Lxi Reit Plc

1.20 (1.2%)
Share Name Share Symbol Market Type Share ISIN Share Description
Lxi Reit Plc LSE:LXI London Ordinary Share GB00BYQ46T41 ORD 1P
  Price Change % Change Share Price Shares Traded Last Trade
  1.20 1.2% 101.60 4,294,329 16:35:26
Bid Price Offer Price High Price Low Price Open Price
101.20 101.40 101.50 98.35 98.35
Industry Sector Turnover (m) Profit (m) EPS - Basic PE Ratio Market Cap (m)
Real Estate Investment Trust 58.50 162.00 17.80 11.21 1,741.93
Last Trade Time Trade Type Trade Size Trade Price Currency
17:54:18 O 72,010 101.60 GBX

Lxi Reit (LXI) Latest News (3)

Lxi Reit (LXI) Discussions and Chat

Lxi Reit Forums and Chat

Date Time Title Posts
08/6/202315:03:::: LXI REIT ::::501

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Lxi Reit (LXI) Most Recent Trades

Trade Time Trade Price Trade Size Trade Value Trade Type
2023-06-08 16:54:28101.6072,01073,162.16O
2023-06-08 16:54:27101.602,1922,227.07O
2023-06-08 16:42:43100.9122.02O
2023-06-08 16:40:56100.9074,20274,872.79O
2023-06-08 16:32:03101.562,5762,616.19O

Lxi Reit (LXI) Top Chat Posts

Top Posts
Posted at 08/6/2023 15:03 by speedsgh
Profitable £31M sale of St Albans Retail Park - HTTPS://www.londonstockexchange.com/news-article/LXI/profitable-ps31m-sale-of-st-albans-retail-park/15991561

The Board of LXi REIT plc (ticker: LXI), the specialist inflation-protected very long income REIT, is pleased to announce that the Company has sold a retail park in St Albans ("the Property") to a UK institution for £31 million, equating to a net initial yield of 4.7%.

The Property is let to B&Q (62% of rent), Aldi (28% of rent) and Costa (10% of rent) and has a weighted average unexpired lease term of 18 years.

The Company acquired the Property through a forward funded purchase for £24 million in 2019. The sale price is in line with the 31 March 2023 book value, having been held for sale, and generates an attractive 11% IRR.

The net sale proceeds are anticipated to be used to reduce leverage and, potentially, to be invested in the Company's higher yielding pipeline.

Posted at 07/6/2023 11:26 by nickrl
@riverman rates could have been lower but they were two separate entities on different strategies. One of the RCF's is main driver of the higher rates even with interest rate caps so they could keep that down but as i say these people have itchy fingers and wont want to sit back for too long they like doing deals too much.

Good point re SUPR although LXI has a few more years on the lease length.

Posted at 07/6/2023 10:30 by nickrl
Publishing comparatives is a bit meaningless as LXI of 12mths ago is fundamentally different to todays entity.

Anyhow divi is covered and with majority of debt locked in for many years so with 2-3% rental growth baked in for a few years the divi is well supported. They are targeting 6.6p divi for FY24 is this one of the more certain 6.6% yields in the peer group. Maybe but not sure Leslau is just going to sit back so they will always be on the lookout for the next deal.

So in the presentation they confirm that!! Fund mgr stated LXI have the potential to assist in consolidation in the REIT sector. Also says they will continue to recycle assets and are always on the lookout for opportunities especially as they reckon we are at the low point on valuations.

Certainly tempted but whats the risk of a big fund raise to finance an acquisition is weighing on my final decision.

Posted at 13/4/2023 13:07 by pyufak
Hi Nick & Spectto

Nick - can I ask the costs you feel are too high please? The general % charge of market cap to the investment advisor seems to make the significant bulk of the cost. I agree it is too high for the business model but my understanding was it was one of the lowest in the U.K. REIT space.

Spectto - can you elaborate on Alvarium links and payments of £14m to them annually. I see they are the alternative investment manager but LXI REIT Advisors is the investment advisor. Are these the same entity or different - if different I am sure the bulk of the investment advisor payments are going to LXI REIT advisors no?

I think as an investment proposition LXI looks alright so just trying to understand your concerns / issues with the REIT here.

Many thanks

Posted at 06/3/2023 11:59 by speedsgh
£150m loan facility-£60m extension-Wider refi HoT - HTTPS://www.investegate.co.uk/lxi-reit-plc--lxi-/rns/-150m-loan-facility--60m-extension-wider-refi-hot/202303060700029115R/

The Board of LXi REIT plc (ticker: LXI), the specialist inflation-protected very long income REIT, is pleased to announce that it has completed the first stage of its ongoing refinancing with a new, £150 million 16-year, interest-only term loan signed with a leading insurance company ("New Facility"), a new lender to the Group, and an extension to its existing HSBC Facility...

... These two facilities represent the first step of the Company's wider refinancing strategy to replace all of its near-term debt maturities. The second step is at an advanced stage of negotiations with agreed heads of terms, with a club comprising a number of the Company's existing lenders.

A further announcement, which will include additional details about the Company's new weighted average cost and term of debt following the refinancing process, will be made upon signing of that facility.

Posted at 09/2/2023 20:45 by spectoacc
I want to like LXI, but I've a number of problems with them. The main one is the incentive to grow grow grow, hence the £500m SBRY deal that never was. Alvarium get to rip something like £14m a year out of the Trust in fees, for what is no more than a dozen or so full-timers. Sorry, but there simply isn't the same work involved with a long-lease REIT as with eg MLI, with potentially thousands of flighty tenants, weekly lettings, chasing rent etc.

