Approval of Travelodge CVA & March Rent Update

RNS Number : 5565Q

LXI REIT PLC

19 June 2020

 

19 June 2020

LXi REIT plc

(the "Company" or the "Group")

APPROVAL OF TRAVELODGE CVA AND POSITIVE IMPACT ON MARCH 2020 RENT COLLECTION WHICH INCREASES TO 90%

The Board of LXi REIT plc (ticker: LXI) notes that Travelodge's Company Voluntary Arrangement ("CVA") was approved by its creditors, including the Company, on 19 June 2020.

The final terms of the CVA have improved from a landlord's perspective since the original CVA proposal was published, as referred to in the Company's announcement on 4 June 2020, and the effect of the CVA for the Company is:

· The rent payments due from Travelodge to the Company pursuant to the CVA in respect of the March 2020 quarter will increase to 90% the amount of rent received by the Company to date or to be received under signed payment terms in respect of the March 2020 quarter;

· Certain of the Company's Travelodge leases where rent recovery is less than 100% until 2021 will receive lease extensions which will extend the WAULT to first break of the Company's Travelodge assets from 23.2 years to 25.4 years.  Travelodge rents will revert to 100% across all of the Company's Travelodge assets from the end of December 2021;

· The Company, along with other landlords, will be entitled to potential additional payments equating to its pro rata share of 66.7% of additional EBITDA above a £200 million hurdle rate (aggregated over the three year period from 2020 to 2022); and

· The flexibility in the CVA terms allows the Company to break certain of its leases with Travelodge, should it wish to do so, in order to replace Travelodge with an alternative tenant.  The Company shall adopt a proactive asset management strategy in this regard to maximise shareholder value. The CVA does not allow Travelodge to terminate any of the Company's leases.

FOR FURTHER INFORMATION, PLEASE CONTACT:

LXI REIT Advisors Limited John White (Partner, Fund Manager) Simon Lee (Partner, Fund Manager)	Via Maitland/AMO
Peel Hunt LLP Luke Simpson	Tel: [phone]
Maitland/AMO (Communications Adviser) James Benjamin	Tel: [phone] Email: [e-mail]

The Company's LEI is: 2138008YZGXOKAXQVI45

NOTES:

LXI REIT plc invests in UK commercial property assets let, or pre-let, on very long (typically 20 to 30 years to expiry or first break), inflation-linked leases to a wide range of strong tenant covenants across a diverse range of robust property sectors.

The Company may invest in fixed-price forward funded developments, provided they are pre-let to an acceptable tenant and full planning permission is in place. The Company will not undertake any direct development activity nor assume direct development risk.

The Company is targeting a quarterly dividend of 1.30 pence per ordinary share for the quarter that commenced 1 April 2020. It will continue to monitor the improving visibility on its future rent collection as the UK moves out of lockdown and is keeping its dividend guidance under careful review on a quarterly basis.

The Company, a real estate investment trust ( " REIT " ) incorporated in England and Wales, is listed on the premium listing segment of the Official List of the UK Listing Authority and was admitted to trading on the main market for listed securities of the London Stock Exchange in February 2017.

The Company is a constituent of the FTSE EPRA/NAREIT and MSCI indices.

Further information on the Company is available at www.lxireit.com

* These are guidance levels or targets only and not a profit forecast and there can be no assurance that they will be met.

 

END

 

 

UPDGPUQWQUPUGAB