LXI REIT PLC Acquisition (5691Z)

TIDMLXI

RNS Number : 5691Z

LXI REIT PLC

18 December 2017

18 December 2017

LXi REIT plc

(the "Company" or "LXi REIT")

GBP1.4 MILLION ACQUISITION OF A LONG-LET SUPPORTED LIVING PORTFOLIO, GREATER LONDON

The Board of LXi REIT plc (ticker: LXI) is pleased to announce that the Company has acquired the freehold interest in a portfolio of regulated long-let supported living properties located in Greater London (the "Portfolio"). The purchase price for the Portfolio is GBP1.4 million, reflecting a net initial yield of 6.0% (net of acquisition costs to the Company).

Each property is immediately income producing and has been let on a new 35-year lease, with no tenant break, to a specialist Registered Provider of social housing. The Registered Provider is regulated by the Homes and Communities Agency and receives its funding for the rent payments directly from the relevant local authority.

Each lease is subject to annual upward-only rent reviews index-linked to the Consumer Prices Index and the Registered Provider is responsible for the costs of repair, maintenance, insurance and outgoings.

The properties in the Portfolio comprise specialist, high quality supported living homes for individuals with physical and/or mental disabilities or other care needs.

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

"This supported living portfolio provides the Company with an attractive 6.0% net initial yield underpinned by unbroken 35-year, index-linked leases, with strong underlying residential values."

The Company's LEI is: 2138008YZGXOKAXQVI45

FOR FURTHER INFORMATION, PLEASE CONTACT:

 
 LXI REIT Advisors Limited            Via Newgate Communications 
  John White (Partner, Fund 
  Manager) 
  Simon Lee (Partner, Fund Manager) 
-----------------------------------  --------------------------------- 
 
 Peel Hunt LLP                        Tel: [phone] 
  Luke Simpson 
-----------------------------------  --------------------------------- 
 
 Newgate Communications (PR           Tel: [phone] 
  Adviser)                             Email: [e-mail] 
  James Benjamin 
  Anna Geffert 
  Lydia Thompson 
-----------------------------------  --------------------------------- 
 

NOTES:

The Company invests in UK commercial property assets let, or pre-let, on very long (typically 20 to 30 years to expiry or first break), inflation-linked leases to a wide range of strong tenant covenants across a diverse range of property sectors.

The Company may invest in fixed-price forward funded developments, provided they are pre-let to an acceptable tenant and full planning permission is in place. The Company will not undertake any direct development activity nor assume direct development risk.

The Company is targeting a minimum annual dividend of 5 pence per ordinary share, starting from the financial period commencing 1 April 2018, with the potential to grow the dividend in absolute terms through upward-only inflation-protected long-term lease agreements, and is targeting a net total shareholder return of 8 per cent. plus per annum over the medium term(1) .

The Company, a real estate investment trust ("REIT") incorporated in England and Wales, is listed on the premium listing segment of the Official List of the UK Listing Authority and was admitted to trading on the main market for listed securities of the London Stock Exchange in February 2017.

Further information on the Company is available at www.lxireit.com

Note 1: these are targets only and not a profit forecast and there can be no assurance that they will be met.

This information is provided by RNS

The company news service from the London Stock Exchange

END

ACQFFEFWIFWSELE

(END) Dow Jones Newswires

December 18, 2017 02:00 ET (07:00 GMT)