LXi REIT

LN: LXI

Market Cap£2,105m

Last Close 122.8p

LXi REIT is an externally managed UK REIT investing in high-quality, smaller lot size (£5–15m) assets, let on long index-linked leases to strong financial covenants across a range of sectors with defensive characteristics.

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Investment summary

LXi REIT’s (LXI) merger with Secure Income REIT (SIR) has brought together two complementary portfolios, creating a business of substantial scale and generating immediate cost savings, greater access to capital markets to support future growth and enhanced management resources. Data at 31 March 2022 show a £3.9bn combined portfolio, with a contracted rent roll of £194m, reflected in a 4.6% net initial yield. The portfolio is well diversified across sectors and tenants with a long 26-year weighted average unexpired lease term. 88% of rents are subject to inflation-linked or fixed uplifts and 100% of group debt is now fixed or capped with a maximum cost of 4.1%.

Industry outlook

Long, upwards-only, mostly index-linked (mostly capped and collared at 2–4%) or fixed uplift leases provide significant visibility of income in the current inflationary environment. This should support income growth and, assuming no material increase in valuation yields, capital appreciation too.

Last updated on 28/09/2022
Content on LXi REIT
LXi REIT – Strong accretive growth continuing
Real Estate | research Outlook | 23 March 2022
Paper house under a magnifying lens
LXi REIT – Swift and accretive capital deployment
Real Estate | research Update | 23 August 2021
Paper house under a magnifying lens
LXi REIT – Strong FY21 with increasing momentum
Real Estate | research Update | 7 June 2021
Paper house under a magnifying lens
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Share price graph
Balance sheet
Forecast net debt (£m) 265.8
Forecast gearing ratio (%) 20
Price performance
%
1m
3m
12m
Actual (16.5) (15.3) (14.7)
Relative* (10.9) (10.5) (9.9)
52-week high/low 154.0p/117.2p
*% relative to local index
Key management
Freddie Brooks CFO
Charlotte Price Financial controller
Jamie Beale Partner
John White Partner
Simon Lee Partner