Completion of Refinancing

LXI REIT PLC

25 April 2023

 

25 April 2023

LXi REIT plc

(the "Company", the "Group" or "LXi")

COMPLETION OF REFINANCING

The Board of LXI REIT plc, the specialist inflation-protected very long income REIT, reports that further to its announcements on 6 March and 13 April 2023, the Company's refinancing has now completed.

The Company has drawn the new facilities and a summary of the outstanding loans are listed below, resulting in a 6-year weighted average term to maturity (excluding extension options) and a weighted average capped all-in cost of debt of 4.7% (further detail below).

The club of lenders of the Company's new syndicate bank facility are Lloyds Bank plc, Barclays Bank plc, Santander Corporate and Investment Banking and RBS International, London branch. Rothschild & Co advised the Company on the syndicate bank facility.

The lender of the Company's new long-term loan facility is Canada Life Asset Management.

The table below is a summary of the Company's new and remaining debt facilities:

Facility	Expiry	Term to maturity	Interest type	Quantum (£m)	Capped all-in rate
Long-term loan facility	Dec-2033	11-year	Fixed	175.0	2.7%
Leisure facility	Dec-2024	2-year	Capped	60.0	4.6%
Healthcare facility 1	Sep-2025	2-year	Fixed	63.1	4.3%
Healthcare facility 2	Oct-2025	3-year	Fixed	292.5	5.3%
Long-term loan facility (new)	Mar-2039	16-year	Fixed	148.0	5.8%
Syndicate term loan A	Jan-2028	5-year	Capped	115.0	4.3%
Syndicate term loan B	Jan-2026	3-year	Capped	250.0	4.2%
Syndicate RCF	Jan-2028	5-year	Capped1	200.0	5.8%1
		6-year		1,298.6	4.7%

The Board is also pleased to announce that the Company is expecting to receive an Investment Grade credit rating from Standard & Poor's, which will be published on their website shortly.

Freddie Brooks, CFO, LXi REIT Advisors, commented:

"We are pleased to have completed the Company's comprehensive refinancing programme, delivering operational flexibility, further diversifying our sources of capital and underpinning our long-term progressive dividend policy. The new facilities represent a positive outcome for the Company, despite the challenging economic backdrop, that is testament to the quality of our long-income portfolio."

FOR FURTHER INFORMATION, PLEASE CONTACT:

LXI REIT Advisors Limited Simon Lee (Partner, Fund Manager) John White (Partner, Fund Manager) Freddie Brooks (CFO)	Via H/Advisors Maitland
Barclays Bronson Albery / Tom Macdonald / Dion Miceli	020 7623 2323
Jefferies International Tom Yeadon / Ed Matthews / Rishi Bhuchar	020 7029 8000
H/Advisors Maitland (Communications Advisor) James Benjamin / Rachel Cohen	07747 113 930 / 020 7379 5151 [e-mail]

The Company's LEI is: 2138008YZGXOKAXQVI45

NOTES

LXI REIT plc invests in commercial property assets predominantly in the UK, let, or pre-let, on 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 dividend of 6.6 pence per ordinary share for the year which commenced on 1 April 2023².

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 Financial Conduct 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 250, EPRA/NAREIT, MSCI and STOXX Europe 600 indices.

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

1    At the date of this announcement, the Company has capped £400 million of the £565 million total facility at a strike rate of 2.0%. The Company intends to hedge at least a further £150 million notional in due course. The capped all-in rate in the table above assumes the unhedged element is capped or fixed at the 5-year SONIA swap rate of 4.0318%, being the at the money rate at market close on 24 April 2023

2    This is a target and not profit forecast

 

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