LXi REIT pleased with progress so far
By Josh White
Date: Thursday 29 Nov 2018
(Sharecast News) - Specialist inflation-protected very long income real estate investment trust LXi REIT issued its results for the six months ended 30 September on Thursday, reporting a total net asset value return per share, inclusive of dividends, of 8.08%.
The London-listed firm said that represented "significant" over-delivery on its annual target of 8%.
Its EPRA net asset value per share improved by 5.33p, or 4.95%, to 113p, with the board declaring a dividend per share for the six month period of 2.75p, putting the company on track to meet its full-year target of 5.50p.
The board said the dividend was fully covered by EPRA earnings per share of 2.8p for the half-year, which excluded developer licence fees, and adjusted earnings per share of 3.17p, including developer licence fees.
LXi's operating profit totalled £18.39m, which comprised income from the group's property portfolio and changes in fair value of investment property, net of administrative and other expenses.
The portfolio was independently valued by Knight Frank at £318.79m as at 30 September, including all commitments on forward-funded assets, representing a like-for-like uplift of 12% from acquisition price, excluding acquisition costs.
Its loan-to-value reduced to 29% over the six months, with material headroom maintained to its medium term maximum of 35%.
The firm also reported a low all-in fixed cost of debt of 2.90%, and long average debt maturity of 11 years, which the board said underpinned its ability to grow investor returns through inflation-linked rent reviews.
Total shareholder return since IPO in February 2017 was 21%, which the directors said reflected the "strong performance" of the company's portfolio, increased dividend targets, dividend payments and share price.
"This has been another busy and successful six months, implementing our investment strategy, delivering on and in many cases exceeding our targets," said LXi chairman Stephen Hubbard.
"The secure income and capital growth of our portfolio has provided a total NAV return of 8.08% in the first half of the year and we are on track to meet and fully cover our 5.50p dividend target for the full year."
Hubbard said the company was "delighted" that new and existing shareholders supported its growth plans by subscribing for a further £175m of equity shortly after period-end, increasing LXi's market capitalisation to more than £400m.
"The full deployment of the net proceeds within four weeks of the raise has facilitated further diversification of the group's portfolio and provided further value to our shareholders through accretive acquisitions."
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