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The board of Directors (the "Board") of LXi REIT (ticker: LXI), the specialist inflation-protected long income REIT, today announces its intention to raise approximately £75 million by way of a placing pursuant to its existing Share Issuance Programme at a price of 133 pence per New Ordinary Share (the "Placing" ).
The board of Directors (the "Board") of LXi REIT (ticker: LXI), the specialist inflation-protected long income REIT, today announces its intention to raise approximately £75 million by way of a placing pursuant to its existing Share Issuance Programme at a price of 133 pence per New Ordinary Share (the "Placing" ).
gnawsome wrote:The board of Directors (the "Board") of LXi REIT (ticker: LXI), the specialist inflation-protected long income REIT, today announces its intention to raise approximately £75 million by way of a placing pursuant to its existing Share Issuance Programme at a price of 133 pence per New Ordinary Share (the "Placing" ).
Yes - I want some. Already have 'a portion'
My first thought is; why no rights for existing holders.
Then I think; If I buy via the offer, the shares will end up in my dealing account - that's not where I want them so there will be a cost to move them.
All this while my EQI accs are being moved to II.
Perhaps I'd best wait on.
See if the they can be bought on the the market direct to my ISA at c135p. That tuppence should balance out the cost moving after buying.
And thanks for mentioning it. I don't see a lot that actually discusses interesting (to me) things
Further to the Company's announcements on 24 and 30 June 2021, the Board of LXi REIT (ticker: LXI), the specialist inflation-protected long income REIT, is pleased to announce it has raised gross proceeds of £100 million pursuant to the Placing and approximately a further £4 million of gross proceeds pursuant to the PrimaryBid Offer.
The Board, taking into account the strength of the Company's near term investment pipeline and in response to investor demand, as announced on 30 June 2021, determined to increase the size of the Placing to £100 million (from approximately £75 million), and, accordingly the Company will issue a total of 75,187,970 New Ordinary Shares in the Placing at the Issue Price of 133 pence per New Ordinary Share. In addition, the Company will issue 2,781,955 New Ordinary Shares pursuant to the PrimaryBid Offer at the Issue Price.
The Placing was significantly oversubscribed above the £100 million cap and a scaling-back exercise was therefore carried out.
Commenting on today's announcement, Stephen Hubbard, Chairman of LXi REIT plc, said:
"We are delighted by the success of this significantly oversubscribed Placing and the take up through the PrimaryBid Offer. On behalf of the Directors and the Investment Advisor, I would like to thank existing shareholders for their strong support and welcome a range of new investors to the Company. In light of the strength of investor demand and reflecting our confidence in both the depth and near-term availability of our significant pipeline of attractive investments we increased the size of the Placing to £ 100 million.
The proceeds of this fundraise will allow us to capitalise in the near-term on the significant identified pipeline of sale and leaseback and other long income, forward funding opportunities. The properties in the pipeline have been sourced in the vast majority of cases off-market and are diversified across a range of defensive and structurally supported sub-sectors and let to high-quality tenant covenants . These are expected to be accretive and further strengthen and diversify our portfolio. We look forward to updating shareholders as we execute on these attractive investment opportunities."
The Company is pleased to report collection of 100% of the rent due for the quarter ending September 2021 (Q3 2021).
This figure is calculated on the basis of cash received versus contractual rent due and no rents in respect of the quarter have been deferred.
Following this level of rent collection, the Board is pleased to reaffirm its intention to pay a quarterly dividend of 1.5 pence per ordinary share for the second quarter of the financial year, which is expected to be declared in November 2021 and fully covered by net rental income for the quarter.
This quarterly dividend rate reflects the second of four equal instalments totalling 6.0 pence per ordinary share that the Company is targeting for that financial year, representing a 4.3% increase on the Company's pre-Covid-19 dividend rate of 5.75 pence per share *.
The Board of LXi REIT (ticker: LXI), the specialist inflation-protected long income REIT, is pleased to announce the off-market sale and leaseback acquisition of a portfolio of 23 nursery schools in England ("the Nurseries") for a total cost of £34 million, reflecting an accretive 5.5% net initial yield (versus a current portfolio value of 4.7%).
