ewan Lovett-Turner, analyst at Numis Securities, commented: ‘LXI has been our preferred stock in the long-lease space for some time, reflecting our view that the manager continues to acquire well, crystallise uplifts and recycle capital swiftly, driving attractive returns ahead of its 8% pa target

‘Shareholders may well view the current equity raise as an opportunity to buy the shares at a lower premium to NAV,’ he added.

[jonwig] 20/5/2019 07:13

Actually, this is such a big issue that the share price is sure to fall back, as holders expect to repurchase at 118. Expect a period of indigestion maybe three weeks.

[ironstorm] 20/5/2019 07:05

Lovely results here. Seem to be doing all the right things.

Jonwig reckon I will be joining you.

[jonwig] 20/5/2019 06:55

Seem to be delivering in spades, yet again!

Interesting to see that the fundraising of £100m could be doubled as far as £200m. I can easily see it passing 100, but will it reach 200? I'll be doing my bit anyway, I think!

[skinny] 20/5/2019 06:14

.

.

.

Summary

· Issue of up to 84,555,569 New Ordinary Shares pursuant to a Placing, Open Offer, Offer for Subscription and Intermediaries Offer, targeting gross proceeds of approximately £100 million

· Qualifying Shareholders are being offered the opportunity to participate in the Open Offer on the basis of 6 New Ordinary Shares for every 25 Existing Ordinary Shares

· Qualifying Shareholders are also being offered the opportunity to subscribe for New Ordinary Shares in addition to their Open Offer Entitlement under the Excess Application Facility

· The Board have reserved the right to increase the size of the Issue by up to 84,555,569 New Ordinary Shares

· The Issue Price is 118 pence per New Ordinary Share. This represents a premium of 3 per cent. to the audited Net Asset Value per Ordinary Share as at 31 March 2019 of 114.6 pence per Ordinary Share

· The Issue Price represents a discount of 9.5 per cent. to the closing price per Ordinary Share on 17 May 2019 of 130.4 pence per Ordinary Share

· The Company will be subject to a 90 day lock-up on the issue of further Ordinary Shares from the date of Admission, subject to waiver by the Bookrunner

· The Investment Advisor, on behalf of the Company, has identified a significant pipeline of additional assets which meet the Company's investment objective and investment policy, including off-market assets identified through the Investment Advisor's extensive contacts and relationships

· The pipeline assets, which total over £200 million in value, are diversified by location and leased to a range of institutional-grade tenants with strong financial covenants, with 98% of rents containing either inflation-linked or fixed uplift reviews, and with a good mix within the pipeline of built assets and forward funded structures. They benefit from a long weighted average unexpired lease term to first break of 25 years and a blended net initial yield of 5.6 per cent. and are structured as both pre-let forward funding and standing investments

· Although there can be no assurance that any of these properties will be purchased by the Company, the Investment Advisor is confident that it will substantially invest or commit the net proceeds resulting from the proposed Issue within three months following Admission

· As also announced today, the Company is now targeting a dividend of 5.75 pence per Ordinary Share for the year ending March 20201 (an increase of 4.5 per cent. from the previous target of 5.50 pence per Ordinary Share)

· The results of the Issue are expected to be announced on 13 June 2019

more.....

[ironstorm] 26/4/2019 07:11

Deals keep coming here more than underpinning the price. I continue to like - a lot.

[johnwig] 18/4/2019 23:10

On second thoughts this was a significant drop. On balance I would say this is a definite sell.

[johnwig] 18/4/2019 23:08

On second thoughts this was a significant drop. On balance I would say this is a definite sell.

[jonwig] 18/4/2019 19:17

FY results on 20/05. Also an update:

The Company has successfully deployed all of its equity and debt capital and is considering an equity fundraise in 2019 to fund further investments in line with its investment policy and with a view to delivering further value for its shareholders. Any such fundraise 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.

Hence the 3p drop at the time of the announcement?
I suppose it's only natural for them to want to exploit the premium.

[skinny] 17/4/2019 15:36

I guess a 12th consecutive up day was a step too far.


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[jonwig] 15/4/2019 16:51

Ah, I didn't know there have been ten consecutive up days! Maybe the odd trip up elsewhere (AEWL?) has prompted some switching, rather than new enthusiasm for the sector?