LXI REIT, which focuses on long-term income, has announced its first full-year results since listing on the London Stock Exchange in February 2017.
The REIT, which targets long-term, inflation-protected property with 20 to 30-year leases, institutional clients and upward-only rent reviews, is chaired by Stephen Hubbard, UK chairman of CBRE.
The group reported an increase in NAV and EPRA NAV per share to 107.67p as at 31 March 2018, an increase of 9.9% from the 98p at the time of the company’s IPO.
Since listing, it has executed 34 separate transactions, acquiring 88 separate properties all let, or pre-let, on very long, inflation-linked leases to a wide range of strong tenant covenants, with an average net initial yield of 6.03%.
The target annual dividend has been increased by 10% to 5.5p per share, up from a minimum of 5p per share at IPO. This increase follows the full deployment of the group’s equity and debt capital raised.
Hubbard said: “The board believes that, with a backdrop of continuing economic and geopolitical uncertainty, the group’s portfolio is resilient and increasingly attractive to investors seeking stable income and capital growth.”
He added: “Despite a rising interest rate environment, there remains, and we expect there to continue to be, a very significant and positive spread between the company’s index-linked portfolio yield and bond rates.
“Furthermore, the board remains confident about delivering further value to our shareholders through the investment adviser’s strategies of acquiring selectively across a wide range of robust sectors on an ‘off-market’ basis and forward funding pre-let developments in smaller lot sizes.”
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