Accretive pre-let forward funding acquisitions
1 November 2021
LXi REIT plc
(the "Company", the "Group" or " LXi REIT ")
PRE-LET FORWARD FUNDING ACQUISITIONS TOTALLING £19.5 MILLION IN THE GROCERY AND SELF-STORAGE SECTORS
The Board of LXi REIT (ticker: LXI), the specialist inflation-protected long income REIT, is pleased to announce the following long-let forward funding acquisitions ("the Acquisitions") for a total cost of £19.5 million, reflecting an accretive 5.1% average net initial yield.
The Acquisitions will be funded using the Company's revolving credit facility and the Company will receive an income during the construction periods.
Lidl and Lok n' Store, Basildon
The Company has exchanged contracts on the pre-let forward funding of a Lidl foodstore and a Lok n' Store self-storage facility in Basildon, Essex.
The foodstore has been fully pre-let to Lidl on an unbroken 20-year lease, with five yearly RPI inflation-linked uplifts (collared at 1% pa and capped at 3% pa).
Founded in Germany in 1973, Lidl has grown to become one of Europe's leading food retailers, operating 860 stores in the UK and 12,000 across Europe and the US.
The self-storage facility has been fully pre-let to Lok n' Store on an unbroken 25-year lease, with five yearly rental uplifts at a fixed growth rate of 2.5% pa.
Lok n' Store is a leading, London-listed self-storage business, which has generated revenue growth of 21% over the latest 12-month period.
Basildon is the largest town in the County of Essex and is well connected to London, Chelmsford and Southend via the A127 and the A13, allowing easy access to the M25. The property is situated at the junction of Miles Gray Road and A176 Upper Maine, opposite the established Pipps Hill retail park.
John White, Partner, LXI REIT Advisors, comments:
"We see continuing strength in the discount grocery and self-storage sectors and these off-market forward fundings provide long-term leases with imbedded rental growth and the potential for capital growth, underpinned by robust tenants and residual values."
FOR FURTHER INFORMATION, PLEASE CONTACT:
|
LXI REIT Advisors Limited Simon Lee (Partner, Fund Manager) John White (Partner, Fund Manager)
|
Via Maitland/AMO |
|
|
|
|
Peel Hunt LLP Luke Simpson/Liz Yong
|
020 7418 8900 |
|
|
|
|
J efferies International Ed Matthews/Tom Yeadon
|
020 7029 8000 |
|
|
|
|
Maitland/AMO (Communications Adviser) James Benjamin |
07747 113 930 |
The Company's LEI is: 2138008YZGXOKAXQVI45
NOTES:
LXI REIT plc invests in UK commercial property assets let, or pre-let, on long-term, triple-net, inflation-linked leases to a wide range of strong tenant covenants across a diverse range of robust property sectors.
The Company aims to provide shareholders with an attractive return, in the form of quarterly income distributions and with the potential for capital and income growth from key strategies which include indexed rental uplifts, pre-let forward fundings, sale and leasebacks, and off-market, value driven acquisitions and sales.
The Company is targeting an annual dividend of 6.0 pence per ordinary share for the 12-months commencing 1 April 2021* and its medium-term total return target is a minimum of 8% pa.
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 250, 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.
RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our Privacy Policy.
Latest directors dealings
- 6 minutes ago CLS Holdings
- 14 minutes ago British American Tobacco
- 19 minutes ago British American Tobacco
- 23 minutes ago B.P. Marsh & Partners
- 24 minutes ago British American Tobacco