LXi REIT (LSE: LXI)

Currency in GBP

Last close As at 06/02/2023

GBP1.19

8.00 (7.23%)

Market capitalisation

GBP1,896m

LXi REIT is an externally managed UK REIT investing in assets that are let on long index-linked leases to strong financial covenants across a range of sectors with defensive characteristics.

The commercial property market is cyclical, historically exhibiting substantial swings in capital values through cycles. Income returns have been significantly more stable. Across all main sectors, valuations are showing significant negative adjustment to higher bond yields and economic uncertainty. Unlike previous downturns, there are few areas of over-supply and gearing is generally lower. LXi’s long, upwards-only, mostly index-linked/fixed rent uplifts provide visibility of income and may continue to mitigate pressure on capital values.

Latest Insights

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Real Estate

LXi REIT — Strong accretive growth continuing

Real Estate

LXi REIT — Strong FY21 with increasing momentum

Real Estate

LXi REIT — Diversified, long income

Sector

Real Estate

Equity Analyst

Martyn King

Martyn King

Director, Financials

Key Management

  • Charlotte Price

    Financial controller

  • Freddie Brooks

    CFO

  • Jamie Beale

    Partner

  • John White

    Partner

  • Simon Lee

    Partner

Share Price Performance

Price Performance
% 1M 3M 12M
Actual 5.3 (3.6) (18.9)
Relative (0.3) (12.4) (19.7)
52 week high/low 154.0p/110.6p

Financials

LXi REIT’s H123 results showed a successful merger integration, creating a business of substantial scale and generating immediate cost savings. The c £3.65bn portfolio is well diversified by sectors and tenants with long 26-year weighted average unexpired leases. 98% of the rent is inflation-protected or contains fixed uplifts. LTV has reduced from a pro forma post-merger 37% to 33%, in line with the medium-term target of 30%. All debt is fixed or capped with a maximum cost of 4.2% and covenant headroom is significant. Like-for-like portfolio valuation was 1.4% lower, with rent growth substantially offsetting yield widening. DPS was in line with the full year target of 6.3p, fully covered and EPRA NTA was 139.7p.

Research

Thematics

Consumer

IPO apocalypse

TMT

ESG, moving beyond the box tick

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