LXi REIT

LN: LXI

Market Cap£880.5m

Last Close 141.6p

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 FY21 results showed a strong performance against the challenging market backdrop, especially during the second half of the year. The 5.6% EPRA NTA total return takes the annual average since IPO to 10.1%, well ahead of the 8% minimum target. Accretive portfolio growth, inflation-protected rents and full rent collection are positive indicators for further growth, while the FY22 DPS target marks a new high level since IPO in February 2017.

Y/E Mar
Revenue (£m)
EBITDA (£m)
PBT (£m)
EPS (p)
P/E (x)
P/CF (x)
2020A 38.5 31.9 30.5 6.3 22.5 28.6
2021A 42.8 36.9 39.2 7.5 18.9 30.5
2022E 57.6 49.8 47.8 7.7 18.4 18.4
2023E 59.4 51.4 50.1 8.1 17.5 21.2
Industry outlook

The pandemic and Brexit contribute to a highly uncertain UK economic outlook. Long upwards-only, mostly index-linked leases may mitigate some of the cyclical volatility in capital values (and to a lesser extent income returns) historically exhibited by the commercial property market, especially where careful selection avoids tenant failure and/or where asset selection identifies properties with broad occupier appeal in robust sectors of the economy.

Last updated on 21/06/2021
Content on LXi REIT
LXi REIT – Strong FY21 with increasing momentum
Real Estate | Update | 7 June 2021
Paper house under a magnifying lens
LXi REIT – Diversified, long income
Real Estate | Initiation | 19 April 2021
Paper house under a magnifying lens
View more
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Share price graph
Balance sheet
Forecast net debt (£m) 269
Forecast gearing ratio (%) 33
Price performance
%
1m
3m
12m
Actual 3.1 15.7 24.5
Relative* 2.4 9.9 7.8
52-week high/low 148.0p/103.1p
*% relative to local index
Key management
Freddie Brooks CFO
Charlotte Price Financial controller
Jamie Beale Partner
John White Partner
Simon Lee Partner