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Currency in GBP
Last close As at 09/06/2023
GBP1.02
▲ 1.20 (1.20%)
Market capitalisation
GBP1,742m
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, the significant negative end-2022 adjustment to higher bond yields and economic uncertainty, is showing increased stability in 2023 ytd and investment activity is showing improvement.
Real Estate
Real Estate
Real Estate
Director, Financials
Charlotte Price
Financial controller
Freddie Brooks
CFO
Jamie Beale
Partner
John White
Partner
Simon Lee
Partner
Forecast net debt (£m)
1119.6
Forecast gearing ratio (%)
53
| % | 1M | 3M | 12M |
|---|---|---|---|
| Actual | (1.7) | (5.2) | (29.4) |
| Relative | 0.5 | (1.2) | (28.6) |
| 52 week high/low | 154.0p/94.1p |
With the major refinancing of shorter maturity debt completed, following drawdowns and repayments, total debt will remain at c £1.3bn with average maturity extended from three to six years. Including the finalisation of hedging arrangements, LXi expects a moderately increased fixed/hedged blended cost of 4.7% (from 4.3%). Combined with continuing indexed rent growth this has provided earnings visibility for a 4.8% increase in the annual DPS target for FY24 to 6.6p. Rent reviews representing 6% of rent roll were concluded in H2 at an annualised 3.4% uplift, but will accelerate in H124 with 48% of rent roll subject to review. H223 property valuations were not immune to yield widening, but compare favourably with the broad sector, and LXi indicates that FY23 results, to be published 7 June, will show an NAV per share of c 120p.
| Y/E Mar | Revenue (£m) | EBITDA (£m) | PBT (£m) | EPS (p) | P/E (x) | P/CF (x) |
|---|---|---|---|---|---|---|
| 2021A | 42.8 | 36.9 | 39.2 | 7.5 | 13.5 | 18.5 |
| 2022A | 58.5 | 49.2 | 49.9 | 7.0 | 14.5 | 14.0 |
| 2023E | 193.5 | 175.1 | 136.1 | 9.1 | 11.2 | 9.1 |
| 2024E | 237.3 | 218.3 | 159.9 | 9.3 | 10.9 | 9.9 |
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