Profitable Disposal

RNS Number : 6406L

LXI REIT PLC

04 May 2020

 

4 May 2020

LXI REIT plc

(the "Company" or "LXI REIT")

PROFITABLE DISPOSAL

LXi REIT plc (ticker: LXI), the specialist inflation-protected very long income REIT, is pleased to announce the following profitable disposal.

Following receipt of an unsolicited approach, the Company has sold two social housing assets for an aggregate price of £2.2 million to a specialist fund:

· reflecting a net exit yield of 5.15%, which compares favourably to the net acquisition yield of 6.0% paid by the Company in 2017;

· representing a 15% uplift on purchase price and a 3% premium to latest book value; and

· generating an attractive geared IRR for the Company of over 15% per annum.

The Company intends to redeploy the proceeds of the sale into its accretive asset pipeline once the impact of Covid-19 has become clearer.

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 Liz Yong	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 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 an annual dividend of 5.75 pence per ordinary share, starting from the financial period commencing 1 April 2019, with the potential to grow the dividend in absolute terms through upward-only inflation-protected long-term lease agreements, and is targeting a total NAV return of a minimum of 8 per cent. per annum over the medium term.*

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 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, FTSE EPRA/NAREIT and MSCI indices.

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

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

 

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