The Nurseries have been acquired from and leased back to KidsFoundation, one of Europe's leading providers of education and care services for children, with over 900 educational facilities across the UK and northern Europe.
Each property benefits from a new, unbroken 30-year lease to the top entity within the KidsFoundation group. The rent increases on an annual basis in line with RPI inflation until 2030, from which date the reviews convert to CPIH inflation plus 0.83% pa (to reflect the change in RPI from that date). The reviews contain a collar of 1% pa and a cap of 4% pa.
The Nurseries are well located across England, with strong and affluent catchment populations and the rent has been set at a sustainable level to produce a high rent cover of 2.75X (EBITDAR of 2.75 times the rent) on an individual asset basis. This ensures the rent remains affordable for the tenant whilst the investment is also underpinned by vacant possession value.
The transaction reflects the tenant's ambition to further grow and invest in its UK business, with a continued drive to provide the highest quality early childhood education and care.
The Board of LXi REIT plc (ticker: LXI), th e specialist inflation-protected very long income REIT, is pleased to declare an interim quarterly dividend in respect of the quarter ended 30 June 2021 of 1.5 pence per ordinary share, payable on 29 October 2021 to shareholders on the register at 24 September 2021. The ex-dividend date will be 23 September 2021.
The dividend will be paid as a Property Income Distribution ("PID") in respect of the Company's tax exempt property rental business.
The following amendments have been made to the announcement Dividend Declaration released at 7am on 17 September 2021 under RNS number 0694M.
The record date (date shareholders appear on the register at the cut-off point for paying the dividend) is 1 October 2021.
The ex-dividend date is 30 September 2021.
All other details remain unchanged.
Portfolio valuation
The Company's independent valuer, Knight Frank LLP, has valued the Group's property portfolio, as at 30 September 2021, at £1.22 billion.
This represents a +4.9% like-for-like increase over the six-month period since 31 March 2021 and a total increase of +29.7% over that period, including acquisitions and disposals.
The like-for-like movements, resulting from both yield compression and rental growth, were spread across the Company's main sub-sectors as follows: Foodstores +5%, Industrial +7%, Budget Hotels +2%, Healthcare +3%, Pubs +7%, Garden Centres +4%, Car Parks +3% and Drive-thru Coffee +2%.
Net asset value and total return
On the basis of the updated property valuation, the Board expects to announce a net asset value ("NAV") per share as at 30 September 2021, of approximately 133.5 pence, reflecting growth of approximately +6.2% over the six-month period.
Inclusive of dividends paid during the six-month period, the Company expects to deliver a total NAV return of approximately +8.6% for the half-year, significantly outperforming the Company's minimum annual total NAV return target of 8%3.
The Company's total NAV return from IPO in February 2017 to 30 September 2021 is expected to be 59%, equating to a 10.6% compounded annual total NAV return.
The Company's total shareholder return since IPO, assuming dividends reinvested was 70%, equating to a 12.3% compounded annual total shareholder return.
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."
LXI), the specialist inflation-protected long income REIT, will announce its half year results for the six months ended 30 September 2021 on Wednesday, 24 November 2021.
A Company presentation for investors and analysts will take place via a live webcast and conference call at 08.30am GMT on the day .
For those who wish to access the live webcast, please register here:
https://www.investis-live.com/lxireit/6 ... b85da/penr
For those who wish to access the live conference call, please contact Maitland/AMO at lxireit-maitand@maitland.co.uk or by telephone on +44 (0) 20 7379 5151.
The Board of LXi REIT plc (ticker: LXI), th e specialist inflation-protected very long income REIT, is pleased to declare an interim quarterly dividend in respect of the quarter ended 30 September 2021 of 1.5 pence per ordinary share, payable on 30 December 2021 to shareholders on the register at 3 December 2021. The ex-dividend date will be 2 December 2021.
The dividend will be paid as a Property Income Distribution ("PID") in respect of the Company's tax exempt property rental business.