Secondly, I had a "debate" with SIR over their preposterous payment to extend the Alton Towers lease (where else did they think they'd go?) and also completely remove the uncapped RPI - for that alone, I'd want LXI very, very cheap. I sold out a large holding after speaking with the CEO, who seemed to believe inflation would be transitory.

Thirdly, LXI/Alvarium are obsessed with duration, but it's not all about that, as Covid/Travelodge showed.

Fourthly, I think most on here have misunderstood the news today - Ms Short has joined the Alvarium manager of LXI, not LXI itself. "LXI REIT Advisors" is Alvarium, just as HOME REIT Advisors were (and arguably, IMO, still are. You don't sell a subsid with an option to buy it back at exactly the same price).

Do I think Simon Lee, or Alvarium, are dodgy, as per HOME? No, but I do think a lot of digging is needed into some of the deals, that there's been too many deals, that they're going to keep trying to grow all the time to expand the cost base, that they're obsessed with WAULT to take to the bank for more borrowing, at the expense of anything else.

Counter to all that - directors have always bought strongly.

Posted at 09/12/2022 15:04 by spectoacc
Plenty of faces on here:
[...] (Edit - Google LXI REIT, go to About Us)

Disagree tho. Yes, it takes time & effort to put a portfolio together, and yes, a large amount of management for comm prop. But that's the small end, the short lease end, the fixing the roof, collecting the rent, negotiating the rent increases, negotiating the leases, finding new tenants end.

LXI is almost none of that. It isn't growing (not now the discount is persistent), it isn't "managing" in the sense of most comm prop because it's all so long-lease.

Not saying there's nothing to do - but that what there is doesn't remotely justify the cost.

Don't see why c.£1.6m - rather than £16m - isn't enough. I count 18 people on that link above, a number of them part-time. I don't doubt most of the profit flows through to Alvarium, but still.

Or look at it this way - if the Sainsbury's deal had gone through, that was another £500m NAV, and an extra £2.75m pa in fees. Can you seriously say a bunch of long-lease Sainsbury stores, on pre-determined (by inflation collar/cap) uplifts, justifies £2.75m PER YEAR, forever?

That's my beef - and is little different to the Unit Trusts pulling the same trick. We'll take 1%, and we'll take it whether we're managing £10m, £100m, £10bn.

At least LXI can argue more property = more effort. In which case, employ a £100k person to manage it.

Again - 16 people - what do most of them do all day?

If the value of Alton Towers doubled (say a notional £500m now, to £1bn in 10 years time), does that justify doubling the fees being ripped out? How? LXI haven't had to do anything.

Or - consider the quantum of the fee cost vs the income LXI earns from rents. For starters, any fees should be on lower of market cap or NAV, but far better if they took a % of the rent for managing. I think that would show up the actual cashflow drain much better.

Edit - I want to like LXI, have held before, and had a lot of SIR (who badly mismanaged the Alton Towers lease when they let them out of uncapped RPI, fwiw).

Posted at 24/11/2022 07:57 by skinny


Posted at 10/10/2022 09:05 by spectoacc
"98% of the rent is inflation-protected or contains fixed uplifts."

Where to begin. "Inflation-protected" it isn't, when inflation is c.10% & uplifts capped at 3% or 4%.

How much of that 98% has "fixed uplifts", and what level are they set at? I thought the vast majority was (fake) index-linked, so why not state the split.

"The attraction of long inflation-linked income is further evidenced by the fact that the 20-year index-linked gilt rate remains low at 0.63%, which provides a significant spread to the Company's current portfolio yield."

But but but. Linkers are inflation-linked, it's why they're so expensive. LXI's rents aren't - or at least, I'm unaware they've any uncapped uplifts left?

There's a lot to like at LXI, but frankly, not sure I trust them. They're not likely to be growing in size now they're trading well below NAV, & borrowing is expensive. They've recession risks with various tenants, albeit they'd likely be the last to be affected (but certainly were with Travelodge, during Covid). They've sorted out their debt, which is excellent, but 4.2% seems very high for what are meant to be rock-solid, quarter-century leases. Several small REITs with much smaller and less secure tenants are paying below 2%.

I think the NAV will eventually catch up (down) the share price. There's a price I'd buy LXI at, but I strongly dislike the presentation.

Edit - I may have misinterpreted the debt position:

"As at 30 September, the Company's pro-forma LTV was 33%. 100% of the Company's debt cost is fixed or capped, with a maximum weighted average cost of debt of 4.2% per annum."

That doesn't say average cost of debt is 4.2%, it says maximum weighted average - what does that mean? That as interest rates rise, the most they'll pay is 4.2% on average? For how long? At what interest rate level? What are they paying now?

Why is there no mention of duration, or have I missed it?

Posted at 10/1/2022 10:26 by skyship
Hi bull

If new to the excellent REIT sector, then I recommend you follow the CP+ thread for discussion across most if not all the players.

Interesting to note LXI share price performance over the past year v. a number of peers. You will note that the two laggards are the two trading at a premium to their underlying NAV, ie LMP & LXI.

Personally I'll never buy a property company trading at a premium.

Propco valuations are based upon many factors: WAULT, LTV, Debt Cost, Tenant profile, Geographical split, Sector split (Office, Industrial etcetcetc) - but the two most important factors remain NAV Prem/Disc & Yield.

With the discounts closing in from the crazy levels of a year ago, the average on my 20 company spreadsheet is down to 13.4%; or 17.6% if I exclude LMP, LXI & WHR.

My current holdings are AIRE, EPIC, HCFT & SREI. My thoughts on the current Best Buy would be the minnow HCFT. They usually trade on an horrific spread; but never as outlandish as it looks, ie they are currently available at 902.5p rather than the headline 920p! IMO the 23.8% discount & 6.32% yield places them in the good value category.

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