(Alliance News) - LXi REIT PLC on Monday said its property valuation fell in the past six months, amid higher interest rates and inflation.
The London-based commercial real estate investment trust updated shareholders ahead of the publication of its interim results, which will be released in November.
"The past six months have continued to be marked by considerable economic uncertainty, with high rates of inflation and rising interest rates. As a result, and notwithstanding a strong operational performance and robust rental growth, we have witnessed a further, small reduction in our property valuation," said Chair Cyrus Ardalan.
LXi's property portfolio was valued at GBP3.19 billion at September 30, down 5% from GBP3.36 billion at March 31.
The valuation reflects a 4% like-for-like reduction in value, net of rental growth, in the six month period.
The company said its operational performance "remains robust", with 100% of rent due collected.
Looking ahead, LXi said there are "green shots emerging". It noted UK inflation falling, as well as interest rates being paused.
LXi added that its priorities for the next six months include recycling capital through further asset sales and re-gearing shorter-let assets in the portfolio.
It also continues to target an annual dividend of 6.6 pence for the year to March 31, up from 6.3p a year ago.
"We remain confident that the company will continue to deliver secure, growing income along with capital and share price growth," Ardalan added.
Shares in LXi were up 0.2% to 90.00p each in London on Monday morning.
By Sophie Rose, Alliance News reporter
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