· Total NAV return was 9.0% comprising NAV growth and dividends paid during the half-year. Since IPO, the Group has delivered an annualised total NAV return of 10.7% pa, well ahead of our 8%+ medium term target4
· Dividend per share in respect of the half-year totalled 3.0p per share (30 September 2020: 2.65p per share), which represents 13.2% growth on the half-year to September 2020
· Adjusted EPS for the half-year was 3.5p (30 September 2020: 3.3p), which represents growth of 6.1% on the half-year to 30 September 2020, and a rate of 1.1X the dividend per share
· Portfolio independently valued at £1,216.6m reflecting a six-month like for like uplift of 4.9% across the Group's assets. The growth was broadly spread across sub-sectors as follows, with detail of the key drivers given in the Investment Advisor's report:
The Board of LXi REIT (ticker: LXI), the specialist inflation-protected long income REIT, is pleased to announce the acquisition of a long-let property (the "Property") which has been independently valued by Knight Frank LLP at £58.9 million (the "Independent Value").
The consideration for the acquisition is being satisfied by:
· the issue of 35,715,862 new ordinary shares in the Company (the "Shares"), equating to 88% of the Independent Value, at an issue price of 145 pence per share (a 9.4% premium to the Company's ex-dividend EPRA NTA as at 30 September 2021 of 132.5p); and
· a further £7.0 million in cash, equating to 12% of the Independent Value.
The consideration represents a net initial yield of 4.9% and is expected to rise to 5.7% at the next inflation-linked rent review in 2025.
The seller, an existing long-term shareholder of the Company (Laxmi Nivaria S.L.U.), has agreed to be subject to a lock-up period restricting the disposal of the Shares for a minimum period of 12-months from the date of Admission (defined below).
The Property
The Property comprises 127,000 sq ft of built area, along with 850 car parking spaces and petrol filling station, on a substantial freehold site that extends to 16 acres. The Property is fully let to Sainsbury's Supermarkets Limited (the principal trading company of the Sainsbury's group) with 19 years unexpired to first break. The rent increases five yearly in line with RPI inflation, collared at 1% pa and capped at 4% pa.
The Property includes offerings from Argos (part of the Sainsbury's group), along with The Food Warehouse (part of the Iceland Foods group), B&M, KFC and Costa, who have sub-let the space from Sainsbury's. The Property has online connectivity through both click and collect and home delivery.
Given its size, location and nature, the Property provides good opportunities for asset management and ESG initiatives that have the potential to enhance income and capital returns through, for example, adding further drive-thru units, EV charging points and solar panelling.
The Property is located in a prominent position to the east of Middlesbrough town centre, directly adjacent to the busy A66 and accessed by an all movements junction. Middlesbrough Football Club's Riverside Stadium is situated to the north and Middlehaven, one of the north east's largest residential and office led regeneration schemes, is to the north west.
Dividend target
The Board is pleased to announce that the Company is targeting a fully covered annual dividend of 6.3 pence per share ("pps") for the 12-month period commencing 1 April 20221 (the "New Annual Dividend Target").
This represents a 5% increase over the 6.0 pps dividend target for the year ending 31 March 20221, which the Company continues to target and remains on track to meet.
The New Annual Dividend Target assumes that future rent collection is not materially lower than that achieved so far throughout the pandemic and is expected to be paid to shareholders in four equal quarterly instalments of 1.575 pps. The Company targets a total shareholder return of a minimum of 8% per annum over the medium-term1.
Rent collection
The Company's rent collection remains resilient, and we expect to collect 100% of the rent due for Q1 2022, which would represent 100% rent collection for the 12 months ending 31 March 2022.
Portfolio valuation
The Company's independent valuer, Knight Frank LLP, has valued the Group's property portfolio, as at 31 December 2021, at £1.33 billion.
The valuation represents a +3.3% like-for-like increase over the three-month period since 30 September 2021 and a total increase of +9.0% over that period with the Company continuing to actively recycle assets through profitable disposals and acquisitions of assets typically at wider yields and often via relationship driven forward funding transactions.
The Company's valuation movement reflects an element of yield compression, with the portfolio net valuation yield being 4.5% (4.6% as at 30 September 2021), alongside ongoing rental growth within the portfolio, through index-linked rent reviews, in a period where inflation has substantially increased. 96% of the Group's contracted rents are index-linked or contain fixed uplifts designed to reflect inflation over the medium term.
