LXi REIT has proposed a £100m equity raising to fund its £200m investment pipeline.
The REIT aims to issue 84.5m new shares at 118p each, reflecting a 3% premium to the net asset value of its properties and a 9.5% discount to Friday’s closing price (130.4p).
The potential acquisitions have a long weighted average unexpired lease term to first break of 25 years and a blended net initial yield of 5.6%.
The news comes after the company’s NAV per share increased by 6.44% year-on-year to 114.6p, in the year to 31 March.
Its portfolio value grew to £589.5m during the year, rising by 4.35% on a like-for-like basis.
LXi has now set an increased dividend target of 5.75p per share for the year ending 31 March 2020, which would mark a year-on-year increase of 4.55%.
Stephen Hubbard, chairman of LXi REIT, said: “The sector continues to see index-linked rental increases materially outperforming open-market rent reviews and with 96% of the group’s contracted rental income containing index-linked or fixed-uplift rent reviews, when coupled with our low cost base and low all-in cost of debt fixed for a further 12 years, the board remains confident that the company will continue to grow dividends and provide shareholders with inflation-protected income and the potential for capital growth.”
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