(Sharecast News) - Real estate investment trust LXI has negotiated an important lease restructuring with one of its largest tenants, BCA.
LXI said on Wednesday that the term of the lease has been extended from 16 years to 25 years, with no tenant break right, while the rent remained unchanged on the asset, with the first rent review to take place five years from the date of the lease extension.
However, the FTSE 250-listed group said the rent review had been converted from uncapped retail price index with no collar to RPI, capped at 2.5% per annum and collared at 1.5% a year.
"The new collar provides a minimum rental uplift for shareholders, which is attractive in the current environment," said LXI.
After the lease restructure, 95% of LXI's rental income was inflation-linked or contained fixed uplifts and 68% of its income now had a minimum contractual uplift/collar, regardless of the inflation rate, averaging 2% every year.
As of 0930 BST, LXI shares had dipped 1.42% to 111.20p.
12 May 2021 09:16
LXi REIT to acquire portfolio of Costa stores, industrial asset
(Sharecast News) - LXi REIT has exchanged contracts on the forward-funding acquisition of a portfolio of Costa Coffee 'drive-thru' properties, as well as an industrial asset, for a total cost of £36m, it announced on Wednesday.
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