Over the last 12 months, the Company has successfully deployed £294 million of new equity and debt across a range of defensive and structurally supported sub-sectors with the assets being let to a variety of high-quality tenants.
The board of Directors (the "Board") of LXi REIT (ticker: LXI), the specialist inflation-protected long income REIT, today announces a proposed issue of new ordinary shares ("New Ordinary Shares") in the Company to raise target gross proceeds of approximately £125 million by way of a Subsequent Placing, Open Offer, Offer for Subscription and Intermediaries Offer (the "Subsequent Issue") under the Company's share issuance programme (the "Share Issuance Programme"), the details of which will be set out in the Prospectus expected to be published by the Company later this week.
The Subsequent Issue will target the issue of 88,261,608 New Ordinary Shares at an issue price of 142 pence per New Ordinary Share (the "Issue Price"). The Issue Price represents a premium of 2.9 per cent. to the Estimated NAV per Ordinary Share as at 31 December 2021 (unaudited) of 139.5 pence, reduced by the interim dividend of 1.5 pence per Ordinary Share that the Company is targeting in respect of the quarter ended 31 December 2021 (the "2021 Q3 Dividend"), and, a discount of 6.8 per cent. to the closing price per Ordinary Share on 17 January 2022 of 152.4 pence per Ordinary Share (being the last business day prior to this announcement). The 2021 Q3 Dividend is a target only and, for the avoidance of doubt, is not a profit forecast.
Summary
· Target issue of 88,261,608 New Ordinary Shares pursuant to a Subsequent Placing, Open Offer, Offer for Subscription and Intermediaries Offer, targeting gross proceeds of approximately £125 million
· Shareholders who qualify for the Open Offer ("Qualifying Shareholders") will be offered the opportunity to participate in the Open Offer on the basis of 3 New Ordinary Shares for every 25 Existing Ordinary Shares (the "Open Offer Entitlement")
· Qualifying Shareholders will also be offered the opportunity to subscribe for New Ordinary Shares in addition to their Open Offer Entitlement under an excess application facility (the "Excess Application Facility")
· The Board has reserved the right to increase the size of the Subsequent Issue by reallocating New Ordinary Shares otherwise available under the Share Issuance Programme to increase the size of the Subsequent Placing, the Offer for Subscription and/or the Intermediaries Offer. Any decision to increase the size of the Subsequent Issue will only be made after careful consideration of the size and availability of the Company's investment pipeline
· The Issue Price is 142 pence per New Ordinary Share. This represents a premium of 2.9 per cent. to the Estimated NAV per Ordinary Share as at 31 December 2021 (unaudited) of 139.5 pence, reduced by the 2021 Q3 Dividend of 1.5 pence per Ordinary Share
Dod101 wrote:Another of these small companies raising additional capital by a placing and open offer, and this time at a premium to NAV. Existing shareholders who do not/cannot take up the offer will be diluted again.
Dod
MDW1954 wrote:Dod101 wrote:Another of these small companies raising additional capital by a placing and open offer, and this time at a premium to NAV. Existing shareholders who do not/cannot take up the offer will be diluted again.
Dod
Dod,
You repeatedly make this point. ANY open offer or equivalent that isn't taken up results in dilution. In the case of REITs, the impact on shareholders' earnings is generally nil or even accretive, as the idea is to buy earmarked assets with immediate earnings streams, and spread fixed costs over those additional assets. PHP is a case in point.
I shall be buying.
MDW1954
The Investment Advisor has identified a significant pipeline of additional assets which meet the Company's investment objective and policy, the vast majority of which have been sourced off-market through the Investment Advisor's extensive contacts and relationships.
The pipeline assets, which total approximately £272 million (including expected costs) benefit from a long weighted average unexpired lease term of over 20 years, a blended net initial yield of 5.2 per cent. (net of acquisition costs) and 97 per cent. index-linked or fixed uplifts. These assets are diversified across a range of defensive and structurally supported sub-sectors, by location and are leased to a range of institutional-grade tenants with strong financial covenants, with a good mix within the pipeline of built assets and forward funded structures.
Since IPO in 2017 (to 31 December 2021), the Company has delivered an average total shareholder return of 13.1 per cent. per annum.
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