LXI REIT Share Offer

  • LXI.L
  • Market: Main Market
  • Sector: Real Estate Investment Trusts
  • Market Cap: £275m
  • Raising: circa £100m
  • Price: circa 113p
  • Closing: 11th October 2018 at 12:00
  • GM: Results announced 11th October

Offer Now Open

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The LXI REIT Share Offer

18th November 2018

NOT FOR RELEASE, DISTRIBUTION OR PUBLICATION, DIRECTLY OR INDIRECTLY, TO THE UNITED STATES, AUSTRALIA, CANADA, THE REPUBLIC OF SOUTH AFRICA, JAPAN OR ANY MEMBER STATE OF THE EEA (OTHER THAN THE UNITED KINGDOM) OR TO ANY NATIONAL, RESIDENT OR CITIZEN OF THE UNITED STATES, AUSTRALIA, CANADA, THE REPUBLIC OF SOUTH AFRICA, JAPAN OR ANY MEMBER STATE OF THE EEA (OTHER THAN THE UNITED KINGDOM)

LXI REIT Share Offer - Overview

Expected Timetable

  • Offer Open

    5th October 2018 

  • Books Close:

    11th October 2018

  • Allocation announced:

    12th October 2018

  • Trading begins:

    16th October 2018


About the LXI REIT plc

The Company is a UK Real Estate Investment Trust (‘REIT’) listed on the premium listing segment of the Official List of the UK Listing Authority.  It was admitted to trading on the main market for listed securities of the London Stock Exchange in February 2017.  The REIT seeks to deliver inflation-protected income and capital growth through investing in a diversified portfolio of UK property assets with long-term, index-linked leases to institutional grade tenants across a wide range of sectors.  The REIT is focused on acquiring property that provides returns above open market rent forecasts as well as with a strong residual land value. Their strategy for returns and growth is built on: Inflation-tracked, long-term income through regular index-linked rent reviews, with 97% of its passing rents subject to RPI, CPI or fixed uplifts.

The REIT is also involved in forward funding pre-let developments by investing in forward funded developments through which they fund the construction of assets - whilst avoiding exposure to development risk - at significant discounts to build values.  They also identifying investment opportunities which are ‘off market’ through long standing industry relationships to benefit from softer pricing with no competitive bidding process.

Highlights
  • A REIT with a proven track-record and a portfolio of existing properties.
  • The REIT has identified a pipeline of targets for acquisition.
  • The portfolio can be seen as secure (with a Weighted Average Lease Term of 23.4 years), diversified (in 9 property sectors) and growing (they are purchasing further properties in their pipeline).
  • The REIT is looking to pay a dividend of 5.5p in 2018/19 (which is an increase of 10% over the 5p IPO target.

Use of Proceeds
  • To fund further investments in line with its investment policy and objective and with a view to delivering further value for its Shareholders
  • The company wishes to acquire property it has identified in a pipeline of additional assets which meet the Company's investment policy and objective, including off-market assets.

Risks*
  • Investment risk: The value of the Company’s shares and the income from them can fall as well as rise.
  • Property risk: Property performance will depend on general real estate market conditions. An adverse change in valuations could lead to covenant breaches and/or a reduction in revenues which could detrimentally affect the Company’s ability to pay dividends.
  • Financial risk: A lack of debt funding at appropriate rates may restrict the Company’s ability to pay dividends and to acquire further assets.
  • Assumptions: The ability of the REIT to secure a pipeline of acquisitions is not guaranteed.
  • Taxation risk: The Company operates as a UK REIT and has a tax-efficient corporate structure, with advantageous consequences for UK Shareholders. Any change to the Company’s tax status or in UK tax legislation could affect its ability to achieve its investment objectives and provide favourable returns to Shareholders.
  • Interest rate risk: Current environment of fiscal tightening could impact on the financial assumptions of the REIT should the cost of financing risk, for example.
  • Other risks associated with placings for listed companies.

*Please note that these risks represent the judgement of Cornhill Capital, there may be additional risks represented in the prospectus


Offer Documents

Important information

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