TIDMLXI
RNS Number : 2361W
LXI REIT PLC
13 November 2017
13 November 2017
LXi REIT plc
(the "Company" or "LXi REIT")
FORWARD FUNDED PRE-LET INVESTMENT AND FULL DEPLOYMENT OF SECOND
EQUITY ISSUE AND PORTFOLIO UPDATE
The Board of LXi REIT plc (ticker: LXI) is pleased to announce
that the Company has exchanged contracts on the pre-let forward
funded acquisition of a new Premier Inn hotel in the East Midlands
and has now fully deployed the net proceeds of its second equity
issue of GBP60.2 million of 12 October 2017.
GBP6.9 million forward funded acquisition of 25-year pre-let
Premier Inn hotel, East Midlands
The Company has exchanged contracts on the pre-let forward
funding acquisition of a new Premier Inn hotel in the East Midlands
(the "Property"). The total funding commitment is GBP6.9 million,
reflecting a net initial yield of 5.20% (net of acquisition costs
to the Company).
The Property has been fully pre-let to Premier Inn Hotels
Limited, the principal hotel trading company of Whitbread PLC, a
FTSE 100 company with a market capitalisation of GBP6.6 billion and
the UK's largest hotel, restaurant and coffee shop operator.
Whitbread Group PLC is the tenant's guarantor under the terms of
the lease.
The lease will run for a term of 25 years from completion of the
building works, with no tenant break right. The rent is subject to
five yearly upward only reviews index-linked to the Consumer Prices
Index (collared and capped at 0% p.a. and 4% p.a. compound).
Full planning consent has been granted, the tenant pre-let has
exchanged and the Company is acquiring the land and forward funding
on a fixed-price basis. The developer will pay the Company a
licence fee during the construction period. The Company is not
developing the site or assuming development risk. Completion of the
purchase is due to occur in the next few weeks.
The acquisition is being funded from equity resources following
the second issue of shares on 12 October 2017, with senior debt
finance expected to be introduced in the near term.
Full deployment of second equity issue of 12 October and update
on Company portfolio
Following the Premier Inn forward funding acquisition referred
to above, the Company has now fully deployed the net proceeds of
its GBP60.2 million second equity issue of 12 October 2017. The
headline statistics for the Company's total portfolio acquired
since IPO on 27 February 2017 are:
-- GBP241 million of equity and debt capital deployed (excluding acquisition costs)
-- Attractive average net initial property yield of 6.0%
-- Long weighted average unexpired lease term to first break of 24 years
-- 97% of the income is index-linked or contains fixed uplifts
-- Assets are diversified across eight robust sectors: hotels
(25%), supported living (24%), care homes (22%), industrial (9%),
car parks (8%), discount retail (6%), leisure (4%) and automotive
(2%)
-- Rental income is secured against 19 strong tenants, including
Aldi, Costa Coffee, General Electric, Home Bargains, Lidl,
Motorpoint, Premier Inn, Prime Life, The Priory Group, Q-Park, SIG,
Specialist Housing Associations, Starbucks and Travelodge
-- Significant geographic diversification across 18 different counties in the UK
-- The properties have been acquired, predominantly off-market,
via 30 separate purchase transactions, with an average lot size of
GBP8 million and a good mix of pre-let forward funding, forward
commitment and built asset structures
The Company's LEI is: 2138008YZGXOKAXQVI45
FOR FURTHER INFORMATION, PLEASE CONTACT:
LXI REIT Advisors Limited Via Newgate Communications
John White (Partner, Fund
Manager)
Simon Lee (Partner, Fund Manager)
----------------------------------- ---------------------------------
Peel Hunt LLP Tel: 020 7418 8900
Luke Simpson
----------------------------------- ---------------------------------
Newgate Communications (PR Tel: 020 7680 6550
Adviser) Email: lxireit@newgatecomms.com
James Benjamin
Anna Geffert
Lydia Thompson
----------------------------------- ---------------------------------
NOTES:
The Company 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 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 minimum annual dividend of 5 pence
per ordinary share, starting from the financial period commencing 1
April 2018, with the potential to grow the dividend in absolute
terms through upward-only inflation-protected long-term lease
agreements, and is targeting a net total shareholder return of 8
per cent. plus per annum over the medium term(1) .
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.
Further information on the Company is available at
www.lxireit.com
Note 1: these are targets only and not a profit forecast and
there can be no assurance that they will be met.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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