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.
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 although increased government bonds yields are creating a valuation headwind across the commercial real estate sector.
Real Estate
Real Estate
Real Estate
Charlotte Price
Financial controller
Freddie Brooks
CFO
Jamie Beale
Partner
John White
Partner
Simon Lee
Partner
% | 1M | 3M | 12M |
---|---|---|---|
Actual | 2.3 | (6.6) | (19.8) |
Relative | (1.5) | (15.5) | (21.8) |
52 week high/low | 154.0p/112.4p |
H123 results will be released on 24 November, the first results update since LXi’s merger with Secure Income REIT (SIR). This brought together two complementary portfolios, creating a business of substantial scale and generating immediate cost savings. The end-H123 portfolio value was £3.65bn, well diversified across sectors and tenants with a long 26-year weighted average unexpired lease term. 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 LXi’s aim of maintaining a medium-term LTV target of 30%. 100% of group debt is fixed or capped with a maximum cost of 4.2% and covenant headroom is significant. On a like-for-like basis, portfolio valuation was 1.4% lower, with rent growth substantially offsetting yield widening. LXi estimates EPRA NTA at end-H123 will be at least 139p per share.
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